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SPECIAL PRINT EDITION - ANUGA 7 - 11 october 2017

Anuga news

Rene MAILLARD Belgian Meat Office manager

Jean-Pierre GARNIER, Head of AHDB Exports

“Remaining competitive in a global meat market, flexibility and diversification are the key words” page 9

“As the UK is a major meat importer, Brexit may mean disruptions of supplies from the EU” page 9

The global meat market under one roof at Anuga Meat pages 10 - 11

WH Group through Smithfield - expansion and consolidation


Chinese pork producer WH Group’s US subsidiary Smithfield Foods has entered a share purchase agreement to acquire two meat packaging companies, in Romania on September 25, 2017. As per the terms of the agreement, Smithfield will acquire 100% share capital of Elit and Vericom. INTERNATIONAL

With this latest acquisition, the WH Group intends to further strengthen its footprint in the European market. In addition, the acquisitions are expected to strengthen Smithfield’s position in the Romanian packaged meats market. The transaction will be closed upon obtaining anti-monopoly approval from the

relevant regulatory authorities. Financial details of the deal have not been divulged by the company. The two Romanian companies operate through three packaged meat manufacturing facilities as well as five distribution centres and related assets in the country. This companies produce and distribute nearly 25,000t of branded packaged meats to approximately 12,000

customers on an annual basis. On July 28, 2017, Smithfield acquired 33.5% of the share capital of Pini Polonia and entered into a share purchase agreement, pursuant to which Smithfield (through a whollyowned subsidiary) agreed to acquire the remaining 66.5% of the share capital of Pini Polonia, conditional upon, among other things, obtaining anti-monopoly

approval from the relevant regulatory authorities. Pini Polonia operates a hog slaughterhouse in Kutno, Poland with a production capacity of 4 million hogs per year. As at the date of this announcement, the acquisition of the remaining 66.5% of the share capital of Pini Polonia has not been completed. continued on page 2

Protein ingredients industry to rise at a 3.87% CAGR by 2022

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Market & Retail Tesco partners with its suppliers to tackle food waste Tesco finalized partnership agreements with 24 of its largest food suppliers, who represent over 17 billion dollars worth of the retailer’s sales, in order to tackle UN Sustainable Development Goal on food waste by 2030. page 14



The protein ingredients market is projected to reach 5,547 KT by 2022, at a CAGR of 3.87% from 2017, in terms of market volume, according to a new Market Research Future report ‘Protein Ingredients Market’. Europe and North America are the major consumers of protein ingredients with Asia Pacific emerging as growing consumers. Increase in demand in overall health and wellness products with proteinrich foods and beverages is driving higher demand for protein ingredients market.

Global poultry industry is witnessing a relatively strong performance

Processing equipment markets continue to grow

Carlos SERRANO, ANICE’S President

“Last few years’ figures allow us to be optimistic about the future of our exports”

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Three important Global Forecast reports focused on meat processing equipment, poultry processing equipment, and pet food processing equipment for the next five years were presented during a press briefing at Process Expo by David Seckman, President of the Food Processing Suppliers Association... page 16


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| News

WH Group through Smithfield - expansion and consolidation continued from page 1 The Group expects to increase its slaughter capacity and realize improved operating efficiencies in Poland from the acquisition of Pini Polonia’s modern, high speed slaughterhouse in Kutno. The acquisition should lower Smithfield’s overall cost structure in Poland, and Pini Polonia’s faster line speeds coupled with a higher level of throughput should make Smithfield more competitive in Europe and globally. In addition, the Group expects to reduce live hog transportation costs because the slaughterhouse in Kutno is strategically located in the center of Poland’s highest hog producing region. On June 1, 2017, Smithfield (through a wholly-owned subsidiary) acquired 100% of the share capital of each of Pini Polska, which operates a meat processing and packaging plant in Kutno, Poland with a production capacity of 100,000 m.t. per year, Hamburger Pini, which operates a case ready meat plant in Kutno with a production capacity of 40,000 m.t. per year, and Royal Chicken, which is a poultry processing plant under construction in Kutno with a planned production capacity of 100 million birds per year. The acquisitions of Pini Polska, Hamburger Pini and Royal Chicken align with the strategic growth plans of the Group by strengthening Smithfield’s vertically-integrated supply chain in Poland and increasing its production of high-quality packaged meats products. The acquisitions also capitalize on existing opportunities for the Group to expand in areas with attractive market dynamics and to develop scale over time. Mr. Wan Long, the Chairman and Chief Executive Officer of WH Group said: “Looking ahead in the second half of 2017, we will cope with all sorts of uncertainties that would happen in the business and achieve more vigorous growth out of fierce competition. In China, we will deepen the optimization of our product portfolio, develop our sales channels and invest in marketing efforts so as to expand our business scale. We will launch new products to the market consistently, with an empha-

e d i t or i a l t e am

sis on low temperature and mid-end to premium products. In the U.S., we will focus on the realization of the full value of vertical integration. We will build stronger consumer brands and increase market share in key products. We expect margins to keep enhancing through improvement in management and uplift in efficiency. As a consumer goods company, branded packaged meat products will continue to be our core business. Coupled with our stringent quality control and food safety systems, we will assure customers with high quality products. We will also strive to capture opportunities brought by industry consolidation.”

Financial results H1 2017 For the first six month in 2017, the sales volume of the Group’s core business – packaged meats slightly increased to 1.56 million metric tons. The turnover of packaged meats was US$5,522 million, representing a year-on-year increase of 3.4% and the operating profit of the segment was US$686 million. The China business

has gradually improved, proved by the significant quarter-over-quarter increase of the second quarter results. The operating profit of packaged meats increased by 26.2% quarterover- quarter to US$178 million in the second quarter and achieved US$319 million in the first half of 2017. For the U.S. business, the volume of packaged meats grew by 3.3% and the turnover grew by 7.6% year-over-year, which was attributed to the inclusion of Farmer John in the product portfolio as a result of the acquisition of Clougherty. In addition, the sales of existing products such as cooked meats and dry sausage also expanded in

the period under review. Dragged down by the rise of hog prices and raw material costs, the operating profit of the U.S. business slightly decreased by 4.3% to US$356 million. With a wealth of industry experience and sharp market insights, WH Group proactively responded to shifts in demand and supply, regulated levels of slaughtering activities and adjusted meat prices in respective markets. The total number of hogs processed in the first half of 2017 increased 7.2% year-over-year to 25.93 million heads. External sales volume of fresh pork during the year was 2.2 million metric tons, representing a year-on-year increase of 8.2%. The volume increased in both China and the U.S., at 5.2% and 11.1%, respectively. Fresh pork turnover grew 1.2% to US$4,640 million and the operating profit grew significantly 28.3% to US$245 million. During the period under review, the operating profit of the China business recorded satisfactory growth, increasing 18.4% year-on-year to US$45 million due to better capacity utilization and contribution from the sales of imported pork. In the second quarter, the operating profit of the China business increased 25% quarter-on-quarter to US$25 million. Driven by expanded export, both hog processing volume and sales volume in the U.S. recorded growth, supporting the turnover increase. With the implementation of plant improvement plans, the operating profit in the U.S. fresh pork segment increased 25.9% to US$199 million during the period under review. WH Group Limited is the largest pork company in the world with the top market share in China, the U.S.and some markets in Europe. It owns many well-recognized and trusted brands and stands above the rest with global market leadership in all key segments of the pork value chain, including packaged meats, fresh pork and hog production. The Group conducts its operations through Henan Shuanghui Investment & Development Co., Ltd., the largest animal protein company in Asia, and Smithfield Foods, the largest pork company in the U.S.

UK sees a significant drop in lamb sales UK

Lamb sales dropped by nearly 25% in the last 15 years in the United Kingdom, according to the new data provided by the Department for Environment, Food and Rural Affairs. In some areas of the UK, lamb consumption has seen a fall by as much as 25% – the biggest drop being reported in Scotland. “With those aged 55 years and over making up the lion’s share of the market and under 35s accounting for just 12%, time is ticking for lamb.” The report was released during the Love Lamb Week and it showed that the sales of lamb in the UK reach 845 million pounds a year, with London consuming a quarter of all lamb sold across Britain. Londoners consume on average 5.7 kilograms of lamb per household annually, while in the North East area of Britain, the average consumption reaches 3.9 kilograms of lamb. London’s consumption of lamb is 24% higher than that in other areas of the UK. “If you’re wondering what the difference would look like on the kitchen table, this means that Londoners are enjoying an extra nine portions of roast lamb, seven lamb curries, four koftas, three lamb tagines and two extra lamb stir fry each year, compared with those in the North East,” the study says.

20 million euro investment in Romania’s poultry meat industry ROMANIA

Alina Constantin - editor in chief Paula Calistru - news editor Eugen Capra - technology editor Dorinel Niculae - market editor Vasile Calugareanu - news editor Adrian Lazar - industry editor

The Carmistin Group, a company specialized in meat production and processing of meat, announced the takeover of all the farms, platform, and slaughterhouses owned by Avicola Targu Jiu, a Romanian based company. This acquisition will make Carmistin the third largest poultry meat producer from Romania. The company will invest 20 million euros in restoring the newly acquired plants and into new equipment. “At the moment, the installations are not functional, all the authorizations have been withdrawn, and the resumption of the activity will require re-authorization of both the slaughterhouse and the farms.

By the end of 2015 there were 4 farms (34 halls) and the slaughterhouse”, said Iustin Paraschiv, owner of the Carmistin group. The business plan for the recovery of the production capacities from Gorj foresees the reopening of the first farms in the spring of next year, and all the platforms will be upgraded in 2018. “Given the group’s development strategy by investing in livestock farms, we have decided to pursue this acqui-

sition, which today is only a failing bird complex. Upon finalizing the modernization of the Targu Jiu poultry platform, Avirom, which is part of the Carmistin Group, will employ 600 people”, added Iustin Paraschiv. Carmistin has acquired the agricultural platform owned by Oltchim 11 years ago, and after the technologization of the farms, it has managed to produce and slaughter more than 10 million chickens annually.

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Miratorg builds new plant to increase pork production RUSSIA

Russian agricultural holding Miratorg announced it has begun construction on the largest Russian high-tech complex for slaughtering and deep processing of pigs which will have a capacity of 4.5 million heads per year. Miratorg plans to start production at the new plant beginning with 2020. The Russian company invested more than 200 billion rubles (2.94 billion euros) in the construction of the new plant, which will produce three main types of meat: poultry, pork, and beef. The new slaughterhouse in the Oktyabrsky district of the Kursk region is part of the company’s plans to double the capacity of the pig division to 1 million tons of pork per year, which will cover Russia’s need to import chilled

pork. Investments in the company’s project to double pig production will amount to more than 160 billion rubles (2.3 billion euros), of which over 68 billion rubles (almost 1 billion euros) is the cost of a robotic meat-chopper that will be able to process 4.5 million pigs per year. The new facility will create more than 5,000 new jobs in the region. The processing segment of the unit will be put into operation starting with 2020, and in 2021 Miratorg will launch

Columbus Craft Meats expands Hayward based plant USA

Columbus Craft Meats has invested 16 million dollars into expanding the company’s salami curing facility in Hayward, California, in order to meet high customer demand for its products. The Hayward based plant received an additional 10,000 square feet which increases the company’s salami production capacity by 30%. The company begins construction at the site in February and has finalized the project earlier this month. Columbus’ last plant expansion was in early 2015, which boosted its production capacity by 50% and almost doubled the size of the Hayward facility. However, capacity was quickly filled as Columbus became the most

widely distributed meat brand in delis across the United States. “We are now the most broadly distributed deli meat brand in the United States and we’re excited to see the tremendous growth in our business,” says Columbus CEO, Joe Ennen. “This added capacity will assure that even more consumers coast-tocoast will be able to enjoy our premium salami. Further, our expansion not only allows us to meet demand but also to continue developing innovative new products.” Similar to 2015, this most recent expansion installed custom, Italian-made equipment to ensure the consistent quality customers have come to expect from Columbus Craft Meats.

the slaughter and boning segments. “This project is an integrated part of the strategic goal of the holding to double the capacity of the pig division to 7.7 million heads per year. In addition to the slaughterhouse in the Kursk

region, a grain company will be established, the production of mixed fodder will be launched, and new pig-breeding complexes will be built. This project organically complements the already existing capacity of the pig division and allows the com-

pany to multiply the assortment and volume of high-quality meat products to the market, and therefore significantly increase its availability for consumers throughout the country,” said Viktor Linnik, President of Miratorg.


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| Industry

Brazilian meat exports banned by Hong Kong over fraud issue The Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department (FEHD) from Hong Kong has recently announced that following an earlier complaint it has detected several suspected falsified health certificates for imported frozen meat. BRAZIL

The products concerned included chicken feet and livestock offal products from Brazil which should be for pet consumption only. The CFS referred the case to the Brazilian authorities and the Hong Kong Police for investigation. CFS discovered 10 problematic batches of meat products from one exporter and two factories. Those batches weighed more than 200 tons and they have been banned from Hong Kong immediately. Inspection of health certificates of meats imported from Brazil would also be stepped up, the South China Morning Post reported. “The CFS received a complaint lodged by a food importer about a suspicious health certificate accompanying a consignment of frozen chicken feet from Brazil which was imported earlier this year. The importer therefore informed the Consulate General of Brazil in Hong Kong and the CFS for follow-up. The CFS then liaised with the Brazilian authorities for investigation. The Brazilian authorities have

recently confirmed that the health certificate concerned was falsified and the related consignment of frozen chicken feet was pet food. The CFS has reported the case to the Hong Kong Police,” a spokesman for the CFS said. The Centre has earlier enhanced its surveillance on meat and poultry from Brazil. Since March 21 this year, a total

of 562 samples (including frozen chicken feet and livestock offals) were taken at the import and retail level for testing of meat deterioration and other food safety indicators. The test results showed that all samples were satisfactory. Surveillance on the product concerned imported from Brazil will continue to be enhanced, according to the CFS press release.

UK struck new beef deal with the Philippines estimated at £34 million PHILIPPINES

The UK has received approval to export beef to the Philippines. The Department of Environment, Food and Rural Affairs (DEFRA) has estimated that the export deal is worth 34 million pounds to the UK economy, according to a press release. Beef reared in the UK will now join pork, poultry, lamb and dairy on the list of UK food and drink shipped to the Philippines. “Securing market access for our world-class beef to the Philippines is a huge vote of confidence for a sector that already exports

more than £350 million around the world, including Hong Kong and Canada,” said Food Minister George Eustice. “The UK beef industry is the envy of the world and this strong demand globally for our traditional breeds reared to the highest welfare standards is what drives our exports and creates opportunities for our farmers.” The Philippines is the largest food and drink market in south east Asia with meat consumption expected to grow by 10% over the next five years.

Olam International invests $150 million in Nigerian poultry facilities NIGERIA

Olam International announced that it has begun production at two new poultry facilities in Nigeria after an investment of nearly 150 million dollars. The combined capacity of the two plants reaches 720,000 metric tons of poultry feed annually. The company says that its new facilities directly address a significant supply gap for poultry meat in Nigeria, giving farmers and distributors access to highquality feed and DOC at competitive

prices. Olam projects that its investment will enhance domestic poultry production by approximately 8 billion eggs and 100 million kilograms of poultry meat – the equivalent of 40 eggs and 0.5 kilograms of chicken per Nigerian per year. Furthermore, Olam’s veterinaries will train nearly 10,000 farmers in best poultry farming practices. Olam estimates that poultry meat consumption among Nigerians could increase up to 10-fold

by 2040, provided domestic supply can meet increased demand and based on prices becoming more affordable for Nigerians3. This would require the poultry feed and DOC supply in -Nigeria to grow at over 10% CAGR per year. Given around 75% of poultry farming is managed by smallholders, Olam’s poultry initiatives have the potential to indirectly create 150,000 to 200,000 rural jobs for Nigerians as the entire sector is stimulated.

EU funds small Polish producers affected by ASF EUROPE

The European Commission will allow the use of EU funds to help Polish pig farmers who are obliged to cease their activity in the context of African Swine Fever (ASF), according to an EC press release. The financial support of 9.3 million euros agreed by the European Commission will be provided for a maximum of 10,000 piglets and 171,654 pigs. Farmers will receive 33 euros per piglet and 52 euros per pig. The decision is aimed at supporting Polish pig farmers who own no more than 50 pigs and/or piglets (between 1 July 2016 and 30 June 2017) and are situated in areas at high risk of African swine fever. Those small pig farmers will be forced to stop pigmeat production because they are unable to implement the new Polish requirements. The European aid will be paid within 12 months after the entry into force of the new rules on 19 September. Farmers that benefit from support will not be able to restart pigmeat production for a period of two years. One of the worst infectious diseases for pigs, African swine fever, has been present in the region of the EU’s Eastern border since 2014.

Pork meat consumption in the EU increased in 2016 EUROPE

The number of pig slaughterings reached 257 million head in the European Union in 2016, increasing with two million heads compared to 2015 and with 5.2 million heads compared to 2006, according to Eurostat. Total production of pig meat in the EU increased to 23.4 million tons in 2016, with an average consumption per capita of 45.9 kilograms. The pig meat consumption per capita increased by one kilogram and a half last year compared to 2006. However, this year the appetite for pork decreased in the EU. In the first six months of 2017, the number of pig slaughterings decreased by 2.7 million heads compared to the first half of 2016 (-2.1%). Half of this decrease was driven by reductions registered in Germany (-700,000), France (-426,000) and the United Kingdom (-296,000). Germany and Spain were the biggest pork producers in the EU in 2016, with 59.4 million slaughterings, and 47.7 million heads respectively. They were followed by France (23.8 million, 9%), Poland (21.8 million, 8%), Denmark (18.2 million, 7%), the Netherlands (15.4 million, 6%), Italy (11.8 million, 5%), Belgium (11.2 million, 4%) and the United Kingdom (11.0 million, 4%).

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The European pig prices remain unchanged in the first week of September


Compared with last week’s reports, the European pigs-mature-for-slaughter market has hardly changed. In most of the EU member countries, the market situation continues to be stable with unchanged quotations. The quantities of live animals on offer, which had gone up again

most recently, is well demanded, causing the situation be mostly balanced on the European market. Apart from in Germany, unchanged quotations are also reported on from the Netherlands, Denmark, Belgium and Austria. According to reports from the association of Austrian agricul-

tural improvement producers, pigs for slaughter are even very much in demand in Austria. The pigs-for-slaughter prices still are tending to be weak in the Southern countries, such as Spain, France and in Great Britain. After the very hot summer temperatures in Spain, more

live animals are on offer for sale there again. The seasonal price decrease is continuing. Spanish exporters are expecting competition on the pork export market to quite severe from the USA. The French pigs-for-slaughter market remains rather negative. After the latest price reduction (a corrected 3.6 cents), the corrected quotation meanwhile is amounting to 1.58 euros per kg slaughter weight. Thus, the French quotation is moving the same way as is the Dutch quotation which has borne the red light most recently in the European price structure of the five EU member countries most significant in pig keeping. Within just seven weeks, the French corrected quotation has gone down by almost 11 cents. Much pressure has been exerted for quite some while on the prices in meat trade. As states a French market participant, ham sales above all are facing a lot of trouble.

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Ukraine increases subsidies for breeding pig purchases UKRAINE Ukraine will extend the state support for breeding pig purchases by amending the procedure for using funds from the state budget to support the livestock sector, according to a press release from the Ministry of Agrarian Policy and Food of Ukraine. The authorities hope that this measure will encourage producers to purchase pedigree animals through the mechanism of partial reimbursement of all purchased breeding pigs. Furthermore, according to this act, the buyers must specify the period during which the animals were acquired. The Ministry of Agrarian Policy began work on the Livestock Development Strategy for the period until 2030, which will focus on the following areas: tribal and breeding work, antiepizootic measures and veterinary measures, measures to increase the number of animals and advancement to foreign markets.


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| Industry

Premium Brands acquires Ontario based LeadBetter Foods

Ethiopia receives $70.5 million for relocating and expanding one of its largest slaughterhouses



The canadian food company has announced that it acquired 100% of the shares of Ontario-based Leadbetter Foods, a leading manufacturer of specialty bacon, fresh and frozen burgers and portion-cut steaks. Leadbetter has reported annual sales of nearly 55 million dollars and it operates two

production facilities, including a modern 47,000 square foot custom designed bacon operation built in 2012, both of which are located in Orillia, Ontario, according to Premium Brands’ press release. “This transaction is the next step towards our objective of building a leading specialty pro-

tein platform in Ontario,” said Premium Brands CEO George Paleologou. “Not only does Leadbetter perfectly complement our Ontario-based Belmont Meats burger business, but it will also help with the launch of our Centennial business’ Ontario operations when Centennial opens its new 105,000-square-foot custom cutting and distribution facility in the Toronto region at the end of this year.” “We are very excited to be joining the Premium Brands family. We have been doing business with Premium Brands for many years and know, like and respect its unique culture and core values,” Leadbetter Foods president and CEO Phil Leadbetter added. “Looking forward, I have no doubt that we will be able to take our business to the next level of its development by leveraging the many advantages that Premium Brands has to offer, including access to capital, marketing resources and a variety of new internal and external sales opportunities.” The transaction will be funded through Premium Brands’ existing bank facilities and it is expected to be immediately accretive to its annual earnings per share and free cash flow per share.

Hong Kong has banned poultry imports from the Philippines and South Africa

German Sausage Haus recalls meat products due to possible contamination



The Hong Kong Centre for Food Safety (CFS) has banned the import of poultry meat and products from the Philippines and Steve Tshwete Local Municipality, according to a press release from the Food and Environmental Hygiene Department. The ban comes into effect after the World Organization for Animal Health (OIE) announced that there were outbreaks of highly pathogenic H5 avian influenza (AI) in the Philippines and an outbreak of highly pathogenic H5N8 in Steve Tshwete Local Municipality of South Africa. “The CFS has contacted the Philippine and South African authorities over the issues and will closely monitor information issued by the OIE on avian influenza outbreaks. Appropriate action will be taken in response to the development of the situation,” a CFS spokesman said. In addition, the spokesman declared that since there hasn’t been established a protocol between the Philippines and Hong Kong regarding poultry imports, “there is no import of such commodities from the country.” In the first semester of 2017, Hong Kong has not imported any poultry meat or poultry eggs from South Africa.

German Sausage Haus had to recall nearly 1,252 pounds of Heat Treated, Not Fully Cooked-Not Shelf Stable (HTNFCNSS) meat products due to a possible processing deviation that may have led to staphylococcal enterotoxin contamination, according to the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS). The frozen products were produced and packaged on various dates from June 14, 2017 to Sept. 8, 2017. FSIS published a list of the products that are subject to recall. The products bear the establishment number “Est. 45952” inside the USDA mark of inspection. These items produced were distributed for institutional use and shipped to retail stores in Washington State. The problem was discovered on Sept. 14, 2017, by FSIS Inspection Program Personnel (IPP) when they observed a possible processing deviation while reviewing records.

Ethiopia and France signed a loan and grant agreement worth 70.5 million dollars for relocating and expanding Addis Ababa Abattoirs Enterprise, the Ethiopian News Agency reported. France granted Ethiopia 70 million dollars in concessional loan for the relocation and expansion of one of its largest abattoirs, Addis Ababa Abattoirs Enterprise, and 0.5 million dollars as a grant for technical support. The agreement was signed by Finance and Economic Cooperation State Minister Admasu Nebebe and France’s

Ambassador to Ethiopia Frederic Bontems. “The credit and grant agreement which we signed is part of our commitment to strengthen our partnership especially in building a modern city infrastructure and service to the residents”, the State Minister said. The Ethiopian authorities plan to implement the project between 2017 and 2022 and wants to double the capacity of the facility to 810,000 slaughtered animals per year, which would represent 60% of the meat consumed in Addis Ababa Municipality.

Pini invests 70 million euros in a new slaughterhouse in Spain SPAIN

The Italian Group Pini, the fifth largest pork producer in Europe, has announced an investment of 70 million euros in a new slaughterhouse located in Binéfar, Spain, according to Construction at the slaughterhouse will begin next November and it will be fully functional by 2019. The company plans to hire 600 people initially and to reach 1,600 employees after they will continue to expand in the area, if the Spanish market meets the group’s expectations. In phase one of Pini’s project, nearly 3 million pigs will be slaughtered per year, which could increase to a figure of six million pigs annually when the slaughterhouse will reach its full capacity. The head of the company,

Piero Pini, declared during a conference that the chosen location for the slaughterhouse is strategic, being situated between the provinces of Huesca, Zaragoza, Lleida and Barcelona. All this provinces account for 18.6% of Spain’s pig production. Piero Pini added that the group plans to export pork products to China and Japan, but that most of the production will be destined for the local consumers.

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Global poultry industry is witnessing a relatively strong performance INTERNATIONAL

The global poultry industry saw a relatively strong second quarter in 2017 with a 5% increase in the global index compared to the first quarter of this year. The improved demand and the supply restrictions resulted in significant increases in the poultry prices, according to Rabobank’s “Poultry Quarterly Q3 2017” report. The 1H 2017 AI crisis generated the main supply restriction, outbreaks of the disease appearing in many countries of Europe, Asia, and Africa. Another major factor for restricting supply was the difficulty in trading breeding stock, leading to low supply in markets like China, Thailand, and several other Asian countries.

Analysts at Rabobank say that consumption in many markets has recovered thanks to a reduction of AI cases that resulted in the media shifting away from the subject. Also, better-thanexpected prices of pork and beef supported the poultry industry, despite the short hike in wheat prices in July. The big change that Rabobank analysts observed compared to the previous quarter was the recovery of China. “The impact of low breeding stock imports, together with environmental regulations, is affecting the market, while demand has recovered because AI has more or less faded over the summer.”

Cargill is expanding its animal feed business in Thailand THAILAND

Cargill acquired a feed mill in Prachinburi province in Thailand in order to expand its capabilities for its animal feed and nutrition business. Through the acquisition, the plant will now produce poultry and swine feed for Cargill’s customers based in Thailand. “This plant is aligned to Cargill’s animal nutrition business growth plans and aspiration to provide the leading and most trusted livestock solutions that help our customers grow,” said Akkarit Boontawee, managing director of Cargill Feed and Nutrition South East Asia. Cargill plans to start production in a year at its new plant which will hold 50 employees and produce 72,000 MT per year for swine and poultry

customers in the Eastern and Northeastern areas of Thailand. The company also could expand the facility and add more local jobs as the market continues to grow. “We are pleased Cargill has acquired the plant. We are confident it will be a prosperous business that will serve Thailand’s poultry and swine farmers well,” said Mr. Anan Jantaranukul, managing director Srithai feed mill Co., Ltd. The feed mill purchased by Cargill was established in 1996 through a joint venture between Sri Thai Foods and Beverages Co. Ltd. and ThaiDenmark Swine Breeding Co. Ltd., and it produces poultry and swine feed.

Tönnies receives approval to acquire meat plant GERMANY

Tönnies recently announced that it received approval from the German independent competition authority, Bundeskartellamt, for acquiring the Badbergen site, also known as Artland Convenience, from Lutz-Fleischwaren Group. The company had already leased slaughter capacities there, according to Tönnies' press release.

"We are pleased with the agreement of the Federal Cartel Office and can now start the concrete planning," said KarlHeinz Schlegel, Managing Director Convenience at Tönnies, in a statement. After receiving approval, Tönnies said that it plans to start investing in technological changes at the acquired facility.

Most major poultry markets have recovered and have strong performances. The US ranks first in this aspect, having a “healthy supply/demand situation, ongoing disciplined poultry supply, together with strong domestic and international demand.” The EU poultry industry reported a relatively good performance. The main reason for this was the low supply in the aftermath of more than 1,000 AI cases in the winter months and also the currently reduced supply from Eastern Europe. Russian poultry industry is also doing relatively well, having a strong demand from the regions, especially the far east and east.

Furthermore, Rabobank analysts observed a relatively strong poultry industry in other Asian markets, despite the fact that India was hit by a seasonal drop due to festivals and it is projected

to recover in the fourth quarter. In Indonesian markets the situation is starting to recover, having the support from the government’s programme to cull numbers of parent stock.


7 - 11 october 2017

| Opinions

“The last few years’ figures allow us to be optimistic about the future of our exports” Carlos SERRANO ANICE’S President Tell us more information about the evolution of meat production and consumption in 2017. In 2016, the Spanish pigmeat registered a milestone production, overpassing for the first time 4 million tons, which reaches a historic level never achieved before. With a growth of 5.2% compared to 2015, the pig sector achieved a meat production of 4.06 million tons. That means that our pig sector has managed to reach Germany, so Spain is already ranked as the third largest producer in the world, behind only China and the USA. On the other hand, the beef and veal and sheep sectors, settled the recovery trend that began in 2013 and, as a result, beef and veal production grew 1.9% up to 637,737 tons. As regard to the meat production, it should be noticed that Spain ranks fourth in the European Union, behind Germany, Italy and France, with 1,347 million tons per year. The most important products are the cooked cold cuts as well as cured hams and shoulder (white and Iberian). Last year marked a new milestone in the Spanish meat trade, surpassing for the first time, more than 5,000 million euros in exports, and more than 2 million tons of meat and processed products sold in markets around the world. This spectacular data shows that the meat industry has gone from not making foreign sales to become the leading export sector of the Spanish agri-food industry and a power in the world market of meat products in little more than a quarter of a century. Last year, the Spanish meat sector exported a total of 2.27 million tons of meat and processed products of all kinds worth 5,562 million euros to markets around the world, representing a growth of 16.7% in volume and 14.8% in value compared to 2015, with an increasingly positive trade balance, in this case 494%. These global figures are largely based on the unstoppable external trajectory of the pig sector, where Spain is already one of the world’s leading exporters. For this year, pig

Spanish operators are succeeding in international markets because they provide quality products at a good price. The Spanish industry has proved to be competitive in international markets. The last few years’ figures allow us to be optimistic about the future of our exports, and as I have pointed out before, the data for the first half of the year are positive in all the different product categories. This is the opinion of Carlos Serrano, ANICE´s President in interview. exports continue growing, especially in terms of value, according to the data for the first half of the year, indicating that our industry is selling products with a higher added value on the international markets. The same applies to cattle, where a record has been achieved for the first half of the year, and to processed products. Has the vegan movement affected the meat industry? What do you think about this and about the BIO meat trend? The vegan movement is currently very limited in Spain, but as in the rest of Europe, it is growing. Our main concern is that traditional names for meat products should not be misused for meat-free products that do not have the same nutritional properties as meat and mislead the consumer. As for Bio products, they also grow in an outstanding way, although it is true that from a very small volume. We will have to pay attention to the opportunity presented by these new markets. Which are the traditional export markets for Spain and which are the new markets you target now?

Spanish industries export activity began in the European Union countries, taking advantage of the internal market and the free movement of goods. However, the substantial growth of our international trade has occurred, especially in pork, with the opening of the Southeast Asia markets, especially with China, which has ranked Spain as third pig meat world exporter, only behind the United States and Germany. Nevertheless, a lot of work remains to be done as the opening of new markets and removing the exports barriers of beef and sheep meat, and, in particular, processed products with high added value. How are Spain’s meat exports performing in 2017 and what are the perspectives for 2018? I think it should be said that, as far as the pig sector is concerned, meat is being exported in large quantities and the challenge is to diversify markets and to be prepared for a possible fall of the Chinese imports. In the case of beef and sheep meat, the great challenge is to open up new export markets, especially in South-East Asia, which are so important for pig meat.

These markets are currently closed for Spanish cattle and sheep and our aim is to open them as soon as possible. Finally, another great challenge is to promote the export of meat products to third countries. Spain has to promote the exportation of meat products with high added value, which are also typical of our delicatessen, specific to Spanish production and therefore with little competition from other destinations. Our proposal is to encourage the inclusion in the third countries authorized establishments list new meat processing companies producing cured hams and sausages. To this end, the agreement reached with priority third countries should be reviewed, in order to explore possibilities for improving exports of listed products (lists, requirements, obstacles, etc.). In essence, diversify markets, eliminate barriers to trade and find a way for the meat processing industries to have, in foreign trade, the same support for their economic activity as today’s pig slaughterhouses. What does Brexit mean for the global meat industry? Your markets will be impacted?

It is difficult to evaluate the BREXIT consequences at the moment, as we do not know how this process will turn out. We hope it will not affect our shipments to the UK. This market has been growing significantly for the Spanish exports, especially in terms of added value meat products, such as cured sausages (chorizo and salami), as well as cured hams and Iberian cured ham. However, we do not believe that BREXIT will affect Spanish pigmeat prices. Which sector of red meat you are optimistic will develop better this year? The answer to this question is highly conditioned precisely by foreign trade. If we are able to open up China and other markets in South-East Asia, exports of the beef and sheep meat sector from Spain will make a very important qualitative leap forward and we believe that it will actually produce a certain “industrial revolution” in that sector. What is the strategy of ANICE for pork, beef and meat products for 2018? The future of our meat industry can be focused on two main axes. On the one hand, a first approach to social responsibility, based on a sustainability corporate culture, innovation and quality, and targeted on the sector’s capacity to adapt to society’s demands (socially responsible, sustainable, environmentally friendly and resourceefficient companies, together with high standards of animal welfare), with companies in balance with the other links in the chain and aligned with consumer welfare and health. The second axis, as I have said before, is exportation, which has been an engine of growth for years and with a future that involves continuing to open up new markets, removing obstacles and providing the sector with agile administrative structures that a country with an international leadership vocation for meat trade needs.

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“As the UK is a major meat importer, Brexit may mean disruptions of supplies from the EU” Brexit is indeed a momentous decision taken by the British people. As the UK is a major meat importer, Brexit may mean disruptions of supplies from the EU and potentially, in the medium term, some substitutions from EU to Third Country meat, says Jean Pierre Garnier, Head of AHDB Exports for In terms of exports, the UK is a net exporter of lamb. These represent 38% of UK production and we are by far the largest supplier in Europe with more than 100,000 tons exported to the EU. The government acknowledges this represents an area of concern. Tell us more information about the evolution of meat production and consumption in 2017. Regarding pork, the situation is very stable with production of 898,000 tonnes, imports of 992,000 tonnes, exports of 264,000 tonnes and intake of 1,626,000 tonnes predicted in 2017. The beef situation is also stable with strong demand for steak cuts and mince products. Production is expected to be around 885,000 tonnes, imports

424,000 tonnes and exports 149,000 tonnes in 2017. For lamb and mutton, the fall of New Zealand exports affected consumption estimated down to 295,000 tonnes this year. Production is forecast to increase slightly to 299,000 tonnes. Has the vegan movement affected the meat industry? What do you think about the BIO meat trend? There are signs that consumers’ views on health and well-being are starting to impact wider categories which may have previously been unaffected. While findings from the AHDB Consumer Tracker point towards the majority of people eating about the same level of red meat (74%), there are some who are eating less (19%). Previously, the most common reason for a reduc-

tion had been centred on price, with consumers facing notable price rises over the past five to ten years. But, over the last two years, health has taken centre stage. More recently the industry has become more familiar with the term ‘flexitarian’, which can have differing definitions associated. One way Kantar Worldpanel identifies this group is measuring those who are eating less red meat for health reasons. This currently stands at 7% of the GB population. These numbers must be taken in context. According to the Vegan Society, only 1.05% of the UK population claims to be vegan and about 5% follow a vegetarian diet according to Kantar. Following a difficult period, demand for organic meat is growing again in the UK. Coupled with high EU demand, this means that supplies are tight.

Which sector of red meat are you optimistic will develop better this year? We have traditionally a strong position in terms of lamb exports as British quality is widely recognised. However, we have been very successful in developing pork exports as branded, differentiated, high welfare and environment friendly product outside the EU. What are the challanges facing the export sector? Of course, Brexit is a significant challenge for us. The increase of non-tariff barriers is another major hurdle. Which are the traditional export markets for the UK and which are the new markets you target now ?

Jean-Pierre GARNIER Head of AHDB Exports We have traditionally been focused on the EU market. However, demand is growing fastest in Asia where we are investing in terms of promotion. North America is our second main target. We expect exports of livestock products to reach £ 2.8 billion in 2017, an increase of 9%. For pork, lamb and beef, we are limited by supplies rather than price. British beef, lamb and pork are more expensive that their main competitors such as Ireland. What is the strategy of AHDB for the pork, beef and lamb sector for 2018? With a fairly stable production, adding value to our exports is essential. This can be achieved by many means: more differentiation, better spread of markets, increase cut value, further processed products and branding.

“Remaining competitive in a global meat market, flexibility and diversification are the key words”

Belgian Meat Office manager

Production of pork in Belgium is going down in 2017 by 6%. We now feel the impact of the 2014-2015 crisis due to the Russian embargo. Remaining competitive in a global meat market. Flexibility and diversification are the key words, says Rene Maillard - Belgian Meat Office manager for

Market observers expect a stabilization of the pork production in the 4th quarter of 2017 and a status quo beginning in 2018, maybe followed by an light increase of production. Home consumption is eroding slightly as this has been the case in the last years. Remember that we are, as the other West European countries, big consumers of pork, operating in a mature declining consumption market.

within the actual British government opinions are divided. Will the British government support its own farmers as strongly as the EU does? Anyway, meat trade between the EU and the UK is important, especially for the Irish, being the biggest partner. The final question is how trade will be organized, as we may assume that the UK will be importing and exporting more or less the same number of agricultural goods.

What does Brexit mean for the global meat industry?

How has the rise in the popularity of vegetarianism impacted the meat industry? How about the BIO meat trend?


So far a lot of forecasts have been made by several analysts. But as long as the negotiations are not in a final stage, everything remains mere speculation. Will it end up in a hard or a soft Brexit? Will there be a transition period and if so for how long? Even

Veganists and vegetarians count only for 2% of the consumers. But they behave as missionaries trying to achieve that people cease to eat meat. And

we must admit that they succeed in attracting a lot of media interest. Because for the media everything what is not normal and sensational has news value. And news value is what counts for the media: they have to sell their product too ! It is clear that the meat sector has to be very cautions regarding the long trend. Now we are in a defensive position regarding scandals of residues in meat, false labelling, or animal welfare. Those scandals are water on the mill of the anti-meat lobby. The BIO trend is a more reasonable reaction to the intensive production systems in the footsteps of the ecologist movement. It is like nostalgia for the old times. But how can we feed the ever increasing world population with our grandparents’ agriculture?

How are Belgian meat exports performing in 2017 and what are the perspectives for 2018? Our important export market is the EU and especially Germany and Poland. But there is a significant shift to Asia. Not only China, but also South-Korea, Japan, the Philippines and so. Asia has become the biggest importer of animal proteins in the world. For the Belgian meat export the fundamentals remain the same as previously. For pork we export two thirds of our home production, say 850,000 tons a year, despite the expected drop in production in 2017. 85% of our pork exports are directed to Europe. And the remaining 15% to Asia what we would like to consolidate this year. Regarding our beef exports, being half of the

production, they are mainly concentrated to our neighbouring countries; but it is our target to access also for beef the Asian markets. Are you feeling positive regarding the future of Belgian meat exports? Absolutely, the world demand for animal proteins will keep on increasing year-on-year due to the demography and the urbanization worldwide. Being part of this market is the challenge. What is the strategy of the Belgian Meat Office for pork and beef for 2018? We use an old saying for this in Belgium: do not put all your eggs in the same basket. Our grandparents’ wise words still stand.


7 - 11 october 2017

| Anuga news

The entire global meat market under one roof at Anuga Meat

Dietmar Eiden Vice president Trade Fair Management Koelnmesse GmbH How important is the Anuga fair at an international level? How about Anuga Meat? Anuga is the most important trade, sourcing and trend platform for the international food industry. Over 7,400 exhibitors from 107 countries will be pre-

senting the global market offer of food and beverages throughout five days. As such Anuga 2017 has outperformed the very good results of 2015 and 2013. Around 160,000 trade visitors from over 190 countries are awaited. 89% of the exhibitors and 69% of the visitors come from abroad.

Anuga Meat, the world’s largest trade fair for meat and meat products, promises to attract at this year’s edition a record 900 exhibitors from 100 countries between 7 and 11 October. Koelnmesse is an international leader in organising food fairs and events regarding food and beverage processing. Trade fairs such as the Anuga, ISM and Anuga FoodTec are established world leaders. Koelnmesse not only organises food trade fairs in Cologne, Germany, but also in further growth markets around the globe, for example, in Brazil, China, Colombia, India, Italy, Japan, Thailand, the United States and the United Arab Emirates, which have different focuses and contents. With over 900 exhibitors from 50 countries, Anuga Meat, one of the ten trade shows under the umbrella of Anuga, is setting a new record result. Anuga Meat covers a gross exhibition surface of 55,000 m² spread over three exhibition halls and is thus the second larg-

est trade show of Anuga after Anuga Fine Food. What do you expect from this year’s edition of Anuga Meat? Anuga Meat will represent the world meat market, showing the complete range of the subsegments sausages, red meat and poultry. Anuga meat is the world’s largest business platform for the meat market and thus offers the trade buyers an excellent orientation. How is this year’s edition different from last year’s? This year’s Anuga Meat is even more comprehensive than the edition of 2015 and showcases 907 exhibitors compared to 833 exhibitors in the Anuga Meat halls in 2015. What is the focus of this year’s exhibition? The focus is on traceability, animal welfare and a new range of convenience products – ready

to eat or partly prepared. Vegetarian and vegan variations are not that much in the focus as in 2015. The fair promises to attract over 900 exhibitors from 50 countries. What is the secret to the event’s success? Anuga is a pure business platform. At Anuga we specifically target a first-class and qualified trade audience, which our exhibitors profit from. The effectiveness is even enhanced by the fact that Anuga is attractive for buyers form the retail trade as well as from the out of home

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Anuga news

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Belgian poultry companies to participate at Anuga exhibition BELGIUM

market (restaurants, hotels, caterers etc.). This opens many opportunities for new partnerships. According to your observations, which are the countries that are showing a growing interest for the fair and which are the ones where it shows less interest? This year we saw a growing interest from many countries, but especially from Argentina, Azerbaijan, Brazil, Great Britain, Greece, Korea, Norway, Peru, Qatar, Sweden and from Turkey. What is your strategy in attracting such diverse players from the industry? Anuga Meat is part of the outstanding Anuga concept “10 trade shows in one”. This concept is very successful. It really brings offer and demand together. What do you think are the latest trends and developments in the meat industry? How did Anuga emphasize innovation in the exhibition? We stage the “Anuga taste Innovation Show” that highlights the most innovative products chosen by a jury. The meat industry is very engaged in health, traceability and animal welfare as consumers seek such offers. Apart from this, the trend towards “Ready to eat” meals is continuing. We see interesting new products of that range. And of course traditional sausages, hams and meat pies are always very fancy all over the world. Did Brexit or the sanctions imposed on Russia have an impact on the exhibition?

At this point in time we only can say that we have more exhibitors from Great Britain than in 2015. This year 201 British companies exhibit compared to 187 in 2015. Russia is on the same level as in 2015 (12 companies). Which companies, products and technology are the main attractions this year? It is hard to pick just a few companies from a number as 7,400. But I would recommend checking out the products that were chosen for the Anuga taste Innovation Show. They represent the most interesting and future oriented trends of today’s food business.

How many visitors are you expecting this year? Around 160,000 trade visitors from all over the world.

Belgian Meat Office’s stand at this year’s edition of Anuga will exhibit eight companies that will represent the Belgian poultry & rabbit sector. The companies which will be shown off at the Belgian stand are: Calibra Poultry NV, Cooreman Pluimveeslachterij NV, Klaasen & Co NV, Lonki NV , Nollens NV, Paas Food Industries NV, Van Assche, VanO-Bel NV. Belgium reported an increase in its export of fresh and frozen chicken over the years. Although the exported value has slightly decreased to 695 million euros, in terms of volume there has been observed an increase to almost 450,000 tons in 2016, according to the Belgian Meat Office. Belgian chicken offals have

reported a rise in exports when referring to volume, and the value stayed at a relatively stable level. The main market for Belgian chicken meat is France, representing an export share of 39%, followed by the Netherlands (25%), the United Kingdom (16%) and Germany (7%). Other markets follow far behind, including some remarkable African destinations. Both the DR Congo (sixth place), South Africa (seventh place) and Ghana (eleventh place) have seen export rising during the past few years, even if the export was more limited in 2016. The Philippines occupies the tenth place according to the imported quantity of Belgian chicken meat.

What is Anuga’s messages for the meat industry specialists that are attending to this important event this year? My message: I wish all exhibitors and visitors of Anuga and especially Anuga Meat a successful trade fair with new contacts and new inspirations. Be part of the world’s leading food & beverage show and learn what your part to shape the future of the business.

Anuga - partner country India inspires INDIA

India, a country that stands for diversity, efficiency, inspiration and potential like no other, is presenting itself this year at Anuga, the largest and most important food trade fair worldwide. 111 Indian exhibitors are showcasing the aromatic variety of their products and recipes and are giving an insight into the wide spectrum of Indian cuisine and its ingredients. The growing demand for “clean label” solutions offers the Indian suppliers of vegetable ingredients plenty of new opportunities. Primarily, the Western markets are open to alternative natural products. India itself is a market that is worth studying closely. India will be the first state in the world, whose population will exceed the 1.5 billion mark

in the year 2030. In 2070 the population will be 1.7 billion. The potential of this country with its rich traditions, different ingredients and aromas and its large sales potential makes India a market of the future. More transparency and “clean labels” are on the rise. An analysis on product introductions in the year 2016 shows that 10 percent had a “natural” positioning, 14 percent were “without additives/ without preservatives”. The most interesting increase was however recorded by “organic” products: 11 percent carried an organic label. In 2011, only one percent of the new introductions were described as being “organic”. Of course, this is also related to the demand for a higher level of transparency.


7 - 11 october 2017

| Market & Retail

Taiwan lifts 16-year-old ban on Japanese beef imports TAIWAN

Taiwan has lifted a 16-year-old ban on beef imports from Japan, which was imposed after the discovery of cattle with mad cow disease. In July, the Food and Drug Administration issued a two-month notification that the country had decided in principle to remove the restrictions, according to Japan Times. The Taiwanese authorities are now waiting to receive a list from the Japanese government with government-certified meat facilities from which the Taiwanese importers can import Japanese beef. Taiwan imports about 95% of its beef, USA being its biggest

supplier, followed by Australia and New Zealand. IN 2000, Japan exported a small amount of beef and beef

products to Taiwan, 4 tons respectively, representing just about 0.01% of the total amount of beef imported by Taiwan.

Global organic spices market expected to reach $1.104 billion by 2022 INTERNATIONAL

The global organic spices market is expected to rise at a compound annual growth rate (CAGR) of 6.37% to 1.104 billion dollars by the end of 2022, according to Market Research Future’s (MRFR) latest report Cooked Research Report on Global Organic Spices Market Trends & Forecast 2016 to 2022. According to MRFR, there has been a strong demand for organic spices in the last few years and it’s projected to reach 9,134 kilo tons by 2022, with a CAGR of 6.37% between 2016 and 2022. The global market for organic spices is likely to be driven in the following years by the convenience foods and beverages. The major producers of spices in the world are India, China, Africa and the Middle East. The report shows that spice exports are considerably contributing to the gross incomes of these countries. “Organic spices are generally sold at premium spices and also in greater demand which can further enhance export rev-

enues in major spice producing countries. Organic farming mechanism starts at grass root level conserving the generative and renewing capacity of the soil, plant nutrition, and soil management, yields nutritious food rich in vitality which has resistance to diseases. Food safety, flavors, medicinal properties and health benefits are driving the organic spices market.” Strong demand for organic spices comes from Europe, USA, Japan and Australia. The report identifies as key players on the global organic spices market the following companies: Frontier Natural Products, Rapid Organic, SOAP, Simply Organic, Earthen Delight, Yogi Botanicals Pvt Ltd, Live Organics Pvt Ltd, The Spice Hunter, Inc. and Starwest Botanicals Inc. “The Global Organic Spices Market is dominated by the tier 1 manufacturers operating in the market, these players account for more than half of the revenue of global Organic Spices market.”

Paraguay beef exports for 2018 are forecast at 380,000 tons PARAGUAY

The Paraguayan beef export sector is starting to work in trying to position their product in an upper price level as they realize that due to the quality improvement they could get better prices for a good share of the exports. They know they will have to continue working on the quality and packaging of the products. Paraguayan beef exports for 2018 are forecast at 380,000 tons cwe (carcass weight equivalent), unchanged from last year, as the USDA report shows. Although beef production is forecast to increase marginally, contacts expect that most of the growth will be demanded by the local market. The domestic market is forecast to remain steady, and in some cases, paying higher prices than the export market. There are currently significant differences between the export data published by the Central Bank (the official statistics entity) and Senacsa, the animal health service. For the first semester of 2017 the Central Bank data shows a drop in exports, while Senacsa (corroborated by the local export industry) indicates shipments to be 1-2% higher than the same period a year ago.

Post’s export estimate for 2017 is based on Senacsa’s current data. During the first semester of 2017, beef exports to the top three markets, Chile, the Russian Federation and Brazil accounted for 75% of total exports. The EU was the highest value market for chilled beef, with exports of premium cuts under the Hilton Quota. Brazil and Chile followed as the best average unit price per ton. Taiwan and Israel were the best-paying markets for frozen boneless beef exports. The private sector is working with the local animal health service in creating a carcass grading system. Paraguay is the only country in Mercosur which does not have a system in place. Many believe this is will be very important to access higher demanding markets. Paraguay beef can access to more than 90 markets, of which more than 10 were opened last year. The sector knows that it needs to focus on opening key markets which buy larger volumes at higher prices. These markets include the United States, China, the EU (including the 481 quotas), and the high-quality beef quota of the Russian Federation.

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Market & Retail Belarusian companies start beef export to China

US Seafood producers reach record sales in Belgium

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Demakes Enterprises obliged to recall chicken sausages




OAO Mogilev Meat Packing Plant and Veles-Meat, two leading meat producers from Belarus, began shipping frozen beef to China, the head of the Foreign Trade Department of the Belarusian Agriculture and Food Ministry, Alexksei Bogdanov, told BelTA. Mr. Bogdanov also said that until now eight meat producers from Belarus have received the approval to export beef to China and that approvals for other companies are pending. “We are not going to stop at this. We are planning to extend both the list of exporters and the lineup of products, including ready-made ones,” Aleksei Bogdanov told BelTa. This year, Belarus plans to export to China beef worth 20 million dollars. According to the representative of the Ministry of Agriculture and Food, this amount is stipulated by the protocol signed by the Chinese side with the Belarusian companies.

US seafood exhibitors reported record sales at the 25th annual Seafood Expo Global of 136 million dollars on-site and projected 12-month sales of 895 million dollars, according to the USDA. The seafood products that reported the biggest sales were salmon, surimi, black cod, scallops, live lobster, eel, flounder, swordfish, hake, shrimp, and mackerel. “The trade show kicked off with a joint reception sponsored by ASMI, Food Export NE and IAC. More than 150 trade contacts attended the reception with special hosts Connecticut Department of Agriculture Commissioner Steven Reviczky and Alaska Commissioner of the Department of Commerce, Community and Economic Development Chris Hladick,” the USDA statement read. Seafood Expo Global, the largest international seafood trade event in the world, takes place every year in Brussels and attracts buyers from 150 countries from the food retail, foodservice, trade and seafood processing industries. According to an Islandsbanki Research, the US was the fifth largest seafood pro-

US based meat processing company Demakes Enterprises has to recall nearly 32,228 pounds of fully cooked chicken sausage due to misbranding and undeclared allergens, the US Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced in a statement. The company did not mention on the product label that it contains milk. The following product is subject to recall: - 10 oz. vacuum-sealed packages containing 5 pieces of “Thin ‘n Trim Fully Cooked Chicken Sausage Buffalo Style” and “Use By” dates from MAY:17-2017 through DEC: 06-2017. There are no confirmed reports of adverse reactions due to the consumption of this product. The product subject to recall has the number “P-8891” inside the USDA mark of inspection. These items were shipped to retail locations in Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio and Pennsylvania.

Sigma Alimentos takes over Caroli Foods Group ROMANIA

Sigma Alimentos took over one of Romanian’s leading cold cuts producer Caroli Foods Group by acquiring 51% of shares. The Mexican multinational had already 49% shares. The current transaction does not imply major management changes, Khaled El Solh remaining CEO of Caroli Foods Group, alongside his management team, according to the company’s statement released on Friday. “With the help of the Sigma Group’s know-how on product categories and expansion into other geographic areas, we have identified opportunities to make Caroli business grow in new categories and markets,” said Talal El Solh, one of the main shareholders of Caroli Foods and the Supervisory Board Chairman. “This acquisition allows us to pursue our development strategy in the most attractive region of Eastern Europe,” said Mario Páez, general manager of Sigma. Caroli Foods Group and Campofrio merged in 2010, Campofrio holding a 49% stake in Caroli. In 2014, with the expansion of Sigma in Europe and the acquisition of Campofrio, Sigma also became a minority shareholder in the Romanian company. Campofrio Food Group owns 25 factories across the continent and its European revenue share is over 1.9 billion euros.

ducer in the world in 2015 and is one of the most important markets for seafood. Furthermore, the US was ranked third by wild caught volume. The largest export species in terms of value are Alaska pollock, salmon, and lobster. The United States’ largest export markets are Canada and China, with a value of exported seafood to each of these countries of over 1 billion dollars, together accounting for almost 40% of total export value, according to Islandsbanki.

Irish retailers concerned about the costs increase IRELAND

Retail Ireland, the Ibec group that represents the retail sector, announced that there is growing concern in the industry regarding the increase in costs which undermine the sector’s competitive position, according to a press release. Although Irish retail sales grew by 3.7% in the first semester of 2017 compared to the corresponding period from the previous year (according to the latest Retail Monitor), Retail Ireland director Thomas Burke said that retailers “remain cautious and uncertain about what the second half of the year will bring in terms of trading performance.” Thomas Burke added that current prices are below the levels from 2008 and that this situation leads to retailers remaining addicted to “deep discounting as a means for driving footfall and additional spend.” Mr Burke also noted that the forthcoming Budget for 2018 could be an opportunity for the Government to address “these spiraling costs” and to support the retailers who are under growing pressure. “In this postBrexit era, control of costs and

a focus on our competitiveness will be essential to sustain the recovery in Irish retail, and avoid placing the sector at a major competitive disadvantage compared to counterparts in Northern Ireland or pure play onlineonly retailers based in the UK”,

Mr Burke said. Retail Ireland is urging the Government to ease the tax burden on Irish consumers and retailers, to retain the 9% VAT rate for some retail categories, such as food service, newspaper sales and hairdressing.

In addition, the Ibec group stresses the importance of the Government supporting the retailers who want to develop online. Retail Ireland is also advocating for investment in infrastructure and Brexit alleviation measures.


7 - 11 october 2017

| Market & Retail

Tesco partners with its suppliers to tackle food waste Tesco finalized partnership agreements with 24 of its largest food suppliers, who represent over 17 billion dollars worth of the retailer’s sales, in order to tackle UN Sustainable Development Goal on food waste by 2030. INTERNATIONAL

Tesco’s CEO, Dave Lewis, announced during a meeting of Champions 12.3 in New York that the company’s suppliers will publish food waste data for their own operations within 12 months. The suppliers will follow the steps needed to reduce food waste in their supply chain and will come up with innovative solutions to make it easier for consumers to reduce waste in their homes, according to Tesco’s press release. Furthermore, Tesco’s businesses from the Republic of Ireland, Poland, Slovakia, Czech Republic and Hungary published their food waste data, following four years of publication in the UK. “Great progress has been

Poland, Bulgaria, and Romania reported the lowest meat prices in the EU

made, but the reality is that we need many more companies, countries or cities committing to halve food waste by 2030, measuring and publishing their data and acting on that insight to tackle food waste. I am delighted that many of our major

suppliers have taken this important step so we can work in partnership to reduce food waste,” said Mr. Lewis. The suppliers involved in the agreement are: Yeo Valley; Gomez; Branston; Greencore; Icelandic Seachill; AMT; DPS;


Continente, the well-known retail chain from Portugal, has announced that it is going to promote pork meat from Portuguese producers under its private label brand throughout the whole store chain. Starting from 2017, Continente acquired nearly 16,000 tons of Portuguese pork worth 42 million euros, according to European Supermarket Magazine. The retailer guarantees a weekly supply of more than 1,000 tons of Portuguese meat to its stores, which are received from Sonae MC, a meat processing center Santarem. Continente is a retail chain that belongs to Sonae Distribuição, the largest retailer in Portugal. The hypermarket Continente chain is in spread all over continental Portugal as well on Madeira and in Azores.

Japan imposes tariffs on beef imports from the US and other countries

Faroe Islands signed a free trade agreement with Turkey


The Turkish government has finally approved the Free Trade Agreement between Turkey and the Faroe Islands and it will enter into force starting with October 1, 2017. The companies from the Faroe Islands will have to access the Turkish market for their products without having to pay tariffs. Before the free trade agreement, the tariff on Faroese salmon, saithe, mackerel, and herring has been 30 percent. “Turkey is an interesting market with 80 million people,” says Poul Michelsen, Minister of Foreign Affairs and Trade. Now that the free trade agreement will come into force,


Denmark had the highest prices for meat in the European Union, whilst the lowest prices were reported in Poland, Bulgaria, and Romania, according to the data provided by Eurostat. Denmark positioned itself on the first spot among the European Union Member States according to the highest meat prices, with a percentage of nearly 40% above the EU average. By contrast, the lowest prices were found in Poland, where prices were 47% below the European average, followed by Bulgaria and Romania, with 44% and 41.1% respectively below average. Meat prices were significantly higher than the European average also in Austria (37% above average), Sweden (34.5%), and France (31.1%). In Europe, Switzerland is the leading country when referring to highest prices for meat, with prices that are 157% above the average. At the opposite side, Poland is the country that has the lowest prices of meat in Europe.

Kepak Meat Division; G’s; Allied Bakeries; Moy Park; Richard Hochfeld; Ornua; Cranswick; Samworths; 2SFG; Hilton; Espersen; Greenyard Frozen; Müller Milk & Ingredients; Kerry Foods; Bakkavor; Froneri; Noble.

The Portuguese retailer Continente supports domestic pork producers

Starting with August, Japan imposed emergency tariffs on beef shipments that come from countries with which it does not have a trade agreement, according to the Agriculture and Horticulture Development Board (AHDB). Japan increased the tariffs for frozen beef imports from those countries with which it does not have a trade agreement from 38.5% to 50% beginning in August until March 2018. Japan imposed

this measure according to the rules of the World Trade Organization (WTO), which allow the increase of tariffs when imports rise more than 17% annually in any quarter. AHDB analyst, Millie Askew says that from Japan’s total frozen beef imports, nearly 90% come from the US and Australia. The ‘safeguard’ tariff imposed by the Japanese authorities will have a significant impact on American farmers, which were hoping for wider access to the Japanese market through a Trans-Pacific Partnership (TPP) between their country and Japan. The agreement hasn’t taken place, being withdrawn by the US president, Donald Trump. In this case, until March 2018, Australian farmers will benefit from the measure imposed on American imports, seeing that Australia has a trade agreement with Japan. Tariffs imposed on Australian frozen beef imports are situated at a rate of 27.5%. Furthermore, Australia supplies nearly half of Japan’s frozen beef.


the Faroe Islands will be finally able to compete with the countries from EU and EFTA, who already had free trade agreements with Turkey. “Turkey has a growing market for salmon, pelagic fish and demersal fish, but the high tariffs have been an obstacle for our industry,” the Faroese government statement read. “As part of generating an interest in Faroese products in Turkey, and trade amongst the two countries, we are planning a campaign to promote trade with the Faroe Islands in Turkey,” says Poul Michelsen, Minister of Foreign Affairs and Trade.

7 - 11 october 2017

Market & Retail Mercator returns to Bosnia and Herzegovina’s market BOSNIA AND HERZEGOVINA

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MLA announced $3 million investment in sheep health monitoring programme in South Australia AUSTRALIA

Meat & Livestock Australia (MLA) has recently announced that it will grant a 3 million dollars investment into reducing the incidence and costs of endemic health conditions affecting the sheep flock from South Australia. MLA’s project, “Reducing the Financial Impact of Endemic Conditions in Sheep”, will span over a period of three years and will monitor twenty-one sheep health issues, including key conditions such as grass seeds, pneumonia, sheep measles, rib

Slovenian retailer Mercator announced that it will re-enter into the Bosnian market after it got the approval from the board of creditors of Agrokor, its parent company. Mercator will gradually take over operations in 83 stores in Bosnia and Herzegovina, which are currently run by Konzum. Furthermore, the board of creditors of Agrokor accepted the restructuring of Konzum in Bosnia, where it will manage 156 stores in the future. In the last period, Mercator has prepared several scenarios for the development of trade activities not only in Bosnia and Herzegovina. Mercator is cur-

rently preparing for the takeover and it has to regulate relations with suppliers, employees, regulate logistics and a number of other activities that are the basis for company’s successful business operations. “Mercator’s re-entry into this market also represents a business opportunity for Slovenian suppliers whose brands in the Federation and the Republic of Srpska are recognized as high-quality,” the Mercator statement read. Agrokor took over Mercator in 2014 and set Konzum in charge of the retail operations in Bosnia and Croatia and Mercator’s retail stores were leased to Konzum.

NettoMarken-Discount expands its range of GMO-free products GERMANY

Germany based NettoMarkenDiscount has announced recently that it plans to expand its range of non-GM products and wants to launch certified pork products under the brand ‘Gut Ponholz’, according to the company’s press release. Furthermore, apart from minced meat, chicken cutlets and neck steaks, Netto will also offer GM-free goulash and pork chops. And starting with September 2017, Edeka, a subsidiary of Netto-Marken-Discount, plans to extend the company’s range and include also GM-free sausages, salami, and cooked

sausages. Netto sells non-genetically modified products in 4,170 stores across the country and all the products are in accordance with self-imposed quality standards. According to the company, all ofNetto products with are marked with the ‘OhneGenetechnik’ label by the German association for GM-free food. NettoMarken-Discount is one of the leading companies in the food retailing industry with some 4,170 stores, some 74,000 employees, 21 million customers a week and a turnover of 12.7 billion euros.

fractures and arthritis. “Data generated at Bordertown, Murray Bridge and Lobethal facilities will be fed back to producers,” MLA Managing Director, Richard Norton, said. “This feedback will be supported with information about how to address and manage conditions on-farm that are critical to help reduce the prevalence and costs of managing endemic conditions found in sheep in South Australia.” According to Mr. Norton, the project will be Australia’s biggest state-level

sheep monitoring program and cover more than 80% of sheep slaughtered in South Australia. The ‘Reducing the Financial Impact of Endemic Conditions in Sheep’ project will be rolled out in collaboration with Thomas Foods International (TFI), JBS Australia (JBS), Primary Industries and Regions SA – Biosecurity SA, the Davies Research Centre at the University of Adelaide and several SA farming systems groups. Animal Health Australia is also supporting the project, according to MLA.

Danish Crown strikes landmark deal with Alibaba CHINA

Danish Crown, the largest pork exporter in the world, has recently signed a Memorandum of Undestanding with Tmall, one of Alibaba Group’s businessto consumer e-marketplaces in China, thus making Danish Crown’s products available to Alibaba’s 466 million online shoppers per year. As part of the deal, Danish Crown will reserve for sale 1001 Danish pigs from the compa-

ny’s cooperative members on the island of Langeland that will reach the online market just in time for the Chinese New Year in February 2018. “Partnering with Tmall has enormous potential for Danish Crown. Chinese consumers are buying much more of their food online than anywhere else in the world. By selling our products through Alibaba’s emarketplace, we get access to a

vast sales platform and ensure that Danish Crown can become a pork provider of choice for the growing Chinese middle-class,” Danish Crown Group CEO Jais Valeur said in a statement. Danish Crown exported pork meat and pork products to the Chinese market for the first time in 1998. Last year, the company’ pork exports to China reached 260,000 tons, worth 600 million euros.


7 - 11 october 2017

| Technology

Processing equipment markets continue to grow Three important Global Forecast reports focused on meat processing equipment, poultry processing equipment, and pet food processing equipment for the next five years were presented during a press briefing at Process Expo by David Seckman, President of the Food Processing Suppliers Association (FPSA), according to the Process Expo’s press release. INTERNATIONAL

The global meat processing equipment market is projected to reach 14,5 billion dollars by 2022 from 9,075.1 million in 2015, with a Compounded Annual Growth Rate (CAGR) of 7,03% during the forecast period. The main elements that drive this growth, according to FPSA, are the increased consumption

of processed food, government support for equipment use in developing countries, demand for food safety and safety of workers, the presence of small and medium enterprises in developing countries, rising raw material costs, and international trade rules. The global poultry processing

VEMAG, the first German machine manufacturer to receive EU Food Authorization

equipment market is forecast to reach 3,83 billion dollars by 2020 from 2,95 billion in 2014, at a 4,7% CAGR during the mentioned period. The growth will be based on the increased consumption of processed food, the government support for the use of equipment in developing coun-

GEA has just launched a new generation labelling system GERMANY


VEMAG Maschinenbau GmbH announced in May that it now has the EU Food Approval and its product samples and other foodstuffs can now be packaged and handed out to customers for tasting and/or presentation, according to a press release. Before VEMAG received the EU approval, food prepared for customers, such as sausages, burgers and filled products, were not officially suitable for consumption, even though they were made from highquality, professionally processed raw materials. The approval primarily guarantees

the expertise of all employees, as well as compliance with hygiene regulations. Protocols are in place for all processes within the food area and compliance with the regulations is documented. The top priority is to ensure that human health is safeguarded always. Furthermore, the company announced that the customer center has also been expanded. The extension of the building has responded to the growing demand for customers for a suitable development environment for new food products and manufacturing processes.

tries, the demand for food safety, the safety of workers, the presence of small and medium enterprises in developing countries, rising raw material costs, and international trade rules. The pet food processing equipment market is projected to reach 4,27 billion dollars by 2020, at CAGR of 4,7%. The increase will be driven by the following factors: the increase in the global demand for pet food supplies, especially in growing economies such as China, Brazil, Argentina, and India, owing to a growing urbanization that has stimulated a desire to keep pets and has resulted in the increasing usage of processed pet food products; and advancements in the manufacturing processes and technologies. “We have been working with Markets&Markets, a strategic analytic company who compiled the finding in these reports from surveys of key opinion leaders at processing companies in the three different sectors as well as through public and private databases,” said David Seckman, President, FPSA. “Our goal was to define, segment and project the global market size for processing equipment through 2022, to analyze the opportunities in the market for the stakeholders, and provide a competitive landscape outlook. We are pleased to report that each of the segments is forecasting healthy growth within the next five years.”

GEA Group launched TiroLabel, a new labelling and printing system, which increases labelling speeds by up to 25% and is much more userfriendly than the other models relansed before, according to a press release. GEA, one of the largest suppliers of process technology for the food industry and a wide range of other industries, has continued to invest in its labelling and printing segment and developed machinery with in-

creased labelling speed and accuracy. TiroLabel labelling system GEA is the only supplier to use a motor-driven positioning unit with spring-loaded pins for its top and bottom labelers. In 2016, GEA, company based in Germany, reported consolidated revenues of nearly 4.5 billion euros. In June the company announced that it has reached a figure of 17,000 employees worldwide. The company is listed on the German MDAX stock index (G1A, WKN 660 200) and included in the STOXX Europe 600 Index. In addition, the company is listed in selected MSCI Global Sustainability Indexes.

The first ever autonomous poultry-robot launched at SPACE 2017 FRANCE

Tibot Technologies launched the first autonomous poultry-farming robot at a conference from this year’s edition of SPACE, one of the most important international livestock expos. The robot called Spoutnic animates the chicken coop and frees the farmer many passages within the batch, makes poultry more active and therefore more fertile and healthier, and allows controlled egg laying, according to Tibot’s statement. Tibot decided to launch its robot after a period of 8 months of experimenting in a dozen farms in the west of France. The robot Tibot rotates 6 hours a day in a building destined for chicken breeding. “We have increased our experiments with a variety of species and strains and in different configurations of farm buildings to ensure that our robot meets the expectations of poultry farmers. Our pilot breeders were fantastic! “ Said Yanne Courcoux, Managing Director. Spoutnic has proven to be a true solution to the problems common to all poultry farmers, in breeding chickens (two strains), turkey breeds and turkeys. According to Tibot’s website, the Spoutnic “produces light and sound stimuli which prevent the birds from developing any habituation to the presence of the robot,” and it changes its behavior enough so that birds never quite grow accustomed to it. A pioneer in poultry robotics, Tibot Technologies aims to automate certain painful and repetitive tasks in order to improve the working conditions of the poultry farmer while increasing the profitability of his livestock and animal welfare.

7 - 11 october 2017

Technology CSB-System celebrates its 40th anniversary GERMANY

CSB-System AG based in Geilenkirchen near the city of Aachen celebrated its 40th anniversary. Starting out as a small team of consultants for the meat industry, CSB has developed into a globally active IT enterprise for the entire process industry, offering software, hardware, services and business consulting all around the world. Today the CSB Group employs more than 600 members of staff and generates an annual sales volume of 77 million euros. In 1977, Dr. Peter Schimitzek was the right man at the right place. After having completed his training as a master butcher, Dr. Schimitzek went on to pursue a degree in business administration and economics and obtained his doctorate with his thesis “Recipe optimization for meat products”. This software program, which was designed to facilitate the implementation of guidelines for meat and meat products in 1975, was expanded to ultimately represent an ERP system. First for the meat industry, then for the entire food industry. Today, CSB-System AG based in Geilenkirchen, is the leading industry IT specialist for the process industries of food, beverages, chemicals, pharmaceuticals, cosmetics and trade. With its offering of software, hardware, services and business consulting from a single source, the company sees itself as an innovation partner that creates competitive edge for its customer base. As has been the case since its beginnings, the central focus of the company is still on the optimization of processes and products. “Our systems are not designed for all industries, but focused on a few to cater to their specific needs. With our systematic optimization approach, we can guarantee Best Practices,” Schimitzek says as he describes the strategy of CBS. We now have deployed CSB solutions at approx. 1,200 customers worldwide.

The global advanced packaging market expected to reach $40.37 billion by 2020 INTERNATIONAL

The global market for advanced packaging reached 26.67 billion dollars in 2016 and it is expected to rise at a compound annual growth rate (CAGR) of 7.15% to 40.37 billion dollars by 2020, according to Research and Markets’ “Global Advanced Packaging Market – By Type, Product, Application, Region - Market Size, Demand Forecasts, Industry Trends and Updates (20162022)” report. According to the report, the increase in population and growing demand for quality and safe packaged foods with longer shelf life are the main factors that will drive the growth of the global market for advanced packaging. The main constraint for the

market by 2020, analysts from Markets Insider say, will be the increases in prices for raw materials. “This leads to higher procurement costs for the market vendors. Also, the cost of R&D involved in packaging solutions is quite high. Testing

of solutions is elaborate, timeconsuming and expensive.” The highest share of the market in the next years will be held by the Intelligent Technology Packaging solutions. The report says that this is because of improved technologi-

cal advancements with Printed Electronics and RFID tags etc. Modified Atmosphere Packaging held the largest market share previously. Innovations in packaging ensure the consumer engagement and market growth. Analysts from Research and Markets forecast that the market in the APAC region is going to witness a rapid growth in advanced packaging mainly in Japan and Australia with its application in fresh meat, fish, poultry, beer packaging, processed food etc. during the forecast period. India, China, and New Zealand are the key emerging markets in the industry while North America has the biggest share in the Market.

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New packaging that extends shelflife developed by a Turkish university TURKEY

Researchers at Sabanci University have developed a Nano clayreinforced packaging which prolonges the shelf-life of food, the Daily Sabah reports. Hayriye Ünal, a researcher at Sabancı University Nanotechnology Research and Application Center, is the leader of this project. “Thanks to such active packaging [items], we can improve food security conditions and reduce the economic loss faced due to spoiled food,” Mr. Ünal said. The project consisted in the development of a packaging film which contains clay nanotubes equipped with various functions to meet the needs of multidimensional packaging.

MULTIVAC invests 2.5 million euros in expanding its capacity in Enger MULTIVAC recently announced it plans to invest 2.5 million euros to expand the production capacity of MULTIVAC Marking & Inspection based in Enger with a modern extension to the production hall. GERMANY

The expansion of MULTIVAC’s production hall comes after the company reported that “the number of machine orders increased by a total of 25% between 2014 and 2016, and last year the export share of the business was 77%.” Furthermore, MULTIVAC said that the increase in machine sales is due to the rise in the sales figures for all types of machines. Construction work has already started at its production site in Enger. The company plans to expand its production hall by 1,600 m², from 5,800 m² currently. The building work is due to be completed by the end of 2017. “With this extension to our production hall, we primarily want to expand our production capacity in the sectors of conveyor belt labelers and inspection systems, so that we can meet the constantly increasing demand for these solutions,” explains Volker Gerloff, CEO of MULTIVAC Marking & Inspection. “Parallel to this, we will also use the opportunity after completion of the building work to further optimise our logistics and assembly processes”.


7 - 11 october 2017

| News

Prices for beef could surge without a trade deal between the UK and EU



If the UK does not reach a trade agreement with the European Union, after Brexit, retail prices for beef could increase by as much as 29%, according to the British Retail Consortium (BRC) report. After Brexit, without an agreement between EU and UK, EU imports will be subject to new tariffs which are set by the World Trade Organisation. Analysts from BRC say that as a result, the average tariff of all food imported by retailers from the EU would increase by 22%, some tariffs even reaching 44% for cheese and in the beef case with 40%. This factor will lead to an in-

Smithfield Foods invests $25 million in Chef’d

crease in retail prices. For beef, the estimated rise in retail prices is between 5 and 29%. According to BRC, over threequarters of the food that the UK imports come, from the EU, and most of the imports will be subject to new tariffs. Thus the cost

to retailers of imported goods will rise. “But working out what that means for consumers isn’t straightforward, as there many factors which influence prices. Even if those other factors stayed the same, there isn’t a direct relationship between tariff costs and consumer prices.” Furthermore, the report says that if tariffs on imports from EU will rise, this could lead to domestic producers also increasing their prices in order to maximise profits. BRC analysts conclude that for many products, the effect could be as if all goods foreign or domestically produced faced the tariff.

Asda and Tesco assure their support for Scottish red meat

Smithfield Foods plans to invest 25 million dollars in Chef’d, a best-in-class e-commerce meal marketplace. The move is part of a strategic partnership that makes Smithfield the brand’s largest strategic investor and it provides the company a seat on the board of Chef’d. The strategic partnership will leverage Smithfield’s portfolio of brands for meal kit solutions across a variety of occasions. In addition, Chef’d will have access to Smithfield’s product development and sourcing capabilities, national distribution network and facilities, and Smithfield is expected to ben-

efit from Chef’d’s direct-to-consumer model by collecting consumer insights and sales data. “This strategic partnership reflects our continued commitment to innovation—both in our products and how they are delivered to consumers,” said Kenneth M. Sullivan, president and chief executive officer of Smithfield Foods. “We’re able to expand our e-commerce capabilities and reach consumers looking for high-quality, stressfree meals.” Smithfield Foods also said that additional details about the partnership will be announced in the coming months.

Aldi plans to reach 2,500 stores by 2022 USA


Retailers Asda and Tesco have given assurances to Banffshire and Buchan Coast MSP Stewart Stevenson about their commitment to support the Scottish farming industry. The National Farmers Union in Scotland (NFUS) observed that there are low stocks of Scottish lamb in both Asda and Tesco supermarkets, which prompted MSP Stewart Stevenson to send letters to the two retailers. In response to those letters, Tesco and Asda announced their commitment to increase

stocks and work with farmers to understand what further improvements can be made, according to stewartstevenson. scot. “We were disappointed to see the NFUS press release as we have increased our volume of British lamb over the last 12 months and we do not recognize the findings of the recent Shelf Watch Survey,” said Tony McElroy Tesco’s Head of Devolved Government Affairs. “Please be reassured that we are actively working with a small group of Scottish farm-

ers through our Tesco Sustainable Farming Group on Lamb,” Mr. McElroy added. While Asda announced that the company’s lamb supplier, Dunbia, has increased the amount of lamb it sources from Scotland, with a rise in volume of over 20% in the past 12 months. “The National Farmers’ Union Scotland report highlighted that we were stocking Australian lamb. This is a small quantity of lamb liver and this supply is being ceased,” said Christopher Brown, Asda’s senior director of Sustainable Business.

US will export pork to Argentina for the first time in decades ARGENTINA

The United States recently stroke a deal with Argentina which will allow American pork meat to enter the Argentinian market for the first time since 1992. The agreement between the two countries comes after the mitting between Vice President Mike Pence and President Mauricio Macri of Argentina during the Vice President’s visit to Buenos Aires from August 15, according to a press statement released by the White House on Thursday. “After 25 years of discus-

sions, America’s pork producers will soon be able to export their fine product to Argentina,” Pence said in the statement. “This is one more example of the commitment of President Trump and his entire administration to breaking down international trade barriers and making free and fair trade a win-win for American workers, farmers, and our trading partners.” US pork producers will now be able to export all fresh, chilled, and frozen pork and

pork products to a market valued at 10 million dollars per year. Argentina blocked the imports of pork meat and pork products imports from the US in 1992, because of concerns dealing with animal health. Pork exports from the US to Argetina will oficially resume after a team of Argentine food safety officials will conduct onsite verification of the United States meat inspecton system. The U.S. is the world’s top pork exporter.

Aldi has announced it is investing 3.4 billion dollars in expanding its stores to 2,500 units nationwide by the end of 2022, according to the retailer’s press release. Aldi expects that with this growth it will become the third largest grocery store by 2022 in the US and serve nearly 100 million customers per month. The retailer is already building on its already-aggressive growth strategy and 1.6 billion dollar program to remodel 1,300 stores by 2020. “We’re growing at a time when other retailers are struggling. We are giving our customers

what they want, which is more organic produce, antibioticfree meats and fresh healthier options across the store, all at unmatched prices up to 50 percent lower than traditional grocery stores,” said Jason Hart, CEO Aldi. Over the next five years, Aldi says that it is bucking the trend plaguing many retailers by accelerating its growth of new stores with a total capital investment of $5 billion in new and remodeled stores. Furthermore, the retailer wants to create 25,000 new jobs in stores, warehouses, and offices.

7 - 11 october 2017

News Kekava to improve biosafety standards LATVIA

Putnu Fabrika Kekava, the largest poultry meat processor from Latvia, wants to invest 430,000 euros in the modernization of its chicken farm and setting the biosafety and animal welfare standards at a higher level, Maija Avota, a company spokeswoman, told LETA. According to Ms. Avota, the company wants to place disinfection barriers at the driveways leading to the farm. The measure is taken in order to ensure compliance with high biosafety and animal welfare standards. Furthermore, 21 poultry houses will be modernized and equipped with external barriers which will make possible a more effective cleaning and will prevent rodents from entering.


The company said the project will be finalized by July 2018. Kekava reported a turnover of 57.219 million in 2016 and a loss of 314,181 euros. The company was founded in 1967 and exports poultry products to Lithuania, Estonia, Sweden, Denmark, Finland, Uzbekistan and the Netherlands. Kekava wants to become the leader among Baltic poultry meat producers.

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Russia imported food and packaging machines from Germany valuing 304 million euros in 2016 RUSSIA

The most important suppliers to Russian enterprises continue to be German manufacturers of food and packaging machinery. Vera Fritsche from the Food Processing and Packaging Machinery Association within VDMA (the German Machinery & Plant Manufacturers’ Association) expresses cautious optimism about the current situation: “German engineering is still in demand. This was also reflected at this year’s upakovka. Russia’s food production keeps expanding, and Russian and international companies are continually investing in the development and expansion

of local production capacities. After a fairly long lean period Russia’s demand for Germanmade food and packaging ma-

chinery picked up somewhat in 2016. During the first 11 months of 2016 Russia imported food and packaging machines from

Germany valuing 304 million euros, nearly 8% more than in the same period of the previous year. German companies are more confident again. Quite a few of them concluded business deals at the trade fair, and many are expecting positive developments and follow-up business.” The World Bank is forecasting economic growth in Russia for 2017 too. Western companies are anticipating an upswing and see this as confirmation of their policy of maintaining their business contacts in crisis years as well.

The Chinese sale of packaged food will rise by 19 % totally by 2021

New feedstuff distribution equipment innovation for pig farms



Currently, China is promoting its Made in China 2025 strategy essentially the Chinese version of Industry 4.0, which aims to automate intelligent manufacturing in the future, allow for components and machines to communicate with each other, and for raw materials, machinery, plants, transportation and distribution to be efficiently integrated. This enables all systems to respond to ever-increasing customer demands and international competition. In response to these trends, Shanghai World of Packaging (swop) will introduce, for the first time, the “innovationparc” special zone onsite to highlight innovative packaging machinery and materials from all over the world. Visitors in the food, beverage, cosmetics and pharmaceuticals sectors will have the perfect opportunity to learn about innovations in their fields while developing new business ties. Focusing on the food industry, market experts anticipate that by 2021 the sale of packaged food will rise by 19% to reach

121 million tons in China. In addition, the trend towards highquality and safe food products will contribute to the rise in demand for innovative processed and packaged food products in China. Industry 4.0 will offer the chance to better control the increasingly complex production processes while producing in a more cost efficient manner. Flexibility, individuality and safety will also improve. Many leading food processing companies have pre-registered to visit the 2nd edition of swop –Shanghai World of Packaging 2017. As a member of interpack alliance, swop will not only provide a “supply and demand” platform for the packaging market, but most importantly will give all industry professionals insights into future packaging trends, through a series of special zones including “innovationparc”, “SAVE FOOD” and “FMCG Future Zone”. An estimated 1,000 exhibitors and 30,000 visitors will attend swop, the leading processing and packaging show in China and Asian region, from November 7-10 in Shanghai.

The Pig-track system is a feed system that manages the feeder and the drinking trough. The animals are equipped with a chip, the feeding device includes a variable dosing system, a probe in the bottom of the trough controlling the consumption. The trough is equipped with a precise counter. The Asserva company analysis of feed consumption and water consumption of each pig, as well as the number of trips to the feeders and drinking trough, allow the early detection of diseased animals. Tis product presents three interests: - The reduction of drug costs, it is possible to isolate the diseased pig or to treat it individually before it contaminates its congeners. - A reduction in the loss of exploitation, in fact the farmer generally detects the diseases when 20% of the animals are affected. With this system if one or two pigs are sick and treated early, the loss of exploitation will be widely de-

creased. - Traceability of feeding and medication is possible animal per animal. In a market requiring traceability, especially with the problem of antibiotics, this tool is an easy answer for the breeder. In addition, the individual RFID weighing (microchip) analyses the performance of each animal. It is easy to make a comparison between each group of piglets depending on the sow in maternity and to select very quickly the best, in order to perfect the livestock on interesting databases. Since 1978, Asserva has strived to design, develop, manufacture, install and provide after-sales services in the field of automation solutions and feeding methodes for rearing swine, cattle and poultry. Digitalised work systems to offer better working conditions to breeders, preserving animal welfare in several fields: dry and liquid feed distribution, unique automatic and individual feeding systems (ESF station, smart, farrowing.


| Industry

7 - 11 october 2017

Special print edition Anuga 2017  
Special print edition Anuga 2017