March 2011 - The Global Miller

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A monthly review March 2011 THE GLOBAL MILLER

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A look back at news from around global milling industry in March 2011

Transcript of March 2011 - The Global Miller

Page 1: March 2011 - The Global Miller

A monthly review March 2011THE GLOBAL MILLER

THE GLOBAL MILLER | March 2011

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THE GLOBAL MILLER | March 2011

March 1 2011

New implications for perennial bioenergy crops A team of researchers from Arizona State University Stanford Univer-sity and Carnegie Institution for Science has found that converting large swaths of land to bioenergy crops could have a wide range of effects on regional climate In an effort to help wean itself off fossil fuels the US has mandated significant increases in renewable fuels with more than one-third of the domestic corn harvest to be used for conversion to ethanol by 2018

But concerns about effects of corn ethanol on food prices and deforesta-tion had led to research suggesting that ethanol be derived from peren-nial crops like the giant grasses Miscanthus and switchgrass Nearly all of this research though has focused on the effects of ethanol on carbon dioxide emissions which drive global warming Read more

Tillage and soybean yields If youre nervous switching to no-till or minimum tillage for fear youll lose soybean yields new data should help calm those nerves Especially with todays rising diesel fuel costs making the switch to a minimum till-age system should net you more profit per acre of soybeans you raise according to Iowa State University (ISU) Extension agronomist Mahdi Al-Kaisi

Almost a decades worth of studies conducted at different locations around the state of Iowa in different crop rotations (corn-soybeans corn-corn-soybeans and continuous corn) show that theres no real correlation between soybean yield and tillage system Nine years of results from long-term tillage and crop rotations studies in Iowa showed that regard-less of tillage system or crop rotation soybean yields are not affected by tillage system

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER A blog dedicated for professionals - including nutritionists - in the transportation storage and milling of grains feedstuffs rice and cereals globally

THE GLOBAL MILLER

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THE GLOBAL MILLER | March 2011

4

This is encouraging news for producers who are reluctant to switch to no-tillage soybean after corn due to concerns of poor crop performance Al-Kaisi says in a recent report With current increases in diesel fuel prices some growers could save costs by minimising tillage passes before plant-ing soybeans Read more

Study to enhance acute piglet post-weaning feed intake Paying closer attention to nutrition in pre- and post-weaning pigs promis-es to pay dividends for pork producers thanks to enhanced intestinal and immune development survivability and performance South Australian Megan Edwards completed her PhD this month on early nutrition and the weaning transition

In four experiments under commercial conditions Dr Edwards assessed the influence of various nutritional strategies including extrusion as an alternative milling process amino acid supplementation non-nutritional effects of creep feed and the use of two nutraceutical products spray-dried porcine plasma and a yeast derived protein meal

The nutritional strategies which enhanced survivability and immune competence in newly weaned pigs included supplemental amino acids at weaning offering creep diets containing spray-dried porcine plasma and pre-weaning exposure to creep feed Read more

Weevils hamper India-Vietnam grain trade India exports maize and soybean cake to Vietnam and Vietnam re-ex-ports part of the products back to India causing a lsquotrade conflictrsquo between the two countries Cause weevils Reuters reported that Indian enter-prises have stopped exporting maize and soybean cakes to Vietnam after Vietnam decided to re-export nearly 50000 tons of materials for making animal feed it imported from India before in early February 2010

Halting exportation of animal feed to Vietnam has been described as retaliation by India but the Vietnam Feed Association said that it was just ldquonews circulated for intimidationrdquo The information immediately worried Vietnamese feed producers because India is now providing 30 percent of the total feed materials needed for Vietnam In 2010 Vietnam imported a little over 800000 tons of oil-cakes worth almost US$400 million and 400-500000 tons of maize worth around US$108 million Read more

Water demand will outstrip supply by 40 percent within 20 years Water demand in many countries will exceed supply by 40 percent within 20 years due to the combined threat of climate change and population growth scientists have warned A new way of thinking about water is needed as looming shortages threaten communities agriculture and in-dustry experts said In the next two decades a third of humanity will have only half the water required to meet basic needs said researchers

Agriculture which soaks up 71 percent of water supplies is also likely to suffer affecting food production Filling the global water gap by supply measures alone would cost an estimated pound124billion ( US$ 2021 billion) per year a meeting in Canada was told But this could be cut to between pound31billion (US$ 505 billion) and pound37billion ( US$ 603 billion) by an ap-proach which both raised supply and lowered demand according to lead-ing water economist Dr Margaret Catley-Carlson Reads more

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THE GLOBAL MILLER | March 2011

March 02 2011

Spain lagging behind in feed safety implementation Spain is at the back of the line when it comes to implementing the EU Di-rective on undesirable substances in animal feed The Directive controls the maximum levels of heavy metals such as arsenic specific pesticides and botanical impurities

Member states were to implement the Directive into national law by mid 2010 but Spain has failed to do so The European Commission last week once again called upon Madrid to follow suit after sending out several warnings in 2010 If the Brussels authorities do not receive a satisfactory reply within two months it can sue Spain at the European Court of Jus-tice

Kenyan farmers hit hard by rising feed cost of feeds Dairy farmers in Kenya are squeezed by the escalating cost of animal feed forcing some to revert to homemade provisions to stay afloat The rise in the cost of animal feed has also pushed up milk shelf prices increasing the burden on consumers According to players in the milk sector there is a shortage of ingredients used in animal feed and this has triggered a surge in prices

The Association of Kenya Feed Manufacturers (AKFM) says this is among the challenges facing the industry Players in the milk sector are concerned with the escalating cost of animal feed as high prices threaten to stifle the growth of the dairy farming in the country Read more

Norel appoint distributor in Bangladesh JampC Impex Limited has started distributing Norelrsquos product for the Bang-ladesh market supplying the broiler layer fish and shrimp farms breeder farms and hatcheries as well as feed mills Dr Jamil Hossain Director of JampC Impex Limited said ldquowe started our Agrovet business unit in the year 2007 with a new vision and broader outlook to meet the challenges of the rapidly growing livestock poultry and aquaculture marketsrdquo

Norel SA is an international company based in Spain and manufacturing on three continents producing various species-specific additives under the brand name Norel Animal Nutrition this includes specialist rumen-inert and other vegetable fats direct fed microbial additives (probiotics) natural growth promoters a range of flavours and sweeteners specific amino-acid mineral chelates acidifiers and pellet binders plus a wide range of feed safety products bactericides mould inhibitors antioxidants and micotoxin binders

JampC Impex supplies feed additives nutritional products medicated premixes and biosecurity products to their customers in Bangladesh JampC Impex is member of the Animal Health Companies Association of Bang-ladesh (AHCAB) and it has got its registration from the Department of Livestock Services (DLS) Read more

People at Sweet Manufacturing Bulk material handling conveying and processing equipment supplier Sweet Manufacturing Company announced that Roy Mead Professional Engineer (PE) has joined the company as the Engineering Manager Mead brings a vast engineering background which includes structural design machine design electrical controls and robotics

7

THE GLOBAL MILLER | March 2011

He will be responsible for leading the Sweet Engineering team He will also work closely with both internal and external customers to provide appropriate equipment and project design and layout recommendations that will ultimately satisfy customer material handling requirements Mead obtained his Bachelor of Science in Mechanical Engineering degree from the University of Dayton in Ohio He also has a Professional Engineer (PE) Certification from the State of Ohio Read more

March 3 2011

Company Profile Behlan Mfg Co Behlan Mfg Co was established in 1936 from the garage of Walter D Behlan in Columbus Nebraska The company has grown and developed into an international suppliers of livestock equipment pre engineered metal buildings and grain storage systems now exported to more than 70 countries

In 1969 the Behlan family sold the business to the Wicks Corporation the management style changed from a family run business to a corporate business In 1983 Behlan Mfg Co was the subject of a management buy-out securing the jobs of some 500 employees

Since then Behlan has grown into a major international company with 4 distinct units Behlan Country Behlan Building Systems International amp Diversified Products and BMC Transport Since 1983 Behlan has grown and acquired a number of other companies in the United States

In 2002 after a 20 year association with a Chinese company they formed a joint venture known as Behlan China Today Behlan employes over a 1000 people with sales of almost US$200 million

Pancosma to share new strategy and research in Bangkok Swiss feed additive manufacturer Pancosma will have an open meeting for its partners and media collaborators on March 12 in Bangkok Thai-land The company will share recent discoveries of its RampD team which were done in collaboration with major universities The company will reveal the gut is a second brain

This event will also be the opportunity for the companyrsquos CEO D Kofel to reveal the new strategy and the new corporate identity The discovery open new frontiers in animal nutrition and has made the company review its approach and its strategy Obviously the company has evaluated its corporate identity with a new logo and new communications to come Read more

Cargill to use wind power in cutting shipping costs By the end of this year Cargill will literarily sail the ocean again using Sky-Sailsrsquo wind and kite-assisted sail technology on one of its 30000 tonne cargo ships and thus reduce fuel consumption up to 35 percent

This December Cargill will be the first company to implement SkySails innovative wind and kite-assisted sail technology on one of its 30000 tonne cargo ships with the goal of reducing the vessels fuel consump-tion by up to 35 percent and setting a new standard for greenhouse gas reduction in the shipping industry

The kite used has a surface of 320 m2 and flies between 100 and 420 m above the ship It is connected to the cargo ship by a rope which is at-tached to a computer Read more

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For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

8

South Korea permits Syngentarsquos Agrisure stacked-GM corn Syngenta Seeds Inc has received import approval from regulatory au-thorities in South Korea for hybrids containing the Agrisure Viptera 3111 trait stack The Agrisure Viptera 3111 trait stack combines the Agrisure Viptera trait with the Agrisure 3000GT trait stack to provide control of 14 above- and below-ground corn pests more than any other commercially available product in corn trait history

This approval allows the importation of US corn grown from hybrids con-taining the trait stack into South Korea for food feed or processing use South Korean authorities previously approved the single Agrisure Viptera trait in October 2010 ldquoImport approval from South Korea provides US corn growers access to yet another valuable marketrdquo said David Morgan president of Syngenta Seeds Read more

Assitance available to Illiinois fish farmers

Illinois fish farmers can qualify for nearly US$80000 (UKpound49159) in busi-ness assistance funds under a federal program being administered by the Illinois Department of Agriculture (IDOA)

Like other small businesses throughout the state these operations make important contributions to their local economies Agriculture Director Tom Jennings said Were appreciative of this assistance because it will help preserve jobs on farms whose existence is threatened by exorbitant feed costs

The federal government has authorized US$20 million (UKpound1229 million) to provide assistance to eligible aquaculture producers under Section 32 of the Agricultural Adjustment Act of August 24 1935 Illinois fish farmers are eligible if their 2009 feed costs were at least 25 percent of their total operating expenses and if their feed costs are 25 percent above the aver-age cost of feed in the state from 2003-2007 Read more

March 04 2011

Planting Corn into Sod in 2011 Planting corn into sod comes with some general opportunities and chal-lenges Corn could generate a gross return of US$500-700acre or more depending on yield and marketing That is a large enough opportunity to consider taking old pasture or hay fields and converting them to corn for 2011 While some producers have plenty of experience with corn others are more experienced with tobacco hay or pastures The general com-ments below are targeted to both types of producers

1 Nitrogen benefit Land that has been in a grass andor legume sod for four years will reduce the fertilizer nitrogen (N) requirement by about 25 lbs Nacre If that soil has been in sod for five years or more then ferti-lizer N can be reduced by 50 lbs Nacre

2 The vast majority of hay and pasture fields are potassium (K) deficient Hay removes a lot of K2O from the soil while pasture fields tend to re-move a little less Without even conducting a soil test odds are very good that the sod will need about 60 lbs K2Oacre Of course a soil sample provides a much more accurate estimate of what is needed in the field Read more

Port strikes in Argentina fire up againAbout three-quarters of Argentinas agriculture exports are shipped from river ports clustered around Rosario and nearby San Lorenzo Argentina is the worldrsquos leading soy meal and soy oil exporter and is third-largest in soybean exports

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THE GLOBAL MILLER | March 2011

The cooperative that employs the picketing workers is demanding that grain exporters pay more for the port services it provides Argentine port workers this week continued to picket two important grain ports at a key shipping center north of the city of Rosario A dispute over service fees is causing the strike Read more

Antibiotics in DDGS may raise some concerns Of the distillers grains produced in North America 90 percent is going into animal feeds with 80 percent of that going into ruminant diets Now public concern has arisen over the safety of the product The reason for this concern is a recent survey of the US Food and Drug Administration (FDA) which found that 53 percent of the US distillers grains (DDGS) sampled had antibiotic residues

General fear is that these residues could potentially lead to the develop-ment of bacterial resistance in animals and eventually also in humans DDGS are primarily produced through dry or wet milling In dry milling the whole grain is milled and used for ethanol production

Wet milling on the other hand separates out all of the grain components and only uses the starch for ethanol production The remaining portion of the grain is used to create a variety of other marketable products Read more

Innovation award for Brock Grain Systems Brock Grain Systems has received the 2011 AE50 award for its M Se-ries commercial grain storage bins for innovative technology The AE50 Awards were presented by ASABE the American Society of Agricultural and Biological Engineers The annual award recognises the worldrsquos best technology innovations introduced the previous year for the agricultural food and biological systems industries

Brock Grain Systems was one of many companies from around the world to submit an entry to the annual AE50 competition where up to 50 of the top products are chosen by a panel of international engineering experts The judges select products that will best advance engineering for the food and agriculture industries and emphasise the role of new products and systems in bringing advanced technology to the marketplace Read more

March 2011

Mexico Trucking Dispute Agreement Reached President Barack Obama and Mexican President Felipe Calderon have reached an agreement to resolve the dispute over cross-border trucking The dispute erupted in March 2009 when Mexico placed higher tariffs on an estimated US$24 billion of US goods after the US Congress cut off funding to renew a pilot program that let a limited number of Mexican trucking companies to haul freight beyond a 25-mile US commercial zone

Mexico had instituted tariffs in retaliation for the United States not com-plying with the trucking provision of the 1994 North American Free Trade Agreement (NAFTA) The provision was supposed to become effective in December 1995 Half of the US$24 billion in Mexican retaliatory tariffs are to be lifted as soon as the agreement is finalised The remainder of the tariffs will be lifted when the necessary safety tests are completed and the first Mexican truck rolls across the US border according to a state-ment from the American Farm Bureau Federation Read more

THE GLOBAL MILLER | March 2011

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THE GLOBAL MILLER | March 2011

Research Omega-3 fatty acids pork quality Canadian researchers found that increasing omega-3 levels through dietary co-extruded flaxseed supplementation negatively affects pork palatability To clarify the impact of feeding co-extruded flaxseed on car-cass quality and pork palatability 96 pigs (48 barrows and 48 gilts) were fed three different levels of flaxseed (zero percent five percent and 10 percent of dietary intake) for 76 days

Carcass quality and meat quality characteristics of pure loin muscle and ground pork (20 percent fat) were evaluated Fat hardness and belly firmness decreased with increasing co-extruded flaxseed Pigs fed co-extruded flaxseed levels had higher lean yield and total lean content Loin from barrows had higher fat content compared to gilts Co-extruded flaxseed supplementation increased omega-3 content in loin and ground pork Read more

Food prices to carry on climbing all year in the UK The United Nations Food and Agriculture Organization (UN FAO) said that turmoil in north Africa and the Middle East was behind the fresh spike in the price of wheat and cooking oil with many governments hoarding food The UN Food and Agriculture Organisations (FAOs) food price index averaged 236 points in February a record up 22 percent from January and rising for the eighth month in a row

The index highlights how food prices which throughout most of the last two decades have been stable have taken off in alarming fashion in the last three years In 2000 the index stood at 90 and did not break through 100 until 2004 If crude oil a key cost for farmers and shipping companies moving commodities around the world continues to climb prices will climb yet higher the UN warned Read more

Soybeans Corn premiums rise on improving overseas demand Cash premiums for soybeans and corn shipped this month to terminals near New Orleans widened relative to Chicago futures on rising demand for US supplies

The spot-basis bid or premium for soybeans delivered in March at Gulf of Mexico ports rose to 64 cents to 66 cents a bushel above May futures from 63 cents to 64 cents yesterday US Department of Agriculture data show The corn basis was 51 cents to 52 cents a bushel above May fu-tures up from 49 cents to 52 cents The average bid rose to US$78825 the highest since June 27 2008

ldquoWe had another week of good export salesrdquo for corn and soybeans said Glenn Hollander a partner at Hollander amp Feuerhaken a cash grain merchandiser and broker in Chicago ldquoThe basis will start to improve per-haps significantly if there is a further increase in export salesrdquo Soybean futures for May delivery advanced 1775 cents or 13 percent to close at US$1412 a bushel on the Chicago Board of Trade the third consecu-tive gain On February 9 the commodity reached a 30-month high of US$145 Read more

Work stoppages at Argentine grain export ports spread After picketing workers in San Lorenzo now also tugboat operators at the ports of Bahia Blanca and Quequen in southern Buenos Aires Province going on strike The Bahia Blanca and Quequen ports are home to signifi-cant loading facilities for wheat most of which is shipped to Brazil

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THE GLOBAL MILLER | March 2011

12

Tugboat workers at the two ports were refusing to provide services to grain loading terminals but the rest of the port facilities are unaffected an official at Argentinas port authority said Cargill Inc Argentinas leading grain exporter has its port blocked and Terminal 6 is blocked as well which is owned by Aceitera General Deheza SA and Bunge Ltd and is one of the largest soybean crushing and loading facilities in the area Read more

March 09 2011

Hubbard Zimbabwe calls for poultry farmers to purchase feed from reputable suppliers Hubbard Zimbabwe has urged poultry farmers to ensure that their poultry feed comes from suppliers who are reputable in the industryThe firm has made the call to farmers in the midst of looming claims in which some customers say that Crest Poultry Group a Hubbard subsidiary was sell-ing chicks that were not growing Hubbard Zimbabwe rebutted the claims are untrue and stated that the claims are intended to harm the image and reputation of the company

Dr Hope Pachena managing director of Hubbard Zimbabwe stated that Most of the poultry farmers who experience this problem if any would have bought their feed from unlicensed vendors This feed usually lacks some of the nutrients Read more

Taiwan and US at stalemate over ractopamine TaiwanUS trade talks were due to resume in early January but were put on hold when a resolution over ractopamine levels permitted by Taiwan was not found The US postponed the Trade and Investment Framework Agreement (TIFA) talks after Taiwan blocked some shipments of US beef after finding that they contained residue of ractopamine (banned by Taiwan) an animal feed additive that promotes leanness A TIFA is a trade pact that establishes a framework for expanding trade and resolv-ing outstanding disputes between countries TIFAs are often seen as an important step toward establishing free trade agreements

Taiwan Vice Minister of Economic Affairs Sheng-Chung Lin said last week the amount of boneless beef imported from the US has continued to drop recently and that his government understands the USs concerns over Taipeis stance regarding imports of the meat Central News Agency re-ported However he pointed out that Taiwans regulations do not allow for any traces of ractopamine in meat According to Lin Taiwan has laid out its current regulations but the US has not accepted them Read more

Pioneer releases RR alfalfa varieties Now that the federal government has signed off on Roundup Ready alfalfa one company is offering a set of new alfalfa varieties with the trait that company officials say can make the crop thrive under a wider array of conditions

Pioneer officials announced Monday the release of five Roundup Ready varieties all of which are adapted to conditions where different pests exert extra pressure on the crop says Robin Newell Pioneer marketing manager for forages who adds alfalfa is no longer a one-size-fits-all crop Read more

Japan to hold next tender for feed wheat barley on March 16 Japan will hold a tender on March 16 for a maximum of 30000 metric tons of feed wheat and 200000 tons of feed barley according to the Min-istry of Agriculture Forestry and Fisheries

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

Maximumbulk

storage

Silo Construction amp Engineering

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THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

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A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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e-mail infoalmexnl internet wwwalmexnl

wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

wwwsymagacom

Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

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Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 2: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

2

3

THE GLOBAL MILLER | March 2011

March 1 2011

New implications for perennial bioenergy crops A team of researchers from Arizona State University Stanford Univer-sity and Carnegie Institution for Science has found that converting large swaths of land to bioenergy crops could have a wide range of effects on regional climate In an effort to help wean itself off fossil fuels the US has mandated significant increases in renewable fuels with more than one-third of the domestic corn harvest to be used for conversion to ethanol by 2018

But concerns about effects of corn ethanol on food prices and deforesta-tion had led to research suggesting that ethanol be derived from peren-nial crops like the giant grasses Miscanthus and switchgrass Nearly all of this research though has focused on the effects of ethanol on carbon dioxide emissions which drive global warming Read more

Tillage and soybean yields If youre nervous switching to no-till or minimum tillage for fear youll lose soybean yields new data should help calm those nerves Especially with todays rising diesel fuel costs making the switch to a minimum till-age system should net you more profit per acre of soybeans you raise according to Iowa State University (ISU) Extension agronomist Mahdi Al-Kaisi

Almost a decades worth of studies conducted at different locations around the state of Iowa in different crop rotations (corn-soybeans corn-corn-soybeans and continuous corn) show that theres no real correlation between soybean yield and tillage system Nine years of results from long-term tillage and crop rotations studies in Iowa showed that regard-less of tillage system or crop rotation soybean yields are not affected by tillage system

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THE GLOBAL MILLER A blog dedicated for professionals - including nutritionists - in the transportation storage and milling of grains feedstuffs rice and cereals globally

THE GLOBAL MILLER

In association with

THE GLOBAL MILLER | March 2011

4

This is encouraging news for producers who are reluctant to switch to no-tillage soybean after corn due to concerns of poor crop performance Al-Kaisi says in a recent report With current increases in diesel fuel prices some growers could save costs by minimising tillage passes before plant-ing soybeans Read more

Study to enhance acute piglet post-weaning feed intake Paying closer attention to nutrition in pre- and post-weaning pigs promis-es to pay dividends for pork producers thanks to enhanced intestinal and immune development survivability and performance South Australian Megan Edwards completed her PhD this month on early nutrition and the weaning transition

In four experiments under commercial conditions Dr Edwards assessed the influence of various nutritional strategies including extrusion as an alternative milling process amino acid supplementation non-nutritional effects of creep feed and the use of two nutraceutical products spray-dried porcine plasma and a yeast derived protein meal

The nutritional strategies which enhanced survivability and immune competence in newly weaned pigs included supplemental amino acids at weaning offering creep diets containing spray-dried porcine plasma and pre-weaning exposure to creep feed Read more

Weevils hamper India-Vietnam grain trade India exports maize and soybean cake to Vietnam and Vietnam re-ex-ports part of the products back to India causing a lsquotrade conflictrsquo between the two countries Cause weevils Reuters reported that Indian enter-prises have stopped exporting maize and soybean cakes to Vietnam after Vietnam decided to re-export nearly 50000 tons of materials for making animal feed it imported from India before in early February 2010

Halting exportation of animal feed to Vietnam has been described as retaliation by India but the Vietnam Feed Association said that it was just ldquonews circulated for intimidationrdquo The information immediately worried Vietnamese feed producers because India is now providing 30 percent of the total feed materials needed for Vietnam In 2010 Vietnam imported a little over 800000 tons of oil-cakes worth almost US$400 million and 400-500000 tons of maize worth around US$108 million Read more

Water demand will outstrip supply by 40 percent within 20 years Water demand in many countries will exceed supply by 40 percent within 20 years due to the combined threat of climate change and population growth scientists have warned A new way of thinking about water is needed as looming shortages threaten communities agriculture and in-dustry experts said In the next two decades a third of humanity will have only half the water required to meet basic needs said researchers

Agriculture which soaks up 71 percent of water supplies is also likely to suffer affecting food production Filling the global water gap by supply measures alone would cost an estimated pound124billion ( US$ 2021 billion) per year a meeting in Canada was told But this could be cut to between pound31billion (US$ 505 billion) and pound37billion ( US$ 603 billion) by an ap-proach which both raised supply and lowered demand according to lead-ing water economist Dr Margaret Catley-Carlson Reads more

5

THE GLOBAL MILLER | March 2011

March 02 2011

Spain lagging behind in feed safety implementation Spain is at the back of the line when it comes to implementing the EU Di-rective on undesirable substances in animal feed The Directive controls the maximum levels of heavy metals such as arsenic specific pesticides and botanical impurities

Member states were to implement the Directive into national law by mid 2010 but Spain has failed to do so The European Commission last week once again called upon Madrid to follow suit after sending out several warnings in 2010 If the Brussels authorities do not receive a satisfactory reply within two months it can sue Spain at the European Court of Jus-tice

Kenyan farmers hit hard by rising feed cost of feeds Dairy farmers in Kenya are squeezed by the escalating cost of animal feed forcing some to revert to homemade provisions to stay afloat The rise in the cost of animal feed has also pushed up milk shelf prices increasing the burden on consumers According to players in the milk sector there is a shortage of ingredients used in animal feed and this has triggered a surge in prices

The Association of Kenya Feed Manufacturers (AKFM) says this is among the challenges facing the industry Players in the milk sector are concerned with the escalating cost of animal feed as high prices threaten to stifle the growth of the dairy farming in the country Read more

Norel appoint distributor in Bangladesh JampC Impex Limited has started distributing Norelrsquos product for the Bang-ladesh market supplying the broiler layer fish and shrimp farms breeder farms and hatcheries as well as feed mills Dr Jamil Hossain Director of JampC Impex Limited said ldquowe started our Agrovet business unit in the year 2007 with a new vision and broader outlook to meet the challenges of the rapidly growing livestock poultry and aquaculture marketsrdquo

Norel SA is an international company based in Spain and manufacturing on three continents producing various species-specific additives under the brand name Norel Animal Nutrition this includes specialist rumen-inert and other vegetable fats direct fed microbial additives (probiotics) natural growth promoters a range of flavours and sweeteners specific amino-acid mineral chelates acidifiers and pellet binders plus a wide range of feed safety products bactericides mould inhibitors antioxidants and micotoxin binders

JampC Impex supplies feed additives nutritional products medicated premixes and biosecurity products to their customers in Bangladesh JampC Impex is member of the Animal Health Companies Association of Bang-ladesh (AHCAB) and it has got its registration from the Department of Livestock Services (DLS) Read more

People at Sweet Manufacturing Bulk material handling conveying and processing equipment supplier Sweet Manufacturing Company announced that Roy Mead Professional Engineer (PE) has joined the company as the Engineering Manager Mead brings a vast engineering background which includes structural design machine design electrical controls and robotics

7

THE GLOBAL MILLER | March 2011

He will be responsible for leading the Sweet Engineering team He will also work closely with both internal and external customers to provide appropriate equipment and project design and layout recommendations that will ultimately satisfy customer material handling requirements Mead obtained his Bachelor of Science in Mechanical Engineering degree from the University of Dayton in Ohio He also has a Professional Engineer (PE) Certification from the State of Ohio Read more

March 3 2011

Company Profile Behlan Mfg Co Behlan Mfg Co was established in 1936 from the garage of Walter D Behlan in Columbus Nebraska The company has grown and developed into an international suppliers of livestock equipment pre engineered metal buildings and grain storage systems now exported to more than 70 countries

In 1969 the Behlan family sold the business to the Wicks Corporation the management style changed from a family run business to a corporate business In 1983 Behlan Mfg Co was the subject of a management buy-out securing the jobs of some 500 employees

Since then Behlan has grown into a major international company with 4 distinct units Behlan Country Behlan Building Systems International amp Diversified Products and BMC Transport Since 1983 Behlan has grown and acquired a number of other companies in the United States

In 2002 after a 20 year association with a Chinese company they formed a joint venture known as Behlan China Today Behlan employes over a 1000 people with sales of almost US$200 million

Pancosma to share new strategy and research in Bangkok Swiss feed additive manufacturer Pancosma will have an open meeting for its partners and media collaborators on March 12 in Bangkok Thai-land The company will share recent discoveries of its RampD team which were done in collaboration with major universities The company will reveal the gut is a second brain

This event will also be the opportunity for the companyrsquos CEO D Kofel to reveal the new strategy and the new corporate identity The discovery open new frontiers in animal nutrition and has made the company review its approach and its strategy Obviously the company has evaluated its corporate identity with a new logo and new communications to come Read more

Cargill to use wind power in cutting shipping costs By the end of this year Cargill will literarily sail the ocean again using Sky-Sailsrsquo wind and kite-assisted sail technology on one of its 30000 tonne cargo ships and thus reduce fuel consumption up to 35 percent

This December Cargill will be the first company to implement SkySails innovative wind and kite-assisted sail technology on one of its 30000 tonne cargo ships with the goal of reducing the vessels fuel consump-tion by up to 35 percent and setting a new standard for greenhouse gas reduction in the shipping industry

The kite used has a surface of 320 m2 and flies between 100 and 420 m above the ship It is connected to the cargo ship by a rope which is at-tached to a computer Read more

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THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

8

South Korea permits Syngentarsquos Agrisure stacked-GM corn Syngenta Seeds Inc has received import approval from regulatory au-thorities in South Korea for hybrids containing the Agrisure Viptera 3111 trait stack The Agrisure Viptera 3111 trait stack combines the Agrisure Viptera trait with the Agrisure 3000GT trait stack to provide control of 14 above- and below-ground corn pests more than any other commercially available product in corn trait history

This approval allows the importation of US corn grown from hybrids con-taining the trait stack into South Korea for food feed or processing use South Korean authorities previously approved the single Agrisure Viptera trait in October 2010 ldquoImport approval from South Korea provides US corn growers access to yet another valuable marketrdquo said David Morgan president of Syngenta Seeds Read more

Assitance available to Illiinois fish farmers

Illinois fish farmers can qualify for nearly US$80000 (UKpound49159) in busi-ness assistance funds under a federal program being administered by the Illinois Department of Agriculture (IDOA)

Like other small businesses throughout the state these operations make important contributions to their local economies Agriculture Director Tom Jennings said Were appreciative of this assistance because it will help preserve jobs on farms whose existence is threatened by exorbitant feed costs

The federal government has authorized US$20 million (UKpound1229 million) to provide assistance to eligible aquaculture producers under Section 32 of the Agricultural Adjustment Act of August 24 1935 Illinois fish farmers are eligible if their 2009 feed costs were at least 25 percent of their total operating expenses and if their feed costs are 25 percent above the aver-age cost of feed in the state from 2003-2007 Read more

March 04 2011

Planting Corn into Sod in 2011 Planting corn into sod comes with some general opportunities and chal-lenges Corn could generate a gross return of US$500-700acre or more depending on yield and marketing That is a large enough opportunity to consider taking old pasture or hay fields and converting them to corn for 2011 While some producers have plenty of experience with corn others are more experienced with tobacco hay or pastures The general com-ments below are targeted to both types of producers

1 Nitrogen benefit Land that has been in a grass andor legume sod for four years will reduce the fertilizer nitrogen (N) requirement by about 25 lbs Nacre If that soil has been in sod for five years or more then ferti-lizer N can be reduced by 50 lbs Nacre

2 The vast majority of hay and pasture fields are potassium (K) deficient Hay removes a lot of K2O from the soil while pasture fields tend to re-move a little less Without even conducting a soil test odds are very good that the sod will need about 60 lbs K2Oacre Of course a soil sample provides a much more accurate estimate of what is needed in the field Read more

Port strikes in Argentina fire up againAbout three-quarters of Argentinas agriculture exports are shipped from river ports clustered around Rosario and nearby San Lorenzo Argentina is the worldrsquos leading soy meal and soy oil exporter and is third-largest in soybean exports

9

THE GLOBAL MILLER | March 2011

The cooperative that employs the picketing workers is demanding that grain exporters pay more for the port services it provides Argentine port workers this week continued to picket two important grain ports at a key shipping center north of the city of Rosario A dispute over service fees is causing the strike Read more

Antibiotics in DDGS may raise some concerns Of the distillers grains produced in North America 90 percent is going into animal feeds with 80 percent of that going into ruminant diets Now public concern has arisen over the safety of the product The reason for this concern is a recent survey of the US Food and Drug Administration (FDA) which found that 53 percent of the US distillers grains (DDGS) sampled had antibiotic residues

General fear is that these residues could potentially lead to the develop-ment of bacterial resistance in animals and eventually also in humans DDGS are primarily produced through dry or wet milling In dry milling the whole grain is milled and used for ethanol production

Wet milling on the other hand separates out all of the grain components and only uses the starch for ethanol production The remaining portion of the grain is used to create a variety of other marketable products Read more

Innovation award for Brock Grain Systems Brock Grain Systems has received the 2011 AE50 award for its M Se-ries commercial grain storage bins for innovative technology The AE50 Awards were presented by ASABE the American Society of Agricultural and Biological Engineers The annual award recognises the worldrsquos best technology innovations introduced the previous year for the agricultural food and biological systems industries

Brock Grain Systems was one of many companies from around the world to submit an entry to the annual AE50 competition where up to 50 of the top products are chosen by a panel of international engineering experts The judges select products that will best advance engineering for the food and agriculture industries and emphasise the role of new products and systems in bringing advanced technology to the marketplace Read more

March 2011

Mexico Trucking Dispute Agreement Reached President Barack Obama and Mexican President Felipe Calderon have reached an agreement to resolve the dispute over cross-border trucking The dispute erupted in March 2009 when Mexico placed higher tariffs on an estimated US$24 billion of US goods after the US Congress cut off funding to renew a pilot program that let a limited number of Mexican trucking companies to haul freight beyond a 25-mile US commercial zone

Mexico had instituted tariffs in retaliation for the United States not com-plying with the trucking provision of the 1994 North American Free Trade Agreement (NAFTA) The provision was supposed to become effective in December 1995 Half of the US$24 billion in Mexican retaliatory tariffs are to be lifted as soon as the agreement is finalised The remainder of the tariffs will be lifted when the necessary safety tests are completed and the first Mexican truck rolls across the US border according to a state-ment from the American Farm Bureau Federation Read more

THE GLOBAL MILLER | March 2011

10

11

THE GLOBAL MILLER | March 2011

Research Omega-3 fatty acids pork quality Canadian researchers found that increasing omega-3 levels through dietary co-extruded flaxseed supplementation negatively affects pork palatability To clarify the impact of feeding co-extruded flaxseed on car-cass quality and pork palatability 96 pigs (48 barrows and 48 gilts) were fed three different levels of flaxseed (zero percent five percent and 10 percent of dietary intake) for 76 days

Carcass quality and meat quality characteristics of pure loin muscle and ground pork (20 percent fat) were evaluated Fat hardness and belly firmness decreased with increasing co-extruded flaxseed Pigs fed co-extruded flaxseed levels had higher lean yield and total lean content Loin from barrows had higher fat content compared to gilts Co-extruded flaxseed supplementation increased omega-3 content in loin and ground pork Read more

Food prices to carry on climbing all year in the UK The United Nations Food and Agriculture Organization (UN FAO) said that turmoil in north Africa and the Middle East was behind the fresh spike in the price of wheat and cooking oil with many governments hoarding food The UN Food and Agriculture Organisations (FAOs) food price index averaged 236 points in February a record up 22 percent from January and rising for the eighth month in a row

The index highlights how food prices which throughout most of the last two decades have been stable have taken off in alarming fashion in the last three years In 2000 the index stood at 90 and did not break through 100 until 2004 If crude oil a key cost for farmers and shipping companies moving commodities around the world continues to climb prices will climb yet higher the UN warned Read more

Soybeans Corn premiums rise on improving overseas demand Cash premiums for soybeans and corn shipped this month to terminals near New Orleans widened relative to Chicago futures on rising demand for US supplies

The spot-basis bid or premium for soybeans delivered in March at Gulf of Mexico ports rose to 64 cents to 66 cents a bushel above May futures from 63 cents to 64 cents yesterday US Department of Agriculture data show The corn basis was 51 cents to 52 cents a bushel above May fu-tures up from 49 cents to 52 cents The average bid rose to US$78825 the highest since June 27 2008

ldquoWe had another week of good export salesrdquo for corn and soybeans said Glenn Hollander a partner at Hollander amp Feuerhaken a cash grain merchandiser and broker in Chicago ldquoThe basis will start to improve per-haps significantly if there is a further increase in export salesrdquo Soybean futures for May delivery advanced 1775 cents or 13 percent to close at US$1412 a bushel on the Chicago Board of Trade the third consecu-tive gain On February 9 the commodity reached a 30-month high of US$145 Read more

Work stoppages at Argentine grain export ports spread After picketing workers in San Lorenzo now also tugboat operators at the ports of Bahia Blanca and Quequen in southern Buenos Aires Province going on strike The Bahia Blanca and Quequen ports are home to signifi-cant loading facilities for wheat most of which is shipped to Brazil

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THE GLOBAL MILLER | March 2011

12

Tugboat workers at the two ports were refusing to provide services to grain loading terminals but the rest of the port facilities are unaffected an official at Argentinas port authority said Cargill Inc Argentinas leading grain exporter has its port blocked and Terminal 6 is blocked as well which is owned by Aceitera General Deheza SA and Bunge Ltd and is one of the largest soybean crushing and loading facilities in the area Read more

March 09 2011

Hubbard Zimbabwe calls for poultry farmers to purchase feed from reputable suppliers Hubbard Zimbabwe has urged poultry farmers to ensure that their poultry feed comes from suppliers who are reputable in the industryThe firm has made the call to farmers in the midst of looming claims in which some customers say that Crest Poultry Group a Hubbard subsidiary was sell-ing chicks that were not growing Hubbard Zimbabwe rebutted the claims are untrue and stated that the claims are intended to harm the image and reputation of the company

Dr Hope Pachena managing director of Hubbard Zimbabwe stated that Most of the poultry farmers who experience this problem if any would have bought their feed from unlicensed vendors This feed usually lacks some of the nutrients Read more

Taiwan and US at stalemate over ractopamine TaiwanUS trade talks were due to resume in early January but were put on hold when a resolution over ractopamine levels permitted by Taiwan was not found The US postponed the Trade and Investment Framework Agreement (TIFA) talks after Taiwan blocked some shipments of US beef after finding that they contained residue of ractopamine (banned by Taiwan) an animal feed additive that promotes leanness A TIFA is a trade pact that establishes a framework for expanding trade and resolv-ing outstanding disputes between countries TIFAs are often seen as an important step toward establishing free trade agreements

Taiwan Vice Minister of Economic Affairs Sheng-Chung Lin said last week the amount of boneless beef imported from the US has continued to drop recently and that his government understands the USs concerns over Taipeis stance regarding imports of the meat Central News Agency re-ported However he pointed out that Taiwans regulations do not allow for any traces of ractopamine in meat According to Lin Taiwan has laid out its current regulations but the US has not accepted them Read more

Pioneer releases RR alfalfa varieties Now that the federal government has signed off on Roundup Ready alfalfa one company is offering a set of new alfalfa varieties with the trait that company officials say can make the crop thrive under a wider array of conditions

Pioneer officials announced Monday the release of five Roundup Ready varieties all of which are adapted to conditions where different pests exert extra pressure on the crop says Robin Newell Pioneer marketing manager for forages who adds alfalfa is no longer a one-size-fits-all crop Read more

Japan to hold next tender for feed wheat barley on March 16 Japan will hold a tender on March 16 for a maximum of 30000 metric tons of feed wheat and 200000 tons of feed barley according to the Min-istry of Agriculture Forestry and Fisheries

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

Maximumbulk

storage

Silo Construction amp Engineering

wwwscebe+32(0)51 723128

SCE

15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

wwwtapcoinccom

ELEVATOR BUCKETS amp BOLTS

STYLE CC-XD (XTREME DUTY)Polyethylene Elevator Bucket

reg

AquafeedClassified40_2x40mFINALrevsd 22310 1235 AM Page 1

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e-mail infoalmexnl internet wwwalmexnl

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Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

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SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

wwwtapcoinccom

ELEVATOR BUCKETS amp BOLTS

STYLE CC-XD (XTREME DUTY)Polyethylene Elevator Bucket

reg

AquafeedClassified40_2x40mFINALrevsd 22310 1235 AM Page 1

WWWEXTRUDERNL WWWEXPANDERNL

Almex bv Verlengde Ooyerhoekseweg 297207 BJ Zutphen Netherlands tel +31 (0)575 572666

e-mail infoalmexnl internet wwwalmexnl

wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

wwwsymagacom

Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

BULK STORAGE HANDLING ANDPROCESS ENGINEERS FOR THE ANIMAL FEED GRAIN FLOUR BAKERY HUMAN AND PET FOODS INDUSTRIES

CENZONE TECH INC2110 Low Chaparral DriveSan MarcosCA92069 USATel 760 736 9901Fax 760 736 9958Web wwwcenzonecomE-mail cenzonetechworldnetattnet

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 3: March 2011 - The Global Miller

3

THE GLOBAL MILLER | March 2011

March 1 2011

New implications for perennial bioenergy crops A team of researchers from Arizona State University Stanford Univer-sity and Carnegie Institution for Science has found that converting large swaths of land to bioenergy crops could have a wide range of effects on regional climate In an effort to help wean itself off fossil fuels the US has mandated significant increases in renewable fuels with more than one-third of the domestic corn harvest to be used for conversion to ethanol by 2018

But concerns about effects of corn ethanol on food prices and deforesta-tion had led to research suggesting that ethanol be derived from peren-nial crops like the giant grasses Miscanthus and switchgrass Nearly all of this research though has focused on the effects of ethanol on carbon dioxide emissions which drive global warming Read more

Tillage and soybean yields If youre nervous switching to no-till or minimum tillage for fear youll lose soybean yields new data should help calm those nerves Especially with todays rising diesel fuel costs making the switch to a minimum till-age system should net you more profit per acre of soybeans you raise according to Iowa State University (ISU) Extension agronomist Mahdi Al-Kaisi

Almost a decades worth of studies conducted at different locations around the state of Iowa in different crop rotations (corn-soybeans corn-corn-soybeans and continuous corn) show that theres no real correlation between soybean yield and tillage system Nine years of results from long-term tillage and crop rotations studies in Iowa showed that regard-less of tillage system or crop rotation soybean yields are not affected by tillage system

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THE GLOBAL MILLER A blog dedicated for professionals - including nutritionists - in the transportation storage and milling of grains feedstuffs rice and cereals globally

THE GLOBAL MILLER

In association with

THE GLOBAL MILLER | March 2011

4

This is encouraging news for producers who are reluctant to switch to no-tillage soybean after corn due to concerns of poor crop performance Al-Kaisi says in a recent report With current increases in diesel fuel prices some growers could save costs by minimising tillage passes before plant-ing soybeans Read more

Study to enhance acute piglet post-weaning feed intake Paying closer attention to nutrition in pre- and post-weaning pigs promis-es to pay dividends for pork producers thanks to enhanced intestinal and immune development survivability and performance South Australian Megan Edwards completed her PhD this month on early nutrition and the weaning transition

In four experiments under commercial conditions Dr Edwards assessed the influence of various nutritional strategies including extrusion as an alternative milling process amino acid supplementation non-nutritional effects of creep feed and the use of two nutraceutical products spray-dried porcine plasma and a yeast derived protein meal

The nutritional strategies which enhanced survivability and immune competence in newly weaned pigs included supplemental amino acids at weaning offering creep diets containing spray-dried porcine plasma and pre-weaning exposure to creep feed Read more

Weevils hamper India-Vietnam grain trade India exports maize and soybean cake to Vietnam and Vietnam re-ex-ports part of the products back to India causing a lsquotrade conflictrsquo between the two countries Cause weevils Reuters reported that Indian enter-prises have stopped exporting maize and soybean cakes to Vietnam after Vietnam decided to re-export nearly 50000 tons of materials for making animal feed it imported from India before in early February 2010

Halting exportation of animal feed to Vietnam has been described as retaliation by India but the Vietnam Feed Association said that it was just ldquonews circulated for intimidationrdquo The information immediately worried Vietnamese feed producers because India is now providing 30 percent of the total feed materials needed for Vietnam In 2010 Vietnam imported a little over 800000 tons of oil-cakes worth almost US$400 million and 400-500000 tons of maize worth around US$108 million Read more

Water demand will outstrip supply by 40 percent within 20 years Water demand in many countries will exceed supply by 40 percent within 20 years due to the combined threat of climate change and population growth scientists have warned A new way of thinking about water is needed as looming shortages threaten communities agriculture and in-dustry experts said In the next two decades a third of humanity will have only half the water required to meet basic needs said researchers

Agriculture which soaks up 71 percent of water supplies is also likely to suffer affecting food production Filling the global water gap by supply measures alone would cost an estimated pound124billion ( US$ 2021 billion) per year a meeting in Canada was told But this could be cut to between pound31billion (US$ 505 billion) and pound37billion ( US$ 603 billion) by an ap-proach which both raised supply and lowered demand according to lead-ing water economist Dr Margaret Catley-Carlson Reads more

5

THE GLOBAL MILLER | March 2011

March 02 2011

Spain lagging behind in feed safety implementation Spain is at the back of the line when it comes to implementing the EU Di-rective on undesirable substances in animal feed The Directive controls the maximum levels of heavy metals such as arsenic specific pesticides and botanical impurities

Member states were to implement the Directive into national law by mid 2010 but Spain has failed to do so The European Commission last week once again called upon Madrid to follow suit after sending out several warnings in 2010 If the Brussels authorities do not receive a satisfactory reply within two months it can sue Spain at the European Court of Jus-tice

Kenyan farmers hit hard by rising feed cost of feeds Dairy farmers in Kenya are squeezed by the escalating cost of animal feed forcing some to revert to homemade provisions to stay afloat The rise in the cost of animal feed has also pushed up milk shelf prices increasing the burden on consumers According to players in the milk sector there is a shortage of ingredients used in animal feed and this has triggered a surge in prices

The Association of Kenya Feed Manufacturers (AKFM) says this is among the challenges facing the industry Players in the milk sector are concerned with the escalating cost of animal feed as high prices threaten to stifle the growth of the dairy farming in the country Read more

Norel appoint distributor in Bangladesh JampC Impex Limited has started distributing Norelrsquos product for the Bang-ladesh market supplying the broiler layer fish and shrimp farms breeder farms and hatcheries as well as feed mills Dr Jamil Hossain Director of JampC Impex Limited said ldquowe started our Agrovet business unit in the year 2007 with a new vision and broader outlook to meet the challenges of the rapidly growing livestock poultry and aquaculture marketsrdquo

Norel SA is an international company based in Spain and manufacturing on three continents producing various species-specific additives under the brand name Norel Animal Nutrition this includes specialist rumen-inert and other vegetable fats direct fed microbial additives (probiotics) natural growth promoters a range of flavours and sweeteners specific amino-acid mineral chelates acidifiers and pellet binders plus a wide range of feed safety products bactericides mould inhibitors antioxidants and micotoxin binders

JampC Impex supplies feed additives nutritional products medicated premixes and biosecurity products to their customers in Bangladesh JampC Impex is member of the Animal Health Companies Association of Bang-ladesh (AHCAB) and it has got its registration from the Department of Livestock Services (DLS) Read more

People at Sweet Manufacturing Bulk material handling conveying and processing equipment supplier Sweet Manufacturing Company announced that Roy Mead Professional Engineer (PE) has joined the company as the Engineering Manager Mead brings a vast engineering background which includes structural design machine design electrical controls and robotics

7

THE GLOBAL MILLER | March 2011

He will be responsible for leading the Sweet Engineering team He will also work closely with both internal and external customers to provide appropriate equipment and project design and layout recommendations that will ultimately satisfy customer material handling requirements Mead obtained his Bachelor of Science in Mechanical Engineering degree from the University of Dayton in Ohio He also has a Professional Engineer (PE) Certification from the State of Ohio Read more

March 3 2011

Company Profile Behlan Mfg Co Behlan Mfg Co was established in 1936 from the garage of Walter D Behlan in Columbus Nebraska The company has grown and developed into an international suppliers of livestock equipment pre engineered metal buildings and grain storage systems now exported to more than 70 countries

In 1969 the Behlan family sold the business to the Wicks Corporation the management style changed from a family run business to a corporate business In 1983 Behlan Mfg Co was the subject of a management buy-out securing the jobs of some 500 employees

Since then Behlan has grown into a major international company with 4 distinct units Behlan Country Behlan Building Systems International amp Diversified Products and BMC Transport Since 1983 Behlan has grown and acquired a number of other companies in the United States

In 2002 after a 20 year association with a Chinese company they formed a joint venture known as Behlan China Today Behlan employes over a 1000 people with sales of almost US$200 million

Pancosma to share new strategy and research in Bangkok Swiss feed additive manufacturer Pancosma will have an open meeting for its partners and media collaborators on March 12 in Bangkok Thai-land The company will share recent discoveries of its RampD team which were done in collaboration with major universities The company will reveal the gut is a second brain

This event will also be the opportunity for the companyrsquos CEO D Kofel to reveal the new strategy and the new corporate identity The discovery open new frontiers in animal nutrition and has made the company review its approach and its strategy Obviously the company has evaluated its corporate identity with a new logo and new communications to come Read more

Cargill to use wind power in cutting shipping costs By the end of this year Cargill will literarily sail the ocean again using Sky-Sailsrsquo wind and kite-assisted sail technology on one of its 30000 tonne cargo ships and thus reduce fuel consumption up to 35 percent

This December Cargill will be the first company to implement SkySails innovative wind and kite-assisted sail technology on one of its 30000 tonne cargo ships with the goal of reducing the vessels fuel consump-tion by up to 35 percent and setting a new standard for greenhouse gas reduction in the shipping industry

The kite used has a surface of 320 m2 and flies between 100 and 420 m above the ship It is connected to the cargo ship by a rope which is at-tached to a computer Read more

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THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

8

South Korea permits Syngentarsquos Agrisure stacked-GM corn Syngenta Seeds Inc has received import approval from regulatory au-thorities in South Korea for hybrids containing the Agrisure Viptera 3111 trait stack The Agrisure Viptera 3111 trait stack combines the Agrisure Viptera trait with the Agrisure 3000GT trait stack to provide control of 14 above- and below-ground corn pests more than any other commercially available product in corn trait history

This approval allows the importation of US corn grown from hybrids con-taining the trait stack into South Korea for food feed or processing use South Korean authorities previously approved the single Agrisure Viptera trait in October 2010 ldquoImport approval from South Korea provides US corn growers access to yet another valuable marketrdquo said David Morgan president of Syngenta Seeds Read more

Assitance available to Illiinois fish farmers

Illinois fish farmers can qualify for nearly US$80000 (UKpound49159) in busi-ness assistance funds under a federal program being administered by the Illinois Department of Agriculture (IDOA)

Like other small businesses throughout the state these operations make important contributions to their local economies Agriculture Director Tom Jennings said Were appreciative of this assistance because it will help preserve jobs on farms whose existence is threatened by exorbitant feed costs

The federal government has authorized US$20 million (UKpound1229 million) to provide assistance to eligible aquaculture producers under Section 32 of the Agricultural Adjustment Act of August 24 1935 Illinois fish farmers are eligible if their 2009 feed costs were at least 25 percent of their total operating expenses and if their feed costs are 25 percent above the aver-age cost of feed in the state from 2003-2007 Read more

March 04 2011

Planting Corn into Sod in 2011 Planting corn into sod comes with some general opportunities and chal-lenges Corn could generate a gross return of US$500-700acre or more depending on yield and marketing That is a large enough opportunity to consider taking old pasture or hay fields and converting them to corn for 2011 While some producers have plenty of experience with corn others are more experienced with tobacco hay or pastures The general com-ments below are targeted to both types of producers

1 Nitrogen benefit Land that has been in a grass andor legume sod for four years will reduce the fertilizer nitrogen (N) requirement by about 25 lbs Nacre If that soil has been in sod for five years or more then ferti-lizer N can be reduced by 50 lbs Nacre

2 The vast majority of hay and pasture fields are potassium (K) deficient Hay removes a lot of K2O from the soil while pasture fields tend to re-move a little less Without even conducting a soil test odds are very good that the sod will need about 60 lbs K2Oacre Of course a soil sample provides a much more accurate estimate of what is needed in the field Read more

Port strikes in Argentina fire up againAbout three-quarters of Argentinas agriculture exports are shipped from river ports clustered around Rosario and nearby San Lorenzo Argentina is the worldrsquos leading soy meal and soy oil exporter and is third-largest in soybean exports

9

THE GLOBAL MILLER | March 2011

The cooperative that employs the picketing workers is demanding that grain exporters pay more for the port services it provides Argentine port workers this week continued to picket two important grain ports at a key shipping center north of the city of Rosario A dispute over service fees is causing the strike Read more

Antibiotics in DDGS may raise some concerns Of the distillers grains produced in North America 90 percent is going into animal feeds with 80 percent of that going into ruminant diets Now public concern has arisen over the safety of the product The reason for this concern is a recent survey of the US Food and Drug Administration (FDA) which found that 53 percent of the US distillers grains (DDGS) sampled had antibiotic residues

General fear is that these residues could potentially lead to the develop-ment of bacterial resistance in animals and eventually also in humans DDGS are primarily produced through dry or wet milling In dry milling the whole grain is milled and used for ethanol production

Wet milling on the other hand separates out all of the grain components and only uses the starch for ethanol production The remaining portion of the grain is used to create a variety of other marketable products Read more

Innovation award for Brock Grain Systems Brock Grain Systems has received the 2011 AE50 award for its M Se-ries commercial grain storage bins for innovative technology The AE50 Awards were presented by ASABE the American Society of Agricultural and Biological Engineers The annual award recognises the worldrsquos best technology innovations introduced the previous year for the agricultural food and biological systems industries

Brock Grain Systems was one of many companies from around the world to submit an entry to the annual AE50 competition where up to 50 of the top products are chosen by a panel of international engineering experts The judges select products that will best advance engineering for the food and agriculture industries and emphasise the role of new products and systems in bringing advanced technology to the marketplace Read more

March 2011

Mexico Trucking Dispute Agreement Reached President Barack Obama and Mexican President Felipe Calderon have reached an agreement to resolve the dispute over cross-border trucking The dispute erupted in March 2009 when Mexico placed higher tariffs on an estimated US$24 billion of US goods after the US Congress cut off funding to renew a pilot program that let a limited number of Mexican trucking companies to haul freight beyond a 25-mile US commercial zone

Mexico had instituted tariffs in retaliation for the United States not com-plying with the trucking provision of the 1994 North American Free Trade Agreement (NAFTA) The provision was supposed to become effective in December 1995 Half of the US$24 billion in Mexican retaliatory tariffs are to be lifted as soon as the agreement is finalised The remainder of the tariffs will be lifted when the necessary safety tests are completed and the first Mexican truck rolls across the US border according to a state-ment from the American Farm Bureau Federation Read more

THE GLOBAL MILLER | March 2011

10

11

THE GLOBAL MILLER | March 2011

Research Omega-3 fatty acids pork quality Canadian researchers found that increasing omega-3 levels through dietary co-extruded flaxseed supplementation negatively affects pork palatability To clarify the impact of feeding co-extruded flaxseed on car-cass quality and pork palatability 96 pigs (48 barrows and 48 gilts) were fed three different levels of flaxseed (zero percent five percent and 10 percent of dietary intake) for 76 days

Carcass quality and meat quality characteristics of pure loin muscle and ground pork (20 percent fat) were evaluated Fat hardness and belly firmness decreased with increasing co-extruded flaxseed Pigs fed co-extruded flaxseed levels had higher lean yield and total lean content Loin from barrows had higher fat content compared to gilts Co-extruded flaxseed supplementation increased omega-3 content in loin and ground pork Read more

Food prices to carry on climbing all year in the UK The United Nations Food and Agriculture Organization (UN FAO) said that turmoil in north Africa and the Middle East was behind the fresh spike in the price of wheat and cooking oil with many governments hoarding food The UN Food and Agriculture Organisations (FAOs) food price index averaged 236 points in February a record up 22 percent from January and rising for the eighth month in a row

The index highlights how food prices which throughout most of the last two decades have been stable have taken off in alarming fashion in the last three years In 2000 the index stood at 90 and did not break through 100 until 2004 If crude oil a key cost for farmers and shipping companies moving commodities around the world continues to climb prices will climb yet higher the UN warned Read more

Soybeans Corn premiums rise on improving overseas demand Cash premiums for soybeans and corn shipped this month to terminals near New Orleans widened relative to Chicago futures on rising demand for US supplies

The spot-basis bid or premium for soybeans delivered in March at Gulf of Mexico ports rose to 64 cents to 66 cents a bushel above May futures from 63 cents to 64 cents yesterday US Department of Agriculture data show The corn basis was 51 cents to 52 cents a bushel above May fu-tures up from 49 cents to 52 cents The average bid rose to US$78825 the highest since June 27 2008

ldquoWe had another week of good export salesrdquo for corn and soybeans said Glenn Hollander a partner at Hollander amp Feuerhaken a cash grain merchandiser and broker in Chicago ldquoThe basis will start to improve per-haps significantly if there is a further increase in export salesrdquo Soybean futures for May delivery advanced 1775 cents or 13 percent to close at US$1412 a bushel on the Chicago Board of Trade the third consecu-tive gain On February 9 the commodity reached a 30-month high of US$145 Read more

Work stoppages at Argentine grain export ports spread After picketing workers in San Lorenzo now also tugboat operators at the ports of Bahia Blanca and Quequen in southern Buenos Aires Province going on strike The Bahia Blanca and Quequen ports are home to signifi-cant loading facilities for wheat most of which is shipped to Brazil

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THE GLOBAL MILLER | March 2011

12

Tugboat workers at the two ports were refusing to provide services to grain loading terminals but the rest of the port facilities are unaffected an official at Argentinas port authority said Cargill Inc Argentinas leading grain exporter has its port blocked and Terminal 6 is blocked as well which is owned by Aceitera General Deheza SA and Bunge Ltd and is one of the largest soybean crushing and loading facilities in the area Read more

March 09 2011

Hubbard Zimbabwe calls for poultry farmers to purchase feed from reputable suppliers Hubbard Zimbabwe has urged poultry farmers to ensure that their poultry feed comes from suppliers who are reputable in the industryThe firm has made the call to farmers in the midst of looming claims in which some customers say that Crest Poultry Group a Hubbard subsidiary was sell-ing chicks that were not growing Hubbard Zimbabwe rebutted the claims are untrue and stated that the claims are intended to harm the image and reputation of the company

Dr Hope Pachena managing director of Hubbard Zimbabwe stated that Most of the poultry farmers who experience this problem if any would have bought their feed from unlicensed vendors This feed usually lacks some of the nutrients Read more

Taiwan and US at stalemate over ractopamine TaiwanUS trade talks were due to resume in early January but were put on hold when a resolution over ractopamine levels permitted by Taiwan was not found The US postponed the Trade and Investment Framework Agreement (TIFA) talks after Taiwan blocked some shipments of US beef after finding that they contained residue of ractopamine (banned by Taiwan) an animal feed additive that promotes leanness A TIFA is a trade pact that establishes a framework for expanding trade and resolv-ing outstanding disputes between countries TIFAs are often seen as an important step toward establishing free trade agreements

Taiwan Vice Minister of Economic Affairs Sheng-Chung Lin said last week the amount of boneless beef imported from the US has continued to drop recently and that his government understands the USs concerns over Taipeis stance regarding imports of the meat Central News Agency re-ported However he pointed out that Taiwans regulations do not allow for any traces of ractopamine in meat According to Lin Taiwan has laid out its current regulations but the US has not accepted them Read more

Pioneer releases RR alfalfa varieties Now that the federal government has signed off on Roundup Ready alfalfa one company is offering a set of new alfalfa varieties with the trait that company officials say can make the crop thrive under a wider array of conditions

Pioneer officials announced Monday the release of five Roundup Ready varieties all of which are adapted to conditions where different pests exert extra pressure on the crop says Robin Newell Pioneer marketing manager for forages who adds alfalfa is no longer a one-size-fits-all crop Read more

Japan to hold next tender for feed wheat barley on March 16 Japan will hold a tender on March 16 for a maximum of 30000 metric tons of feed wheat and 200000 tons of feed barley according to the Min-istry of Agriculture Forestry and Fisheries

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

Maximumbulk

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15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

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A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

IMD_40x40m_classADindd 1 15032010 1244

Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 4: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

4

This is encouraging news for producers who are reluctant to switch to no-tillage soybean after corn due to concerns of poor crop performance Al-Kaisi says in a recent report With current increases in diesel fuel prices some growers could save costs by minimising tillage passes before plant-ing soybeans Read more

Study to enhance acute piglet post-weaning feed intake Paying closer attention to nutrition in pre- and post-weaning pigs promis-es to pay dividends for pork producers thanks to enhanced intestinal and immune development survivability and performance South Australian Megan Edwards completed her PhD this month on early nutrition and the weaning transition

In four experiments under commercial conditions Dr Edwards assessed the influence of various nutritional strategies including extrusion as an alternative milling process amino acid supplementation non-nutritional effects of creep feed and the use of two nutraceutical products spray-dried porcine plasma and a yeast derived protein meal

The nutritional strategies which enhanced survivability and immune competence in newly weaned pigs included supplemental amino acids at weaning offering creep diets containing spray-dried porcine plasma and pre-weaning exposure to creep feed Read more

Weevils hamper India-Vietnam grain trade India exports maize and soybean cake to Vietnam and Vietnam re-ex-ports part of the products back to India causing a lsquotrade conflictrsquo between the two countries Cause weevils Reuters reported that Indian enter-prises have stopped exporting maize and soybean cakes to Vietnam after Vietnam decided to re-export nearly 50000 tons of materials for making animal feed it imported from India before in early February 2010

Halting exportation of animal feed to Vietnam has been described as retaliation by India but the Vietnam Feed Association said that it was just ldquonews circulated for intimidationrdquo The information immediately worried Vietnamese feed producers because India is now providing 30 percent of the total feed materials needed for Vietnam In 2010 Vietnam imported a little over 800000 tons of oil-cakes worth almost US$400 million and 400-500000 tons of maize worth around US$108 million Read more

Water demand will outstrip supply by 40 percent within 20 years Water demand in many countries will exceed supply by 40 percent within 20 years due to the combined threat of climate change and population growth scientists have warned A new way of thinking about water is needed as looming shortages threaten communities agriculture and in-dustry experts said In the next two decades a third of humanity will have only half the water required to meet basic needs said researchers

Agriculture which soaks up 71 percent of water supplies is also likely to suffer affecting food production Filling the global water gap by supply measures alone would cost an estimated pound124billion ( US$ 2021 billion) per year a meeting in Canada was told But this could be cut to between pound31billion (US$ 505 billion) and pound37billion ( US$ 603 billion) by an ap-proach which both raised supply and lowered demand according to lead-ing water economist Dr Margaret Catley-Carlson Reads more

5

THE GLOBAL MILLER | March 2011

March 02 2011

Spain lagging behind in feed safety implementation Spain is at the back of the line when it comes to implementing the EU Di-rective on undesirable substances in animal feed The Directive controls the maximum levels of heavy metals such as arsenic specific pesticides and botanical impurities

Member states were to implement the Directive into national law by mid 2010 but Spain has failed to do so The European Commission last week once again called upon Madrid to follow suit after sending out several warnings in 2010 If the Brussels authorities do not receive a satisfactory reply within two months it can sue Spain at the European Court of Jus-tice

Kenyan farmers hit hard by rising feed cost of feeds Dairy farmers in Kenya are squeezed by the escalating cost of animal feed forcing some to revert to homemade provisions to stay afloat The rise in the cost of animal feed has also pushed up milk shelf prices increasing the burden on consumers According to players in the milk sector there is a shortage of ingredients used in animal feed and this has triggered a surge in prices

The Association of Kenya Feed Manufacturers (AKFM) says this is among the challenges facing the industry Players in the milk sector are concerned with the escalating cost of animal feed as high prices threaten to stifle the growth of the dairy farming in the country Read more

Norel appoint distributor in Bangladesh JampC Impex Limited has started distributing Norelrsquos product for the Bang-ladesh market supplying the broiler layer fish and shrimp farms breeder farms and hatcheries as well as feed mills Dr Jamil Hossain Director of JampC Impex Limited said ldquowe started our Agrovet business unit in the year 2007 with a new vision and broader outlook to meet the challenges of the rapidly growing livestock poultry and aquaculture marketsrdquo

Norel SA is an international company based in Spain and manufacturing on three continents producing various species-specific additives under the brand name Norel Animal Nutrition this includes specialist rumen-inert and other vegetable fats direct fed microbial additives (probiotics) natural growth promoters a range of flavours and sweeteners specific amino-acid mineral chelates acidifiers and pellet binders plus a wide range of feed safety products bactericides mould inhibitors antioxidants and micotoxin binders

JampC Impex supplies feed additives nutritional products medicated premixes and biosecurity products to their customers in Bangladesh JampC Impex is member of the Animal Health Companies Association of Bang-ladesh (AHCAB) and it has got its registration from the Department of Livestock Services (DLS) Read more

People at Sweet Manufacturing Bulk material handling conveying and processing equipment supplier Sweet Manufacturing Company announced that Roy Mead Professional Engineer (PE) has joined the company as the Engineering Manager Mead brings a vast engineering background which includes structural design machine design electrical controls and robotics

7

THE GLOBAL MILLER | March 2011

He will be responsible for leading the Sweet Engineering team He will also work closely with both internal and external customers to provide appropriate equipment and project design and layout recommendations that will ultimately satisfy customer material handling requirements Mead obtained his Bachelor of Science in Mechanical Engineering degree from the University of Dayton in Ohio He also has a Professional Engineer (PE) Certification from the State of Ohio Read more

March 3 2011

Company Profile Behlan Mfg Co Behlan Mfg Co was established in 1936 from the garage of Walter D Behlan in Columbus Nebraska The company has grown and developed into an international suppliers of livestock equipment pre engineered metal buildings and grain storage systems now exported to more than 70 countries

In 1969 the Behlan family sold the business to the Wicks Corporation the management style changed from a family run business to a corporate business In 1983 Behlan Mfg Co was the subject of a management buy-out securing the jobs of some 500 employees

Since then Behlan has grown into a major international company with 4 distinct units Behlan Country Behlan Building Systems International amp Diversified Products and BMC Transport Since 1983 Behlan has grown and acquired a number of other companies in the United States

In 2002 after a 20 year association with a Chinese company they formed a joint venture known as Behlan China Today Behlan employes over a 1000 people with sales of almost US$200 million

Pancosma to share new strategy and research in Bangkok Swiss feed additive manufacturer Pancosma will have an open meeting for its partners and media collaborators on March 12 in Bangkok Thai-land The company will share recent discoveries of its RampD team which were done in collaboration with major universities The company will reveal the gut is a second brain

This event will also be the opportunity for the companyrsquos CEO D Kofel to reveal the new strategy and the new corporate identity The discovery open new frontiers in animal nutrition and has made the company review its approach and its strategy Obviously the company has evaluated its corporate identity with a new logo and new communications to come Read more

Cargill to use wind power in cutting shipping costs By the end of this year Cargill will literarily sail the ocean again using Sky-Sailsrsquo wind and kite-assisted sail technology on one of its 30000 tonne cargo ships and thus reduce fuel consumption up to 35 percent

This December Cargill will be the first company to implement SkySails innovative wind and kite-assisted sail technology on one of its 30000 tonne cargo ships with the goal of reducing the vessels fuel consump-tion by up to 35 percent and setting a new standard for greenhouse gas reduction in the shipping industry

The kite used has a surface of 320 m2 and flies between 100 and 420 m above the ship It is connected to the cargo ship by a rope which is at-tached to a computer Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

8

South Korea permits Syngentarsquos Agrisure stacked-GM corn Syngenta Seeds Inc has received import approval from regulatory au-thorities in South Korea for hybrids containing the Agrisure Viptera 3111 trait stack The Agrisure Viptera 3111 trait stack combines the Agrisure Viptera trait with the Agrisure 3000GT trait stack to provide control of 14 above- and below-ground corn pests more than any other commercially available product in corn trait history

This approval allows the importation of US corn grown from hybrids con-taining the trait stack into South Korea for food feed or processing use South Korean authorities previously approved the single Agrisure Viptera trait in October 2010 ldquoImport approval from South Korea provides US corn growers access to yet another valuable marketrdquo said David Morgan president of Syngenta Seeds Read more

Assitance available to Illiinois fish farmers

Illinois fish farmers can qualify for nearly US$80000 (UKpound49159) in busi-ness assistance funds under a federal program being administered by the Illinois Department of Agriculture (IDOA)

Like other small businesses throughout the state these operations make important contributions to their local economies Agriculture Director Tom Jennings said Were appreciative of this assistance because it will help preserve jobs on farms whose existence is threatened by exorbitant feed costs

The federal government has authorized US$20 million (UKpound1229 million) to provide assistance to eligible aquaculture producers under Section 32 of the Agricultural Adjustment Act of August 24 1935 Illinois fish farmers are eligible if their 2009 feed costs were at least 25 percent of their total operating expenses and if their feed costs are 25 percent above the aver-age cost of feed in the state from 2003-2007 Read more

March 04 2011

Planting Corn into Sod in 2011 Planting corn into sod comes with some general opportunities and chal-lenges Corn could generate a gross return of US$500-700acre or more depending on yield and marketing That is a large enough opportunity to consider taking old pasture or hay fields and converting them to corn for 2011 While some producers have plenty of experience with corn others are more experienced with tobacco hay or pastures The general com-ments below are targeted to both types of producers

1 Nitrogen benefit Land that has been in a grass andor legume sod for four years will reduce the fertilizer nitrogen (N) requirement by about 25 lbs Nacre If that soil has been in sod for five years or more then ferti-lizer N can be reduced by 50 lbs Nacre

2 The vast majority of hay and pasture fields are potassium (K) deficient Hay removes a lot of K2O from the soil while pasture fields tend to re-move a little less Without even conducting a soil test odds are very good that the sod will need about 60 lbs K2Oacre Of course a soil sample provides a much more accurate estimate of what is needed in the field Read more

Port strikes in Argentina fire up againAbout three-quarters of Argentinas agriculture exports are shipped from river ports clustered around Rosario and nearby San Lorenzo Argentina is the worldrsquos leading soy meal and soy oil exporter and is third-largest in soybean exports

9

THE GLOBAL MILLER | March 2011

The cooperative that employs the picketing workers is demanding that grain exporters pay more for the port services it provides Argentine port workers this week continued to picket two important grain ports at a key shipping center north of the city of Rosario A dispute over service fees is causing the strike Read more

Antibiotics in DDGS may raise some concerns Of the distillers grains produced in North America 90 percent is going into animal feeds with 80 percent of that going into ruminant diets Now public concern has arisen over the safety of the product The reason for this concern is a recent survey of the US Food and Drug Administration (FDA) which found that 53 percent of the US distillers grains (DDGS) sampled had antibiotic residues

General fear is that these residues could potentially lead to the develop-ment of bacterial resistance in animals and eventually also in humans DDGS are primarily produced through dry or wet milling In dry milling the whole grain is milled and used for ethanol production

Wet milling on the other hand separates out all of the grain components and only uses the starch for ethanol production The remaining portion of the grain is used to create a variety of other marketable products Read more

Innovation award for Brock Grain Systems Brock Grain Systems has received the 2011 AE50 award for its M Se-ries commercial grain storage bins for innovative technology The AE50 Awards were presented by ASABE the American Society of Agricultural and Biological Engineers The annual award recognises the worldrsquos best technology innovations introduced the previous year for the agricultural food and biological systems industries

Brock Grain Systems was one of many companies from around the world to submit an entry to the annual AE50 competition where up to 50 of the top products are chosen by a panel of international engineering experts The judges select products that will best advance engineering for the food and agriculture industries and emphasise the role of new products and systems in bringing advanced technology to the marketplace Read more

March 2011

Mexico Trucking Dispute Agreement Reached President Barack Obama and Mexican President Felipe Calderon have reached an agreement to resolve the dispute over cross-border trucking The dispute erupted in March 2009 when Mexico placed higher tariffs on an estimated US$24 billion of US goods after the US Congress cut off funding to renew a pilot program that let a limited number of Mexican trucking companies to haul freight beyond a 25-mile US commercial zone

Mexico had instituted tariffs in retaliation for the United States not com-plying with the trucking provision of the 1994 North American Free Trade Agreement (NAFTA) The provision was supposed to become effective in December 1995 Half of the US$24 billion in Mexican retaliatory tariffs are to be lifted as soon as the agreement is finalised The remainder of the tariffs will be lifted when the necessary safety tests are completed and the first Mexican truck rolls across the US border according to a state-ment from the American Farm Bureau Federation Read more

THE GLOBAL MILLER | March 2011

10

11

THE GLOBAL MILLER | March 2011

Research Omega-3 fatty acids pork quality Canadian researchers found that increasing omega-3 levels through dietary co-extruded flaxseed supplementation negatively affects pork palatability To clarify the impact of feeding co-extruded flaxseed on car-cass quality and pork palatability 96 pigs (48 barrows and 48 gilts) were fed three different levels of flaxseed (zero percent five percent and 10 percent of dietary intake) for 76 days

Carcass quality and meat quality characteristics of pure loin muscle and ground pork (20 percent fat) were evaluated Fat hardness and belly firmness decreased with increasing co-extruded flaxseed Pigs fed co-extruded flaxseed levels had higher lean yield and total lean content Loin from barrows had higher fat content compared to gilts Co-extruded flaxseed supplementation increased omega-3 content in loin and ground pork Read more

Food prices to carry on climbing all year in the UK The United Nations Food and Agriculture Organization (UN FAO) said that turmoil in north Africa and the Middle East was behind the fresh spike in the price of wheat and cooking oil with many governments hoarding food The UN Food and Agriculture Organisations (FAOs) food price index averaged 236 points in February a record up 22 percent from January and rising for the eighth month in a row

The index highlights how food prices which throughout most of the last two decades have been stable have taken off in alarming fashion in the last three years In 2000 the index stood at 90 and did not break through 100 until 2004 If crude oil a key cost for farmers and shipping companies moving commodities around the world continues to climb prices will climb yet higher the UN warned Read more

Soybeans Corn premiums rise on improving overseas demand Cash premiums for soybeans and corn shipped this month to terminals near New Orleans widened relative to Chicago futures on rising demand for US supplies

The spot-basis bid or premium for soybeans delivered in March at Gulf of Mexico ports rose to 64 cents to 66 cents a bushel above May futures from 63 cents to 64 cents yesterday US Department of Agriculture data show The corn basis was 51 cents to 52 cents a bushel above May fu-tures up from 49 cents to 52 cents The average bid rose to US$78825 the highest since June 27 2008

ldquoWe had another week of good export salesrdquo for corn and soybeans said Glenn Hollander a partner at Hollander amp Feuerhaken a cash grain merchandiser and broker in Chicago ldquoThe basis will start to improve per-haps significantly if there is a further increase in export salesrdquo Soybean futures for May delivery advanced 1775 cents or 13 percent to close at US$1412 a bushel on the Chicago Board of Trade the third consecu-tive gain On February 9 the commodity reached a 30-month high of US$145 Read more

Work stoppages at Argentine grain export ports spread After picketing workers in San Lorenzo now also tugboat operators at the ports of Bahia Blanca and Quequen in southern Buenos Aires Province going on strike The Bahia Blanca and Quequen ports are home to signifi-cant loading facilities for wheat most of which is shipped to Brazil

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THE GLOBAL MILLER | March 2011

12

Tugboat workers at the two ports were refusing to provide services to grain loading terminals but the rest of the port facilities are unaffected an official at Argentinas port authority said Cargill Inc Argentinas leading grain exporter has its port blocked and Terminal 6 is blocked as well which is owned by Aceitera General Deheza SA and Bunge Ltd and is one of the largest soybean crushing and loading facilities in the area Read more

March 09 2011

Hubbard Zimbabwe calls for poultry farmers to purchase feed from reputable suppliers Hubbard Zimbabwe has urged poultry farmers to ensure that their poultry feed comes from suppliers who are reputable in the industryThe firm has made the call to farmers in the midst of looming claims in which some customers say that Crest Poultry Group a Hubbard subsidiary was sell-ing chicks that were not growing Hubbard Zimbabwe rebutted the claims are untrue and stated that the claims are intended to harm the image and reputation of the company

Dr Hope Pachena managing director of Hubbard Zimbabwe stated that Most of the poultry farmers who experience this problem if any would have bought their feed from unlicensed vendors This feed usually lacks some of the nutrients Read more

Taiwan and US at stalemate over ractopamine TaiwanUS trade talks were due to resume in early January but were put on hold when a resolution over ractopamine levels permitted by Taiwan was not found The US postponed the Trade and Investment Framework Agreement (TIFA) talks after Taiwan blocked some shipments of US beef after finding that they contained residue of ractopamine (banned by Taiwan) an animal feed additive that promotes leanness A TIFA is a trade pact that establishes a framework for expanding trade and resolv-ing outstanding disputes between countries TIFAs are often seen as an important step toward establishing free trade agreements

Taiwan Vice Minister of Economic Affairs Sheng-Chung Lin said last week the amount of boneless beef imported from the US has continued to drop recently and that his government understands the USs concerns over Taipeis stance regarding imports of the meat Central News Agency re-ported However he pointed out that Taiwans regulations do not allow for any traces of ractopamine in meat According to Lin Taiwan has laid out its current regulations but the US has not accepted them Read more

Pioneer releases RR alfalfa varieties Now that the federal government has signed off on Roundup Ready alfalfa one company is offering a set of new alfalfa varieties with the trait that company officials say can make the crop thrive under a wider array of conditions

Pioneer officials announced Monday the release of five Roundup Ready varieties all of which are adapted to conditions where different pests exert extra pressure on the crop says Robin Newell Pioneer marketing manager for forages who adds alfalfa is no longer a one-size-fits-all crop Read more

Japan to hold next tender for feed wheat barley on March 16 Japan will hold a tender on March 16 for a maximum of 30000 metric tons of feed wheat and 200000 tons of feed barley according to the Min-istry of Agriculture Forestry and Fisheries

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

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15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

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For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

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Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

BULK STORAGE HANDLING ANDPROCESS ENGINEERS FOR THE ANIMAL FEED GRAIN FLOUR BAKERY HUMAN AND PET FOODS INDUSTRIES

CENZONE TECH INC2110 Low Chaparral DriveSan MarcosCA92069 USATel 760 736 9901Fax 760 736 9958Web wwwcenzonecomE-mail cenzonetechworldnetattnet

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

IMD_40x40m_classADindd 1 15032010 1244

Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

BiopharmRhoneClassindd 1 31032010 1536

wwwjcb-consultingcom+44(0)161 427 2402

Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

Email palmviewpldtdslnetWebsite wwwpalmviewtradecom

PALM VIEW TRADE

THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 5: March 2011 - The Global Miller

5

THE GLOBAL MILLER | March 2011

March 02 2011

Spain lagging behind in feed safety implementation Spain is at the back of the line when it comes to implementing the EU Di-rective on undesirable substances in animal feed The Directive controls the maximum levels of heavy metals such as arsenic specific pesticides and botanical impurities

Member states were to implement the Directive into national law by mid 2010 but Spain has failed to do so The European Commission last week once again called upon Madrid to follow suit after sending out several warnings in 2010 If the Brussels authorities do not receive a satisfactory reply within two months it can sue Spain at the European Court of Jus-tice

Kenyan farmers hit hard by rising feed cost of feeds Dairy farmers in Kenya are squeezed by the escalating cost of animal feed forcing some to revert to homemade provisions to stay afloat The rise in the cost of animal feed has also pushed up milk shelf prices increasing the burden on consumers According to players in the milk sector there is a shortage of ingredients used in animal feed and this has triggered a surge in prices

The Association of Kenya Feed Manufacturers (AKFM) says this is among the challenges facing the industry Players in the milk sector are concerned with the escalating cost of animal feed as high prices threaten to stifle the growth of the dairy farming in the country Read more

Norel appoint distributor in Bangladesh JampC Impex Limited has started distributing Norelrsquos product for the Bang-ladesh market supplying the broiler layer fish and shrimp farms breeder farms and hatcheries as well as feed mills Dr Jamil Hossain Director of JampC Impex Limited said ldquowe started our Agrovet business unit in the year 2007 with a new vision and broader outlook to meet the challenges of the rapidly growing livestock poultry and aquaculture marketsrdquo

Norel SA is an international company based in Spain and manufacturing on three continents producing various species-specific additives under the brand name Norel Animal Nutrition this includes specialist rumen-inert and other vegetable fats direct fed microbial additives (probiotics) natural growth promoters a range of flavours and sweeteners specific amino-acid mineral chelates acidifiers and pellet binders plus a wide range of feed safety products bactericides mould inhibitors antioxidants and micotoxin binders

JampC Impex supplies feed additives nutritional products medicated premixes and biosecurity products to their customers in Bangladesh JampC Impex is member of the Animal Health Companies Association of Bang-ladesh (AHCAB) and it has got its registration from the Department of Livestock Services (DLS) Read more

People at Sweet Manufacturing Bulk material handling conveying and processing equipment supplier Sweet Manufacturing Company announced that Roy Mead Professional Engineer (PE) has joined the company as the Engineering Manager Mead brings a vast engineering background which includes structural design machine design electrical controls and robotics

7

THE GLOBAL MILLER | March 2011

He will be responsible for leading the Sweet Engineering team He will also work closely with both internal and external customers to provide appropriate equipment and project design and layout recommendations that will ultimately satisfy customer material handling requirements Mead obtained his Bachelor of Science in Mechanical Engineering degree from the University of Dayton in Ohio He also has a Professional Engineer (PE) Certification from the State of Ohio Read more

March 3 2011

Company Profile Behlan Mfg Co Behlan Mfg Co was established in 1936 from the garage of Walter D Behlan in Columbus Nebraska The company has grown and developed into an international suppliers of livestock equipment pre engineered metal buildings and grain storage systems now exported to more than 70 countries

In 1969 the Behlan family sold the business to the Wicks Corporation the management style changed from a family run business to a corporate business In 1983 Behlan Mfg Co was the subject of a management buy-out securing the jobs of some 500 employees

Since then Behlan has grown into a major international company with 4 distinct units Behlan Country Behlan Building Systems International amp Diversified Products and BMC Transport Since 1983 Behlan has grown and acquired a number of other companies in the United States

In 2002 after a 20 year association with a Chinese company they formed a joint venture known as Behlan China Today Behlan employes over a 1000 people with sales of almost US$200 million

Pancosma to share new strategy and research in Bangkok Swiss feed additive manufacturer Pancosma will have an open meeting for its partners and media collaborators on March 12 in Bangkok Thai-land The company will share recent discoveries of its RampD team which were done in collaboration with major universities The company will reveal the gut is a second brain

This event will also be the opportunity for the companyrsquos CEO D Kofel to reveal the new strategy and the new corporate identity The discovery open new frontiers in animal nutrition and has made the company review its approach and its strategy Obviously the company has evaluated its corporate identity with a new logo and new communications to come Read more

Cargill to use wind power in cutting shipping costs By the end of this year Cargill will literarily sail the ocean again using Sky-Sailsrsquo wind and kite-assisted sail technology on one of its 30000 tonne cargo ships and thus reduce fuel consumption up to 35 percent

This December Cargill will be the first company to implement SkySails innovative wind and kite-assisted sail technology on one of its 30000 tonne cargo ships with the goal of reducing the vessels fuel consump-tion by up to 35 percent and setting a new standard for greenhouse gas reduction in the shipping industry

The kite used has a surface of 320 m2 and flies between 100 and 420 m above the ship It is connected to the cargo ship by a rope which is at-tached to a computer Read more

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THE GLOBAL MILLER | March 2011

8

South Korea permits Syngentarsquos Agrisure stacked-GM corn Syngenta Seeds Inc has received import approval from regulatory au-thorities in South Korea for hybrids containing the Agrisure Viptera 3111 trait stack The Agrisure Viptera 3111 trait stack combines the Agrisure Viptera trait with the Agrisure 3000GT trait stack to provide control of 14 above- and below-ground corn pests more than any other commercially available product in corn trait history

This approval allows the importation of US corn grown from hybrids con-taining the trait stack into South Korea for food feed or processing use South Korean authorities previously approved the single Agrisure Viptera trait in October 2010 ldquoImport approval from South Korea provides US corn growers access to yet another valuable marketrdquo said David Morgan president of Syngenta Seeds Read more

Assitance available to Illiinois fish farmers

Illinois fish farmers can qualify for nearly US$80000 (UKpound49159) in busi-ness assistance funds under a federal program being administered by the Illinois Department of Agriculture (IDOA)

Like other small businesses throughout the state these operations make important contributions to their local economies Agriculture Director Tom Jennings said Were appreciative of this assistance because it will help preserve jobs on farms whose existence is threatened by exorbitant feed costs

The federal government has authorized US$20 million (UKpound1229 million) to provide assistance to eligible aquaculture producers under Section 32 of the Agricultural Adjustment Act of August 24 1935 Illinois fish farmers are eligible if their 2009 feed costs were at least 25 percent of their total operating expenses and if their feed costs are 25 percent above the aver-age cost of feed in the state from 2003-2007 Read more

March 04 2011

Planting Corn into Sod in 2011 Planting corn into sod comes with some general opportunities and chal-lenges Corn could generate a gross return of US$500-700acre or more depending on yield and marketing That is a large enough opportunity to consider taking old pasture or hay fields and converting them to corn for 2011 While some producers have plenty of experience with corn others are more experienced with tobacco hay or pastures The general com-ments below are targeted to both types of producers

1 Nitrogen benefit Land that has been in a grass andor legume sod for four years will reduce the fertilizer nitrogen (N) requirement by about 25 lbs Nacre If that soil has been in sod for five years or more then ferti-lizer N can be reduced by 50 lbs Nacre

2 The vast majority of hay and pasture fields are potassium (K) deficient Hay removes a lot of K2O from the soil while pasture fields tend to re-move a little less Without even conducting a soil test odds are very good that the sod will need about 60 lbs K2Oacre Of course a soil sample provides a much more accurate estimate of what is needed in the field Read more

Port strikes in Argentina fire up againAbout three-quarters of Argentinas agriculture exports are shipped from river ports clustered around Rosario and nearby San Lorenzo Argentina is the worldrsquos leading soy meal and soy oil exporter and is third-largest in soybean exports

9

THE GLOBAL MILLER | March 2011

The cooperative that employs the picketing workers is demanding that grain exporters pay more for the port services it provides Argentine port workers this week continued to picket two important grain ports at a key shipping center north of the city of Rosario A dispute over service fees is causing the strike Read more

Antibiotics in DDGS may raise some concerns Of the distillers grains produced in North America 90 percent is going into animal feeds with 80 percent of that going into ruminant diets Now public concern has arisen over the safety of the product The reason for this concern is a recent survey of the US Food and Drug Administration (FDA) which found that 53 percent of the US distillers grains (DDGS) sampled had antibiotic residues

General fear is that these residues could potentially lead to the develop-ment of bacterial resistance in animals and eventually also in humans DDGS are primarily produced through dry or wet milling In dry milling the whole grain is milled and used for ethanol production

Wet milling on the other hand separates out all of the grain components and only uses the starch for ethanol production The remaining portion of the grain is used to create a variety of other marketable products Read more

Innovation award for Brock Grain Systems Brock Grain Systems has received the 2011 AE50 award for its M Se-ries commercial grain storage bins for innovative technology The AE50 Awards were presented by ASABE the American Society of Agricultural and Biological Engineers The annual award recognises the worldrsquos best technology innovations introduced the previous year for the agricultural food and biological systems industries

Brock Grain Systems was one of many companies from around the world to submit an entry to the annual AE50 competition where up to 50 of the top products are chosen by a panel of international engineering experts The judges select products that will best advance engineering for the food and agriculture industries and emphasise the role of new products and systems in bringing advanced technology to the marketplace Read more

March 2011

Mexico Trucking Dispute Agreement Reached President Barack Obama and Mexican President Felipe Calderon have reached an agreement to resolve the dispute over cross-border trucking The dispute erupted in March 2009 when Mexico placed higher tariffs on an estimated US$24 billion of US goods after the US Congress cut off funding to renew a pilot program that let a limited number of Mexican trucking companies to haul freight beyond a 25-mile US commercial zone

Mexico had instituted tariffs in retaliation for the United States not com-plying with the trucking provision of the 1994 North American Free Trade Agreement (NAFTA) The provision was supposed to become effective in December 1995 Half of the US$24 billion in Mexican retaliatory tariffs are to be lifted as soon as the agreement is finalised The remainder of the tariffs will be lifted when the necessary safety tests are completed and the first Mexican truck rolls across the US border according to a state-ment from the American Farm Bureau Federation Read more

THE GLOBAL MILLER | March 2011

10

11

THE GLOBAL MILLER | March 2011

Research Omega-3 fatty acids pork quality Canadian researchers found that increasing omega-3 levels through dietary co-extruded flaxseed supplementation negatively affects pork palatability To clarify the impact of feeding co-extruded flaxseed on car-cass quality and pork palatability 96 pigs (48 barrows and 48 gilts) were fed three different levels of flaxseed (zero percent five percent and 10 percent of dietary intake) for 76 days

Carcass quality and meat quality characteristics of pure loin muscle and ground pork (20 percent fat) were evaluated Fat hardness and belly firmness decreased with increasing co-extruded flaxseed Pigs fed co-extruded flaxseed levels had higher lean yield and total lean content Loin from barrows had higher fat content compared to gilts Co-extruded flaxseed supplementation increased omega-3 content in loin and ground pork Read more

Food prices to carry on climbing all year in the UK The United Nations Food and Agriculture Organization (UN FAO) said that turmoil in north Africa and the Middle East was behind the fresh spike in the price of wheat and cooking oil with many governments hoarding food The UN Food and Agriculture Organisations (FAOs) food price index averaged 236 points in February a record up 22 percent from January and rising for the eighth month in a row

The index highlights how food prices which throughout most of the last two decades have been stable have taken off in alarming fashion in the last three years In 2000 the index stood at 90 and did not break through 100 until 2004 If crude oil a key cost for farmers and shipping companies moving commodities around the world continues to climb prices will climb yet higher the UN warned Read more

Soybeans Corn premiums rise on improving overseas demand Cash premiums for soybeans and corn shipped this month to terminals near New Orleans widened relative to Chicago futures on rising demand for US supplies

The spot-basis bid or premium for soybeans delivered in March at Gulf of Mexico ports rose to 64 cents to 66 cents a bushel above May futures from 63 cents to 64 cents yesterday US Department of Agriculture data show The corn basis was 51 cents to 52 cents a bushel above May fu-tures up from 49 cents to 52 cents The average bid rose to US$78825 the highest since June 27 2008

ldquoWe had another week of good export salesrdquo for corn and soybeans said Glenn Hollander a partner at Hollander amp Feuerhaken a cash grain merchandiser and broker in Chicago ldquoThe basis will start to improve per-haps significantly if there is a further increase in export salesrdquo Soybean futures for May delivery advanced 1775 cents or 13 percent to close at US$1412 a bushel on the Chicago Board of Trade the third consecu-tive gain On February 9 the commodity reached a 30-month high of US$145 Read more

Work stoppages at Argentine grain export ports spread After picketing workers in San Lorenzo now also tugboat operators at the ports of Bahia Blanca and Quequen in southern Buenos Aires Province going on strike The Bahia Blanca and Quequen ports are home to signifi-cant loading facilities for wheat most of which is shipped to Brazil

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THE GLOBAL MILLER | March 2011

12

Tugboat workers at the two ports were refusing to provide services to grain loading terminals but the rest of the port facilities are unaffected an official at Argentinas port authority said Cargill Inc Argentinas leading grain exporter has its port blocked and Terminal 6 is blocked as well which is owned by Aceitera General Deheza SA and Bunge Ltd and is one of the largest soybean crushing and loading facilities in the area Read more

March 09 2011

Hubbard Zimbabwe calls for poultry farmers to purchase feed from reputable suppliers Hubbard Zimbabwe has urged poultry farmers to ensure that their poultry feed comes from suppliers who are reputable in the industryThe firm has made the call to farmers in the midst of looming claims in which some customers say that Crest Poultry Group a Hubbard subsidiary was sell-ing chicks that were not growing Hubbard Zimbabwe rebutted the claims are untrue and stated that the claims are intended to harm the image and reputation of the company

Dr Hope Pachena managing director of Hubbard Zimbabwe stated that Most of the poultry farmers who experience this problem if any would have bought their feed from unlicensed vendors This feed usually lacks some of the nutrients Read more

Taiwan and US at stalemate over ractopamine TaiwanUS trade talks were due to resume in early January but were put on hold when a resolution over ractopamine levels permitted by Taiwan was not found The US postponed the Trade and Investment Framework Agreement (TIFA) talks after Taiwan blocked some shipments of US beef after finding that they contained residue of ractopamine (banned by Taiwan) an animal feed additive that promotes leanness A TIFA is a trade pact that establishes a framework for expanding trade and resolv-ing outstanding disputes between countries TIFAs are often seen as an important step toward establishing free trade agreements

Taiwan Vice Minister of Economic Affairs Sheng-Chung Lin said last week the amount of boneless beef imported from the US has continued to drop recently and that his government understands the USs concerns over Taipeis stance regarding imports of the meat Central News Agency re-ported However he pointed out that Taiwans regulations do not allow for any traces of ractopamine in meat According to Lin Taiwan has laid out its current regulations but the US has not accepted them Read more

Pioneer releases RR alfalfa varieties Now that the federal government has signed off on Roundup Ready alfalfa one company is offering a set of new alfalfa varieties with the trait that company officials say can make the crop thrive under a wider array of conditions

Pioneer officials announced Monday the release of five Roundup Ready varieties all of which are adapted to conditions where different pests exert extra pressure on the crop says Robin Newell Pioneer marketing manager for forages who adds alfalfa is no longer a one-size-fits-all crop Read more

Japan to hold next tender for feed wheat barley on March 16 Japan will hold a tender on March 16 for a maximum of 30000 metric tons of feed wheat and 200000 tons of feed barley according to the Min-istry of Agriculture Forestry and Fisheries

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

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15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

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reg

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Analysis

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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ELEVATOR BUCKETS amp BOLTS

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reg

AquafeedClassified40_2x40mFINALrevsd 22310 1235 AM Page 1

WWWEXTRUDERNL WWWEXPANDERNL

Almex bv Verlengde Ooyerhoekseweg 297207 BJ Zutphen Netherlands tel +31 (0)575 572666

e-mail infoalmexnl internet wwwalmexnl

wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

wwwsymagacom

Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

BULK STORAGE HANDLING ANDPROCESS ENGINEERS FOR THE ANIMAL FEED GRAIN FLOUR BAKERY HUMAN AND PET FOODS INDUSTRIES

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A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

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Whatever you are looking for in the milling industry

fi nd it with IMD

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Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 6: March 2011 - The Global Miller

7

THE GLOBAL MILLER | March 2011

He will be responsible for leading the Sweet Engineering team He will also work closely with both internal and external customers to provide appropriate equipment and project design and layout recommendations that will ultimately satisfy customer material handling requirements Mead obtained his Bachelor of Science in Mechanical Engineering degree from the University of Dayton in Ohio He also has a Professional Engineer (PE) Certification from the State of Ohio Read more

March 3 2011

Company Profile Behlan Mfg Co Behlan Mfg Co was established in 1936 from the garage of Walter D Behlan in Columbus Nebraska The company has grown and developed into an international suppliers of livestock equipment pre engineered metal buildings and grain storage systems now exported to more than 70 countries

In 1969 the Behlan family sold the business to the Wicks Corporation the management style changed from a family run business to a corporate business In 1983 Behlan Mfg Co was the subject of a management buy-out securing the jobs of some 500 employees

Since then Behlan has grown into a major international company with 4 distinct units Behlan Country Behlan Building Systems International amp Diversified Products and BMC Transport Since 1983 Behlan has grown and acquired a number of other companies in the United States

In 2002 after a 20 year association with a Chinese company they formed a joint venture known as Behlan China Today Behlan employes over a 1000 people with sales of almost US$200 million

Pancosma to share new strategy and research in Bangkok Swiss feed additive manufacturer Pancosma will have an open meeting for its partners and media collaborators on March 12 in Bangkok Thai-land The company will share recent discoveries of its RampD team which were done in collaboration with major universities The company will reveal the gut is a second brain

This event will also be the opportunity for the companyrsquos CEO D Kofel to reveal the new strategy and the new corporate identity The discovery open new frontiers in animal nutrition and has made the company review its approach and its strategy Obviously the company has evaluated its corporate identity with a new logo and new communications to come Read more

Cargill to use wind power in cutting shipping costs By the end of this year Cargill will literarily sail the ocean again using Sky-Sailsrsquo wind and kite-assisted sail technology on one of its 30000 tonne cargo ships and thus reduce fuel consumption up to 35 percent

This December Cargill will be the first company to implement SkySails innovative wind and kite-assisted sail technology on one of its 30000 tonne cargo ships with the goal of reducing the vessels fuel consump-tion by up to 35 percent and setting a new standard for greenhouse gas reduction in the shipping industry

The kite used has a surface of 320 m2 and flies between 100 and 420 m above the ship It is connected to the cargo ship by a rope which is at-tached to a computer Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

BULK STORAGE HANDLING ANDPROCESS ENGINEERS FOR THE ANIMAL FEED GRAIN FLOUR BAKERY HUMAN AND PET FOODS INDUSTRIES

CENZONE TECH INC2110 Low Chaparral DriveSan MarcosCA92069 USATel 760 736 9901Fax 760 736 9958Web wwwcenzonecomE-mail cenzonetechworldnetattnet

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

8

South Korea permits Syngentarsquos Agrisure stacked-GM corn Syngenta Seeds Inc has received import approval from regulatory au-thorities in South Korea for hybrids containing the Agrisure Viptera 3111 trait stack The Agrisure Viptera 3111 trait stack combines the Agrisure Viptera trait with the Agrisure 3000GT trait stack to provide control of 14 above- and below-ground corn pests more than any other commercially available product in corn trait history

This approval allows the importation of US corn grown from hybrids con-taining the trait stack into South Korea for food feed or processing use South Korean authorities previously approved the single Agrisure Viptera trait in October 2010 ldquoImport approval from South Korea provides US corn growers access to yet another valuable marketrdquo said David Morgan president of Syngenta Seeds Read more

Assitance available to Illiinois fish farmers

Illinois fish farmers can qualify for nearly US$80000 (UKpound49159) in busi-ness assistance funds under a federal program being administered by the Illinois Department of Agriculture (IDOA)

Like other small businesses throughout the state these operations make important contributions to their local economies Agriculture Director Tom Jennings said Were appreciative of this assistance because it will help preserve jobs on farms whose existence is threatened by exorbitant feed costs

The federal government has authorized US$20 million (UKpound1229 million) to provide assistance to eligible aquaculture producers under Section 32 of the Agricultural Adjustment Act of August 24 1935 Illinois fish farmers are eligible if their 2009 feed costs were at least 25 percent of their total operating expenses and if their feed costs are 25 percent above the aver-age cost of feed in the state from 2003-2007 Read more

March 04 2011

Planting Corn into Sod in 2011 Planting corn into sod comes with some general opportunities and chal-lenges Corn could generate a gross return of US$500-700acre or more depending on yield and marketing That is a large enough opportunity to consider taking old pasture or hay fields and converting them to corn for 2011 While some producers have plenty of experience with corn others are more experienced with tobacco hay or pastures The general com-ments below are targeted to both types of producers

1 Nitrogen benefit Land that has been in a grass andor legume sod for four years will reduce the fertilizer nitrogen (N) requirement by about 25 lbs Nacre If that soil has been in sod for five years or more then ferti-lizer N can be reduced by 50 lbs Nacre

2 The vast majority of hay and pasture fields are potassium (K) deficient Hay removes a lot of K2O from the soil while pasture fields tend to re-move a little less Without even conducting a soil test odds are very good that the sod will need about 60 lbs K2Oacre Of course a soil sample provides a much more accurate estimate of what is needed in the field Read more

Port strikes in Argentina fire up againAbout three-quarters of Argentinas agriculture exports are shipped from river ports clustered around Rosario and nearby San Lorenzo Argentina is the worldrsquos leading soy meal and soy oil exporter and is third-largest in soybean exports

9

THE GLOBAL MILLER | March 2011

The cooperative that employs the picketing workers is demanding that grain exporters pay more for the port services it provides Argentine port workers this week continued to picket two important grain ports at a key shipping center north of the city of Rosario A dispute over service fees is causing the strike Read more

Antibiotics in DDGS may raise some concerns Of the distillers grains produced in North America 90 percent is going into animal feeds with 80 percent of that going into ruminant diets Now public concern has arisen over the safety of the product The reason for this concern is a recent survey of the US Food and Drug Administration (FDA) which found that 53 percent of the US distillers grains (DDGS) sampled had antibiotic residues

General fear is that these residues could potentially lead to the develop-ment of bacterial resistance in animals and eventually also in humans DDGS are primarily produced through dry or wet milling In dry milling the whole grain is milled and used for ethanol production

Wet milling on the other hand separates out all of the grain components and only uses the starch for ethanol production The remaining portion of the grain is used to create a variety of other marketable products Read more

Innovation award for Brock Grain Systems Brock Grain Systems has received the 2011 AE50 award for its M Se-ries commercial grain storage bins for innovative technology The AE50 Awards were presented by ASABE the American Society of Agricultural and Biological Engineers The annual award recognises the worldrsquos best technology innovations introduced the previous year for the agricultural food and biological systems industries

Brock Grain Systems was one of many companies from around the world to submit an entry to the annual AE50 competition where up to 50 of the top products are chosen by a panel of international engineering experts The judges select products that will best advance engineering for the food and agriculture industries and emphasise the role of new products and systems in bringing advanced technology to the marketplace Read more

March 2011

Mexico Trucking Dispute Agreement Reached President Barack Obama and Mexican President Felipe Calderon have reached an agreement to resolve the dispute over cross-border trucking The dispute erupted in March 2009 when Mexico placed higher tariffs on an estimated US$24 billion of US goods after the US Congress cut off funding to renew a pilot program that let a limited number of Mexican trucking companies to haul freight beyond a 25-mile US commercial zone

Mexico had instituted tariffs in retaliation for the United States not com-plying with the trucking provision of the 1994 North American Free Trade Agreement (NAFTA) The provision was supposed to become effective in December 1995 Half of the US$24 billion in Mexican retaliatory tariffs are to be lifted as soon as the agreement is finalised The remainder of the tariffs will be lifted when the necessary safety tests are completed and the first Mexican truck rolls across the US border according to a state-ment from the American Farm Bureau Federation Read more

THE GLOBAL MILLER | March 2011

10

11

THE GLOBAL MILLER | March 2011

Research Omega-3 fatty acids pork quality Canadian researchers found that increasing omega-3 levels through dietary co-extruded flaxseed supplementation negatively affects pork palatability To clarify the impact of feeding co-extruded flaxseed on car-cass quality and pork palatability 96 pigs (48 barrows and 48 gilts) were fed three different levels of flaxseed (zero percent five percent and 10 percent of dietary intake) for 76 days

Carcass quality and meat quality characteristics of pure loin muscle and ground pork (20 percent fat) were evaluated Fat hardness and belly firmness decreased with increasing co-extruded flaxseed Pigs fed co-extruded flaxseed levels had higher lean yield and total lean content Loin from barrows had higher fat content compared to gilts Co-extruded flaxseed supplementation increased omega-3 content in loin and ground pork Read more

Food prices to carry on climbing all year in the UK The United Nations Food and Agriculture Organization (UN FAO) said that turmoil in north Africa and the Middle East was behind the fresh spike in the price of wheat and cooking oil with many governments hoarding food The UN Food and Agriculture Organisations (FAOs) food price index averaged 236 points in February a record up 22 percent from January and rising for the eighth month in a row

The index highlights how food prices which throughout most of the last two decades have been stable have taken off in alarming fashion in the last three years In 2000 the index stood at 90 and did not break through 100 until 2004 If crude oil a key cost for farmers and shipping companies moving commodities around the world continues to climb prices will climb yet higher the UN warned Read more

Soybeans Corn premiums rise on improving overseas demand Cash premiums for soybeans and corn shipped this month to terminals near New Orleans widened relative to Chicago futures on rising demand for US supplies

The spot-basis bid or premium for soybeans delivered in March at Gulf of Mexico ports rose to 64 cents to 66 cents a bushel above May futures from 63 cents to 64 cents yesterday US Department of Agriculture data show The corn basis was 51 cents to 52 cents a bushel above May fu-tures up from 49 cents to 52 cents The average bid rose to US$78825 the highest since June 27 2008

ldquoWe had another week of good export salesrdquo for corn and soybeans said Glenn Hollander a partner at Hollander amp Feuerhaken a cash grain merchandiser and broker in Chicago ldquoThe basis will start to improve per-haps significantly if there is a further increase in export salesrdquo Soybean futures for May delivery advanced 1775 cents or 13 percent to close at US$1412 a bushel on the Chicago Board of Trade the third consecu-tive gain On February 9 the commodity reached a 30-month high of US$145 Read more

Work stoppages at Argentine grain export ports spread After picketing workers in San Lorenzo now also tugboat operators at the ports of Bahia Blanca and Quequen in southern Buenos Aires Province going on strike The Bahia Blanca and Quequen ports are home to signifi-cant loading facilities for wheat most of which is shipped to Brazil

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THE GLOBAL MILLER | March 2011

12

Tugboat workers at the two ports were refusing to provide services to grain loading terminals but the rest of the port facilities are unaffected an official at Argentinas port authority said Cargill Inc Argentinas leading grain exporter has its port blocked and Terminal 6 is blocked as well which is owned by Aceitera General Deheza SA and Bunge Ltd and is one of the largest soybean crushing and loading facilities in the area Read more

March 09 2011

Hubbard Zimbabwe calls for poultry farmers to purchase feed from reputable suppliers Hubbard Zimbabwe has urged poultry farmers to ensure that their poultry feed comes from suppliers who are reputable in the industryThe firm has made the call to farmers in the midst of looming claims in which some customers say that Crest Poultry Group a Hubbard subsidiary was sell-ing chicks that were not growing Hubbard Zimbabwe rebutted the claims are untrue and stated that the claims are intended to harm the image and reputation of the company

Dr Hope Pachena managing director of Hubbard Zimbabwe stated that Most of the poultry farmers who experience this problem if any would have bought their feed from unlicensed vendors This feed usually lacks some of the nutrients Read more

Taiwan and US at stalemate over ractopamine TaiwanUS trade talks were due to resume in early January but were put on hold when a resolution over ractopamine levels permitted by Taiwan was not found The US postponed the Trade and Investment Framework Agreement (TIFA) talks after Taiwan blocked some shipments of US beef after finding that they contained residue of ractopamine (banned by Taiwan) an animal feed additive that promotes leanness A TIFA is a trade pact that establishes a framework for expanding trade and resolv-ing outstanding disputes between countries TIFAs are often seen as an important step toward establishing free trade agreements

Taiwan Vice Minister of Economic Affairs Sheng-Chung Lin said last week the amount of boneless beef imported from the US has continued to drop recently and that his government understands the USs concerns over Taipeis stance regarding imports of the meat Central News Agency re-ported However he pointed out that Taiwans regulations do not allow for any traces of ractopamine in meat According to Lin Taiwan has laid out its current regulations but the US has not accepted them Read more

Pioneer releases RR alfalfa varieties Now that the federal government has signed off on Roundup Ready alfalfa one company is offering a set of new alfalfa varieties with the trait that company officials say can make the crop thrive under a wider array of conditions

Pioneer officials announced Monday the release of five Roundup Ready varieties all of which are adapted to conditions where different pests exert extra pressure on the crop says Robin Newell Pioneer marketing manager for forages who adds alfalfa is no longer a one-size-fits-all crop Read more

Japan to hold next tender for feed wheat barley on March 16 Japan will hold a tender on March 16 for a maximum of 30000 metric tons of feed wheat and 200000 tons of feed barley according to the Min-istry of Agriculture Forestry and Fisheries

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

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15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

BULK STORAGE HANDLING ANDPROCESS ENGINEERS FOR THE ANIMAL FEED GRAIN FLOUR BAKERY HUMAN AND PET FOODS INDUSTRIES

CENZONE TECH INC2110 Low Chaparral DriveSan MarcosCA92069 USATel 760 736 9901Fax 760 736 9958Web wwwcenzonecomE-mail cenzonetechworldnetattnet

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

IMD_40x40m_classADindd 1 15032010 1244

Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

BiopharmRhoneClassindd 1 31032010 1536

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Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 7: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

8

South Korea permits Syngentarsquos Agrisure stacked-GM corn Syngenta Seeds Inc has received import approval from regulatory au-thorities in South Korea for hybrids containing the Agrisure Viptera 3111 trait stack The Agrisure Viptera 3111 trait stack combines the Agrisure Viptera trait with the Agrisure 3000GT trait stack to provide control of 14 above- and below-ground corn pests more than any other commercially available product in corn trait history

This approval allows the importation of US corn grown from hybrids con-taining the trait stack into South Korea for food feed or processing use South Korean authorities previously approved the single Agrisure Viptera trait in October 2010 ldquoImport approval from South Korea provides US corn growers access to yet another valuable marketrdquo said David Morgan president of Syngenta Seeds Read more

Assitance available to Illiinois fish farmers

Illinois fish farmers can qualify for nearly US$80000 (UKpound49159) in busi-ness assistance funds under a federal program being administered by the Illinois Department of Agriculture (IDOA)

Like other small businesses throughout the state these operations make important contributions to their local economies Agriculture Director Tom Jennings said Were appreciative of this assistance because it will help preserve jobs on farms whose existence is threatened by exorbitant feed costs

The federal government has authorized US$20 million (UKpound1229 million) to provide assistance to eligible aquaculture producers under Section 32 of the Agricultural Adjustment Act of August 24 1935 Illinois fish farmers are eligible if their 2009 feed costs were at least 25 percent of their total operating expenses and if their feed costs are 25 percent above the aver-age cost of feed in the state from 2003-2007 Read more

March 04 2011

Planting Corn into Sod in 2011 Planting corn into sod comes with some general opportunities and chal-lenges Corn could generate a gross return of US$500-700acre or more depending on yield and marketing That is a large enough opportunity to consider taking old pasture or hay fields and converting them to corn for 2011 While some producers have plenty of experience with corn others are more experienced with tobacco hay or pastures The general com-ments below are targeted to both types of producers

1 Nitrogen benefit Land that has been in a grass andor legume sod for four years will reduce the fertilizer nitrogen (N) requirement by about 25 lbs Nacre If that soil has been in sod for five years or more then ferti-lizer N can be reduced by 50 lbs Nacre

2 The vast majority of hay and pasture fields are potassium (K) deficient Hay removes a lot of K2O from the soil while pasture fields tend to re-move a little less Without even conducting a soil test odds are very good that the sod will need about 60 lbs K2Oacre Of course a soil sample provides a much more accurate estimate of what is needed in the field Read more

Port strikes in Argentina fire up againAbout three-quarters of Argentinas agriculture exports are shipped from river ports clustered around Rosario and nearby San Lorenzo Argentina is the worldrsquos leading soy meal and soy oil exporter and is third-largest in soybean exports

9

THE GLOBAL MILLER | March 2011

The cooperative that employs the picketing workers is demanding that grain exporters pay more for the port services it provides Argentine port workers this week continued to picket two important grain ports at a key shipping center north of the city of Rosario A dispute over service fees is causing the strike Read more

Antibiotics in DDGS may raise some concerns Of the distillers grains produced in North America 90 percent is going into animal feeds with 80 percent of that going into ruminant diets Now public concern has arisen over the safety of the product The reason for this concern is a recent survey of the US Food and Drug Administration (FDA) which found that 53 percent of the US distillers grains (DDGS) sampled had antibiotic residues

General fear is that these residues could potentially lead to the develop-ment of bacterial resistance in animals and eventually also in humans DDGS are primarily produced through dry or wet milling In dry milling the whole grain is milled and used for ethanol production

Wet milling on the other hand separates out all of the grain components and only uses the starch for ethanol production The remaining portion of the grain is used to create a variety of other marketable products Read more

Innovation award for Brock Grain Systems Brock Grain Systems has received the 2011 AE50 award for its M Se-ries commercial grain storage bins for innovative technology The AE50 Awards were presented by ASABE the American Society of Agricultural and Biological Engineers The annual award recognises the worldrsquos best technology innovations introduced the previous year for the agricultural food and biological systems industries

Brock Grain Systems was one of many companies from around the world to submit an entry to the annual AE50 competition where up to 50 of the top products are chosen by a panel of international engineering experts The judges select products that will best advance engineering for the food and agriculture industries and emphasise the role of new products and systems in bringing advanced technology to the marketplace Read more

March 2011

Mexico Trucking Dispute Agreement Reached President Barack Obama and Mexican President Felipe Calderon have reached an agreement to resolve the dispute over cross-border trucking The dispute erupted in March 2009 when Mexico placed higher tariffs on an estimated US$24 billion of US goods after the US Congress cut off funding to renew a pilot program that let a limited number of Mexican trucking companies to haul freight beyond a 25-mile US commercial zone

Mexico had instituted tariffs in retaliation for the United States not com-plying with the trucking provision of the 1994 North American Free Trade Agreement (NAFTA) The provision was supposed to become effective in December 1995 Half of the US$24 billion in Mexican retaliatory tariffs are to be lifted as soon as the agreement is finalised The remainder of the tariffs will be lifted when the necessary safety tests are completed and the first Mexican truck rolls across the US border according to a state-ment from the American Farm Bureau Federation Read more

THE GLOBAL MILLER | March 2011

10

11

THE GLOBAL MILLER | March 2011

Research Omega-3 fatty acids pork quality Canadian researchers found that increasing omega-3 levels through dietary co-extruded flaxseed supplementation negatively affects pork palatability To clarify the impact of feeding co-extruded flaxseed on car-cass quality and pork palatability 96 pigs (48 barrows and 48 gilts) were fed three different levels of flaxseed (zero percent five percent and 10 percent of dietary intake) for 76 days

Carcass quality and meat quality characteristics of pure loin muscle and ground pork (20 percent fat) were evaluated Fat hardness and belly firmness decreased with increasing co-extruded flaxseed Pigs fed co-extruded flaxseed levels had higher lean yield and total lean content Loin from barrows had higher fat content compared to gilts Co-extruded flaxseed supplementation increased omega-3 content in loin and ground pork Read more

Food prices to carry on climbing all year in the UK The United Nations Food and Agriculture Organization (UN FAO) said that turmoil in north Africa and the Middle East was behind the fresh spike in the price of wheat and cooking oil with many governments hoarding food The UN Food and Agriculture Organisations (FAOs) food price index averaged 236 points in February a record up 22 percent from January and rising for the eighth month in a row

The index highlights how food prices which throughout most of the last two decades have been stable have taken off in alarming fashion in the last three years In 2000 the index stood at 90 and did not break through 100 until 2004 If crude oil a key cost for farmers and shipping companies moving commodities around the world continues to climb prices will climb yet higher the UN warned Read more

Soybeans Corn premiums rise on improving overseas demand Cash premiums for soybeans and corn shipped this month to terminals near New Orleans widened relative to Chicago futures on rising demand for US supplies

The spot-basis bid or premium for soybeans delivered in March at Gulf of Mexico ports rose to 64 cents to 66 cents a bushel above May futures from 63 cents to 64 cents yesterday US Department of Agriculture data show The corn basis was 51 cents to 52 cents a bushel above May fu-tures up from 49 cents to 52 cents The average bid rose to US$78825 the highest since June 27 2008

ldquoWe had another week of good export salesrdquo for corn and soybeans said Glenn Hollander a partner at Hollander amp Feuerhaken a cash grain merchandiser and broker in Chicago ldquoThe basis will start to improve per-haps significantly if there is a further increase in export salesrdquo Soybean futures for May delivery advanced 1775 cents or 13 percent to close at US$1412 a bushel on the Chicago Board of Trade the third consecu-tive gain On February 9 the commodity reached a 30-month high of US$145 Read more

Work stoppages at Argentine grain export ports spread After picketing workers in San Lorenzo now also tugboat operators at the ports of Bahia Blanca and Quequen in southern Buenos Aires Province going on strike The Bahia Blanca and Quequen ports are home to signifi-cant loading facilities for wheat most of which is shipped to Brazil

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THE GLOBAL MILLER | March 2011

12

Tugboat workers at the two ports were refusing to provide services to grain loading terminals but the rest of the port facilities are unaffected an official at Argentinas port authority said Cargill Inc Argentinas leading grain exporter has its port blocked and Terminal 6 is blocked as well which is owned by Aceitera General Deheza SA and Bunge Ltd and is one of the largest soybean crushing and loading facilities in the area Read more

March 09 2011

Hubbard Zimbabwe calls for poultry farmers to purchase feed from reputable suppliers Hubbard Zimbabwe has urged poultry farmers to ensure that their poultry feed comes from suppliers who are reputable in the industryThe firm has made the call to farmers in the midst of looming claims in which some customers say that Crest Poultry Group a Hubbard subsidiary was sell-ing chicks that were not growing Hubbard Zimbabwe rebutted the claims are untrue and stated that the claims are intended to harm the image and reputation of the company

Dr Hope Pachena managing director of Hubbard Zimbabwe stated that Most of the poultry farmers who experience this problem if any would have bought their feed from unlicensed vendors This feed usually lacks some of the nutrients Read more

Taiwan and US at stalemate over ractopamine TaiwanUS trade talks were due to resume in early January but were put on hold when a resolution over ractopamine levels permitted by Taiwan was not found The US postponed the Trade and Investment Framework Agreement (TIFA) talks after Taiwan blocked some shipments of US beef after finding that they contained residue of ractopamine (banned by Taiwan) an animal feed additive that promotes leanness A TIFA is a trade pact that establishes a framework for expanding trade and resolv-ing outstanding disputes between countries TIFAs are often seen as an important step toward establishing free trade agreements

Taiwan Vice Minister of Economic Affairs Sheng-Chung Lin said last week the amount of boneless beef imported from the US has continued to drop recently and that his government understands the USs concerns over Taipeis stance regarding imports of the meat Central News Agency re-ported However he pointed out that Taiwans regulations do not allow for any traces of ractopamine in meat According to Lin Taiwan has laid out its current regulations but the US has not accepted them Read more

Pioneer releases RR alfalfa varieties Now that the federal government has signed off on Roundup Ready alfalfa one company is offering a set of new alfalfa varieties with the trait that company officials say can make the crop thrive under a wider array of conditions

Pioneer officials announced Monday the release of five Roundup Ready varieties all of which are adapted to conditions where different pests exert extra pressure on the crop says Robin Newell Pioneer marketing manager for forages who adds alfalfa is no longer a one-size-fits-all crop Read more

Japan to hold next tender for feed wheat barley on March 16 Japan will hold a tender on March 16 for a maximum of 30000 metric tons of feed wheat and 200000 tons of feed barley according to the Min-istry of Agriculture Forestry and Fisheries

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

Maximumbulk

storage

Silo Construction amp Engineering

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SCE

15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

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Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

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colour Recipe management and

traceability records

reg

For maximum control and efficiency call

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Analysis

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

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ELEVATOR BUCKETS amp BOLTS

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reg

AquafeedClassified40_2x40mFINALrevsd 22310 1235 AM Page 1

WWWEXTRUDERNL WWWEXPANDERNL

Almex bv Verlengde Ooyerhoekseweg 297207 BJ Zutphen Netherlands tel +31 (0)575 572666

e-mail infoalmexnl internet wwwalmexnl

wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

wwwsymagacom

Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

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Whatever you are looking for in the milling industry

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 8: March 2011 - The Global Miller

9

THE GLOBAL MILLER | March 2011

The cooperative that employs the picketing workers is demanding that grain exporters pay more for the port services it provides Argentine port workers this week continued to picket two important grain ports at a key shipping center north of the city of Rosario A dispute over service fees is causing the strike Read more

Antibiotics in DDGS may raise some concerns Of the distillers grains produced in North America 90 percent is going into animal feeds with 80 percent of that going into ruminant diets Now public concern has arisen over the safety of the product The reason for this concern is a recent survey of the US Food and Drug Administration (FDA) which found that 53 percent of the US distillers grains (DDGS) sampled had antibiotic residues

General fear is that these residues could potentially lead to the develop-ment of bacterial resistance in animals and eventually also in humans DDGS are primarily produced through dry or wet milling In dry milling the whole grain is milled and used for ethanol production

Wet milling on the other hand separates out all of the grain components and only uses the starch for ethanol production The remaining portion of the grain is used to create a variety of other marketable products Read more

Innovation award for Brock Grain Systems Brock Grain Systems has received the 2011 AE50 award for its M Se-ries commercial grain storage bins for innovative technology The AE50 Awards were presented by ASABE the American Society of Agricultural and Biological Engineers The annual award recognises the worldrsquos best technology innovations introduced the previous year for the agricultural food and biological systems industries

Brock Grain Systems was one of many companies from around the world to submit an entry to the annual AE50 competition where up to 50 of the top products are chosen by a panel of international engineering experts The judges select products that will best advance engineering for the food and agriculture industries and emphasise the role of new products and systems in bringing advanced technology to the marketplace Read more

March 2011

Mexico Trucking Dispute Agreement Reached President Barack Obama and Mexican President Felipe Calderon have reached an agreement to resolve the dispute over cross-border trucking The dispute erupted in March 2009 when Mexico placed higher tariffs on an estimated US$24 billion of US goods after the US Congress cut off funding to renew a pilot program that let a limited number of Mexican trucking companies to haul freight beyond a 25-mile US commercial zone

Mexico had instituted tariffs in retaliation for the United States not com-plying with the trucking provision of the 1994 North American Free Trade Agreement (NAFTA) The provision was supposed to become effective in December 1995 Half of the US$24 billion in Mexican retaliatory tariffs are to be lifted as soon as the agreement is finalised The remainder of the tariffs will be lifted when the necessary safety tests are completed and the first Mexican truck rolls across the US border according to a state-ment from the American Farm Bureau Federation Read more

THE GLOBAL MILLER | March 2011

10

11

THE GLOBAL MILLER | March 2011

Research Omega-3 fatty acids pork quality Canadian researchers found that increasing omega-3 levels through dietary co-extruded flaxseed supplementation negatively affects pork palatability To clarify the impact of feeding co-extruded flaxseed on car-cass quality and pork palatability 96 pigs (48 barrows and 48 gilts) were fed three different levels of flaxseed (zero percent five percent and 10 percent of dietary intake) for 76 days

Carcass quality and meat quality characteristics of pure loin muscle and ground pork (20 percent fat) were evaluated Fat hardness and belly firmness decreased with increasing co-extruded flaxseed Pigs fed co-extruded flaxseed levels had higher lean yield and total lean content Loin from barrows had higher fat content compared to gilts Co-extruded flaxseed supplementation increased omega-3 content in loin and ground pork Read more

Food prices to carry on climbing all year in the UK The United Nations Food and Agriculture Organization (UN FAO) said that turmoil in north Africa and the Middle East was behind the fresh spike in the price of wheat and cooking oil with many governments hoarding food The UN Food and Agriculture Organisations (FAOs) food price index averaged 236 points in February a record up 22 percent from January and rising for the eighth month in a row

The index highlights how food prices which throughout most of the last two decades have been stable have taken off in alarming fashion in the last three years In 2000 the index stood at 90 and did not break through 100 until 2004 If crude oil a key cost for farmers and shipping companies moving commodities around the world continues to climb prices will climb yet higher the UN warned Read more

Soybeans Corn premiums rise on improving overseas demand Cash premiums for soybeans and corn shipped this month to terminals near New Orleans widened relative to Chicago futures on rising demand for US supplies

The spot-basis bid or premium for soybeans delivered in March at Gulf of Mexico ports rose to 64 cents to 66 cents a bushel above May futures from 63 cents to 64 cents yesterday US Department of Agriculture data show The corn basis was 51 cents to 52 cents a bushel above May fu-tures up from 49 cents to 52 cents The average bid rose to US$78825 the highest since June 27 2008

ldquoWe had another week of good export salesrdquo for corn and soybeans said Glenn Hollander a partner at Hollander amp Feuerhaken a cash grain merchandiser and broker in Chicago ldquoThe basis will start to improve per-haps significantly if there is a further increase in export salesrdquo Soybean futures for May delivery advanced 1775 cents or 13 percent to close at US$1412 a bushel on the Chicago Board of Trade the third consecu-tive gain On February 9 the commodity reached a 30-month high of US$145 Read more

Work stoppages at Argentine grain export ports spread After picketing workers in San Lorenzo now also tugboat operators at the ports of Bahia Blanca and Quequen in southern Buenos Aires Province going on strike The Bahia Blanca and Quequen ports are home to signifi-cant loading facilities for wheat most of which is shipped to Brazil

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THE GLOBAL MILLER | March 2011

12

Tugboat workers at the two ports were refusing to provide services to grain loading terminals but the rest of the port facilities are unaffected an official at Argentinas port authority said Cargill Inc Argentinas leading grain exporter has its port blocked and Terminal 6 is blocked as well which is owned by Aceitera General Deheza SA and Bunge Ltd and is one of the largest soybean crushing and loading facilities in the area Read more

March 09 2011

Hubbard Zimbabwe calls for poultry farmers to purchase feed from reputable suppliers Hubbard Zimbabwe has urged poultry farmers to ensure that their poultry feed comes from suppliers who are reputable in the industryThe firm has made the call to farmers in the midst of looming claims in which some customers say that Crest Poultry Group a Hubbard subsidiary was sell-ing chicks that were not growing Hubbard Zimbabwe rebutted the claims are untrue and stated that the claims are intended to harm the image and reputation of the company

Dr Hope Pachena managing director of Hubbard Zimbabwe stated that Most of the poultry farmers who experience this problem if any would have bought their feed from unlicensed vendors This feed usually lacks some of the nutrients Read more

Taiwan and US at stalemate over ractopamine TaiwanUS trade talks were due to resume in early January but were put on hold when a resolution over ractopamine levels permitted by Taiwan was not found The US postponed the Trade and Investment Framework Agreement (TIFA) talks after Taiwan blocked some shipments of US beef after finding that they contained residue of ractopamine (banned by Taiwan) an animal feed additive that promotes leanness A TIFA is a trade pact that establishes a framework for expanding trade and resolv-ing outstanding disputes between countries TIFAs are often seen as an important step toward establishing free trade agreements

Taiwan Vice Minister of Economic Affairs Sheng-Chung Lin said last week the amount of boneless beef imported from the US has continued to drop recently and that his government understands the USs concerns over Taipeis stance regarding imports of the meat Central News Agency re-ported However he pointed out that Taiwans regulations do not allow for any traces of ractopamine in meat According to Lin Taiwan has laid out its current regulations but the US has not accepted them Read more

Pioneer releases RR alfalfa varieties Now that the federal government has signed off on Roundup Ready alfalfa one company is offering a set of new alfalfa varieties with the trait that company officials say can make the crop thrive under a wider array of conditions

Pioneer officials announced Monday the release of five Roundup Ready varieties all of which are adapted to conditions where different pests exert extra pressure on the crop says Robin Newell Pioneer marketing manager for forages who adds alfalfa is no longer a one-size-fits-all crop Read more

Japan to hold next tender for feed wheat barley on March 16 Japan will hold a tender on March 16 for a maximum of 30000 metric tons of feed wheat and 200000 tons of feed barley according to the Min-istry of Agriculture Forestry and Fisheries

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

Maximumbulk

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15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

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For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

IMD_40x40m_classADindd 1 15032010 1244

Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

BiopharmRhoneClassindd 1 31032010 1536

wwwjcb-consultingcom+44(0)161 427 2402

Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

Email palmviewpldtdslnetWebsite wwwpalmviewtradecom

PALM VIEW TRADE

THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 9: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

10

11

THE GLOBAL MILLER | March 2011

Research Omega-3 fatty acids pork quality Canadian researchers found that increasing omega-3 levels through dietary co-extruded flaxseed supplementation negatively affects pork palatability To clarify the impact of feeding co-extruded flaxseed on car-cass quality and pork palatability 96 pigs (48 barrows and 48 gilts) were fed three different levels of flaxseed (zero percent five percent and 10 percent of dietary intake) for 76 days

Carcass quality and meat quality characteristics of pure loin muscle and ground pork (20 percent fat) were evaluated Fat hardness and belly firmness decreased with increasing co-extruded flaxseed Pigs fed co-extruded flaxseed levels had higher lean yield and total lean content Loin from barrows had higher fat content compared to gilts Co-extruded flaxseed supplementation increased omega-3 content in loin and ground pork Read more

Food prices to carry on climbing all year in the UK The United Nations Food and Agriculture Organization (UN FAO) said that turmoil in north Africa and the Middle East was behind the fresh spike in the price of wheat and cooking oil with many governments hoarding food The UN Food and Agriculture Organisations (FAOs) food price index averaged 236 points in February a record up 22 percent from January and rising for the eighth month in a row

The index highlights how food prices which throughout most of the last two decades have been stable have taken off in alarming fashion in the last three years In 2000 the index stood at 90 and did not break through 100 until 2004 If crude oil a key cost for farmers and shipping companies moving commodities around the world continues to climb prices will climb yet higher the UN warned Read more

Soybeans Corn premiums rise on improving overseas demand Cash premiums for soybeans and corn shipped this month to terminals near New Orleans widened relative to Chicago futures on rising demand for US supplies

The spot-basis bid or premium for soybeans delivered in March at Gulf of Mexico ports rose to 64 cents to 66 cents a bushel above May futures from 63 cents to 64 cents yesterday US Department of Agriculture data show The corn basis was 51 cents to 52 cents a bushel above May fu-tures up from 49 cents to 52 cents The average bid rose to US$78825 the highest since June 27 2008

ldquoWe had another week of good export salesrdquo for corn and soybeans said Glenn Hollander a partner at Hollander amp Feuerhaken a cash grain merchandiser and broker in Chicago ldquoThe basis will start to improve per-haps significantly if there is a further increase in export salesrdquo Soybean futures for May delivery advanced 1775 cents or 13 percent to close at US$1412 a bushel on the Chicago Board of Trade the third consecu-tive gain On February 9 the commodity reached a 30-month high of US$145 Read more

Work stoppages at Argentine grain export ports spread After picketing workers in San Lorenzo now also tugboat operators at the ports of Bahia Blanca and Quequen in southern Buenos Aires Province going on strike The Bahia Blanca and Quequen ports are home to signifi-cant loading facilities for wheat most of which is shipped to Brazil

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THE GLOBAL MILLER | March 2011

12

Tugboat workers at the two ports were refusing to provide services to grain loading terminals but the rest of the port facilities are unaffected an official at Argentinas port authority said Cargill Inc Argentinas leading grain exporter has its port blocked and Terminal 6 is blocked as well which is owned by Aceitera General Deheza SA and Bunge Ltd and is one of the largest soybean crushing and loading facilities in the area Read more

March 09 2011

Hubbard Zimbabwe calls for poultry farmers to purchase feed from reputable suppliers Hubbard Zimbabwe has urged poultry farmers to ensure that their poultry feed comes from suppliers who are reputable in the industryThe firm has made the call to farmers in the midst of looming claims in which some customers say that Crest Poultry Group a Hubbard subsidiary was sell-ing chicks that were not growing Hubbard Zimbabwe rebutted the claims are untrue and stated that the claims are intended to harm the image and reputation of the company

Dr Hope Pachena managing director of Hubbard Zimbabwe stated that Most of the poultry farmers who experience this problem if any would have bought their feed from unlicensed vendors This feed usually lacks some of the nutrients Read more

Taiwan and US at stalemate over ractopamine TaiwanUS trade talks were due to resume in early January but were put on hold when a resolution over ractopamine levels permitted by Taiwan was not found The US postponed the Trade and Investment Framework Agreement (TIFA) talks after Taiwan blocked some shipments of US beef after finding that they contained residue of ractopamine (banned by Taiwan) an animal feed additive that promotes leanness A TIFA is a trade pact that establishes a framework for expanding trade and resolv-ing outstanding disputes between countries TIFAs are often seen as an important step toward establishing free trade agreements

Taiwan Vice Minister of Economic Affairs Sheng-Chung Lin said last week the amount of boneless beef imported from the US has continued to drop recently and that his government understands the USs concerns over Taipeis stance regarding imports of the meat Central News Agency re-ported However he pointed out that Taiwans regulations do not allow for any traces of ractopamine in meat According to Lin Taiwan has laid out its current regulations but the US has not accepted them Read more

Pioneer releases RR alfalfa varieties Now that the federal government has signed off on Roundup Ready alfalfa one company is offering a set of new alfalfa varieties with the trait that company officials say can make the crop thrive under a wider array of conditions

Pioneer officials announced Monday the release of five Roundup Ready varieties all of which are adapted to conditions where different pests exert extra pressure on the crop says Robin Newell Pioneer marketing manager for forages who adds alfalfa is no longer a one-size-fits-all crop Read more

Japan to hold next tender for feed wheat barley on March 16 Japan will hold a tender on March 16 for a maximum of 30000 metric tons of feed wheat and 200000 tons of feed barley according to the Min-istry of Agriculture Forestry and Fisheries

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

Maximumbulk

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15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

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Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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STYLE CC-XD (XTREME DUTY)Polyethylene Elevator Bucket

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e-mail infoalmexnl internet wwwalmexnl

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Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 10: March 2011 - The Global Miller

11

THE GLOBAL MILLER | March 2011

Research Omega-3 fatty acids pork quality Canadian researchers found that increasing omega-3 levels through dietary co-extruded flaxseed supplementation negatively affects pork palatability To clarify the impact of feeding co-extruded flaxseed on car-cass quality and pork palatability 96 pigs (48 barrows and 48 gilts) were fed three different levels of flaxseed (zero percent five percent and 10 percent of dietary intake) for 76 days

Carcass quality and meat quality characteristics of pure loin muscle and ground pork (20 percent fat) were evaluated Fat hardness and belly firmness decreased with increasing co-extruded flaxseed Pigs fed co-extruded flaxseed levels had higher lean yield and total lean content Loin from barrows had higher fat content compared to gilts Co-extruded flaxseed supplementation increased omega-3 content in loin and ground pork Read more

Food prices to carry on climbing all year in the UK The United Nations Food and Agriculture Organization (UN FAO) said that turmoil in north Africa and the Middle East was behind the fresh spike in the price of wheat and cooking oil with many governments hoarding food The UN Food and Agriculture Organisations (FAOs) food price index averaged 236 points in February a record up 22 percent from January and rising for the eighth month in a row

The index highlights how food prices which throughout most of the last two decades have been stable have taken off in alarming fashion in the last three years In 2000 the index stood at 90 and did not break through 100 until 2004 If crude oil a key cost for farmers and shipping companies moving commodities around the world continues to climb prices will climb yet higher the UN warned Read more

Soybeans Corn premiums rise on improving overseas demand Cash premiums for soybeans and corn shipped this month to terminals near New Orleans widened relative to Chicago futures on rising demand for US supplies

The spot-basis bid or premium for soybeans delivered in March at Gulf of Mexico ports rose to 64 cents to 66 cents a bushel above May futures from 63 cents to 64 cents yesterday US Department of Agriculture data show The corn basis was 51 cents to 52 cents a bushel above May fu-tures up from 49 cents to 52 cents The average bid rose to US$78825 the highest since June 27 2008

ldquoWe had another week of good export salesrdquo for corn and soybeans said Glenn Hollander a partner at Hollander amp Feuerhaken a cash grain merchandiser and broker in Chicago ldquoThe basis will start to improve per-haps significantly if there is a further increase in export salesrdquo Soybean futures for May delivery advanced 1775 cents or 13 percent to close at US$1412 a bushel on the Chicago Board of Trade the third consecu-tive gain On February 9 the commodity reached a 30-month high of US$145 Read more

Work stoppages at Argentine grain export ports spread After picketing workers in San Lorenzo now also tugboat operators at the ports of Bahia Blanca and Quequen in southern Buenos Aires Province going on strike The Bahia Blanca and Quequen ports are home to signifi-cant loading facilities for wheat most of which is shipped to Brazil

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

12

Tugboat workers at the two ports were refusing to provide services to grain loading terminals but the rest of the port facilities are unaffected an official at Argentinas port authority said Cargill Inc Argentinas leading grain exporter has its port blocked and Terminal 6 is blocked as well which is owned by Aceitera General Deheza SA and Bunge Ltd and is one of the largest soybean crushing and loading facilities in the area Read more

March 09 2011

Hubbard Zimbabwe calls for poultry farmers to purchase feed from reputable suppliers Hubbard Zimbabwe has urged poultry farmers to ensure that their poultry feed comes from suppliers who are reputable in the industryThe firm has made the call to farmers in the midst of looming claims in which some customers say that Crest Poultry Group a Hubbard subsidiary was sell-ing chicks that were not growing Hubbard Zimbabwe rebutted the claims are untrue and stated that the claims are intended to harm the image and reputation of the company

Dr Hope Pachena managing director of Hubbard Zimbabwe stated that Most of the poultry farmers who experience this problem if any would have bought their feed from unlicensed vendors This feed usually lacks some of the nutrients Read more

Taiwan and US at stalemate over ractopamine TaiwanUS trade talks were due to resume in early January but were put on hold when a resolution over ractopamine levels permitted by Taiwan was not found The US postponed the Trade and Investment Framework Agreement (TIFA) talks after Taiwan blocked some shipments of US beef after finding that they contained residue of ractopamine (banned by Taiwan) an animal feed additive that promotes leanness A TIFA is a trade pact that establishes a framework for expanding trade and resolv-ing outstanding disputes between countries TIFAs are often seen as an important step toward establishing free trade agreements

Taiwan Vice Minister of Economic Affairs Sheng-Chung Lin said last week the amount of boneless beef imported from the US has continued to drop recently and that his government understands the USs concerns over Taipeis stance regarding imports of the meat Central News Agency re-ported However he pointed out that Taiwans regulations do not allow for any traces of ractopamine in meat According to Lin Taiwan has laid out its current regulations but the US has not accepted them Read more

Pioneer releases RR alfalfa varieties Now that the federal government has signed off on Roundup Ready alfalfa one company is offering a set of new alfalfa varieties with the trait that company officials say can make the crop thrive under a wider array of conditions

Pioneer officials announced Monday the release of five Roundup Ready varieties all of which are adapted to conditions where different pests exert extra pressure on the crop says Robin Newell Pioneer marketing manager for forages who adds alfalfa is no longer a one-size-fits-all crop Read more

Japan to hold next tender for feed wheat barley on March 16 Japan will hold a tender on March 16 for a maximum of 30000 metric tons of feed wheat and 200000 tons of feed barley according to the Min-istry of Agriculture Forestry and Fisheries

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

Maximumbulk

storage

Silo Construction amp Engineering

wwwscebe+32(0)51 723128

SCE

15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

wwwtapcoinccom

ELEVATOR BUCKETS amp BOLTS

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AquafeedClassified40_2x40mFINALrevsd 22310 1235 AM Page 1

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Almex bv Verlengde Ooyerhoekseweg 297207 BJ Zutphen Netherlands tel +31 (0)575 572666

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Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

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SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

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colour Recipe management and

traceability records

reg

For maximum control and efficiency call

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Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

wwwtapcoinccom

ELEVATOR BUCKETS amp BOLTS

STYLE CC-XD (XTREME DUTY)Polyethylene Elevator Bucket

reg

AquafeedClassified40_2x40mFINALrevsd 22310 1235 AM Page 1

WWWEXTRUDERNL WWWEXPANDERNL

Almex bv Verlengde Ooyerhoekseweg 297207 BJ Zutphen Netherlands tel +31 (0)575 572666

e-mail infoalmexnl internet wwwalmexnl

wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

wwwsymagacom

Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 11: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

12

Tugboat workers at the two ports were refusing to provide services to grain loading terminals but the rest of the port facilities are unaffected an official at Argentinas port authority said Cargill Inc Argentinas leading grain exporter has its port blocked and Terminal 6 is blocked as well which is owned by Aceitera General Deheza SA and Bunge Ltd and is one of the largest soybean crushing and loading facilities in the area Read more

March 09 2011

Hubbard Zimbabwe calls for poultry farmers to purchase feed from reputable suppliers Hubbard Zimbabwe has urged poultry farmers to ensure that their poultry feed comes from suppliers who are reputable in the industryThe firm has made the call to farmers in the midst of looming claims in which some customers say that Crest Poultry Group a Hubbard subsidiary was sell-ing chicks that were not growing Hubbard Zimbabwe rebutted the claims are untrue and stated that the claims are intended to harm the image and reputation of the company

Dr Hope Pachena managing director of Hubbard Zimbabwe stated that Most of the poultry farmers who experience this problem if any would have bought their feed from unlicensed vendors This feed usually lacks some of the nutrients Read more

Taiwan and US at stalemate over ractopamine TaiwanUS trade talks were due to resume in early January but were put on hold when a resolution over ractopamine levels permitted by Taiwan was not found The US postponed the Trade and Investment Framework Agreement (TIFA) talks after Taiwan blocked some shipments of US beef after finding that they contained residue of ractopamine (banned by Taiwan) an animal feed additive that promotes leanness A TIFA is a trade pact that establishes a framework for expanding trade and resolv-ing outstanding disputes between countries TIFAs are often seen as an important step toward establishing free trade agreements

Taiwan Vice Minister of Economic Affairs Sheng-Chung Lin said last week the amount of boneless beef imported from the US has continued to drop recently and that his government understands the USs concerns over Taipeis stance regarding imports of the meat Central News Agency re-ported However he pointed out that Taiwans regulations do not allow for any traces of ractopamine in meat According to Lin Taiwan has laid out its current regulations but the US has not accepted them Read more

Pioneer releases RR alfalfa varieties Now that the federal government has signed off on Roundup Ready alfalfa one company is offering a set of new alfalfa varieties with the trait that company officials say can make the crop thrive under a wider array of conditions

Pioneer officials announced Monday the release of five Roundup Ready varieties all of which are adapted to conditions where different pests exert extra pressure on the crop says Robin Newell Pioneer marketing manager for forages who adds alfalfa is no longer a one-size-fits-all crop Read more

Japan to hold next tender for feed wheat barley on March 16 Japan will hold a tender on March 16 for a maximum of 30000 metric tons of feed wheat and 200000 tons of feed barley according to the Min-istry of Agriculture Forestry and Fisheries

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

Maximumbulk

storage

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15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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ELEVATOR BUCKETS amp BOLTS

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AquafeedClassified40_2x40mFINALrevsd 22310 1235 AM Page 1

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e-mail infoalmexnl internet wwwalmexnl

wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

wwwsymagacom

Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 12: March 2011 - The Global Miller

13

THE GLOBAL MILLER | March 2011

The ministry which holds feed-grain import tenders every Wednesday didnrsquot purchase anything today because of a lack of demand from end-users Masafumi Otsuka at the ministryrsquos grain- trade division said by phone

Tenders are held under the so-called simultaneous buy-and- sell system in which feed makers and trading companies jointly bid for grains of any origin and quality Read more

No-Tills benefits for Pacific Northwest wheat growers Wheat farmers in eastern Oregon and Washington who use no-till pro-duction systems can substantially stem soil erosion and enhance efforts to protect water quality according to research by US Department of Agriculture (USDA) scientists

Agricultural Research Service (ARS) hydrologist John Williams led a study that compared runoff soil erosion and crop yields in a conventional intensively tilled winter wheat-fallow system and a no-till 4-year crop-ping rotation system ARS is USDAs chief intramural scientific research agency and this research supports the USDA mission of promoting sus-tainable agriculture Read more

March 10 2011

Soybeans drop on South American harvests Rising projections for South Americas harvests knocked US soybean fu-tures to their lowest level in nearly two weeks Wednesday Soybeans for May delivery the most actively traded contract dropped 33 cents or 24 percent to US$1349 a bushel at the Chicago Board of Trade

Grain futures also weakened as selling flooded agricultural markets Corn however avoided the steep losses that hit soybeans and wheat due to ongoing supply concerns Supply fears are easing for soybeans due to increasing forecasts for production in Brazil and Argentina Soy-bean futures have lost eight percent since hitting a 2 12-year high last month on worries about tight inventories

The market continued to fall today on ideas that near-term export demand will be shifting from the US to South America Doane Advisory Services told clients in a note Read more

Vietnamese animal feed imports face huge losses if Indian feed rejected Vietnamese animal feed importers face huge losses if they are forced to return almost 100000 tonnes of maize and soybean to India because of termites The feed arrived from India in early January and the Vietnamese Ministry of Agriculture and Rural Developments Plant Protection Depart-ment has asked importers to return the goods rather than allowing it to be fumigated as usual

The department said Vietnam was free from the invasive pest and it had told Indian suppliers to fumigate the feed before it was sent because it was such a large quantity that would have been too difficult to fumigate Vietnam Feed Associationrsquos chairman Le Ba Lich said the department had previously allowed feed stock to be imported and fumigation if ter-mites were detected Read more

Consolidation of Chinese feed industry gains momentum China produces 156 million tonnes of feed by about 11000 feed enter-prises It is expected that this number will halve by 2020 Consolidation of the Chinese feed industry is gaining speed According to data from eFeedLink presented at ChinaVisions during VIV Asia in Bangkok by the end of 2005 some 15000 feed enterprises operated in China

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

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15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

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THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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e-mail infoalmexnl internet wwwalmexnl

wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

wwwsymagacom

Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 13: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

14

Between 2007 and 2008 more than 2700 firms went out of business and in 2009 more than 1700 new enterprises were started The number of registered feed enterprises totalled about 11000 By 2015 the total number of feed firms is expected to drop to 8000 and to 6000 by 2020 Read more

China GMO corn hits policy wall with China policy system A genetically modified (GM) phytase corn variety intended for animal feed which was given a safety approval in late 2009 is now caught up in Chinarsquos policy system The approval gained in 2009 means the corn is safe to use as animal feed But the strain also needs clearance as a new seed type under Chinese rules that apply to GMO and non-GMO alike

According to Chen Rumei a researcher with the Biotechnology Research Institute of the Chinese Academy of Agricultural Sciences (CAAS) and a member of the team that developed phytase corn because the corn is partly used for food it doesnrsquot fall in with the regulations There is no regu-lation covering corn seed intended exclusively for animal feed production Read more

BSE fears prompt tougher cattle regulations Farmers and cattle dealers are breaking rules designed to protect people contracting Bovine spongiform encephalopathy (BSE) through their food 25 years after the crisis started the government has revealed Ministers have introduced further restrictions against moving older cattle off farms amid investigations into reports of illegal trading These have included a Cumbrian cattle dealer sentenced to 10 months imprisonment for sending an overage animal to be slaughtered for human consumption

Infected meat has been blamed for most of the 170 deaths from variant CJD the human form of BSE in the UK ndash a handful have been caused by contaminated blood products ndash and a battery of rules are meant to protect consumers Read more

World agricultural supply and demand estimates US wheat ending stocks for 201011 are projected higher this month on reduced export prospects Projected exports are lowered 25 million bushels with increased world supplies of high quality wheat particularly in Australia and a slower-than-expected pace of US shipments heading into the final quarter of the wheat marketing year

By-class changes include lower projected exports for Hard Red Spring White and durum wheat partly offset by small increases for Hard Red Winter and Soft Red Winter wheat The marketing-year average price received by producers is projected at US$560 to US$580 per bushel unchanged from last month

Global 201011 wheat supplies are projected 19 million tons higher reflecting higher production Argentina production is raised 10 million tons based on higher reported yields Australia production is raised 10 million tons with higher yields in Western Australia where wheat quality was not hurt by harvest rains as in the east Other production changes include a 05-million-ton reduction for EU-27 with a smaller crop reported for Denmark and a 06-million-ton increase for Saudi Arabia on an upward revision to area Read more

European Union wants market-based answer to commodities surge Commodity prices have surged largely due to supply and demand bot-tlenecks and the European Unions response should be considered and market-based rather than rely on mandatory curbs governments are set to agree

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15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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e-mail infoalmexnl internet wwwalmexnl

wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

wwwsymagacom

Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 14: March 2011 - The Global Miller

15

THE GLOBAL MILLER | March 2011

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

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Analysis

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

wwwtapcoinccom

ELEVATOR BUCKETS amp BOLTS

STYLE CC-XD (XTREME DUTY)Polyethylene Elevator Bucket

reg

AquafeedClassified40_2x40mFINALrevsd 22310 1235 AM Page 1

WWWEXTRUDERNL WWWEXPANDERNL

Almex bv Verlengde Ooyerhoekseweg 297207 BJ Zutphen Netherlands tel +31 (0)575 572666

e-mail infoalmexnl internet wwwalmexnl

wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

wwwsymagacom

Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 15: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

16

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers

The tone of the statement due to be endorsed by the blocs industry min-isters on Thursday (10 March) is cautious on blaming the financial sector however and does not call for any radical measures such as the position limits that are being introduced in the United States Read more

March 11 2011

Dairy managers have ways to reduce feed costs maximise returns Feeding programs that minimise their costs while meeting the dairy cowrsquos nutritional needs are basic to attaining the cowrsquos genetic potential to pro-duce milk Furthermore those diets must optimise the health and repro-ductive performance of cows

In addition these rations are formulated for the environment (to meet the nitrogen and phosphorus needs of the cow) without feeding them excess amounts These days achieving these goals which do not result in im-mediate financial rewards is a tall task

As dairy managers evaluate the costs of the diets during times of es-calating feed costs they need to base those decisions on income over feed costs not feed costs alone Spending a little more in feed cost may improve profit if the cows produce more milk rebreed more quickly and remain healthy Read more

Cargill to expand grain facility Cargill AgHorizons will increase its grain storage capacity to 3430000 bushels from 1084000 at its grain elevator here with the addition of six steel bins The project also will include a new covered truck receiving area increasing the unloading capacity to 55000 bushels per hour from 25000 That receiving area also will have more roadway into the facility a double scale system and traffic logistics office

All of these improvements will speed up the waiting times when our farmer customers bring crops to the elevator said Andy Daberkow Ag-Horizons Farm Service Center Leader at the Alberta elevator They will also greatly improve the traffic flow through the main streets of Alberta Read more

Pfizer Animal Healthrsquos acquisition of Alpharma Pfizer Poultry Health acquisition of Alpharma LLC as part of the compa-nyrsquos acquisition of King Pharmaceuticals has introduced a broader diver-sified portfolio of products and services and a wider portfolio of products and services

The integration expands Pfizer Poultry Healths product portfolio and broadens the range of health care solutions we can offer our poultry cus-tomers It allows us to enter new therapeutic fields and deliver increased expertise to poultry producers said Joseacute Francisco Ortiz C Vice Presi-dent Pfizer Poultry Health amp New Established Brands

With this acquisition Pfizer Poultry Health gains a portfolio of medicated feed additives water-soluble therapeutics and probiotics and also enters the poultry nutrition sector Read more

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

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Analysis

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

wwwtapcoinccom

ELEVATOR BUCKETS amp BOLTS

STYLE CC-XD (XTREME DUTY)Polyethylene Elevator Bucket

reg

AquafeedClassified40_2x40mFINALrevsd 22310 1235 AM Page 1

WWWEXTRUDERNL WWWEXPANDERNL

Almex bv Verlengde Ooyerhoekseweg 297207 BJ Zutphen Netherlands tel +31 (0)575 572666

e-mail infoalmexnl internet wwwalmexnl

wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

wwwsymagacom

Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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CENZONE TECH INC2110 Low Chaparral DriveSan MarcosCA92069 USATel 760 736 9901Fax 760 736 9958Web wwwcenzonecomE-mail cenzonetechworldnetattnet

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 16: March 2011 - The Global Miller

17

THE GLOBAL MILLER | March 2011

USDA and Russian Scientists develop high-tech crop map AgroAtlas is a new interactive website that shows the geographic distribu-tions of 100 crops 640 species of crop diseases pests and weeds and 560 wild crop relatives growing in Russia and neighbouring countries Down-loadable maps and geographic information system (GIS) software are also available allowing layering of data such as that relating major wheat production areas to concentrations of Russian wheat aphids

According to United States Department of Agriculture (USDA) plant ge-neticist Stephanie Greene the impetus behind developing AgroAtlas was to promote world food security particularly in Newly Independent States-countries of the former Soviet Union striving to broaden their agricultural base Greene works in the National Temperate Forage Legume Genetic Resources Unit operated at Prosser Washington by the Agricultural Research Service (ARS) USDAs principal intramural scientific research agency Read more

Drought wont dry up the grain supply Despite the severe drought this winter China is hoping to haul in another good harvest following seven successive record harvests of agricultural products Agriculture Minister Han Changfu said on Thursday He made the remarks in response to international concern that Chinas grain har-vest could be lower this year and that the country would need to import more as a result triggering a hike in global prices

Global grain market analysts had forecast a reduced grain harvest in China because of the drought that affected nearly 42 percent of the worlds top wheat producers wheat-growing heartland In addition to be-ing the worlds largest wheat producer China is its largest consumer The London-based International Grains Council has predicted that China will account for 17 percent of global wheat consumption this year by June 30 Read more

NOAArsquos new aquaculture policy 84 percent of seafood consumed in the United States is imported and about half of that is sourced from aquaculture Only five percent of the seafood consumed in the United States comes from domestic aquacul-ture In an effort to reduce reliance on imports the National Oceanic and Atmospheric Administration (NOAA) has drafted an aquaculture policy document which is open for public comment

From the document

The purpose of this policy is to enable the development of sustainable marine aquaculture within the context of NOAArsquos multiple stewardship missions and broader social and economic goals Meeting this objec-tive will require NOAA to integrate environmental social and economic considerations in management decisions concerning aquaculture Read more

Norway 2nd International Aquaculture Biosecurity Conference Norway - The 2nd International Aquaculture Biosecurity Conference and Workshop (IABC) scheduled for August 14-17 2011 in Trondheim Nor-way has opened its web page (wwwiabconferenceorg) for registration and abstract submission

The IABC is an international forum on current and future aquatic biosecu-rity practices for prevention control and eradication of diseases Aqua-culture producers veterinarians and government officials will convene in Trondheim to discuss advances in practical approaches to biosecurity just prior to the start of AquaNor one of worldrsquos largest aquaculture trade shows Read more

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

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THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

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Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

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IMD_40x40m_classAD

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 17: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

18

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

St Louis Missouri USAT+1 314 739 9191bullF+1 314 739 5880

wwwtapcoinccom

ELEVATOR BUCKETS amp BOLTS

STYLE CC-XD (XTREME DUTY)Polyethylene Elevator Bucket

reg

AquafeedClassified40_2x40mFINALrevsd 22310 1235 AM Page 1

WWWEXTRUDERNL WWWEXPANDERNL

Almex bv Verlengde Ooyerhoekseweg 297207 BJ Zutphen Netherlands tel +31 (0)575 572666

e-mail infoalmexnl internet wwwalmexnl

wwwbuhlergroupcom

Buhler AGCH ndash 9240Uzwil SwitzerlandT +41 71 955 11 11F +41 71 955 66 11E millingbuhlergroupcom

Buhler Class ad_GFMT10indd 1 11122009 0907

wwwsymagacom

Ctra Arenas de San Juan Km 230013210 Villarta de San Juan - SpainTel +34 926 64 05 40 Fax +34 926 64 02 94Email elenaektovasymagacom

SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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STYLE CC-XD (XTREME DUTY)Polyethylene Elevator Bucket

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e-mail infoalmexnl internet wwwalmexnl

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SILO INSTALATIONS TO COVER YOUR MARKET NEEDS

Symaga_classindd 1 03112010 1037

Intake and Inline measurement of

moisture protein temperature

structure ash fat fibre starch and

colour Recipe management and

traceability records

reg

For maximum control and efficiency call

01473 829188

wwwsuffolk-automationcouk

Analysis

amp Control

THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 18: March 2011 - The Global Miller

19

THE GLOBAL MILLER | March 2011

GE-salmon ndash blessing or monster-fish It all started in the 1980rsquos when Garth Fletcher Choy Hew and Peter Davies of Memorial University in Newfoundland and Queenrsquos University in Kingston tried unsuccessfully to improve survival rate of Atlantic salmon in ice cold water by injecting it with genes of other species What howev-er succeeded was to produce in 1990 a fast growing salmon by injecting growth hormone genes from Chinook salmon and a genetic on-switch from ocean pout that causes continuous creation of the growth hormone

It takes the GE-salmon approximately 10 percent less feed and only 16 months to grow to the same size and weight which normal salmon needs three years to reach and the resulting fish are sterile To exploit their innovation they had become partners with AF Protein in a new com-pany called AquaBounty Technologies with a research facility on Prince Edward Island Canada where GE-salmon is bred and grown employing the technology developed at Memorial University in Newfoundland

They are planning to raise the GE-Atlantic salmon inland and process and ship it as table-ready fish to the US In any case the opinion is that it tastes as any high-quality Atlantic salmon Read more

March 14 2011

Untapped crop data from Africa predicts corn peril if temperatures rise A hidden trove of historical crop yield data from Africa shows that corn long believed to tolerate hot temperatures is a likely victim of global warming Stanford agricultural scientist David Lobell and researchers at the International Maize and Wheat Improvement Center (CIMMYT) report in the inaugural issue of Nature Climate Change that a clear negative ef-fect of warming on maize or corn production was evident in experimental crop trial data conducted in Africa by the organisation and its partners from 1999 to 2007

Led by Lobell the researchers combined data from 20000 trials in sub-Saharan Africa with weather data recorded at stations scattered across the region They found that a temperature rise of a single degree Celsius would cause yield losses for 65 percent of the present maize-growing region in Africa provided the crops received the optimal amount of rainfall Under drought conditions the entire maize-growing region would suffer yield losses with more than 75 percent of areas predicted to decline by at least 20 percent for 1 degree Celsius of warming Read more

USGC Japan earthquake impacts grain trade The United States Grains Council (USGC) received initial reports that the earthquake and subsequent tsunami may have caused significant dam-age to many of Japanrsquos agricultural facilities and production areas While the extent of the damage is not yet known it will likely impact grain trade

ldquoSome ports in northern Japan Kushiro Hachinohe Ishinomaki and Kashima were hit by the tsunami Wersquove heard some feed mills and livestock operations have also been damaged by the tsunami Those facilities were not severely damaged by the earthquake itself but were af-fected by the tsunamirdquo said Tommy Hamamoto USGC director in Japan ldquoIt is too early to tell what effect this will have on Japanrsquos agricultural sec-tor but it could be of significancerdquo Read more

DSM Nutrition Award 2011 Call for nominations Royal DSM the global Life Sciences and Materials Sciences company invites nominations for the DSM Nutrition Award 2011 for research on Poultry Nutrition The Award which carries a cash prize of EUR 50000 (US$69680) has been established to recognise and reward excellence in innovative research in the nutritional sciences

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

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For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

IMD_40x40m_classADindd 1 15032010 1244

Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

BiopharmRhoneClassindd 1 31032010 1536

wwwjcb-consultingcom+44(0)161 427 2402

Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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PALM VIEW TRADE

THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 19: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

20

The DSM Nutrition Award 2011 will be granted for outstanding achieve-ments in research related to Poultry Nutrition Scientists who have made major contributions to fundamental or applied research in this field can be nominated for the award A prime requirement is that the candidatersquos research must have significantly advanced the worldrsquos understanding and knowledge of key questions in the field of Poultry Nutrition An internation-al judging committee will review the nominations and select the winner Read more

Alltech to work with dairy industry With the price of corn more than doubling and the market value of milk still on the rebound the perils facing dairymen worldwide have amplified as they struggle to produce more and more with less and less

Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the is-sues that plague the dairy industry The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Demand to outstrip grain supply traders say Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets sparking a fourth consecutive lower opening a long-term trend of increasing world con-sumption provides favourable support for farm markets analysts say In a CME Group press briefing instead of focusing on a current breaking pat-tern for the grain and soybean markets the panel addressed the increas-ing food demand of the world

In fact Scott Shellady XFA currency and grain trader says that using a 2 percent growth rate the worlds population double in about 35 years Further of all the people ever born in this world 15 percent of them are alive today That is incredibly significant And as that number rises its hard not to be bullish and not buy this market Its shaping up to be a demand that we could have a hard time supplying Read more

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 20: March 2011 - The Global Miller

21

THE GLOBAL MILLER | March 2011

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

March 16 2011

Adifo Best booth at VIV Asia 2011 Friday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

IMD_40x40m_classADindd 1 15032010 1244

Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 21: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

22

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 22: March 2011 - The Global Miller

23

THE GLOBAL MILLER | March 2011

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

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THE GFMT MARKET PLACE

A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

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For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

IMD_40x40m_classADindd 1 15032010 1244

Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

BiopharmRhoneClassindd 1 31032010 1536

wwwjcb-consultingcom+44(0)161 427 2402

Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 23: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

24

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 24: March 2011 - The Global Miller

25

THE GLOBAL MILLER | March 2011

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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A C l o n d a l k i n C o m p a n y

FLEXIBLE PACKAGING

For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 25: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

26

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

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Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 26: March 2011 - The Global Miller

27

THE GLOBAL MILLER | March 2011

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Croston Engineering LtdTarvin MillBarrow LaneTarvinChesterCH3 8JFTel 01829 741119Fax 01829 741169E-mail admincroston-engineeringcoukWebsite httpwwwcroston-engineeringcouk

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GFMT MARKET PLACE

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

IMD_40x40m_classADindd 1 15032010 1244

Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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For more information please call Tim Stallard +44 (0) 7805 092067wwwcbpackagingcom

CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 27: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

28

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 28: March 2011 - The Global Miller

29

THE GLOBAL MILLER | March 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

IMD_40x40m_classADindd 1 15032010 1244

Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

BiopharmRhoneClassindd 1 31032010 1536

wwwjcb-consultingcom+44(0)161 427 2402

Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

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PALM VIEW TRADE

THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 29: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

30

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitiveness Read more

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

THE GFMT MARKET PLACE

IMD_40x40m_classAD

wwwinternationalmillingcom

Whatever you are looking for in the milling industry

fi nd it with IMD

IMD_40x40m_classADindd 1 15032010 1244

Block 10 Todd CampusWest of Scotland Science ParkAcre Road GlasgowScotland G20 0XATel +44 141 945 2924infor-biopharmrhonecomwwwr-biopharmcom

Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

BiopharmRhoneClassindd 1 31032010 1536

wwwjcb-consultingcom+44(0)161 427 2402

Milling IndustryRecruitment Specialist

ldquoYour Reliable Supply Chain ManagerrdquoProducts we produce and Exportbull Banana Mealbull Banana Powderbull Crude Tuna Fish Oilbull Crude Sardine Fish Oilbull Tuna Fish Mealbull Sardine Fish Meal bull Tapioca Chips amp Tapioca Powder

Email palmviewpldtdslnetWebsite wwwpalmviewtradecom

PALM VIEW TRADE

THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 30: March 2011 - The Global Miller

31

THE GLOBAL MILLER | March 2011

March 15 2011

US$66 million study could lead to better corn plants University of Missouri researcher has received a US$66 million (UKpound4117 million) grant from the National Science Foundation to lead a research team to study the genes that control the movement of carbohy-drates in corn This research could lead to increased yield more drought resistant plants larger plants and easier production of biofuels

ldquoWhen corn produces carbohydrates in the leaves it transports sucrose a type of sugar to other parts of the plant including the ears and rootsrdquo said David Braun an associate professor in the Division of Biological Sciences in the College of Arts and Science and a member of the MU Interdisciplinary Plant Group ldquoBy understanding how the movement of carbohydrates is regulated we may be able to engineer plants that better meet the needs of farmers and consumersrdquo Read more hellip

Chinarsquos biggest animal feed producer urges Government to halt DDGS investigation New Hope Group Chinarsquos biggest animal feed producer has urged the government to halt its anti-dumping investigation against exports of US DDGS (distillers dried grains) Feed industry left out of the loop The investigation has not consulted the feed industry and only represents the interests of some ethanol producers Liu Yonghao the chairman of New Hope stated

According to a report by Reuters cheap US DDGS imports brought costs down for feed mills last year and Chinas investigation which was launched late last year have driven up domestic prices of the by-product said Liu a member of the advisory body to the parliament Read more

ADM again named Worlds most admired food production company Archer Daniels Midland Company (ADM) was ranked the worldrsquos most admired company in the food production industry for the third consecu-tive year by Fortune magazine Considered the definitive report card on corporate reputation Fortune magazinersquos annual list of the ldquoWorldrsquos Most Admired Companiesrdquo ranks companies in a number of major industries

ldquoWe are extremely proud to again be acknowledged by our peers for our leadership in the food production industryrdquo said Chairman CEO and President Patricia A Woertz ldquoTo be recognised for excellence in the work we do to serve vital needs for food and energy speaks to the passion and commitment of our 29000 employeesrdquo Read more

Asia to test Japan food imports for radiation South Korea Hong Kong Singapore and the Philippines will test Japa-nese food imports for radiation officials said on Monday and other countries may also step up monitoring as Japan tries to contain a nuclear crisis As far as radiation is concerned I think the most at-risk articles are fresh products perhaps dairy products fresh fruits and vegeta-bles Hong Kongs Food and Health Secretary York Chow said

We are monitoring the situation and also checking at importation venues to ascertain that they have not been affected Singapores agri-food and veterinary authority (AVA) said it would test imports from Japan and par-ticularly fresh produce South Koreas Food and Drug Administration said it would test fresh agriculture and forest products for radiation although it added it was not a big buyer of such products from Japan Officials said testing of seafood was also being considered South Korea imported 84000 metric tons of fish from Japan in 2010 Read more

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Competence in Food and Feed AnalysisR-Biopharm Rhocircne LtdUnit 306 Kelvin Campus West of Scotland Science ParkMaryhill Road Glasgow G20 0SP ScotlandTel +44 (0) 141 9452924 Fax +44 (0) 141 9452925infor-biopharmrhonecom wwwr-biopharmrhonecom

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THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 31: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

32

March 16 2011

Adifo Best booth at VIV Asia 2011 vFriday March 12 Adifo won the award for Best Booth at VIV Asia in the exhibitor category feed additives category booths smaller than 20 m2 The jury informed us in front of the international press that their BEST-MIX booth was attractive and simple

Adifo is very proud to have recieved this award Adifo will be attending

International Poultry show in Dhaka Bangladesh (March 25-27 )

CFIA China Feed Expo in Nanchang China (April 20-21)

Victam Europe in Cologne Germany (May 3-5)

Poultry India (Nov 23-25)

Food Ingredients Europe in Paris France (Nov 29- Dec 1)

Congratulations to Adifo from Perendale Publishers Limited

Feed product addresses challenging period of a cowrsquos life ldquoWith all areas of cost seemingly rising ever faster cows are now required to perform at their optimum capacity more than everrdquo says Chris Wil-liams managing director of Zintec Feed Supplements the Herefordshire Supplement manufacturer ldquoA key facet of a successful cow is her ability to conceive rapidly following a successful calving whilst efficiently pro-ducing high levels of good quality milkrdquo

Zintec Feed Supplements has now launched a specialist product to ad-dress this challenging period of the cows life PD PLUS is a concentrated blend of vitamins trace elements minerals and other nutritional compo-nents It is specifically designed to ensure hormone production is maxim-ised whilst combating the usual drop in immune function by providing for the specific needs of the cow

ldquoUsing PD PLUS during the transition phase provides nutrients in their most available forms ensuring conventional deficiencies are eliminatedrdquo Read more

US Canada Mexico Pork groups concerned about feed availability Worried about the ability to feed animals should there be a drought or crop disease that affects feed grain supplies leaders of the organisations representing pork producers in Canada Mexico and the United States urged their respective governments to address the issue of feed avail-ability

The Confederation of Mexican Pork the Canadian Pork Council and the National Pork Producers Council at a meeting held in Merida Mexico noted the tight world grain markets In the United States for example the US Department of Agriculture estimates that there are only 20 days of corn carryover stocks the lowest level since 1995 Read more

Animal Health Int amp Lextron to merge Lextron Inc a Colorado-based distributor of livestock vaccines and sup-plements announced its plans to buy competitor Animal Health Interna-tional Inc for about US$251 million

In a joint statement released this week the companies stated that private-ly-held Lextron will pay US$425 a share for all outstanding Animal Health stock or approximately US$111 million plus assume US$140 million of Animal Healthrsquos debt

According to John Adent President and CEO for Lextron ldquoThis merger provides an opportunity for us to collectively create the countryrsquos premier animal health businessrdquo Read more

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 32: March 2011 - The Global Miller

33

THE GLOBAL MILLER | March 2011

Grains Council provides update on Earthquake Impact US agriculture is watching the situation in Japan very closely in the wake of the earthquake and subsequent tsunami that devastated areas of the country late last week US Grains Council Senior Director of International Operations Mike Callahan reports staff at the Councils Tokyo office have checked in are safe and have been able to return to the office

Obviously our staff cant get into the area that was impacted by the earthquake and tsunami Callahan said So they pretty much have to rely upon information thats conveyed to them from our contacts in the feed industry and the grain trade Read more

US Investors poured US$1 Billion into Japan just before quake Japans earthquake couldnt have come at a worse time for US inves-tors hoping for a resurgence in the countrys market and economy Last month they poured over US$1 billion into Japanese exchange-traded funds second only to US energy funds and more than they invested in funds focused on agriculture mid-cap US stocks and large cap growth according to Biriniyi Associates data

The iShares MSCI Japan (NYSEArcaEWJ - News) the largest of the US-listed funds focused on the country saw its assets increase by US$12 billion this year before Friday according to ConvergEx Group third among all US -listed ETF assets Read more hellip

March 17 2011

Japan delays corn imports Japanese corn importers are delaying the purchase of the grain after the March 11 earthquake and tsunami damaged ports in the nationrsquos northeast suspending unloading operations from vessels said Nobuyuki Chino president of Unipac Grain Ltdldquo

Japanese companies have not made deals to buy corn since the quake hit the nationrdquo Chino was reported to have said ldquoThey need to assess how demand for the grain may change after the incidentrdquo Japan is the worldrsquos largest importer importing about 12 million metric tons of corn for feed production annually and secures about 90 percent of the grain from the US the largest exporter Read more

Chinese pigs test positive for illegal feed additive In central Chinarsquos Henan Province 19 pigs have tested positive to having a banned additive Clenbuterol which is poisonous to humans in their urine Jiyuan city government said in a statement

According to the statement more than 1300 pig farms and vet drug stores are under investigation The police have taken several people into custody And at least six officials and workers at local animal quarantine stations have been fired or suspended from duty

All suspected meat products have been removed from shelves and all feedstuff and meat confirmed to contain the additive have been de-stroyed Read more

Pfizer Animal Health begins integration with Alpharma With the acquisition of King Pharmaceuticals by Pfizer Inc announced on February 28 Pfizer Animal Health will begin integrating Alpharma LLC into its existing business

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 33: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

34

The integration of Alpharma allows Pfizer Animal Health to build on its already broad product portfolio of biologics medicines and immuno-di-agnostics ldquoPfizer Animal Health welcomes Alpharma colleagues and the companyrsquos respected products and servicesrdquo said Clint Lewis President of US Operations for Pfizer Animal Health

ldquoToday marks another important milestone in Pfizer Animal Healthrsquos evo-lution in offering veterinarians nutritionists and all our customers a more comprehensive portfolio of unique products and services It also further demonstrates our commitment to becoming a complete solutions provider for our customersrdquo

Gleadell Market Report Ukrainian farm ministry reports that farmers are likely to increase the sown area for the 2011 grain crop to 157mln hectares from about 152mln in 2010 The area under grains could be larger by 528000 hec-tares The farm ministry also reports 56 percent of the winter grain crops are in good condition 38 percent satisfactory and six percent poor APK-inform reports that favourable weather may boost Ukrainersquos 2011 grain harvest by 24 percent to 487mmt

Chinarsquos NDRC reports that country is holding 100mmt of wheat stocks with total grain reserves reported at about 40 percent of its annual con-sumption Bumper sowings and plentiful rains have put India on course for a fourth successive record wheat harvest as reported by US officials forecasting that the country may be lsquoforcedrsquo to resume exports to free storage space Indiarsquos wheat plantings reaches record levels of 294mln hectares as of March 4th compared with 2836mln last year

France exported 13mmt of soft wheat in January putting total shipments in the first seven months of the 201011 season at 114mmt 26 percent ahead of last year Sales to Non-EU countries were reported at 77mmt up 48 percent on the year DEFRA reports UK wheat area planted as of December 1st 2010 at 1937mln hectares up 02 percent on December 2009

USDA report released today left US Corn stocks unchanged but raised wheat stocks by 25mln bushels due to lower export projections Global corn stocks increased slightly to 12314mmt up from 12251mmt last month with wheat stocks increased by 413mmt to 1819mmt from 17777mmt last month

The commodity sell-off mainly as a result of increased concerns over re-cent events in North Africa Middle East and potential demand coincided with better weather prospects for the US plains and reports that Chinarsquos drought situation was easing Marker fundamentals still remain tight but have a bit more lsquoslackrsquo than a few weeks ago New crop prospects while still remaining favourable are still open to weather scares production is-sues And these if and when they happen will encourage buying interest rather than selling

Press Release Sodrugestvo initiates construction of new Kaliningrad port complex New US$430 Million Project to Significantly Expand Capabilities in Russia

Luxembourg and New York March 10 2011 Sodrugestvo Group has started construction on a new port complex in Kaliningrad Russia

The US$430 million project scheduled for completion in 2013 will include a new deep-sea port terminal and soybean crushing plant The Sod-rugestvo Group has already invested more than US$600 million in port infrastructure and processing facilities in Kaliningrad since 2001

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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CB Packaging is a market leader of multi-walled paper sacks With over 50 years of experience we offer solutions for a wide range of industries including animal feeds pet food seeds milk powder flour and root crops

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 34: March 2011 - The Global Miller

35

THE GLOBAL MILLER | March 2011

In a ceremony yesterday commemorating the initiation of the project several dignitaries including Viktor A Zubkov first vice-prime minister of the Russian Federation Iliya I Khlebanov plenipotentiary representative of the president of the Russian Federation northwest region and Nikolay N Tsukanov governor of the Kaliningrad region joined Alexander V Lutsenko Sodrugestvorsquos chairman of the board in laying the ceremonial first stone

ldquoSodrugestvorsquos continuing investment in our Kaliningrad facilities under-scores our commitment to the Russian market which is critically important to our Grouprsquos health and future growthrdquo said Alexander V Lutsenko chairman Sodrugestvo ldquoThis nearly half billion dollar expenditure will provide us with new production and storage facilities and new shipping berths that will allow us to increase our presence in Northern Central and Eastern Europerdquo

On behalf of the Russian Government Mr Zubkov said that ldquothe increase of soybean processing capacities is strategically important to guarantee the food security of Russia and the success of the State-sponsored pro-gram to develop meat productionrdquo

The new specialized port complex has been specially designed to support the import and export of dry bulk agricultural commodities and vegetal oils It will contain three berths that can receive up to 50000 metric tons (mt) ships a new rail terminal with the capacity to handle 5000000 mt annually and additional storage capacity to house 160000 mt of grains 184000 mt of dry bulk commodities and 30000 mt of vegetal oils

The new plant will add 5000 mt of daily processing capacity to the exist-ing 3300 mt daily capacity at the existing Kaliningrad facility

Feed Outlook Global coarse grain supply and use projected lower this month World coarse grain production and beginning stocks forecast for 201011 are reduced this month lowering supply 25 million tons However projected global use is 33 million tons lower this month allowing for a 08-million-ton increase in ending stocks to 1549 million tons

The global stocks-to-use ratio is projected at 138 percent slightly lower than in 200607 when stocks were nine percent lower but use was small-er US 201011 supply and use forecasts for feed grains are unchanged this month except for a small reduction in barley exports and an offsetting increase in ending stocks Price projections are adjusted but the midpoint of the forecast corn farm price range is unchanged Read more hellip

March 18 2011

California rice pledges US$50000 for Japanese relief The California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are co-ordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

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THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 35: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

36

Philippines Zuellig Group to secure itrsquos own feed milling requirement with corn production A 30000-hectare corn plantation in the Philippines will be set up by the Zuellig Group in order to ensure its own feed milling requirements are met The firm is currently testing plantations for its major corn production plans to become a reality

Kim Campbell executive chairman of Pharma Industries Inc of the Zuellig Group stated ldquoIf you look at our organisation we need corn for processing We are looking in the region to produce corn

ldquoYou can see that there is competition everywhere for food For the secu-rity of supply we want to produce our own corn so we are looking around Mr Cambell added The region has already seen test runs being carried out at corn plantations by the company Read more

California rice pledges US$50000 for Japanese reliefThe California rice industry is coming to the aid of their friends and busi-ness colleagues in Japan who have suffered devastating losses from the recent earthquake and tsunami Through the California Rice Industry As-sociation trade group growers marketers mills and warehousemen that comprise the California rice industry are voluntarily donating US$50000 to the Japanese relief effort

ldquoOur industry owes much to the Japanese people and we are deeply saddened by the natural disasters that have struckrdquo said Frank Reher-mann California Rice Industry Association chair ldquoWe are coordinating with the Japanese Consulate General in San Francisco to do what we can to help their recovery Read more

BPEX Managing raw material costs Feed cost is by far the most important factor in pig cost of production and in the volatile global commodity market it is important businesses take steps to minimise those risks To help achieve this BPEX has just launched a new section on its website giving real-time comparison of commercial options versus nearby future prices

Wheat prices may have fallen back a touch but are still almost double what they were a year ago and producers need every tool available to help them through these troubled times This web area aims to provide pig producers with an introduction to managing raw material costs using futures and options an explanation of how these tools work real-time examples of them in action as well as a guide to all the different parts of commodity trading screens now accessible to the public via the internet Read more

Checkoff disputes EUrsquos calculation of soy biodieselrsquos sustainability Two yearsrsquo worth of attempts by the soybean checkoff to convince Europeans of the sustainability of biodiesel made from US soybean oil recently culminated in several ldquofrustratingrdquo meetings in Brussels between United Soybean Board (USB) Chairman Marc Curtis and several Euro-pean Union (EU) officials

Under the EU Renewable Energy Directive (RED) biodiesel made from US soybean oil fails to meet the directiversquos minimum greenhouse gas (GHG) emission-reduction threshold despite a checkoff-funded study that proves otherwise Read more

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 36: March 2011 - The Global Miller

37

THE GLOBAL MILLER | March 2011

Tight money may trim crop subsidies Congress may push idle cropland back into production or get rid of a US$5 billion-a-year subsidy to grain cotton and soybean farmers when it overhauls US farm law a House committee chairman said on Wednes-day

Lawmakers will have billions of dollars less to spend on the so-called farm bill than in 2008 Agriculture Committee Chairman Frank Lucas said There will be some stuff that falls off the table as priorities are set for funding

Interviewed at the Reuters Global Food and Agriculture Summit Lu-cas used the 32 million-acre Conservation Reserve which idles fragile cropland and the US$5 billion-a-year direct payment as examples of items that could be hit by fiscal austerity or become a target in wide-open House debate Read more

March 23 2011

Agricover Group new distributer in Romania AB Vista a Global supplier of animal feed ingredients has announced that Agricover Group as its new distributor in Romania The Bucharest based Agricover is to distribute the entire range of new generation yeasts enzymes and micro-ingredients manufactured by AB Vista across the whole of this important Eastern European market Read more

Pancosma expands in Thailand with new offices With the recent success of Pancosma Russia in Moscow in 2010 the Swiss feed additives manufacturer has opened offices in Thailand Their new offices based in Bangkok will be the base for an enlarged sales and marketing organisation to service all Thai territories

According to Kim Son Doan (Asia amp Oceania Sales Manager) the new Thai offices will create better support to the local distributors Pancosma has been working locally with Thai distributors Nuevotec for more than 20 years Read more

China Continues to recall meat products following banned feed additives Supermarkets across China are still recalling meat products over the last few days and removing them from shelves following the discovery of a banned feed additive found in pork products Meat products branded as Shineways in English that were processed by the Henan-based Jiyuan Shuanghui Food Co Ltd were found last week to contain clenbuterol a chemical that is dangerous to humans Read more

DLA GroupRaisio sign feed procurement agreement Two of Scandinaviarsquos largest grain product organisations Denmarks DLA Group and Finlands Raisio have agreed to work together on feed ingre-dient procurement DLA coordinates wholesale trading activities for 31 cooperative and privately owned raw materials companies in Denmark Norway Sweden and the Baltic States while Raisio is Finlands largest industrial grain processor operating also in the UK Sweden Poland Russia Ukraine and Baltic countries

The two companies have agreed to cooperate mainly in the procurement of feed raw materials and other production inputs They will also explore opportunities for cooperation in Eastern Europe and plan to set up a working group to explore these possibilities Read more

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 37: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

38

Grains soy shake off losses US grain and soybean futures finished slightly higher Tuesday as con-cerns farmers will not sow enough acres this spring sparked a recovery from early losses

Corn for May delivery the most-actively traded contract edged up 14 cent or 004 percent to US$686 34 a bushel at the Chicago Board of Trade above the session low of US$673 Soybeans for May delivery rose 2 12 cents or 02 percent to US$1365 12 a bushel after reaching a session low of US$1344

Market participants are nervous farmers will not plant enough corn and soybeans this spring to replenish tight supplies due to competition for acres from high-priced cotton Wet weather also threatens to disrupt plantings of corn which is sown earlier in the spring than soybeans Read more

Cargill adds to Japan relief efforts with US$250000 donation to Second Harvest Japan Cargill announced that it has made a donation of US$250000 to Second Harvest Japan a Tokyo-based food bank that is delivering truckloads of food and other needed items to the Tohoku region to provide nourishment to survivors of the earthquake and tsunami

Cargills donation will be used to help the organisation procure and deliver food and other supplies to those in need at evacuation centers and welfare agencies In addition to the grant to Second Harvest Japan Cargill is matching employee contributions to the Red Cross Cargill business units also have contributed approximately US$125000 to the Japanese Red Cross and other humanitarian organisations responding in Japan Read more

Cheapest wheat fungicide also most effective In an unusual but much welcomed twist of fate the cheapest treatment for leaf rust on wheat this spring is also one of the most effective Tebu-conazole available under several brand names is the least expensive treatment for both leaf rust and stripe rust in wheat says Texas AgriLife Extension Integrated Pest Management Specialist Jim Swart who works the northeast corner of Texas from his Commerce office

Late March to early April is time to start spray applications to control leaf rust he says ldquoStripe rust is typically the first disease threat we have in northeast Texas but the varieties we plant in this area are resistant to stripe rust so we do not have a big problem with it If a variety is suscep-tible to stripe rust we donrsquot recommend itrdquo Read more hellip

March 24 2011

Alltechrsquos symposium to explore swine strategies - feed costs and nutrition are major topics As farmers are faced with the challenge of improving feed efficiency other concerns such as health and immunity persist Alltechrsquos 27th International Animal Health and Nutrition Symposium will address these challenges and provide insights and solutions to the issues that plague the swine industry

The Symposium entitled The Game Changers Creative Concepts for Agribusiness to Respond to Relentless Commoditisation and to Innovate for a Greener Future will be held at the Lexington Convention Center in Lexington Kentucky USA from May 22-25 2011 Read more

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 38: March 2011 - The Global Miller

39

THE GLOBAL MILLER | March 2011

Novus introduces new dietary enzyme for poultry producers Novus International have introduced a new dietary enzyme which they claim will offer poultry producers more flexibility and control over their feed rations ldquoCibenza DP100 is a real game changerrdquo says Dr Scott Carter Global Poultry Market Manager for Novus

ldquoThis dietary enzyme is formulated to give poultry producers much more control over their protein ingredients Cibenza DP100 offers the flexibility to incorporate more cost-effective protein sources into diets with no sacri-fice in performance or maximise performance in birds that receive rations formulated with the highest quality protein ingredientsrdquo Read more

China market analysis 2010-2011 Beijing Shennong Kexin Agribusiness Consulting has released two reports on Chinese agricultural developments in the feed and livestock sector ldquoChina feed market analysis and forecast report (2010-2011)rdquo and ldquoChina live hog layer amp broiler market analysis and forecast report (2010-2011)rdquo have been finished at the end of February 2011

This feed annual report comprehensively and scientifically reviews the main changes of Chinarsquos livestock market in 2010 and forecasts the trends of Chinarsquos feed market performance in the year of 2011 This report analyses the trends of production increase and changes of feed product structure systematically summarises market performances of corn soybean meal rapeseed meal cottonseed meal fish meal DDGS lysine and DL-Methionine in the year of 2010 from supply demand trade etc Read more

BPEX Feed crisis pack BPEX The biggest and most important single cost for pig producers is feed on average it accounts for almost 60 percent of total production costs It is no exaggeration to state that global rises in the price of feed are the biggest threat to the sustainability of English high welfare pig production and processing

Wheat is the main ingredient of pig feed and its price is keenly observed by the whole of the pig industry The market for wheat has been very vol-atile in recent years with huge price rises brought about by poor harvests and a growing demand not least for the production of bio fuels Prices of other key ingredients such as soya have also increased Read more

Organised crime targets grain silos in Mexico Organised crime gangs equipped with automatic weapons and tractor trailers are branching out into raids on huge grain silos in a sign of grow-ing lawlessness in parts of Mexicos north

Mexicos national warehousing association AAGEDE said the spike in thefts began a year or two ago but its members are only recently coming forward and many are still too scared to report details on the number or scale of the incidents Read more

India says Monsanto covertly illegally conducted GM corn trials without approval Recent reports out of India say that multinational biotechnology giant Monsanto has once against skirted the law by clandestinely planting its genetically-modified (GM) corn without receiving approval to do so Nitish Kumar chief minister of the Indian state of Bihar recently wrote a letter to Indias environment minister Jairam Ramesh explaining the situation Just days earlier Ramesh had denied Monsanto permission to plant the crops at all

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 39: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

40

When he discovered that Monsanto had schemed with Indias Genetic Engineering Approval Committee (GEAC) and the Indian Council for Ag-riculture Research (ICAR) to plant genetically-modified (GM) corn without official approval Kumar was outraged Kumar had previously written a letter to Ramesh reinforcing his opposition to the GM corn and shortly thereafter Ramesh asked GEAC to block Monsantos corn plantings that it had first approved back in December Read more

Global wheat production to increase in 2011 FAOs first forecast for world wheat production in 2011 stands at 676 mil-lion tons representing a growth of 34 percent from 2010 the March 2011 edition of the Crop Prospects and Food Situation report said This level would still be below the bumper harvests in 2008 and 2009

Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices while yield recoveries are forecast in areas that were affected by drought in 2010 the Russian Fed-eration in particular the report specified As the bulk of the worlds coarse grains and paddy crops are yet to be planted it is however too early to forecast total cereal production for this year Read more

March 25 2011

Brazil rice breeding Upland rice is an important crop in Brazil with almost 2 million ha planted every year Although this area is less than half of the area planted in the 1980s as a pioneer crop in the Brazilian savannas (also known as Cer-rado) this system is regarded as having a high potential for expansion with increasing international demand for rice

The Brazilian Corporation for Agricultural Research (Embrapa) has con-ducted an upland rice breeding program since 1975 in collaboration with other public institutions aiming at developing rice cultivars with improved agronomic and grain quality characteristics resistant to biotic and abiotic stresses and well adapted to the upland rice growing regions in Brazil Read more

Company update Buumlhler The global Buumlhler Technology Group has once again grown markedly in its anniversary year 2010 Order intake increased 21 percent to CHF 2160 million (euro1554m) sales revenue (turnover) 11 percent to CHF 1907 million (euro1372m) and operating profits (EBIT) at a higher than-proportional rate to 106 percent of total sales

The Group owes this success especially to the identification of market trends such as improved food safety and higher energy efficiency For the current fiscal year 2011 Buhler expects to further increase its turnover Read more

Talking planting intentions Euro-debt USDAs Planting Intentions report will be released in less than a week and the anticipation of what it will show is high Predictions from mar-ket watchers - including Farm Futures - have a relatively wide range In his regular Friday conversation with Wisconsin Farm Broadcaster Pam Jahnke Farm Futures Senior Editor Bryce Knorr talks about the upcom-ing report and its implications

Another issue weighing on the markets is continued concern over Euro-pean debt Knorr talks specifically about Portugal which bubbled to the surface this week and what that may mean to commodity markets Listen in on the conversation using the audio player below Read more

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 40: March 2011 - The Global Miller

41

THE GLOBAL MILLER | March 2011

Swedish Report finds that animal welfare does not damage competitiveness Farmers and politicians have expressed concern that Swedish and Euro-pean agricultural producers do not compete on equal terms with the rest of the world because of stricter animal welfare legislation A new report from the AgriFood Economics Center in Sweden shows that there is no justification for more tariffs based on the argument that stricter legislation would increase imports

EU farmers hold their own well in competition with the rest of the world despite the comparatively high demands the EU places on agricultural production We have investigated the connection between animal wel-fare regulation in the EU and competitivenessPossible feeding strategies for US$8 corn

The dietary starch content recommendation for lactating dairy cows is between 23 percent and 26 percent However diets for some of the most productive herds in the US contain between 15 percent and 30 percent starch

The possibility of US$8 corn has increased interest in feeding lower-starch diets to cattle In a previous article I stressed exploring alterna-tives but purposely ignored specific examples to provide an overview of management considerations not limited to feed alone Read more

Global warming creating the perfect crop conditions The news media are flush with stories this week claiming global warm-ing is crushing global crop production According to the media global warming is putting the hurt on two of our favorite indulgences coffee and beer For the more globally conscious (or less caffeinatedless inebriated) among us the media are also focusing attention on an alleged African corn crisis

A look at facts rather than alarmist speculation however shows global warming is strongly benefiting nearly all global crops including coffee beer barley and African corn Without a doubt global warming is affect-ing global crop production The tremendous improvement in global crop production and worldwide growing conditions during recent decades is one of the most important yet least reported news events of our time Read more

UN wheat outlook is positive for feed manufacturers Firms in the animal feed manufacturing industry have been boosted by the latest United Nations (UN) report into wheat supplies The UNs food agency the Food and Agriculture Organization (FAO) has put forward a favourable outlook for global wheat production in 2011 which should lead to lower prices for the commodity

Higher sowings and more benign weather is expected to help raise sup-ply levels of wheat as will a strong recovery in the Black Sea region that is putting cereals exports back on the agenda The FAO statement sug-gested that total global production of wheat will increase by 34 percent to 676 million tonnes in 2011 Plantings have increased or are expected to increase in many countries in response to strong prices and yield recov-eries are expected in areas that were affected by drought in 2010 Read more

Flour milling firms lsquoshould target individual consumersrsquo Firms in the flour milling industry could be set to see increased demand for their produce from private consumers it is claimed Wessex Mill in Wantage Oxfordshire is the smallest commercial flour mill left in Britain according to the Oxford Mail

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 41: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

42

While sales dwindled as supermarket loaves became more popular during the recession the producer is now seeing a rising demand for its bread flour from farmers markets throughout the county Owner Paul Munsey explained that supplying flour direct to customers is proving to be a very profitable area Read more

USDA feed grains database This database contains statistics on four feed grains (corn grain sor-ghum barley and oats) foreign coarse grains (feed grains plus rye millet and mixed grains) hay and related items This includes data published in the monthly Feed Outlook and previously annual Feed Yearbook Data are monthly quarterly andor annual depending upon the data series

Available data include

Supply beginning stocks production and imports

Demand utilisation for food seed and industrial uses feed and residual exports and ending stocks

Prices farm and market prices

Quantities fed concentrates oilseed meals and animal- and grain-pro-tein feeds

Feed-price ratios for livestock poultry and milk

And much more Read more

USDA Wheat Data This data product contains statistics on wheat including the five classes of wheat hard red winter hard red spring soft red winter white and durum and rye Includes data published in the monthly Wheat Outlook and previously annual Wheat Yearbook Data are monthly quarterly andor annual depending upon the data series Most data are on a marketing year basis but some are calendar year Available data include

bull Supply beginning stocks production and imports

bull Demand utilization for food seed feed and residual exports and end-ing stocks

bull Prices farm and market prices

bull Mill grind and milling profitability

bull Per capita flour disappearance

bull And much more Read more

March 28 2011

Aarhus University Bacteria in pig feed can protect the environment Specially developed bacteria added to pig feed can help reduce nitrogen emissions from agriculture The little Bacillus subtilis is particularly wel-come in pig feed because it has the attractive quality that it is expected to be able to help farmers reduce the impact of nitrogen from agriculture on the environment Scientists are now aiming at developing new strains of Bacillus subtilis that are tailor-made for this job

In order to ensure optimum growth development pigs are fed feed that fulfills all their nutritional requirements With regard to protein pigs are actually fed more than they need This is done to ensure that their requirements for the individual amino acids are met Amino acids are the building blocks that make up protein Read more

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 42: March 2011 - The Global Miller

43

THE GLOBAL MILLER | March 2011

National Corn Growers Association says billionaire food profiteers wrong to call farmers immoral Remarks made this week by the chairman of Nestle about the use of corn for biofuels production were not only wrong but dangerous the president of the National Corn Growers Association said At a time of economic struggle for millions of Americans any proposal that will kill jobs damage the environment and raise energy prices needs to be opposed vehe-mently

ldquoIt is scandalous ludicrous and highly irresponsible for the chairman of a global conglomerate that tripled its profits last year to talk about higher corn prices forcing millions into starvationrdquo said NCGA President Bart Schott ldquoPerhaps if Nestle is so concerned about food prices its board will consider putting more of their US$357 billion (UKpound22373 billion) in 2010 profits back into poor communities Just their profits alone represent more than half the entire farm value of the 2010 US corn croprdquo Read more

Large regional changes in farmland area predicted The effects of climate change and population growth on agricultural land area vary from region to region according to a new study by University of Illinois researchers Regions with relative high latitudes China Rus-sia and the US could see a significant increase in arable land in coming years but Africa Europe and India and South America could lose land area

Civil and environmental engineering professor Ximing Cai and graduate student Xiao Zhang published their findings in the journal Environmental Research Letters Read more

Japan struggles to reinstall feed production and trade The US Grains Council reports the Japanese industry has been making significant strides to regain its normal feed mill production capacity within the next few months ldquoIn the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage

By April or May the Council is hopeful Japan will recover and return to a somewhat normalcyrdquo said Tommy Hamamoto USGC director in Japan Four of Japanrsquos major importing facilities and attached feed mills were severely damaged by the earthquake and subsequent tsunami that struck the country on March 11 Read more

Norel SA announce Ms Marta Gutierrez appointment Norel SA is pleased to announce that since January 1st Ms Marta Gutier-rez has been appointed as Product Manager Specialities and Regulatory Affairs Officer Marta an Agronomic Engineer and DVm student has been working with Norel since November 2009 as Technical Department Assistant

In her new position she will take care of the development of the Speciali-ties products (toxin binders pellet binders special premixes) including preparation of the registration dossiers for the various export markets Read more

UK Group calls current food policy inadequate A new report released Friday in the United Kingdom says the country cannot rely on the market to create a more sustainable food chain The report was released by the Sustainable Development Commission

UK consumer food prices in January rose 63 percent for the year which more than doubled the average across Europe And those prices are likely to climb further as oil prices go up and demand for basic commodi-ties like wheat increases the report says Read more

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 43: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

44

Biodiesel returns US soybean farmersrsquo Invest by the Billions An updated independent study funded by the United Soybean Board (USB) and soybean checkoff shows production of biodiesel continues to positively impact US soybean farmersrsquo on-farm profitability as well as the bottom lines of poultry and livestock farmers

According to the study the biodiesel industryrsquos demand for US soybean oil supported US soybean prices by as much as 27centbu over the past five years bringing US soybean farmers an additional US$27 billion (UKpound1692 billion) in net returns Read more

Environmental Protection Agency plans stricter rules on pesticide applicators Environmental Protection Agency (EPA) is planning to strengthen its cer-tification requirements for pesticide applicators to protect bees and other pollinators the latest effort by the agency to limit pollinators exposure to the chemicals EPA also is weighing changes to how it assesses the risks that pesticides pose to pollinators but the revised applicator certification requirements action likely will precede that because the changes have broad support and can be implemented quickly

Tom Moriarty a team leader in EPAs Pesticide Re-Evaluation Division recently announced plans for the new certification requirements at the spring meeting of the Association of American Pesticide Control Officials in Arlington Va He said EPA is planning to revise its rules governing cer-tification of pesticide applicators to include requirements for better training for spraying in a way that is protective of bees Along with the new rules which will need to be adopted by the states after federal approval EPA also will issue an updated training manual Read more

Foreign markets opening quickly for US farm goods Foreign markets are opening up quickly for US farm goods as is reflected by the current high prices for US grown crops American farmers are posi-tioned well to meet these demands and get a very good payday for doing so says Virginia Economist Dennis Gartman

Gartman publishes the Suffolk Virginia based Gartman Letter a daily commentary on commodity and marketing issues He has been publish-ing the daily commentary since 1987 and over the years has conducted numerous presentations and courses on issues relating to the capital markets and derivatives for various brokerage firms central banks and US government entities Read more

Agriculture innovation enables water and food security As World Water Day focuses on responding to the urban challenge of Water for Cities it is also a global reminder of the critical role water plays in food production With urban populations growing by two people every second and cities reaching deeper and further for freshwater resources farmers must produce more food with even less available water Water management in agriculture must be considered a priority to enable water and food security for our growing urban population

From modern plant varieties that produce higher yields to the adoption of conservation tillage that preserves soil moisture plant science innova-tions are already leading progress on global water conservation efforts and hold tremendous potential for the future According to the United Nations a one percent increase in water productivity in food production alone can make up to an extra 24 liters of water available per person per day Read more

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 44: March 2011 - The Global Miller

45

THE GLOBAL MILLER | March 2011

March 29 2011

PRESS RELEASE The European Commission imposes special conditions on import of food and feed from Japan Today we received this Press Release from Fefana on the conditions be-ing imposed on the importation of feed and foodstuff from Japan following the accident at the Fukushima Nuclear power station

Following the earthquake in Japan and its impact on nuclear plants in Fukushima the European Commission has published Regulation (EU) Ndeg 2972011 imposing special import conditions for food and feed originating from Japan FEFANA understands that a number of feed business opera-tors are wondering about the possible sanitary implications in Europe of this emergency situation and has compiled the following information in or-der to help operators coping with this situation and with possible requests for certificates or particular measures

Here is the summary of the measures adopted

They apply to feedstuffs and foodstuffs as defined under Regulation 395487 (feedstuffs means products which are intended only for animal nutrition) this is interpreted as applying to all feed including specialty feed ingredients and their mixtures

They do not apply to products that left Japan before March 28 2011 or products that have been harvested andor processed before March 11 2011

The measure requires that each consignment shall be accompanied by a declaration to be issued by the Japanese authorities (standard format that is provided with the Regulation) attesting that either

product has been harvested before March 11 2011 or

the product is not originating from the prefecture of Fukushima Gunma Ibaraki Tochigi Miyagi Yamagata Niigata Nagano Yamanashi Saita-ma Tokyo and Chiba or

in the case the product is originating from one of the prefectures listed above proof of compliant analyse have to be provided with the declara-tion (caesium 134 and 137 according to the value listed above)

A single identifying code for the product must be used on the declaration and the certificate of analysis and on any document (including commer-cial ones) accompanying the consignment

Prior notification of arrival of all consignments must be provided at last two working days in advance of physical arrival to Border Inspection Point

As far as feed is concerned these permitted levels of radioactive con-tamination are limited to caesium 134 and caesium 137 (monitoring of other isotopes was deemed irrelevant based on the half-life of these and transfer rates from feed to food) as follows

1250 Bqkg for pig feedingstuffs

2500 Bqkg for poultry lamb calves feedingstuffs

5000 Bqkg for other feedingstuffs

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 45: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

46

The authorities at arrival shall carry out documentary checks on all consignments and shall carry out analysis (20 percent of consignments for products originating from the 12 listed prefectures and 10 percent of consignments for the other prefectures) Endorsement of the declaration by the Border control authority shall be necessary for the release for free circulation Costs for these control are at charge of the feedfood busi-ness operator Non-conform products shall be disposed of or returned to Japan Member States shall keep the Commission informed of all analyti-cal results obtained The measures entered into force on March 27 2011 shall be in place until June 30 2011 and the Regulation will be subject to regular review

FEFANA appreciates the proportionality and focus of the measures taken Since the earthquake FEFANA has put itself in a vigilance status regard-ing this issue We launched with our members a proactive control phase and have recommended to all members to reinforce and take this aspect in their HACCP processes as covered under their FAMI-QS certification and of course giving full cooperation to the official controls that are being established by the EU sanitary authorities It was also recommended that operators inform their customers about the fact that they included this risk in their HACCP processes and inform them about the results and meas-ures taken

About FEFANA

FEFANA is the EU Association of Specialty Feed Ingredients and their Mixtures Established on October 13 2004 FEFANA is the new juridi-cal form of the feed additives operators association which was originally founded in 1963 With more than 100 Members from 28 countries the As-sociation is the interface between the specialty feed ingredients industry and the European Union authorities including Member States authorities in order to promote safeguard and defend common and general interests of the industry (in several topics like guidelines register labelling and definitions analysis feed hygiene and food chain safety or non-feed use of additives) FEFANArsquos current President is Dr Frank Chmitelin of Adis-seo

For more information on FEFANA please contact

Didier Jans

Secretary General

FEFANA Asbl

Avenue Louise 130A

B-1050 Brussels

infofefanaorg

wwwfefanaorg

T + 32 2 639 66 60

F + 32 2 640 41 11

Japanese feed industry making significant strides According to the United States Grains Council the Japanese feed indus-try is making significant strides to regain its production capacity to near normal within the next few months

Assuming significant escalation of the nuclear power plant issues will not arise and in spite of the horrendous losses suffered in Japan the Council believes the consumer demand in Japan will remain strong and will drive continued imports of US coarse grains said Tommy Hamamoto USGC director in Japan In the short-term logistical issues will continue to be a problem but the Japanese feed industry is working hard to recover from the damage By April or May the Council is hopeful Japan will recover and return to somewhat normalcy

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 46: March 2011 - The Global Miller

47

THE GLOBAL MILLER | March 2011

At least four of of Japans major importing facilities and feed mills were damaged severely during the earthquake and tsunami These four facili-ties account for for approximately 366 million metric tons of compound feed production thats about 15 percent of Japans total annual feed production However some feed production has partially resumed Read more

Alltech making stronger presence in Europe Global health and animal nutrition company Alltech continues to develop its European presence with the announcement of new hires in its sales marketing and solutions deployment teams Read more

Company Update Charoen Pokphand China The Chinese division of Charon Pokphand a Thailand based global feed and food conglomerate has reported increased profits of US$1328 mil-lion in 2010 more than 14 times the profit of 2009

CP Pokphand Co Ltd (CPP) the leading animal and aqua feed pro-ducer in China has announced its annual results for the year ended December 31 2010 Since completing the acquisition of a feed business in China from the parent company in late February 2010 the Group has strengthened its competitive edge in the feed business and has achieved significant enhancements in its operational results Read more

ADM adds to US capacity with boosted grain storage US grain storage capacity continues to trend higher as farm production grows with Archer Daniels Midland Co (ADM) becoming the latest com-pany to announce expansion plans The Decatur Ill-based grain proces-sor and merchandiser said its elevators in Novelty and Center Mo will triple their storage capacity while a barge-loading terminal in Quincy Ill will add grain storage as well

Construction at the facilities will begin this spring with the expanded capacity ready for the fall harvest The expansion projects will add nearly 17 million bushels of storage capacity the company said In the US ADM operates 191 elevators with an aggregate storage capacity of more than 420 million bushels Read more

China biofuel policy may be in conflict with food security objectives The USDA today said the Chinarsquos food security objectives may clash with its energy independence and environmental objectives The study titled Chinas Agricultural Trade Competitive Conditions and Effects on US Exports says the development of Chinas biofuels industry affects Chinas agricultural production mix as it diverts output away from human and ani-mal consumption into use as a fuel and contributes to increased imports of feedstock sources

According to the report China has been making an effort to move away from grain-based ethanol production and into alternative feedstocks Until May 2006 government subsidies were limited to fuel ethanol at which time the central government outlined the creation of a special fund to encourage the development of renewable energy resources including ethanol and biodiesel Read more

United States consumers face lsquonightmarersquo as China drives up meat grain prices As the growth of China pushes meat and grain prices higher the US con-sumer faces a nightmare scenario the end of cheap food for Americans

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 47: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

48

Already one of the worldrsquos biggest grain users Chinarsquos appetite for corn wheat and other farm commodities is poised to expand significantly over the next decade as the countryrsquos people ldquomove up the food chainrdquo adding more meat and dairy products to their diets Brown said in a March 23 conference call with reporters Read more

Russian livestock industry hampered by high feed costs The US Department of Agriculture said that high feed costs are likely to hamper growth in Russias burgeoning livestock industry this year until the new harvest reduces supply pressures The Russian pig herd is set to grow 18 percent to 1751 million animals by the end of the year although pork production is predicted to stay flat this year compared with a 4 per-cent growth in 2010 according to the USDAs Moscow attacheacute

Also beef production is expected to be limited to 14 million tonnes in 2011 which is 24 percent less than last year due to a sharp decline in the number of cattle Read more

March 30 2011

Crop yield improved by removing manure solids Manure has long been used as a crop fertiliser but the challenge of find-ing an efficient use of the nutrients found in manure is ever present The ratio of nitrogen to phosphorus in manure is low in relation to the nutrient needs of most crops Therefore crops tend to be overloaded with manure to meet the nitrogen requirement of agricultural crops but the excess phosphorus from the process can damage the environment

In a study funded by agriculture and Agri-Food Canada scientists at the Pacific Agri-Food Research Center in Agassiz British Colombia with collaborators in Quebec City Quebec and Brandon Manitoba tested the effectiveness of removing solids from dairy manure to improve yield by increasing the nitrogen to phosphorus ratio and reducing the loss of nitrogen by hastening soil infiltration Read more

Feed costs cut Cal-Maine profits Cal-Maine Foods Incs earnings fell as the producer of eggs and egg products reported feed costs jumped 16 percent and selling prices eased The owner of Egglands Best and Farmhouse egg brands was hit by a na-tion wide egg recall and higher feed costs that hurt profit last year though sales improved as prices recovered from the recessions slumping levels

President and Chief Executive Dolph Baker said retail demand remained strong and higher-priced speciality-egg sales continued to grow ac-counting for nearly 24 percent of revenue and nearly 18 percent of total numbers sold For the quarter ended February 26 the worlds largest egg producer and distributor reported a profit of US$336 million (euro23852 million) down 27 percent from US$345 million (euro24491 million)a year earlier Read more

Gambian leader aims at agro-export The president of the Republic of Gambi Sheikh Professor Alhaji Dr Yahya Jammeh last week officially opened the 2011 Legislative Year Among others he reaffirmed that the main thrust of his government is not only food self-sufficiency but also becoming a major player in the agricultural exports market

Agriculture being one sector that has the greatest potential to provide employment for hundreds of thousands of people across all walks of life in the country according to the president his government is bent on eradicating poverty through this sector Read more

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 48: March 2011 - The Global Miller

49

THE GLOBAL MILLER | March 2011

LinkAsia Partners appoints Thai distributor LinkAsia Partners the commercial partner for Bluewave Marine Ingredi-ents has appointed Protech Animal Health as distributor for PerfectDigest products in Thailand Within the agreement Protech will distribute and market liquid dispersible fish peptide concentrate and spray dried fish peptide isolate under the PerfectDigest brand

Plans are underway to utilise PerfectDigest in varied applications includ-ing swine poultry aquaculture and pet food Mark Rottmann COO of Bluewave Marine Ingredients said ldquoWe are extremely pleased to partner with Protech a company with established and strong market presence in Thailand With its extensive distribution network and strong customer base Protech is clearly the ideal partner to help us expand our footprint and leverage the business opportunities in the regionrdquo Read more

Hamlet protein invests in new manufacturing plant Hamlet Protein a Danish based company have commenced a multi-mil-lion dollar investment on the back of strong sales in the North American Market The production plant will be located in Findlay Ohio employing initially 25 members of staff They will be responsible for the entire North American Free Trade Area (NAFTA)

The new plant will be supplied by the areas large soybean farming com-munity and combined with Hamlet Protein bio based technology The new production plant is expected to go into operation during 2012 The bio-conversion technology is based on minimum energy consumption no use of chemicals and minimum waste Read more

Japanese cows kept inside as radiation keeps leaking Japan has asked farmers to keep cows and cattle in barns as radioactive contamination of milk spread from Fukushima prefecture where high ra-diation levels and fires have hampered repairs of a crippled nuclear plant ldquoTo prevent milk contamination we are advising farmers that cows should be barred from grazing kept inside barns and fed with grass harvested before the nuclear plant accidentrdquo said Mitsuhiro Honda at the milk and dairy products division of the Ministry of Agriculture Forestry and Fisher-ies

ldquoWe are not concerned about the safety of beef as the meat now on the market came from animals born more than two years agordquo Japan has restricted raw-milk shipments from Fukushima and neighbouring Ibaraki prefecture after tainted products were discovered through random testing Read more

Farmland soils tested for Radioactivity near Fukushima plant Japan is testing soils from farmland in the prefectures hit by radiation leakage from the Fukushima nuclear power station to asses whether crops can be planted The Ministry of Agriculture Forestry and Fisheries (MAFF) plans to finish testing the soil samples by mid April about the period that the farmers sow their rice

High levels of radiation are delaying repair work at the Fukushima Dia-Ich power plant site of the worst nuclear disaster since Chernobyl Yukiko Yamada said that ldquowe will advise each of the local government offices based on the test results as to whether the farmers can go ahead with planting Read more

ASTA seeks funding for Germplasm Enhancement of maize The American Seed Trade Association organised a congressional delega-tion March 17-18 in Washington DC to inform US House of Representa-tives and US Senate Agricultural Appropriations subcommittee members about the importance of the Germplasm Enhancement of Maize (GEM) program and to request additional funding

THE GLOBAL MILLER | March 2011

50

GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

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Page 49: March 2011 - The Global Miller

THE GLOBAL MILLER | March 2011

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GEM is a joint partnership between members of the seed industry and the US Department of Agriculture designed to increase the genetic diversity of corn germplasm and corn hybrids grown by US farmers Read more

Antitrust Merial and IntervetSchering-Plough terminate agreement US-based Merck and France based sanofi-aventis have terminated their agreement to form a new animal health joint venture by combining sanofi-aventisrsquo animal health business Merial with IntervetSchering-Plough Mercks animal health unit As a result each party will keep its current separate animal health assets and businesses

Since the initial announcement about the intended combination on March 9 2010 both companies have worked diligently to create the proposed animal health joint venture including submitting requests for the required antitrust reviews Read more

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter

Page 50: March 2011 - The Global Miller

For more information about the Global Miller visithttpgfmtblogspotcomor follow the Global miller on twitter