The Raghavan Report ASEAN: 50 years of progress and what’s ahead by Raghavan (‘Ragha’) Sampathkumar ASEAN, the group of South East Asian countries is celebrating 50th anniversary this year. Since its inception, it has been a loosely held block but kept in shape by the leading countries including Thailand, Singapore, and Malaysia. Much progress has been done in terms of poverty reduction and reduction in population affected by malnutrition in the last few decades as the region’s food security has been the primary focus of the leaders who founded the group. The group stands as the sixth largest economy in the world with a combined GDP of US$2.4 trillion in 2015. With impressive economic growth prior to the economic crisis in 1997-98, the region has grown to become an important market for high value food products. Although the financial crisis had temporarily dented the growth, the region got back on its feet quickly and now is looking forward to lead the next wave of global economic growth. It is also ranked fourth in global trade (US$2.3 trillion in 2015) and intra-regional trade in goods stood at close to one fourth of the total. It was ranked as the fourth top destination for FDI (US$121 billion in 2015) globally. It is also a lucrative destination for several industries particularly for the world’s grain industry as the region is a net importer of grains. As close to half of its population is now living in the cities, their food habits are fast changing and perhaps are converging with the western diets. What’s more? The region is one of the youngest in the world as more than half of its population is under 30. Over 630 million people call it their home and start demanding more meat in their diets, which is driving the demand for feed grains. While most of its grain imports come from outside the region, opportunities for the global grains industry is abound as consumers expect quality and innovative offerings. Rising popularity of 'out-of-home food consumption options 'particularly Quick Service Restaurants (QSR) is a reflection of the potential this region has. The region is also home to several food companies that have quietly become pioneers in some specialised sectors such as seafood and animal protein. However, the market is not monolithic and is rather diverse in its food consumption patterns. For example, Indonesia is a big market for bovine meat and also chicken while Thailand and Vietnam consume significant amounts of pork besides seafood. Though the region is making progress to become AEC (ASEAN Economic Community), it still remains a far cry as there are significant roadblocks to create such an integrated group. Flow of trade, services and labour is not yet smooth as the differences exist in terms of priorities for the countries individually. Some are focused on strengthening their food security (rather sovereignty) through domestic production while some countries have a pragmatic approach towards meeting their food and nutritional requirements. While the top-level leaders tend to be quite energetic about making the AEC seamless, still at the granular level, differences exist in policy and regulatory frameworks. One of the examples of such persistent difference is adoption of CODEX standards by the members. While some countries (e.g. Malaysia) have established their own standards, the middle and bottom tier countries have a lot to do. All these affect the way trade and domestic food production happen within the region and with other regions. Some more key insights about the issues in ASEAN affecting the global food & agribusiness will be discussed in the subsequent columns. asmalltownkid.wordpress.com Raghavan (‘Ragha’) Sampathkumar is a seasoned food and agribusiness professional with 360 degree understanding of the complex political, socio-economic, environmental and cultural perspectives of the Agri-Food value chain. He has more than 13 years of experience working in various subsectors of food & agribusiness including agro commodities, international trade, agri-inputs, biotech, and animal nutrition sectors across Asia-Pacific. 18 | September 2017 - Milling and Grain
US and China sign historic agreement
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ecretary of Agriculture Sonny Perdue announced today that the US Department of Agriculture has reached agreement with Chinese officials on final details of a protocol to allow the United States to begin exporting rice to China for the first time ever. Mr Perdue explained, “This is another great day for US agriculture and in particular, for our rice growers and millers, who can now look forward to gaining access to the Chinese market. This market represents an exceptional opportunity today, with enormous potential for growth in the future. The agreement with China has been in the works for more than a decade and I’m pleased to see it finally come fruition, especially knowing how greatly it will benefit our growers and industry.” China is the world’s largest producer and consumer of rice. Since 2013, it has also been the largest importer, with imports reaching nearly five million tonnes last year. When the new rice protocol is fully implemented, the US rice industry will have access to this market. US rice exports can begin following the completion of an audit of US rice facilities by China’s General Administration Quality Supervision, Inspection and Quarantine.
Upgraded Top Bag Removal Filter
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ice Industries announced today that they have introduced an upgraded Top Bag Removal Filter to its Filters line. The improved filter is an option available to most Kice filters. Andy Forrester, Kice Industries explained that, “One of the main improvements is the quick release laterals, which are easily removed without the use of tools for installing filter bags.” In addition, the filter bags can be replaced without having to enter a dirty air chamber. Mr Forrester continued, “We also sought to improve lid hold downs and handles. Removal of the filter lid(s) allows for complete access to the clean air chamber. Overall, this new design is simple, requires less maintenance and eliminates any safety concerns related to new hinged top filters.”