March 2020, Vol.13 View Noen.famsungroup.com/Upload/202003/20200320081211_1434.pdf · 2020. 3....

March 2020, Vol.13

No.1

View

FAMSUN Introduces New International Business

Leadership Structure

Farm to Table: Ten Concepts Top of Minds

Phoenix Feed Mills LLP:Ensuring Growth in Kazakhstan

FAMSUN Chief Technology Officer Talks About Future Feed Tech

2 MY View Vol.13, No.1 Integrated Solution Provider 3

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CONTENTS

FAMSUN President's New Year Message for 2020

Industry News

FAMSUN News

FAMSUN2019 in Review

Market Focus

Business

Product Update

Interview

Event

Project

Outlook: Feed and Animal Protein Market

Companies: Innovations Accelerate Changes

FAMSUN Introduces New International Business Leadership Structure

Fostering Talents: FAMSUN Supports Curriculum Design for Undergraduate of Feed Manufacturing in China


FAMSUN Grain Storage & Handling

FAMSUN K70 Pellet Mill: Scale-Up to Boost Operational Efficiency

FAMSUN Launches A New Generation of Molasses Mixers


FAMSUN Will Highlight Intelligent Solutions at Victam Asia 2020

Phoenix Feed Mills LLP: Ensuring Growth in Kazakhstan

Nutrifish Aqua Feed Mill in Tunisia: Delivering Long-term Value for African Marine Fish Farming

copyright 2020 FAMSUN . All rights reserved.

Integrated Solution Provider 54 MY View Vol.13, No.1

Dear friends, colleagues, ladies and

gentlemen,

Time flies, and we usher in the New Year

of 2020. On behalf of FAMSUN, I would like

to take this occasion to extend my new

year greetings and wishes to all the leaders

at all levels, our customers, partners and

friends from all walks of life who have been

trusting and supporting the development of

FAMSUN. Wish all of you a happy, healthy and

prosperous New Year!

In 2019, facing the rising trade and

geopolitical tension and a depressed

industrial environment due to Africa Swine

Fever, FAMSUN strives to forge ahead and

achieves an excellent year. Operationally,

all our financial indexes report a significant

growth. We won several large project

construction contracts from key industrial

players. Innovative products such as PTZL

vacuum coater, H156 twin-screw extruder,

etc. had been launched to meet new market

demands. We added many new capacity

to global food production system by

collaborating with our customers. The highly

praised, state-of-the-art projects such as the

Nutrifish project in Tunisia and TIANCHENG

feed mill in Nantong, Jiangsu, China were

completed under the guidance of FAMSUN

Flawless Project Delivery System (FPDS). In

2019, we kept improving our FPDS to achieve

sustainable competiveness through a further

developed SAP system, standardization

works and a synergized SRM supply chain.

FAMSUN President's New Year Message for 2020

FAMSUN will always commit to becoming

the best solution provider for better life,

providing integrated solution for farm-to-

table industry chain, and creating long-

term sustainable value for customers. In

2020, FAMSUN will target a big progress

in “Intelligent” for feed milling business, a

great “Breakthrough” for oilseed processing

business and a significant growth through

“Internationalization” for grain storage

business, with the support of all available

resources from our powerful HR, finance, IT to

excellent strategy planning, manufacturing,

administration, and communication.

Therefore, we make the following plans:

First, take the opportunities of “Belt-and-

Road” to go global as unswervingly as ever.

Under the power of synergy, we expect

an accelerative growth in all FAMSUN

businesses abroad and target an overseas

sales revenue of 10 billion RMB in 2025.

Second, as a technical partner, FAMSUN

targets toward a leading global position

in technology in five years. Therefore, we

will increase R&D budget to accelerate

innovations in all our businesses through

fully understanding current demands of our

customers and their needs in the future.

Third, continue to forge FPDS as one of our

most important competitiveness. We will

focus on process reengineering and FPDS

optimization to achieve improvements in

process efficiency, system efficiency and

per capita efficiency in our corporation, and

to improve project quality, reduce cost and

shorten delivery cycle for our customers.

Fourth, to strengthen human resource

management. We will continue to improve

FAMSUN's mechanism in talent introduction,

training and promotion. We have to create

a culture in which employees cooperate,

share and make joint effects together, so that

FAMSUN can realize its value of "creating

value, achieving dreams and contributing to

society" for a long time.

Dear friends and colleagues, we are doing a

business that is trying to create a sustainable

food production system for lives on our

planet. Taking pride in what we do, let's forge

ahead from the new beginning to achieve

high-quality development, build up a sound

agri-food tech brand that will benefit global

agri-food industry continuously, and create

long-term sustainable value together.

Thank you!

December 31, 2019

Richard Fan /

News

Industry News

Aquafeed: The aquafeed market is estimated to account for USD 47.3 billion

in 2019 and is projected to reach USD 71.7 billion by 2025, recording a CAGR

of 7.2% during the forecast period. The market is primarily driven by the

increasing seafood trade, growth in aquaculture production, and rising seafood

consumption among consumers due to the increasing need for protein-rich

diets. Asia Pacific dominates the aquafeed market due to the presence of the

vast aquaculture industry, particularly in China and other Asian countries.

Soybean segment is estimated to account for a major share in terms of

ingredient value. Amino acids is projected to dominate the aquafeed market in

terms of additives. Among fish, carp and tilapia are high consumers of aquafeed.

Also, carps are being extensively reared, owing to their adaptability to changing

climates, while Tilapia culturing has increased in recent years due to the

growing supply of high-quality protein tilapia species at lower prices. (Source:

MarketsandMarkets)

Poultry feed: The global poultry feed market size is likely to be valued at USD

238.9 billion by 2025, growing at a CAGR of 4.5% over the forecast period.

The demand can primarily be attributed to the increasing poultry farming

to cater to the rising demand for chicken meat and eggs globally. In terms of

volume, the poultry feed market is likely to be valued at 604.5 million tons by

2025. Broiler feed accounts for over 60% of the share. Among all the regions,

Asia Pacific is the largest market in volume and growth rate led by emerging

economies such as China, India, and Malaysia. (Source: Grand View Research)

Ruminant feed: The global ruminant feed market is expected to reach USD

114.63 billion by 2024, with a CAGR of 3.2% from 2019. The major driving factors

are the increasing demand for high-value animal protein, increased awareness

regarding the safety of meat and milk products, and increased industrial

livestock production. The major restraints are rising cost of raw material and

government regulations. Europe dominates the Global Ruminant Feed Market

with a modern and highly regulated industry, especially in Western Europe.

Global ruminant feed market is fragmented with some big feed manufacturers,

while the rest of the market, about 94%, is divided among small companies,

mostly feed mills. (Source: Mordor Intelligence)

Premix: The global feed premix market is projected to grow at a CAGR of 6.2%

from 2019, to reach a value of USD 30.9 billion by 2025. The rise in feed demand

due to the increased in the consumption of livestock-based products is steering

the growth of the market. Among ingredients, amino acids is projected to be

USD 71.7 billionis projected to reach

by 2025

Outlook: Feed and Animal Protein Market


the fastest-growing segment, with high-

growth rate in Asia-Pacific and Latin America

markets. China and India also benefit from

the increasing domestic production of

amino acids, especially particularly lysine, as

they are available at lower costs. Increasing

meat consumption especially poultry meat

consumption in the large population Asian

countries of China, Indonesia, Vietnam and

Thailand as well as the large cattle population

housing countries in Latin America such

as Brazil offer market opportunities for key

players to invest in new production plants.

(Source: MarketsandMarkets)

Animal protein: African swine fever (ASF)

overwhelms the outlook for 2020 – as it

has done during 2019 – and will pull down

overall growth, as well as bring uncertainty to

all markets. Across species, aquaculture and

poultry will lead production growth in 2020,

with beef stable, and wild-catch seafood

in decline. All of these changes are minor

compared with the production decline in

pork. Opportunities in global animal protein

market come from the most obvious area of

the recovery from ASF.

Production in North America is expected

to rise for all species, led by pork, followed

by poultry, and finally beef. While domestic

consumption will grow, exports will need

to pick up to manage this production

growth. In China, ASF dominates the

outlook, with a further decline in pork

production in 2020. Production will

grow for all other species, given the pork

shortage and prices at high levels. In Brazil,

production growth is expected for all

species in 2020. Export opportunities are

the main driver here, although domestic

demand is also improving. In South-East

Asia, ASF is expected to spread further in

2020, impacting pork production. Partly in

response to this, poultry production will

again rise strongly in 2020. Beef production,

on the other hand, remains flat, but imports

are on the rise. (Source: RaboResearch)

Starting at 2018, the most innovative side

of international agribusiness meets at

the Animal AgTech Summit. 2018 in San

Francisco, September 2019 in Amsterdam, the

Netherlands. Here are 11 initiatives in the farm-

to table industry that nominated at Animal

AgTech Summit 2019.

Unibio

The company Unibio, headquartered in London,

UK, but with a strong base in Denmark, uses

waste to begin something new. It converts

methane into protein that can be used for

animal nutrition, using a U-Loop Fermentor.

Most attention so far has gone on aquaculture,

but the company also presented figures from

a small-size trial in post-weaning piglets.

According to slides presented, the animals

did not experience any increase in diarrhoea

when compared to using zinc oxide in the feed.

Unibio on August 2019 announced to prepare

for the establishment of protein production

plants with its local partners in Saudi Arabia

and US. The company also attracted Japanese

multi-conglomerate giant Mitsubishi to invest

in its shares at the end of the year.

Proteon

The Lodz, Poland-based animal health company

Proteon focuses on the use of phages (or

viruses) that attack specific types of bacteria.

This approach could be a promising alternative

to antibiotics. The company already has a phage

product ready against salmonella in poultry

while it is waiting for the EU to give approval

for the marketing for this type of animal health

strategy, COO Matthew Tebeau said. In the

meantime, the company is working on more

products for pigs, aqua, dairy and poultry.

Ÿnsect

Ÿnsect was one of the major sponsors of the

event. The company promotes the use of for

instance ŸnMeal, a defatted free flowable

protein that comes from insects. At Animal

AgTech, the company’s CCO Benjamin

Armenjon shared trial results, conducted

in Thailand. There it was tried and tested

in shrimp, where the effects of the use of

this type of protein was observed to have

an effect on growth and immune status.

Some trials on poultry were also shared. The

company also markets the product ŸnOil.

String Bio

String Bio, headquartered in Bangalore, India

presented itself as ‘changing how waste

flows through the ecosystem’, according to

the company’s CEO Ezhil Subbian. String Bio’s

solution leverages methane produced from

waste or available from natural sources, to create chemical

monomers and single cell proteins. Single cell proteins

extracted from microbes can be used as sustainable

animal feed. The protein content of the biomass is

between 60-70% and can be used directly in the feed.

Veramaris

Veramaris is a joint-venture between Evonik and DSM,

based in Delft, the Netherlands, and was launched in 2018.

The company’s global marketing and communications

director Øyvind Ihle told those at the Animal AgTech

Summit that the company focuses on the production of

omega-3 fatty acids for animal nutrition, without using

wild fish for that purpose. The company produces the fatty

acids straight from natural marine algae. The company has

a production facility in Blair, NE, United States.

SwineTech

SwineTech, headquartered in Cedar Rapids, IA, USA, has

been experiencing rapid growth, predominantly in the

North American market with its ‘SmartGuard’ concept in

the farrowing pen, to send out an alarm to the sow when

she is about to crush her piglets. The system gets activated

on the basis of squeals. The company’s CEO Matthew

Rooda explained that by now the company has moved

on to offer a whole range of solutions in and around

the farrowing pen, improving welfare, productivity and

sustainability.

Leeo

Now imagine one could capture any type of data inside

the pig house, how to figure out what data to use and

which not to use? That is an ongoing quest, also for

the Netherlands-based company Leeo, selling a complete system

to follow individual pigs using ear tags. A range of farms in the

Netherlands, the USA and Germany have already started working

with the system – one of the key figures is to be able to know what

the animals weighed at every moment in their lives and where they

were held exactly.

ViroVet

Traditionally, viruses can be prevented by using vaccines – but there

are more ways to deal with viruses. ‘Anti-virals’ are known in human

medicine; they are elements blocking the virus from replicating. An

approach like this can be used with any virus – it’s regulatory matters

and food safety concerns that makes it a lengthy process before it can

hit the market. An antiviral against ASF, if allowed/necessary under

emergency legislation, could be ready for use late 2018, said ViroVet

CEO Erwin Blomsma.

Moonsyst

Moonsyst was introduced as ‘a smart monitoring system for

progressive dairy and beef farmers’. The system collects different

parameters of livestock, helping farmers with real-time data to

increase productivity and detect disease, stress and heat. Supported

by cloud-based software with built-in machine-learning and

notifications, the system enables better and earlier detection

of various illnesses, enabling more efficient use of medications,

improving animal welfare and prolonging animal life expectancy.

Hectare Agritech

Hectare Agritech, based in the UK, has already been in many media

(nationally and internationally, like the BBC, CNN and Time). The

company developed agri-tech platforms that are underpinned by its

multi-commodity, currency and country blockchain trading API which

links into farming software and databases to provide real-time insight

into the supply chain. Through its brands ‘SellMyLivestock’, ‘Graindex’,

‘FarmPay’ and ‘HectData’, it provides independent insights to drive

better decisions.

Seleggt

German company Seleggt, founded in March 2017, aims to further the

research on endocriniological gender identification in hatching eggs.

As managing director Martijn Haarman explained, the company’s goal

is to create practice-ready solutions that can rapidly analyze a large

number of hatching eggs which will mean that male chicks will soon

no longer have to be killed. Retailers are already selling the first eggs

with the added value (and label) of “No Chick Culling” throughout

Berlin, in Germany.

(Source: Misset International)

Companies: Innovations Accelerate Changes

8 MY View Vol.13, No.1

FAMSUN Introduces New International Business Leadership Structure

FAMSUN News

FAMSUN announced a new international business operating structure executed January 1, 2020 to remain aligned with the company’s

new international business strategy and commercial activities in over 140 countries.

“The new leadership structure and operating model will simplify the organization and speed up decision making, improving internal

efficiencies,” said Greg Liu, Director and President of FAMSUN International Business Division (I.B.D.). “These changes will enable us to

increase our strategic flexibility and accountability to better serve our customers globally.”

As a result of the realignment, FAMSUN is making the following changes to its senior leadership team of I.B.D.

Louis Li, President of FAMSUN Middle

East & Africa and Europe, will become

President of FAMSUN International

Business DivisionⅠ, covering the regions

of South Asia, Central Asia, Middle East,

Africa and Europe. Over the past 13 years,

Louis has held different managerial roles

in FAMSUN. In his new role, Louis will be

responsible for all affairs in these regions,

including sales, project delivery, customer

service, market communication,

administration, HR and finance. Louis will

also lead FAMSUN’s manufacturing base

in Egypt.

Arron Liu, General Manager of FAMSUN

Key Accounts Department, will become


Business Division Ⅱ – the Americas.

Arron has worked for FAMSUN I.B.D.

for over 16 years. He has considerable

experience from many aspects of

FAMSUN’s international business. Most

recently as the General Manager of

Key Accounts, he played great roles in

business development and high-quality

large project delivery. Arron will be

responsible for all affairs in the Americas.

Elvis Yin, General Manager of FAMSUN

Southeast Asia, will become the Assistant


Business Division Ⅲ – the Asia-Pacific.

Elvis joined FAMSUN International

in 2006. He has good expertise, well

understanding local culture and

customers’ needs in Southeast Asia. He

will be responsible for all affairs in this

region covering the Southeast Asia and

Asia-Pacific regions in FAMSUN’s former

business structure.

Addition to the regional structure, FAMSUN International Key Accounts Department focuses on the needs of key accounts throughout the

businesses and finding solutions through co-creation with customers. FAMSUN is pleased to name Bob Chen and Jari Zhao as Director of

FAMSUN International Key Accounts. They will lead two independent solution teams and work closely together to serve the needs of different

key accounts. Each of the solution teams will be made up of experienced experts from sales, design, project delivery and after-sale service.

Bob Chen has 16 year’s experience with FAMSUN, working

across the functions of the organization from project

engineering to sales and management. He has good

expertise in feed milling and animal farming. In his career

with FAMSUN International, Bob was appointed regional

general manager of South Asia, and the Americas most

recently. Based on his prior experience, he served to the

need of local producers and global key players who doing

business in these regions pretty well.

Jari Zhao has worked for FAMSUN International for 13

years. As the sales leader of FAMSUN Middle East and

Africa during 2012 and 2017, he was also responsible for

the construction and operation of FAMSUN manufacturing

base in Egypt. Over the past two years, he played an

important role in FAMSUN International Key Accounts

Department as a sales leader.

Integrated Solution Provider 9

Louis Li Arron Liu Elvis Yin

Bob Chen Jari Zhao


Fostering Talents:

FAMSUN Supports Curriculum Design for Undergraduate of Feed Manufacturing in China

A conference to discuss and design curriculum for fostering undergraduate of Feed Manufacturing

in colleges and universities in China was held from Nov. 28 to 29 at FAMSUN headquaters in

Yangzhou, China.

The conference was hold by President of Feed Branch of Chinese Cereals and Oils Association,

Professor Wang Weiguo. More than 60 professors, specialists and experts from agri-related

universities, colleges and research institutes in China including China Agricultural University, Henan

University Of Technology, Wuhan University Of Light Technology, Wuhan Institute Of Scientific

Research And Design, and China top feed companies such as New Hope Liuhe Group, CP Group,

Wellhope, etc. came together in FAMSUN to pool their wisdom in the cultivation of future talents for

China feed industry.

After intensive communication and discussion, the conference reached a consensus on the syllabus,

knowledge system, teaching requirements and methods, as well as teaching materials of Feed

Manufacturing Science. Feed companies’ expectations were also considered in the curriculum

design. Dr. Li Qingkai, Vice Director of FAMSUN R&D Institute, as a special guest, made a speech on

The Reformation and Innovation of Feed Manufacturing Technology and Equipment to introduce

the intelligence of feed plant, the reliability improvement of processing equipment as well as the

safety and sanitation of feed products. His speech received much attentions from attendees.

“Industry-University-Research cooperation is

a good pattern for fostering next generations

of professionals,” Richard Fan, President

of FAMSUN Group said. "We hope the new

designed curriculum can help students

keep up with the most up-to-date feed

manufacturing technology with knowledge

from courses and experience from practices,

and position them for industrial leadership

in the coming future.” He also emphasized

that, as an important builder of China feed

industry, FAMSUN is very willing to share its

knowledge, experience and resources with

colleges, universities and research institutes

in the cultivation of future talents.

FAMSUN also provided attendees a tour

to a 600,000 tons per year intelligent

feed complex in the last day of this event.

Production in this complex has already

been streamlined with the latest equipment

and the most advanced technologies from

FAMSUN.


FAMSUN takes 2019 Animal Feed & Nutrition

Innovation Award home for its SWFL170 Vertical

Pulverizer during Victam International.

FAMSUN Chairman

Richard Fan is awarded the

Medal in commemoration

of The 70th Anniversary

of the Founding of the

People's Republic of China.

FAMSUN introduces H156 Twin-

Screw Extruder and K70 Gear-Drive

Pellet Mill at VIV Asia 2019.

FAMSUN H176 Twin-

Screw Extruder debuts

at China Feed Expo

2019.

FAMSUN launches MES

Intelligent Feed Mill System

at VIV Qingdao 2019.

FAMSUN organizes Beijing

African Swine Fever

Symposium to help improve

bio-security.

FAMSUN shows its

latest innovations and

equipment at Victam

International 2019.

FAMSUN President Richard Fan attends

China Development Forum 2019.

FAMSUN

participates in the

2019 China National

Grain Technology

"The 14th Five-Year

Plan" Seminar.

June

September

April

March

December

September

HonorInnovations

create values and accelerate changes

Symposium: Technology frontier

Exhibitions: Interaction and

networking

Pool wisdom for a sustainable food future

March

May

March

June

:

2019 in Review

Mr. Kim Jensen

Møller from FAMSUN

Denmark R&D

Institute talks about

digital solutions on

The 4th International

Symposium on

Feed Manufacturing

Technology held in

Zhuhai, China.


FAMSUN introduces its grain loss reduction solution at the

2nd All Africa Post-harvest Congress and Exhibition.

FAMSUN Summer Training

Camp provides opportunities for

undergraduate.

FAMSUN commits to

collaborating for a better feed

future at the 2019 Annual

Meeting of FAO and IFIF.

Greg Liu, Director and

President of FAMSUN

International talks

about “go global” at

China Summit on

Agriculture and Animal

Husbandry.

FAMSUN participates in

curriculum design for

undergraduate of feed

manufacturing in China.

FAMSUN is regarded as top tax

contributor in Yangzhou.

CNCEC16-FAMSUN

partnership brings EPC

service to Africa and

Middle East.

FAMSUN donates a feed mill to empower Taklamakan

farmers in Xinjiang, China.

FAMSUN and Jiangsu

Industrial Technology

Research Institute

partner to establish “JITRI

– FAMSUN Innovation

Center”.

September August

October

November

November

February

August

August

March

Foster future talentsCollaborate to

explore cross-value chain synergies

SDGs AcceleratorPool wisdom for a

sustainable food future


Product Update

FAMSUN K70 Pellet Mill:

Scale-Up to Boost Operational Efficiency ？

FAMSUN recently rolled out a 70t/hr Pellet Mill to help feed

producers tackle sustainability challenges.

To feed the anticipated human population of 9.8 billion by 2050,

we need to promote sustainable consumption and responsible

production patterns in the global food production system. As a

solution-focused processing partner from farm to table, FAMSUN

strives to be forward-thinking and is always considering how to

improve production systems through better utilization of natural

resources, for example, by reducing raw material waste and

energy losses.

Due to proven animal growth and feed efficiency results, the

pelleting process has been a very popular in the feed industry

for many decades. However, improving the pelleting line's yield

efficiency is an essential design objective to help feed factories

operate more sustainably. The new FAMSUN K70 Pellet Millis is

such a machine using this design principle. The gear-driven K70

design boosts capacity while also improving energy efficiency

and operational reliability, which seeks to minimize line

interruptions that can create substantial raw material waste.

This giant machine is a new member of the FAMSUN K-Series

pellet mill family, which includes the K15, K15X, K20, K25, K35,

and K50. Since the initial introduction of the first K-Series model

in 2014,over 350 units of this gear-driven pellet mill are now in

operation around the world. The popularity of this line of pellet

mills is a result of its excellent reputation to perform reliably, its

ability to control product quality, and for its ease of maintenance.

The K70 Pellet Mill (see Fig.1 and Table 1) was developed not

only by scaling-up the machine's size from its existing models

but also by incorporating the latest innovations and design

considerations. By introducing this new unit, the FAMSUN

company can help feed producers become more sustainable and

allow them to continue leading the market well into the future.

Fig.1 FAMSUN K70 Pellet Mill

Fig. 2 Safety protection observing outlet Fig.3 Safety shield of shear pin disc

Note: Based on pelleting swine feed formula with ring die of ？3.8mm die holes and 1:6.5 compression ratio.

Table 1 Performance indexes

Model

Power, kW

Inner dia. of die, mm

Effective width of die, mm

Drive type

Die holding type

Roller quantity

Capacity, t/h

Gearbox cooling system

SZLH1070×370 (K70)

500

1070

370

Gear-drive

Clamp

2

65~75

Yes

Geardrive to maximize power utilization

The gearbox is more compact, efficient, and has a long service life. FAMSUN gear drive pellet mills are equipped with either a German SEW

or an American Rexnord gearbox, ensuring efficient power transmission. The design of the large gearbox ensures the stable and trouble-free

running with minimal vibration and noise (< 95 decibels). Also, the gears and bearings are designed for a service life of 1 million hours or

more to ensure a long and stable running performance, considerably reducing downtime, maintenance, and operational costs.

Optimized design to boost capacity up to 70 t/h

The K70 drive motor can be as large as 500kW and it uses a ring die of 1,070mm in diameter. The feeding and compression structure were

also optimized in this new pellet mill.

The new design optimizes the working area and linear velocity of the ring die. The optimized power per unit area is 15% to 25% higher than

that of regular ring die. Therefore, it has dramatically increased production output. The improved feeding scraper size and angle evenly

spread the mash into the compression area between the ring die and press rollers. Thanks to uniform feeding,the pelleting process is more

stable, minimizing trouble-related downtime, while the pelleted product is of more consistent quality.

Automated tools for smooth operation

FAMSUN provides powerful automation with the K70 to help operators manage this massive machine with ease.The automatic control

system, based on fuzzy logic, can match the processingart and reduce the human influence on the production parameters. The clamp

installed ring die and the unique die and roller replacement assist tool make convenient replacement possible. The automatic roller

adjustment system can achieve the target gap quickly. While the distinct drive shaft end coupling has ample space to ensure the motor

doesn't need to be disassembled for maintenance. The roll-speed slip detection device alerts the operator of any potential die blockage

risks in advance.

CE standard details to ensure the safety of man and machine

Over many years of closely collaborating with customers all over the world, FAMSUN researchers have formed the habit and principle of

rendering the CE safety standard and ergonomic design concepts into the new product. Such factors as the safety of the equipment and

operators, the safety, and health requirements of the working environment are taken into consideration in developing the K70 pellet mill. All

these designing details have ensured man and machine safety, thus improving productivity.

For equipment protection, the K70 includes a shear pin, a gearbox oil level monitoring system, and a gearbox cleaning and de-ironing

design that ensures a very long, reliable, continuous, and stable operation.

Strictly following CE safety standard, safety shields are equipped at the observing outlet, air cylinder, gearbox coupling, shear pin disc of

FAMSUN gear drive pellet mill, and a power-off limit switch on the pellet mill access door. The shields not only prevent dust but also protect

the personal safety of operators. The safety shield at the discharge chute prevents the return of feed mash and steam and stops the operator

from reaching the internal part of the hopper. A safety shield also prevents pieces of broken shear pins from being hurled into the factory.


FAMSUN Launches A New Generation of Molasses Mixers

Mixing is an essential unit operation within the process of feed

manufacturing. It turns individual ingredients into nutritionally

balanced and homogeneous blends of feed for all varieties of

animals and livestock. The mixer enables further agglomeration

steps, such as pelleting or extrusion, if desired, and ultimately, it

ensures healthy and efficient animal growth.

Mixing molasses with other vital ingredients for ruminant feed is

often essential, but always challenging. Molasses is an excellent low-

cost energy source for ruminants, especially during times of drought

conditions and roughage shortages.

According to FAO, beef production in Australia may have fallen

by almost 5 percent in 2019 due to a large-scale drought-induced

slaughter. Millions of wild and domesticated animals have been lost

in the Australian bushfires since it began in October 2019. During

one single event, drylightning reportedly caused numerous fires

between the Victoria and New South Wales border on December 30, Fig.1 FAMSUN new generation STHJ molasses mixer

Table 1 Technical parameters of molasses mixer

Rotor speed, r/min

Mixing homogeneity, cv%

Maximum molasses level

Capacity, t/h

Motor, kW

Matched mixer

STHJ35×200

788

？10

10%

10-20

30

SLHS2

STHJ40×250

660

？10

10%

20-25

37

SLHS4

STHJ50×275

528

？10

10%

25-30

45

SLHS7

Table 2 Technical parameters of molasses screw feeder

Speed reduction ratio

Handling capacity, m³/h

Motor, kW

Frequency-variable?

Center-to-center distance

between inlet and outlet, mm

Length of feeding inlet, mm

Molasses Screw Feeder 25

17

40

3

Yes

2000

1200

STHJ35×200


17

80

4

Yes

2000

1200

STHJ40×250/STHJ50×275


17

120

5.5

Yes

2000

1200

(under development)


2019. This devastating incident forced ranchers to euthanize an estimated 12,000 head of cattle and 6,000 head of sheep. Elsewhere in 2019,

hot and dry weather conditions had also caused forage shortages in both Europe and Africa.

Climate change-related uncertainties have pushed many ranchers in various parts of the world to shift from grass-fed to grain-fed production.

Additionally, the growing demand for high-value nutritious protein is also driving the global beef production system to make other feeding

regimen adjustments.

No matter the driving force, we have witnessed greater demand for specialized molasses mixers. The FAMSUN molasses mixer is explicitly

developed for ruminant feed production and the challenging properties of molasses. The latest generation of FAMSUN STHJ Molasses Mixers

(see Fig.1 and Table 1) are now available for higher mixing efficiency, fewer residues, easier maintenance, and better product quality.

Highlights of the new machine include:

Improved mixing efficiency. Compared to the previous versions of the same model, the production capacity of the new generation is

improved by 15-20%. The adoption of a belt drive ensures stable and reliable transmission, and the service life of a belt for the new STHJ mixer is

expected to be more than one year of working time.

Better mixing homogeneity. Molasses is injected into the mixer by a compressed air-atomizing device, which creates a uniform distribution of

molasses particles and allows them to make uniform contact with other feed ingredients. The paddle arrangement on the mixing rotor includes

optimized angles to achieve reinforced mixing effects and excellent quality products. The product, when discharged from the molasses mixer, is

of uniform color and has no agglomerations in the mixture.

Fewer residues. Thanks to structural optimization, the rotating paddles can create a continuous spiraling trajectory along the shaft during

production. Together with the small gap between the paddle tip and the inner wall of the mixer, the paddles can more effectively push the feed

mash out of the discharge. Because of the minimal remaining residue, the troublesome agglomerations that usually coat the paddle and the

inner wall of the mixer are now eliminated.

Wear resistant paddles. Tungsten carbide coated mixing paddles improve wear resistance and extend the replacement cycle to over

8,000 tons of feed production. Re-use of the worn paddles is made possible by adding new layers of tungsten carbide, significantly lowering

maintenance costs.

Easy cleaning. The new generation molasses mixer is also equipped with a heat preservation device to prevent hardening and accumulation

of feed particles on the inner wall of the mixer, which facilitates periodic cleaning work.

More precise feeding.The mixer includes a standardized molasses screw feeder that matching the size of the unit. Sensors at the molasses

feeder provide critical feedback and feed delivery information to the control system. This approach prevents molasses from injecting without

feedflow, thus avoiding further agglomeration problems. For the technical parameters of the molasses screw feeder, please refer to Table 2.


Nutrifish is a leading aquaculture integrator based in

Monastir, Tunisia. The company focuses commercial feed

processing and marine farming on natural approach and

sustainable development. It provides feed and marine fish

known for their freshness, traceability and quality.

In 2018, Nutrifish planed for a state-of-the-art aquafeed

mill in Monastir, Tunisia, 20 km from the commercial port

of Sousse. With a capacity up to 30,000 tons of premium

feed per year, Nutrifish can give a new dimension to

the manufacture and formulation of food in Africa by

offering farmers feed adapted to local and African market

conditions, while maximizing the profitability of their

breeding.

Leading technologies and global expertise for state-

of-the-art

Equipped with the most up-to-date technologies and

equipment, and delivered by FAMSUN based on its best

practices in aquafeed mill design and project delivery

from other projects globally, the Nutrifish feed mill can

produce sinking extruded feed for seabass and seabream

with premium quality, high feed meat ratio and good

pellet appearance.

Nutrifish’s high quality product is produced on a FAMSUN

5-6TPH extrusion line. Machines on this line, including

SWFP66*125D hammer mill, SWFL150G ultra-fine

pulverizer, MY150*2 extruder, MGZDH2200*4-16 dryer,

PTZL3000 vacuum coater, etc., are all proven models in

aquafeed production. The combination of these advanced

machines with optimal configurations that provided

by FAMSUN’s thoughtful consideration according to

the production requirements of Nutrifish, has achieved

Nutrifish excellent operational efficiency since production

become streamlined as soon as commissioning success.

Nutrifish Aqua Feed Mill in Tunisia:

Delivering Long-term Value for African Marine Fish Farming

Project

This feed mill is also highlighted by the post-grinding

processing technologies. This advanced process flow

arrangement helps Nutrifish reduce its investment

in steel structure and the ingredient bins. It is also

distinguished in raw ingredient adaptability and can

avoid bridge troubles in bins. FAMSUN also provides

guidance to help Nutrifish design and fabricate the

steam recovery system on job site all by its own, which

proven to be a greater energy saver in the facility due to

the reduced steam consumption in production.

Supports from local and for local

This project was delivered by the local-based FAMSUN

African solution team with assistance and support

from FAMSUN manufacturing base in Egypt. By closely

collaborating with Nutrifish, FAMSUN had shorten

the delivery time from the scheduled 120 days to 99

days. Thanks to the know-how and the controls put in

place, Nutrifish can guarantee the standardization of its

products as well as their regularity.

Besides supplied to its own farms, Nutrifish’s high

quality product will also be delivered to local market

and the neighborhood countries to help boost marine

fish farming in Africa.

With this state-of-the-art facility, Nutrifish will be able to combine its market leading

technical and nutritional expertise with world class manufacturing capability.

““



Shifting from top exporter of wheat, the key target of the agricultural policy of the Kazakh government is to generate more products

with high added value and become the biggest meat exporter in Central Asia. Feed, which playing the important role as a bridge

between low-price exports and products with high added value, therefore is in lots of needs to help Kazakhstan to achieve that goal.

Over the past three years, Kazakhstan has nearly doubled feed production, but the real growth is yet to come. The government, taking

the opportunities of Belt and Road, has implemented a set of measures to attract investors, foreign, transnational, or local, who will

bring high-tech, innovative feed projects to the agriculture sector. Phoenix Feed Mills is one of the several high-tech feed mills that

adds about 60,000 tons of feed production capacity to Kazakhstan market in 2019.

Phoenix Feed Mills LLP:Ensuring Growth in Kazakhstan

About Phoenix Global DMCC

Phoenix Feed Mills LLP is created with the participation

of the Phoenix Global DMCC, a company based in United

Arab Emirates. Phoenix Global is a world leading agri-

foods, resources and consumer brands group. It engages

through the value chain in production, procurement,

processing, merchanting and distribution across five

continents. Phoenix sets itself apart from other companies

by being at the forefront of social responsibility and

ethics. Transparency and credibility is at the core of how it

operates business on a day-to-day basis. As the first feed

business of Phoenix Global in Central Asia, the design and

operation of Phoenix Feed Mills continues its competitive

values.

Phoenix Feed Mills highlights

The new facility is located at in the Khorgos-East Gate

Special Economic Zone in the Panfilov district of the

Almaty region on an area of 5.5 Hectares. It processes

local grain into premium nutritious feed products with

two high automated processing lines: one producing

comprehensive feed for poultry, swine and ruminant with

a capacity of 10-12TPH and equipped with FAMSUN SZLH

550×170 Pellet Mill and YPLV100 Continuous Coating

System; the other is for corn extrusion with a capacity of

2-3TPH. The facility also has the ability to hold more than

15,000 tons of grain with FAMSUN steel silos in its

first phase and another 15,000 tones of storage

capacity reserved for a second phase expansion,

served directly by rail.

Installation work started on Dec. 30, 2018 and

completed on Oct. 31 2019, the new facility

was delivered by FAMSUN in lined with strict

acceptance conditions that listed on FAMSUN’s

FPDS regulations, including the delivery quality,

operating procedure supervision, the implement of

6S protection measures for equipment, etc.

All efforts that FAMSUN and Phoenix had made

finally brought a state-of-the-art feed mill that

benefits Kazakhstan agri-food industry. The new

factory will play a key role for Phoenix in ensuring

growth, competitiveness in Kazakhstan and

profitability.



Market Focus


1. ASF, meat trade, and China's recovery

African Swine Fever (ASF) swept through swine industry in 2019 and will remain the dominant issue in global animal protein as we head into

2020, with China as the focal point of the global ASF challenge.

A global update

According to the latest global ASF report (period from Feb. 28 to Mar. 12, 2020 of World Organization of Animal Health, 22 countries or

territories notified new or ongoing outbreaks, 12 countries in Europe (Belgium, Bulgaria, Greece, Hungary, Latvia, Moldova, Poland, Romania,

Russia, Serbia, Slovakia and Ukraine); 9 in Asia (China, Indonesia, Korea (Democratic), Korea (Republic), Laos, Myanmar, Philippines, Timor-Leste

and Vietnam) and 2 in Africa (Cote D'lvoire, and South Africa).

For agri-food industry, ten concepts are frequently mentioned in news, reports and conferences in 2019 and will continue to highlight the industry in 2020.

““by Ada

from 2018, principally driven by increased imports by China due

to domestic tightness caused by ASF-related production losses.

China’s overall meat imports are expected to rise by 35 percent

(around 2 million tonnes), with increased purchases across all

meat categories (bovine: +29.3%, Ovine: +4.9%, pig: +46.5%, and

poultry: +33.9%).

Several major meat producing countries benefited from China's

global sourcing of meat supply amid ASF and the US-China trade

war. Spain ranked 1st for pork exports outside the EU with an

increase of 21% between January and April 2019, when compared

to 1 year earlier, and exports towards China accounting for almost

half of total exports from Spain. While Brazil boosted exports of

pork to China by 51% to 218,000 tons from January to November

2019, with chicken exports rising 28% to 513,000 tons and beef

exports rising 39.5% to 410,444 tons between the same period.

Elsewhere in Argentina, beef sales to China was more than double

to $870 million in the first seven months of 2019. Other countries

such as Russia, Belarus, Uruguay, Denmark, Columbia also seek

opportunities to be the new suppliers of meat exports to China

or to increase their exports proportion during China International

Import Expo 2019.

China's swine industry begins to recovery

The pig herd in 400 counties monitored by the China Ministry

of Agriculture and Rural Affairs rose 2 percent month on month

in November, the first rebound since November 2018. And the

number of breeding sows continued to rebound for the second

consecutive month, registering a month-on-month increase of 4

percent, according to the ministry.

The recovery signal also came from key producers. In October,

Wens, Muyuan, New Hope Liuhe and some other China's major

pig producers reported an increased Q3 profit and their recovery

plans. Muyuan Foodstuff was expected to raise 1.3 million sows by

end 2019. New Hope Liuhe aimed to breed 25 million pigs in 2022.

While COFCO Meat and Wens Foodstuff, said they maintained their

sow herd as breeding stock instead of slaughter. Wens will expand

operations to accommodate slaughtering 70 million swine a year,

about 10% of China's total slaughtered swine.

For the coming years, China's Ministry of Agriculture and

Rural Affairs issued a three-year recovery plan on Dec. 4,

2019. The plan, reiterated a target for pig stocks to stop

falling and start picking up by the end of 2019, and for the

recovery of pork production to 80% of its pre-ASF capability

by the end of 2020. It also clarified a regional layout, with

the northeast, northern and central south regions, including

Hunan, Hubei and Guangxi provinces, to remain major pig

production areas that will supply other parts of the country.

The populous southeast coastal provinces of Jiangsu,

Zhejiang, Guangdong and Fujian as well as the cities of

Tianjin, Beijing and Shanghai must also achieve a self-

sufficiency rate of around 70% for pork. While the southwest

and northwest regions including Sichuan should achieve

basic self-sufficiency.

Government measures at national and local levels to restore

hog production include subsidies for large-scale farms,

simplified land permits for new construction, stronger

financial support and insurance for pig breeders. The

supports included in the 3-year plan also cover small and

medium-sized farmers.

China government reported a decline of 41% in hog inventory in

October from a year earlier, after ASF swept through the country

since it was first detected in August 2018. Analysts and industry

insiders believe the damage may be worse, with some estimating

the herd has dropped by 60% or more. In Vietnam ASF has led to

the death and culling of about 5.9 million pigs or about 22 percent

of the total swine population, pushing prices to record highs. 45,670

swine in the Philippines and 20,069 swine in Romania have been

killed due to ASF or culled in ASF-infected zones till November

2019. In Indonesia, up to 42,000 swine were killed, with the majority

of 27,000 dying from September till December 2019.

Demand from China activates global meat trade

Pork supply shortage due to ASF-related decimation of pig

population in China and other pork-loving Asia countries stimulated

global meat trade. According to FAO, world trade in meat and meat

products is forecast at 36.0 million tonnes in 2019, up 6.7 percent


2. Cage-free eggs （（（（（？？？？？

Retailers and producer groups are leading the way in driving forward positive animal welfare changes across all animal production sectors.

Since McDonald’s announced to source eggs from cage-free farms in 2015, more than 200 American food companies and retailers have

changed their purchasing strategies. McDonald’s said it expects to get 1/3 of its eggs from cage-free farms in 2019, including Cargill’s layer

farms in US. Nestlé commits to using only cage-free eggs by 2025, and to using poultry meat from slow-growing farms in the US and Europe

by 2024 and 2026 respectively.

In UK, almost all retailers and supermarkets have turned to cage-free eggs. In the European Union, most of the supermarkets and food

companies have make commitments to cage-free purchasing by 2025, including Walmart, Compass Group, Co-op UK, Danone, JD

Wetherspoon, Lidl and Unilever.

In Thailand, retailer Tesco Lotus announced in September 2019 it will sold eggs only from layers that are kept in cage-free constructions by

2028. Local agribusiness giant CPF also announced to implement cage-free layer farms in Thailand and its overseas operations. The company

started selling cage-free eggs in March 2019. It also targets to complete the transition of sow farms from individual stalls to group gestation

pens by 2028 globally to improve animal welfare.

3. Recirculation Aquaculture Systems (RAS) ？？

Land-based RAS is considered to be Aquaculture 2.0. This farming pattern is distinguished in fully controlled environment for the fish, low

water use, efficiency energy use, efficiency land use, optimal feeding strategy, easy grading and harvesting of fish and full disease control.

RAS is possible to change the aquaculture game over the next decade. Rabobank Research reported to have identified more than 50 RAS

proposed projects (and counting) to farm salmon on land in 2019. The total estimated production of these announced projects up to 2030 is

equal to 25% of total current salmon production.

As the RAS Tech getting mature, available water resource and environmental restrictions might be no longer a challenge for some countries

to develop aquaculture for high quality protein. The year 2019 had seen a growing number of RAS construction projects in the US and

Middle East. The farming of cold-water fish such as salmon might be no longer limited by geographical conditions. ASEAN countries such as

Singapore, Brunei and Vietnam all announced new construction plans to boost salmon farming with RAS in 2019.

4. Insect-based feed （（（（（（（（（（

How can we grow more food faced with less

land and less water? Perhaps the solution

is maximizing the efficacy of what we feed

animals, by turning food waste into farm chow.

Some baby insects (meal worms, fly larvae, and

others) can break down food waste and make

the compositing process much quicker than

other organisms.

From food waste to insect rearing, and from

insect protein powder processing to insect oil

extraction and organic fertilizers production,

technologies and innovations have accelerated

the insect businesses growing into a large

commercial-scale industry. Edible insects

for animal feed market is estimated to reach

US$ 267.9 million by the end of 2018, and is

forecasted to reach US$ 2,385.6 million by the

end of 2029.

The market is more active in Europe in 2019.

Many new investments and large projects have

been seen in this region. For example, Protix in

Dutch open the world's largest insect farm in

June; French Ynsect was awarded a ？20 million

grant from the European Commission and a ？3.7

billion European public-private partnership to

build an industrial-size facility; A new European

project named FARMŸNG was launched to

promote insect protein production in Europe,

which will transfer the insect tech from a demo

plant to the industrial flagship plant; etc.

The year 2019 also saw insect-based protein sprouting wings in

Asia—the major aquaculture and the most populous region in the

world. Vietnam-based alternative aquafeed firm Entobel announced

it has raised ？1 million in funding to build its first commercial-scale

insect protein factory in Vietnam. While Malaysia-based agri-food tech

firm Nutrition Technologies announced to build the biggest insect

protein plant in Southeast Asia with over 18,000 tones of insect-based

feed ingredients and organic fertilizers every year.

Insect feed protein currently have more acceptance in aquafeed

industry. Key feed players such as Cargill, BioMar, Nutreco’s Aquafeed

business Skretting, etc. have already announced to include insect

meal in their feed products. The utilization of fish as protein source

in feed production dropped by 14% in 2019, predicted by FAO, also

mirrors the popularity of insect meal as the substitute of fish meal in

feed production.

5. Methane-based feed （（（（（（（（？？？

Finding alternative uses for methane could be an important tool in

the fight against climate change as the gas is responsible for at least

a quarter of global warming and is over 80 times more powerful than

carbon dioxide as a warming gas over a twenty-year timeframe. Some

startups hold the methane-to-protein technologies.

The most heard in 2019 is Unibio. The Danish company's fermentation

technology allows the large-scale production of affordable, high-

quality protein, sold under the brand name Uniprotein, via a methane-

to-protein process that used little water and no agriculture land. Its

product has been approved by the EU for all animal and fish species.

Unibio helped Russia completed the construction of a 6,000 ton per

year methane to feed protein plant in 2018. The company at August

announced to prepare for the establishment of protein production

plants with its local partners in Saudi Arabia and US. It also attracted

Japanese multi-conglomerate giant Mitsubishi to invest in its shares

at the end of the year.

The US-based Calysta company is another methane gas to feed

protein developer. Its investors include Cargill and the British

multinational oil and gas company BP. Meanwhile in India, String Bio

also uses methane as a feedstock to manufacture alternative proteins

starting with the animal feed industry with its first product String Pro.

The company raised an undisclosed funding round with India’s largest

crude oil and natural gas company Oil & Natural Gas Corporation

(ONGC), French venture firm Seventure Partners, Indian VC Ankur

Capital, Karnataka’s Information and Biotechnology Venture Fund

(KITVEN) and Srinivasa Hatcheries, a pioneer in the Indian Poultry

Industry.


6. Algae-based feed （（（（（（（？？？？？

Commercial algae production is being launched as a new agricultural

phenomenon that can provide sustainable feedstock of proteins and oils

for hundreds of new products, absorb millions of tons of carbon dioxide,

treat wastewater, and become a driver of economic growth around the

world.

The year 2019 saw some exiting partnerships that aiming to make

progress on the research, development, production and farming trials

of new algae-based feeds in aquaculture supply chain. Veramaris, a joint

venture of DSM and Evonic opened a new plant in the US to produce

algal omega-3 fatty acids EPA and DHA for aquaculture. According to

the company, the new production capacity is equivalent to 1.2 million

tons of wild-catch fish and can meet around 15% of the entire salmon

farming industry’s annual demand. Early at the beginning of 2019,

Veramaris announced to team up with Skretting, the aquafeed business

of Nutreco, to provide Norwegian salmon producers Lingalaks marine

algae oil for salmon industry.

In September, Corbion, a global market leader in algae-based ingredients,

and BioMar unveiled a new feed partnership with the Norwegian-based

Salmon Group, the world’s largest network of local, family-owned fish

farming and aquaculture companies. BioMar responded for developing

a bespoke feed that maintains high omega-3 levels (EPA + DHA) made

from algae and provided by Corbion in the feed. That will help Salmon

Group to reduce its overall environmental footprint of feed while

maintaining feed quality, feed performance and fish welfare.

Beyond algae oil, aquafeed leader Aller Aqua and marine ingredients

producer TripleNine entered into a research collaboration in August

targeting to identify functional components of marine raw materials that

benefit fish health and growth.

7. Cell-based meat （（（？？？？？？？

Cell-based meat is one of the most promising technologies to help

create a sustainable food future for a population of 9.8 billion in 2050.

By growing meat from cells instead of from a whole animal, it becomes

possible to create high-quality cuts of meat using fewer resources and

with less environmental impact.

Dr. Mark Post from Dutch produced the first cell-based beef hamburger in 2013, and since then various

companies have also debuted prototypes including chicken, duck, steak, pork sausage, and fish cakes.

Capital invested in cell-based meat have been steadily on the rise, reaching nearly $50 million in 2018.

American companies dominate the cell-based market. The top three funded cell-based meat companies,

Memphis Meats, CUBIQ Foods, and Mosa Meat, have all announced that they expect to start selling

products in 2021. Other countries that research on cell-based meat include Israel, the Netherlands, Spain,

Japan, Canada, China, France, India, Singapore, Turkey, and the U.K. Conventional meat producers who

have make investment in this new field include Cargill, Tyson Foods, the European poultry producer PHW

Group and the Uni-President from Taiwan, China.

Consumer acceptance on cell-based meat tend to be modest at market entrance. Companies like Bond

Pet Foods from the U.S. find a different approach. It invests in pet food made from cell-based meat

to find new market opportunities. As we all known, cats and dogs consume a large portion of meat

products in the world, and that is a big contribution to the carbon footprint of the world' meat industry.

8. Plant-based meat （（？？？？？

Plant-based meat are animal-free alternative to common processed foods that are typically made of

animal parts. It is especially designed and created to look like, taste like, and cook like conventional

meat. Plant-based meat can be in the form of a burger patty, nuggets, or even crumbles and sausages.

Compared to cell-based meat, shifting consumer values have created a favorable market for plant-based

meat. Consumers are increasingly considering such factors as health, sustainability, and social impact in

making their food decisions.

The plant-based meat market is estimated to account for a value of $ 12.1 billion in 2019 and is projected

to grow at a CAGR of 15.0% from 2019, to reach a value of $ 27.9 billion by 2025. The US dominates the

plant-based meat market. Between 2017-2018, retail sales of plant-based meat in US grew by 23%. As it

grows more popular, these veggie-based alternatives are shaking up the meat industry.

Leading companies in plant-based market include Impossible Foods (US), Garden Protein International

(US), Beyond Meat (US), ect. Investors also include established food companies such as Cargill, Tyson

Foods, Maple Leaf Foods, Bunge, Smithfield, Marfrig, etc. Thai CPF also announced to launch plant-based

meat substitutes in 2020.

Consumers are increasingly

considering such factors as health,

sustainability, and social impact in

making their food decisions. “

“

9. Digital solution （（？？？？？？？

Digital technologies enable food supply chain more connective and inclusive.

The application of Big Data, IOT, AI and Cloud Computing technologies to

develop digital solutions such as data capturing devices, decision support

software, big data analytics, food safety and traceability platforms, etc. moves

the agri-food industry forward.

The agri-food industry saw many new digital solutions in 2019. In Thailand,

Microsoft and Digital Economy and Society Ministry announced in November

to partner on developing AI lab for farming sector. While Thai agribusiness

giant CPF has already used AI technology for its swine farms' security.

Elsewhere in aquaculture industry, top salmon aquaculture company Cermaq

announced its cooperation with Labeyire and IBM to develop a traceability

system that allow consumers get salmon product information regarding the

farming location, the food it was fed, as well as health and welfare information

such as the vaccinations it has received, etc. For grain market in North

America, ADM and Cargill had completed a joint venture Grainbridge LLC at

March. Grainbridge will develop digital tools to help North American farmers

consolidate information on production economics and grain marketing

activities into a single digital platform, at no cost to them.

Digital tools that available in 2019 also include: Cargill's Feeding Intelligence to

help farmers tackle animal nutrition and health challenges; Skretting's cloud-

live AquaSim for optimizing aquaculture; BioMar's seafood consumer facing

transparency tool Discover; ect.

10. Sustainable Development Goals (SDGs) （（（（（（（？？？

The 2030 Agenda for Sustainable Development, adopted by all United Nations

Member States in 2015, with 17 Sustainable Development Goals (SDGs),

provides a shared blueprint for peace and prosperity for people and the planet,

now and into the future.

Sustainability was emerging in agribusiness in 2019. More and more industrial

players like ADM, Biomar, Cargill, CPF, Nutreco, etc. make commitments and take

actions to battle climate changes, protect ecosystem, enable more sustainable

consumption and responsible production in their operations, and promote

human rights and communities prosperity as well.

In Europe, over 250 feed companies have signed the FEFAC Responsible Soy

Declaration. In Brazil, the “Aquaculture Dialogue on Sustainable Soy Sourcing

from Brazil” group is taking action on traceability, transparency, supplier code

of conduct and deforestation. In Southeast Asia, more and more producers

apply for IFFO RS Improver Program (IFFO RS IP) and commit to sourcing and

manufacturing fishmeal in line with an international sustainable standard. In

the beef sector, the Global Roundtable for Sustainable Beef (GRSB) welcome

more new members to make their commitment to ensuring the beef sector is

economically viable, socially responsible and environmentally sound.

The agribusiness sector also got more financial support in 2019 for sustainable

development. Olam had secured a US$525 million revolving credit facility (RCF)

linked to meeting sustainability key performance indicators (KPI). While Louis

Dreyfus Company had secured two sustainability-linked loans: the renewal of a

US$750 million North America RCF and a US$650 million revolving credit facility

(RCF) in Asia.



Business

To feed a population of 9.8 billion in 2050, we have to make changes in the food production system.

As an integrated solution provider from farm to table, FAMSUN is always forward thinking and

considering proactively how to achieve food security through better use of current available

resources, increasing productivity and reducing waste and losses. ？？？？？？？？

FAMSUN Grain Storage & Handling integrates advanced digital and automation technologies as well

as its best project delivery practices and the best production practices of farmers and producers

into its grain losses reduction solutions: conveying, cleaning, drying to storing, dedusting, loading

and unlaoding.

Our hot-dip galvanized steel silos are designed with high tensile and yield strength structure to last;

the high speed handling machines care much about safely running; while advanced automation

systems ensure good drying and storing conditions to achieve rising operational efficiency and

good grain quality.

Every year, from post harvest to grain towers, from port terminas to processing mills, FAMSUN Grain

losses reduction solutions can help farmers and producers reduce grain losses from 8% to 1.5%,

or about 900,000 tons a year, equally to adding 1.8 million Mu of new arable area and can feed an

extra 3 million people in the world.

Together, we can create a sustainable food future.

FAMSUN Grain Storage & Handling

Feeding future better with our grain losses reduction solutions from farm to table.

Together, we can

create a sustainable food

future.

Interview


Milling & Grain magazine paid a regular visit to China 2019 year end, and we had the opportunity to sit down with Mr. Jack Chen, the Chief

Technology Officer of FAMSUN Group - a China-based, global integrated solution provider who has a strong market position in China and

global feed manufacturing industry - to talk about something new from FAMSUN R&D and his perspectives on Future Feed Tech.

- Roger Gilbert, Publisher of Perendale Publishers Ltd.


Jack ChenFAMSUN Chief Technology Officer


M&G: First of all, can you tell us more about

your career at FAMSUN R&D?

Chen: I joined the company in 1992 as an

Automation Engineer after graduating in Industrial

Electrical and Automation. In 1998, I became the

Deputy General Manager of Automation business.

At that time, we started taking the leadership

in machine and plant automation in China

feed industry. From 2003 to 2007, I held various

management positions across the corporation

from procurement to sales. In 2008, I became the

Vice President of the Group, and since 2012 as the

Chief Technology Officer to lead FAMSUN R&D

globally.

M&G: How important is R&D in developing

leading-edge equipment that meets the needs

of the feed milling industry globally?

Chen: Global food production system would not

be able to feed a growing world’s population

if without modern feed industry. Processing

machines convert ingredients into long-shelf life,

quality, nutritious and more digestive feed for

livestock, and allow commercial animal farming

businesses to be scaled worldwide. Innovations

create values and accelerate changes. Leading-

edge processing equipment and technologies can

help feed producers to transfer their innovations

into marketable products, and enable them to

address the development challenges they have

to face in a changing market environment.

In other words, feed machinery industry is

an indispensable link in the farm-to-table

supply chain. Its effects on the research

and development of new processing

machines and technologies support feed

manufacturing progress to a more modern

and sustainable industry. I'm very glad that

FAMSUN is always playing this role and

advancing sustainability across the whole

value chain.

M&G: As the Chief Technology Officer,

what’s your expectation on FAMSUN's

R&D?

Chen: Again, I'd like to emphasis that

innovations create value and accelerate

changes. In this sense, R&D in a company

should contribute to the long-term

competitiveness and profitability of its

organization and all stakeholders in its value

chain as well.

In FAMSUN, I hope our R&D experts can

create new and improved products,

technologies and solutions that could be

converted into profitable, growing business

for the company while keeping it in a

technical leading position in the industry.

As an important technical supplier in global feed-to-food

supply chain, we hope our customers can benefit from our

integrated, advanced solutions from production to operation

and management in feed milling, animal farming and food

production. And as a technical partner, we hope to collaborate

more closely with industrial partners to develop necessary

solutions and scale them timely to lead the industry toward

a promising future. For end consumers, we hope our R&D

efforts can help them enjoy more safe, healthy, nutritional and

affordable food that produced in efficient and sustainable

manner.

M&G: How your team work out new solutions or make

improvements for the feed manufacturing industry?

Chen: In FAMSUN, almost 1/3 of our employees work for R&D.

They are the best talents from different professional fields with

great knowledge, experience and wisdom, and innovative skills

and motivation for success. With a stand of R&D Institutes in

Asia, Europe and America, our R&D team works around the

clock in the development of existing products and solutions

plus exploiting new terrain and unlock new business fields on

the basis of markets analysis, customer needs evaluation and

feasibility assessment.

No individual or business can develop on its own. FAMSUN

develops products and solutions through collaboration. Most

of our solutions are developed by collaborating with feed

producers and applied in their operations. We develop new

processing technologies and innovations to help our customers

overcome obstacles in their productions, create new solutions

to support their new business strategies, and help them bring

their innovative products onto the market.

FAMSUN also have formed dozens of partnerships with

industrial partners, universities, research institutes and

academics in the past decades. It has included China National

R&D Center for Feed Equipment and Technology, International

Technology Committee (TC) of Feed Machinery and the ISO/

TC293 Secretariat (Feed machinery) in its Sci-Tech Park since the

modern manufacturing and innovation facility was opened in

2013. We will continue to bring all stakeholders in global farm-to-

food supply chain together to promote collaborative innovations

and create a win-win future for the agri-food industry.

M&G: How much (percentage wise of turnover) is FAMSUN

Group investing each year in R&D?

Chen: About 5%.

M&G: Is that enough?

Chen: Actually, an investment of five percentage (of turnover) is

indeed a lot for mechanical and plant engineering companies.

The positive business development and strong global market

position FAMSUN achieves today proves that our Board of

Directors and Senior Executive Board have make correct

decisions on FAMSUN R&D all these years. The increasing budget

as a good result of the growing business performance for sure

will accelerate our Research, Development and Innovation plans

in the coming years.

M&G: What areas of milling are most FAMSUN R&D fund

spent on recent years?

Chen: FAMSUN always eyes on providing advanced solutions

that necessary to help our customers overcome current obstacles

and address future threats. For this reason, we have invested a lot

of our R&D budget recent years in the research aspects of large-

scale industrial production, Intelligence, digital, new alternative

protein and future food. We hope the breakthroughs we have

make and yet to create in these fields can help our customers

run their production facilities more efficiently and develop their

businesses more sustainably with lower energy, lower emissions,

less waste, less water, but higher productivity and profitability.


M&G: What are the key issues FAMSUN R&D is dealing

with most successfully? For the domestic markets, for

the international market?

Chen: There are numerous examples that have come to

both China and international markets. The most notable is

FAMSUN Future-Fit Aquafeed Extrusion solutions. The low-

starch formula extrusion technology can help aquafeed

producers adapt to the changing market demand. While

with a quick-start conditioner, our extruder can save

hundreds kilos of raw material wastes at each startup of

production. Among others, FAMSUN SME online controller

provides great flexibility to extrusion production, along

with improved production capacity, desired bulk density,

high starch gelatinization levels, satisfying water stability as

well as better appearance and lower energy consumption.

Another example is FAMSUN Digital & Intelligent solutions.

FAMSUN Animal Farming IOT and Traceability Platform is

one of them. The platform connects data from feed mill

to livestock farms and provides the data transparency

necessary for industry integrators to optimize their

operations. Our experts are trying to extend our digital

solutions to bring interconnection and efficiency across

the complete value chain from farm to consumer.

M&G: What technology do you think will change the

future of feed industry?

Chen: As always, FAMSUN is continuously taking our

technical advantages to make improvements in our

solutions in order to help feed producers address future

challenges and develop sustainably. We have noticed that,

the feed sector of today is less efficient and remains less

digitized compared to other industries. We have invested

a lots to incorporate the latest modern techniques such

as automation, sensing and digital tech of big data,

blockchain, IoT, AI, etc, into our machines and processing

solutions recent years, with the aim of boosting feed mill

operational efficiency by increasing capacity, reducing

energy consumption and waste, and improving safety in

production as well.

From animal nutrition and health to feed ingredient

origination, feed formulating, and from feed production,

feed testing and traceability to logistics, feed industry has

a wide supply chain span. Any technical improvement or

innovation at these links is possible to change the feed

future. We find some emerging techniques on the chain

and start to invest in some of them, for example: insect

meal, algae and other alternative ingredients. Insect tech

can produce feed-use insect meal and insect oil from food

waste in a much quicker compositing process with less

land and water. Same as insect farming, commercial algae

production can provide sustainable feedstock of proteins

and oils for feed manufacturing while absorb million tons

of carbon dioxide and treating wastewater as well.

solution also ensures consistent quality and output, and can

make feed milling more secure for producers and end users.

So, in a sense, it is more than a skillful operator. Data from

our customers who had already installed such an intelligent

drying system in their plants told us that it can save more

than 1 million RMB cost a year.

Besides the drying system, intelligent and digital solutions are

also built in other FAMSUN core machines such as pellet mill,

extruder, etc. In fact, FAMSUN has delivered several intelligent

feed mills to China feed industry since 2017. In other words,

we can provide a really smart feed mill today.

M&G: As we all known, developed countries are more

likely to adopt a new technology or an innovation when

it first becomes available due to the high use-cost at its

market entrance. So is there any latest solution from

FAMSUN that feed producers in developing countries can

afford now?

Chen: In fact, there is no obvious difference on the

acceptance of FAMSUN’s new solutions between developed

and developing countries. Market feedback shows that

they are as welcomed as our other well-known solutions,

especially in developing countries. This is attributed to

our R&D commitment of “Creating cost-effective technical

solutions to help our customers remain competitive currently

and in the future”. We know how to help customers invest less

to get more. Most of the time, developing small add-ons for

machines or making upgrades to the old production systems

are more important than creating disruptive inventions.

Our intelligent and digital solutions, for example, are all web-

based, so they can be upgraded continuously and never goes

out of date. Next step, we will make futuristic development

to incorporate Artificial Intelligence (AI) into our intelligent

New and innovative technologies that changing the way we

produce meat have also come out of the horizon, and will

bring disruptions to the feed industry. Plant-based meat that

making meat entirely out of plant ingredients without farming

animals can shorten the production chain from plant to meat.

Elsewhere, by growing meat from cells in labs instead of from a

whole animal, cell-based meat tech becomes possible to create

high-quality cuts of meat using fewer resources and with less

environmental impact.

As an agri-tech company, FAMSUN is exiting about the springing

up new technologies and is starting to involve in some of these

research fields. Our R&D efforts in these new fields will provide

more options to complement the existing agri-food production

system and help players in this chain grow business in a more

sustainable way.

M&G: Is there any Future Feed Tech we can get from FAMSUN

now?

Chen: FAMSUN has invested a lot in the research and

development of intelligent and digital solutions recent years. We

hope to help feed mills upgrade their automation into a higher

level, from the automatic control of machines and production

processes to the intelligent operation and management of the

whole feed mill, and help them overcome obstacles, improve

operational efficiency and reduce labor and waste. That’s what

we are striving to do now, and we do have make some progress.

Our intelligent drying system, for instance, can optimize the

processing parameters itself to achieve best drying efficiency

in terms of drying quality, moisture uniformity and energy

consumption. The strong formula adaptability weights a lot in

aquafeed production. When production changed, the system,

backed by a proven intelligent algorthm, will optimize the

processing parameter automatically without human intervention.

Aside from the reduced number of operators, the intelligent

systems. Through machine learning, the production systems in

our customers' plants will be able to identify the best production

parameters quickly and automatically to adapt to the changing

requirements on formulations and ingredients in the future.

M&G: How to feed a population of 9.8 billion in 2050? What do

you think?

Chen: It is very clear that the growing population is not the only

challenge we have to face in the future. Climate change, failing

of soil, freshwater shortage... our agri-food industry is facing

moonshot-sized challenges to enable the food production system

to meet the growing food demand while in balance with nature.

We must improve productivity to produce more healthy food,

while protecting our living environment by slowing the rate of

growth in demand of water, energy and other resources, and

reducing GHG emissions. We also must enable agri-food industry

to prosper and to lift more people who depend on it for livelihood

out of poverty. Therefore, we must change the way we produce

and consume in food production.

Like FAMSUN, most Agri-Food Tech companies are stepping up

to the most promising solutions that are currently available or

show promise in the near term. From alternatives such as insect-,

algae- and methane-based feed ingredients that help to relief the

pressure on terrestrial and marine production system to plant-

based meat and cell-based meat that use less land and water

while reducing environmental footprint by shortening plant-to-

meat conversion chain, and from gene-editing, drones and indoor

farming to satellite imaging, precision farming and intelligent

industry 4.0, the most advanced technologies are driving radical

transformation in our food and agriculture system. As these future

technologies getting more popular, and with a more and more

connective, collaborated and inclusive supply chain, we believe

the agri-food industry will and must be able to tackle future

challenges and create a sustainable food future on our planet.


UPCOMING EVENTS

VICTAM ASIA 2020 Jul. 9-11 Bangkok, Thailand

VIV MEA 2020 Aug. 31-Sep. 2 Abu Dhabi, UAE

Eurotier 2020 Nov.17-20 Hannover, Germany

Jul.

Nov.

Aug.

Asia-Pacific

Elvis YinAssistant [email protected]

Europe & Africa & Middle East & South Asia & Central Asia

Louis [email protected]

FAMSUN International

Greg LiuDirector and [email protected]

Americas

Arron [email protected]

FAMSUN Will Highlight Intelligent Solutions at Victam Asia 2020

As safety, quality and efficiency continuing to be the major concerns for the feed industry, FAMSUN said it will showcase its solutions with

the latest machines, innovations and technologies at the coming Victam Asia 2020 on July 9-11. Differing from previous events, FAMSUN will

highlight intelligent solutions at its booth this year.

“Foreign animal diseases such as African swine fever and poultry avian influenza, public disruptions such as trade tension and novel

coronavirus, new approaches that changing the way we produce meat such as plant-based meat and cell-based meat... the feed industry is

facing more uncertainties and challenges today,” the company said. “We need new solutions to bring interconnection, efficiency, flexibility

and sustainability into feed operations.”

According to FAMSUN, it has invested lots of resources to incorporate the latest modern techniques of automation, sensing and digital

technique of big data, blockchain, IoT, AI, etc., into its solutions recent years.

The to be introduced FAMSUN MES SYSTEM, integrating the latest digital services of FAMSUN from intelligent management of logistics,

warehouse, production to the automation of production and quality control, will enable producers to run their feed mills with better

operational and management efficiency by increasing machine capacity, reducing the consumption and waste of resources in production,

improving feed quality and safety, but with fewer people. FAMSUN will also display its core machines with the most advanced automation

systems at this event.

For more information, welcome to visit FAMSUN booth at B131 on July 9-11,

VICTAM ASIA 2020, BITEC, Bangkok, Thailand.



Global Presence

Think globally, act locally.

Since the execution of Go-Global in 1997, FAMSUN has

delivered its products and solutions to 140+ countries

around the world. A solid network of 50+ local sales and service

offices, agencies and 20+ local partnership companies ensures

that our global reach extends around the world and provides a

neighborhood link to our customers.

In 2020 we will continue to develop local and global markets in

ways that:

To learn and well know local culture and demand;

To bring leading technologies and solutions;

To improve food and nutrition security;

To share resources what we have;

To be a reliable partner of local industry;

To provide training and promote Youth Employment;

To take up social responsibility;

To create a sustainable agri-food future.

R&D Institute

Office and service sites

Production Bases


FAMSUN Group Co., Ltd.No.1 Huasheng Road, Yangzhou, Jiangsu, China 225127

T:+86-514-85828888

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