Agri-Food Trade Service

CAN SEA AGRI-FOOD UPDATE

April - June 2008

A quarterly newsletter presented by Canada's agri-food team in South East Asia

FHA2008 - A HUGE SUCCESS FOR CANADIAN EXHIBITORS!

This year's edition of Food and Hotel Asia 2008 took place from April 22-25 in Singapore. The Canadian Pavilion had 29 exhibitors, an increase of 400% from the last show in 2006. Clearly, there is growing interest from Canadian exporters in developing the markets of Southeast Asia, as our agri-food exports in 2007 grew by 50% to over $1 billion over 2006. FHA remains the only show of its kind in the region, and is a major entry point for companies wishing to find importers, distributors or to transact business.

All exhibitors surveyed expressed strong satisfaction with the show and its organization, and stated that they had developed a high number of strong leads to follow up on. All 29 revealed that they would like to come back to the next show in Singapore in April 2010. That augurs well for another tremendous show, and we strongly advise companies with Southeast Asia in their marketing plans to begin their market research now to be well placed for the FHA2010 show. Our Trade Commissioners, whose role was highlighted in the last issue and whose contact information is shown on page 2, are ready to assist with market information where possible.

You will find an important article on the financing and export services provided by Export Development Canada in this issue, and I urge you to consult Mr. Rob Simmons in the new EDC office in Singapore for assistance on how these services can benefit you as a Canadian exporter. (Robert.Simmons@international.gc.ca)

Finally, this is the last issue of the CAN-SEA Agri-Food Update that I will be involved with, as I have finished my service in Southeast Asia and will be returning to Agriculture and Agri-Food Canada in Ottawa. I certainly want to thank all of agri-food Trade Commissioners in the region for their dedication to promoting Canadian agri-food interests and for their contributions to informing the readership about the diversity of their work on your behalf. I especially want to thank Susan Loke for her diligence in coordinating all aspects of this Update, and all of the support she offers to me and our Trade Commissioners.

Bruce Howard
Regional Agri-Food Trade Commissioner, SE Asia, and Team Leader

Trade Leads | In the region

MALAYSIA

An established edible oil manufacturer is sourcing cereal-based processed grains - oats (rolled & organic), barley flakes, pure butter & non-dairy whipped cream. 

A company which operates a retail and distribution network catering to the expatriate and more affluent communities is looking for a consolidator for a wide range of grocery items.

Several processors are looking for IP (Identity Preserved) and non-IP food grade soybeans.

For more information, please contact : Sharon.Fam@international.gc.ca

SINGAPORE

A newly established bakery products distributor/retailer wants to work with a Canadian bakery supplier to distribute "freeze & thaw" pastries, cakes and finger food items.

An established gourmet food service distributor is looking for quality foie gras from Canada as an alternative to his European supply sources.

A leading retailer is looking for healthy snacks and confectionery products from Canada. The products should be nicely packaged and shelf stable, preferably with health attributes as one of their unique selling points.

For further information, contact : Francis.Chan@international.gc.ca

PHILIPPINES

A local consolidator is looking for pasteurized whole egg powder, in 25-kg net wt. poly bags in cartons, one 20-ft FCL per month.

For more information, please contact : Butch.DelaCruz@international.gc.ca

THAILAND

A number of importers are interested in importing large quantities of frozen pork liver from Canada.

A well-established vegetable oil producer is sourcing soybeans from Canada.

A leading importer and distributor is interested in importing price competitive frozen french fries from Canada.

An established trading company is looking for peas from Canada.

For further information, contact Surin.Thanalertkul@international.gc.ca

VIETNAM

An established gourmet food service distributor in Hanoi is looking for cheese from Canada.

A meat importer in Ho Chi Minh city is interested in importing Canadian pork for the restaurant industry as an alternative to local pork.

For further information, contact : Dang-anh.Thu@international.gc.ca

Trade Commissioners @ your service

REGIONAL Bruce Howard
bruce.howard@international.gc.ca

BRUNEI Celestina Leong
celestina.leong@international.gc.ca

INDONESIA Hermawan
hermawan@international.gc.ca

MALAYSIA Sharon Fam
sharon.fam@international.gc.ca

PHILIPPINES Butch Dela Cruz
butch.delacruz@international.gc.ca

SINGAPORE Francis Chan
francis.chan@international.gc.ca

THAILAND Surin Thanalertkul
surin.thanalertkul@international.gc.ca

VIETNAM Thu Dang-Anh
dang-anh.thu@international.gc.ca

OTTAWA Jane Morisset
morissetj@agr.gc.ca

Activities & Events | In the region

GAINING RECOGNITION AND BUILDING MARKETS
Report for the period

PHILIPPINES

The 2nd Canadian Culinary Cook-Off and Charity Dinner - Cebu-Manila Executive Chefs' Challenge, June 5, 2008: Ten executive chefs from Manila and Cebu, which included two Canadians, faced off in an "iron chef" cook-off featuring all-Canadian ingredients aboard the visiting Canadian frigate HMCS Ottawa. The Canadian Embassy in Manila and a major food importer/distributor, PTC Commercial Corporation, brought together a list of premium ingredients from across Canada, including Alberta prime rib, Saskatchewan bison rib-eye, B.C. cold-smoked sockeye salmon, Pacific king crab, British Columbia oysters and scallops, Nova Scotia lobster, Dungeness crab, blueberries and Saskatoon berries, canola oil, Canadian dried pasta, and pure maple syrup. These key ingredients, to be commercially available in the market beginning in June 2008, went into ten never-before-tasted or tested dishes.

Very early and immediate results include the Intercon Manila wanting to do a 3-week Canadian food promotion this summer, and a serious intent to stock up on Canadian beef, bison, seafood and maple syrup. One of the leading high society celebrities wants to do a press conference on the health benefits of Canadian food ingredients -- as so eloquently presented by Bruce Howard in his coast-to-coast Canadian food tour -- that will indeed bring in new clients. There was significant footage and interviews in both English and French with the chefs, with trade commissioners and with Canadian food distributors, thanks to ABS-CBN television and several food and lifestyle magazines.

THE MENU

Appetizer - 1) Trio of bison: Smoked Bison with Hot Pepper Jelly, Bison Tartar with Tomato Molasses, Soya Bison with Asparagus and Fried Wasabi Mayonnaise; 2) Nova Scotia Lobster with Spicy Mango Salsa

Soup - 1) Nova Scotia Lobster Bisque, Lobster Salad Green Pea Shooter, Lobster Foie Gras Terrine, Mango Raviolo; 2) Grape-Crushed Aparagus Soup with Prawns

Main course - 1) Slow-roasted Alberta Prime Rib with Pine Cone Potatoes, Maple Leaf Root Vegetables served with Yorkshire Pudding and rich Au Jus; 2) Roasted Alberta Beef, Mushroom & Manitoba Wild Rice Risotto, Wilted Arugula, Foie Gras and Port Jus

Wild card dish - 1) B.C. Sockeye Salmon Ravioli in Truffled Forest Mushroom Nage, scented with "Fume de Sal Chardonnay"; 2) B.C. Sockeye Smoked Salmon and Crab Meat

Dessert - 1) Maple Chocolate Fondue, Chocolate Mud Pie with Maple Saskatoon Berries, Macaroon Almonds, and Aumóniere Maple Berries; 2) Chocolate and Canadian Berries Delight with Warm Lemongrass Infusion

THAILAND

In conjunction with THAIFEX - World of Food ASIA May 21-25, an Ontario-based Information Mediary Corporation with support of the Embassy of Canada organised a highly successful free Coldchain Seminar on May 22 and May 23. This seminar aimed to introduce RFID sensor tags (Logic devices) and their applications for use in cold storage/shipment to various potential buyers such as flour mills, bakeries and frozen food exporters. This seminar gained tremendous brand awareness from the audience and as a result a number of trade leads are being generated with some negotiations underway. In addition, CFIA's representative Mr. Peter Dombovary was invited by the Embassy of Thailand in Canada to be a keynote speaker at a separate seminar on the "Import Rules and Regulations for Food Products to Canada". The session was well attended by local food exporters and investors.

Propak Asia, the largest and widest showcase of machinery technology and devices for the processing and packaging industries, June 11-14. An Ontario-based Associated Packaging Equipment Corp. exhibited at the event through a local agent, Mather & Platt (Asia) Limited, to market its Polyclad roll-fed labelers to local food producers.

INDONESIA

The Canadian Embassy in Jakarta in co-operation with Canadian Beef Exporters Federation will participate in the Indo Livestock 2008 Expo and Forum - Indonesia's Biggest Feed & Livestock Industry Show from July 1 to 3 at the Jakarta Convention Centre.

GAINING RECOGNITION AND BUILDING MARKETS
Upcoming

SINGAPORE

Swissotel @ The Stamford, which is now part of the Fairmont Hotels Group (headquartered in Toronto), have held meetings with Post on the proposal to host a major Canadian food event at the hotel in October 2008. The Swissotel @ Stamford holds the prestigious title of the world's tallest hotel, and their restaurants enjoy a reputation for serving quality cuisine. The event may promote the use of quality Canadian ingredients, and may feature a Canadian guest chef invited from the group of Fairmont hotels in Canada.

BRUNEI

Canadian Food Promotion in July 2008. Post will work with the Royal Brunei Catering Group (RBC) to run a two-week Canadian food promotion at the Airport Restaurant. The event will feature Canadian seafood products as well as Canadian non-meat food products.

VIETNAM

Post is planning to conduct a Canadian food promotion event in October 2008 which would feature Canadian beef, seafood and wines, and be aimed at the HRI industry as well as the local public in Hanoi.  The promotion will be given additional focus this year with other Embassy events planned to mark the 35^th anniversary of Canada's diplomatic relations with Vietnam.  

THAILAND 

June 25-28: Visit of Sean Hogan, International Business Development, Manitoba Trade and Investment. The objective of the visit is to identify potential opportunities for Manitoba companies in the Thai market including post harvest technologies and innovations.

PHILIPPINES

"Canada Days" Canadian Food Promotion at Marco Polo Properties in Cebu and Davao Cities, July 2 & 4, 2008, respectively: To form part of Canada Day festivities in the second and third largest urban centres in the Philippines, TCS-Manila will tie up with the Marco Polo Hotel properties for a 2-week food promotion featuring Canadian ingredients available in the market.

Canadian Food Promotion at The Hyatt - Guam, 3rd/4th Qtr. 2008: TCS-Manila will tie up with the SM Group of Companies, which has business operations in Guam, on a Canadian food promotion with the Hyatt Hotel Guam. This initiative will be a first for a non-Philippine market within TCS-Manila's expanded area of jurisdiction.

Chefs' Table featuring All-Canadian Gourmet Ingredients, late Aug/early Sep 2008, El Cirkulo, Makati City - The objective of this first-ever event in the Philippines is to showcase new and existing Canadian gourmet ingredients available commercially in the market, targeting premier hotel and restaurant executive chefs and chef patrons/owners in Metro Manila and suburbs.

IMPROVING MARKET ACCESS
Report for the period

THAILAND

Potatoes : Currently, Canadian seed and non-seed potatoes can still be exported to Thailand under the 2006 import conditions.

Swine Breeding Farms & Pork Plants Inspection : The Thai delegation from the Department of Livestock Development (DLD) visited Canada to inspect Canadian breeding swine facilities and pork plants to confirm Thailand's import of these products. The Thai delegation began their 10 day mission (April 21-30, 2008) to Canada by attending meetings with CFIA in Ottawa to learn about various aspects of Canadian pork system: overview of CFIA, animal health, meat programs, operations, laboratories, animal traceability, animal disease notification & reporting system and disease surveillance. For the afternoon session, the delegation was divided into two teams focusing on respective areas of interest: Pork system, national chemical residue program and food safety enhancement program & compliance verification program for the meat team; Foreign animal diseases, animal feed program and discussion on draft health certificate for the swine team. After the first-day meeting with CFIA, the two teams went on to conduct respective inspection visits. Overall, it was a success and we expect positive outcomes for the export of these products. The DLD promised to deliver the official trip report to Canada in early July.

INDONESIA

Breeding Swine: A delegation from the Indonesian Ministry of Agriculture visited Canada from June 6 to June 13, 2008. The objective of the visit was to provide the Indonesian delegation with information on Canada's veterinary infrastructure and biosecurity measures, especially in the breeding swine industry.

VIETNAM

Beef & Pork Offals: Following extensive efforts from post & CFIA, Vietnamese authorities have finally allowed the importation of Canadian beef offal and pork offal (heart, liver and kidney only) to Vietnam. The animal health certificates for exports of Canadian beef products including boneless beef, bone-in beef and beef offal and the certificate for pork offal were approved on June 16, 2008.

SINGAPORE

BSE : AVA is pleased with the response to the additional questions submitted by CFIA, and has requested for a beef export verification system for Canadian establishments supplying beef to Singapore. Removal of SRM from cattle of all ages is also necessary for beef exports to Singapore. AVA has also indicated their intention to conduct an inspection trip to Canada to verify the BSE control measures put in place by CFIA. Post will be working closely with all parties to ensure that there is adequate follow-up and input leading to the eventual inspection visit of AVA expected sometime in the Fall.

Norovirus : As a follow-up from the video conference call on norovirus, CFIA will begin the process of exchanging technical information with AVA concerning testing methodology and control measures for norovirus in shellfish. Depending on the progress of the information and dialogue exchange, we will access the need to schedule another conference call with AVA sometime in September 2008.

Avian Flu : Post has provided to AVA Canada's final report on the September 2007 outbreak in Saskatchewan as submitted to OIE. The report corresponds with Canada's declaration of regaining status as being "Free of Notifiable Avian Influenza" as over ninety days have passed with no further cases of highly pathogenic avian influenza detected. Canada is now awaiting AVA's endorsement of Canada's declaration in accordance with OIE guidelines, to reverse the regional ban placed on poultry exports from Saskatchewan.

PHILIPPINES

Avian Influenza : The Philippines lifted the temporary import ban on imports of poultry from Saskatchewan, as per Department of Agriculture Memorandum Order No. 7 (MO-7) Series of 2008 dated May 8, 2008. The lifting follows official confirmation from the CFIA as reported to the OIE that the avian influenza virus has been absent from the previously-infected area for the past three months. The Philippines had imposed the temporary import ban in October 2007 following an outbreak of a highly pathogenic avian influenza serotype H7N3 in a poultry farm in the Regina District of Saskatchewan.

BSE in Canada : The Philippines continued to maintain full market access to ALL Canadian beef, bone-in and boneless from cattle of ALL ages, despite Canada's BSE Case 12 in February 2008.

UPCOMING TRADE EVENTS IN SEA

July

AFEX Plus 2008 - The Best Food Products of the World, Hotel Intercontinental Manila,
July 8 - 9

TRAFS, Thailand Retail, Food & Hospitality Services, IMPACT Arena, Bangkok, July 24-27

Franchise International Malaysia, 15th international franchise exhibition & conference, PWTC Kuala Lumpur, July 31 - August 3

August

Brunei International Halal Products Expo and Forum, Bandar Seri Begawan, August 14- 17 www.bruneihalal.gov.bn, www.bruneihalalexpo.com

Food and Hospitality Indonesia, Jakarta International Expo, August 20-23,
www.interfood-indonesia.com

WOFEX 2008 World's Food Expo, World Trade Center Manila, August 6 - 9

September

4th Health Cuisine & Beauty, QSNCC, Bangkok, September 3-7

Food and Hotel Thailand, 16th International Exhibition of Food & Drink, Hotel, Bakery, Restaurant & Food Service Equipment, September 17-20

Food Ingredients Asia, QSNCC, Bangkok, September 24-26

October

15th FAVA Congress, Food Safety-Veterinary Roles for the World Kitchen, Central World Hotel and Convention Center, Bangkok, October 27-29

November

Vietstock 2008 Expo and Forum, the biggest livestock tradeshow in Vietnam will take place from 25-27 November at the National Convention Centre (NCC) in Hanoi. Post will partner with Canadian livestock associations to set up a Canada Pavilion to showcase Canadian livestock industry/genetics products to the local industry.

IMPROVING MARKET ACCESS
Upcoming

THAILAND : Seed Potato
A visit to Canada is planned for the Thailand Department of Agriculture to inspect Canadian seed potato certification system in August.

INDONESIA : Bovine & Porcine Semen
Post is awaiting the approval by Indonesian authorities of the health certificate to export porcine and bovine semen from Canada to Indonesia.

PHILIPPINES : BSE
Post will continue to advocate full market access despite potential future BSE cases in Canada.

VIETNAM : Ovine/caprine semen
Post & CFIA are working with the Vietnamese authorities to seek their approval on the health certificates for exports of ovine/caprine semen & embryos to Vietnam.

OVERCOMING TECHNICAL BARRIERS
Report for the period

PHILIPPINES
Soybean Fumigation at Source issue resolved: The Bureau of Plant Industry has amended the pre-shipment requirement for Canadian foodgrade soybeans, from fumigation treatment to stringent cleaning alone, as per BPI Memorandum Order No. 13, Series of 2008.

OVERCOMING TECHNICAL BARRIERS
Upcoming

PHILIPPINES
AO-16 - Accreditation by the Philippines of Canada's Meat Inspection and Export Certification Systems: Post continues to liaise between the CFIA and Philippine authorities about the detailed next steps in the accreditation process.

Success Stories | Of Canadian companies in the region

VIETNAM

Thanks to post's recommendation and introduction of a qualified local contact, a new Canadian soybean exporter has successfully secured a deal with a local soybean producer. A trial shipment of one container of non-GMO soybean has just arrived in Vietnam in June, 2008.

A new Canadian swine exporter has succeeded in making the first sales of 45 pigs to several farms in Ho Chi Minh City. The company hopes to get more sales of breeding swine to this potential market.

THAILAND

In April, Thailand Department of Livestock Development approved CFIA's proposed certificate for export of hides and skins from Canada.

PHILIPPINES

A large Quebec grocery store group has successfully concluded a repeat sale of one 40-ft container load of about 250 SKU's of various food and non-food consumer-ready grocery items to its Philippine customer-retailer, the Metro Gaisano Supermarket chain. The shipment arrived in late May 2008.

SINGAPORE

A leading cookies manufacturer in Canada has sold a container of trans fat-free /sugar-free cookies to one of the largest retail groups in Singapore. The Canadian cookies are now on sale in the supermarkets here, and if successful, will become a regular import for the store.

New Market Reports | @ATS website

Agriculture and Agri-Food Sector Profile - Manila, Philippines, DFAIT - February 2008*

Potential Importers of Canadian Agri-Food Products in Southeast Asia - April 2008*

Market Brief on Sweet Biscuit in Singapore - March 2008 http://ats-sea.agr.gc.ca/ase/4483_e.htm

* this market report is password protected and only available to website registered Canadian clients. Register at: http://www2.agr.gc.ca/password/password/input_e.asp

The following reports are currently being translated into French and will be posted to ATS shortly:

• Report on the food, drinks and agrifood market in Brunei Darussalam 2008
• The Singapore Market for Imported Specialty Fish and Seafood
• Market Brief on Maple Syrup in Singapore
• Singapore's Markets for Functional Foods Nutraceuticals and Organics

Agri-Food News | From the region

A special feature on Export Development Canada

Getting PAID for your exports to SE Asia: EDC risk management tools

Although EDC is better known for its accounts receivable insurance a range of financial solutions are available that target both first-time and low volume exporters.

Many entrepreneurs realize that if they want their businesses to reach full potential, they need to tackle foreign markets. Yet exporting can be a major undertaking. In addition to the time and money required to dream up, perfect and market new products, manufacturers must then produce them in large quantities.

According to one expert, increasing numbers of small Canadian businesses are partnering with EDC to overcome these challenges. "We are already well known for the accounts receivable insurance products that we offer," explains Cathy Beauvais, Small Business Manager at EDC. "However we also market a range of solutions that are increasingly popular among small businesses, such as Single Buyer Insurance, Export Express Credit and the Export Guarantee Program."

One myth that Beauvais deals with constantly is that EDC focuses mostly on big business. "Exports represent a significant share of the Canadian economy. Yet the vast majority of our customers are smaller companies," explains Beauvais. "Due to Canada's small population, our domestic market is simply too small for many emerging businesses. As a result, many strive to boost sales in other countries. However arranging the financing they need to do this is easier said than done."

According to Beauvais, effective financial management is crucial for small businesses. "Many entrepreneurs think that booking sales is the most important task in any business," says Beauvais. "But that's not the whole story. Getting paid for those sales is important too." Many entrepreneurs are unaware of the many tools that are available to help them accomplish this.

According to Marc Beaulieu, Manager, Small Business Sales, one of the best examples of EDC's commitment toward these companies is Export Express Credit, which is a pilot project launched last year. Export Express Credit, is a non-guaranteed loan of up to $50,000 that is offered to small businesses that generate less than $5 million a year in sales and that need a credit facility to help them export.

Another EDC program of interest is Single Buyer Insurance. This policy covers goods shipped to a customer during a six-month period, worth up to U.S. $250,000. "Many small businesses export from time-to-time but are simply unwilling to tackle the paperwork related to certain types of insurance policies," says Beaulieu. "Single Buyer Insurance is a particularly practical risk management tool because once insured, accounts receivables from foreign sources can often be used as security for a line of credit."

Another product of interest to small businesses is the Export Guarantee Program, says Beauvais. This program encourages Canadian financial institutions to accord pre-shipment financing to Canadian goods and services exporters. "This financing gives businesses an important tool to help them fulfill export contracts," explain Beauvais. "Businesses that have access to the Export Guarantee Program can thus use their existing lines of credit to invest in even more contracts. That way everyone comes out a winner."

Peter Diekmeyer (peter@peterdiekmeyer.com) is a Montreal-based freelance business and economics writer.

For further information on EDC products and services in SE Asia, please contact
Robert.Simmons@international.gc.ca

CANADA @ FHA2008

Here is a short review of the evaluations from 19 Canadian exhibitors at FHA2008:

• 95% rated the quality of visitors as good to excellent;
• 95% rated the visitor traffic as good to excellent;
• They identified 219 solid leads, with 201 coming from outside Singapore; of note, 91 came from India;
• Exhibitors estimated over $2 million in follow-up sales;
• Most exhibitors rated the Canadian presence and Pavilion at the Show as very good to excellent.

Yeo's, 1st Global F & B To Feature Canada Brand Icon! Malaysia's leading home-grown food & beverage company, Yeo Hiap Seng (Malaysia) Berhad (Yeo's) unveiled Malaysia's all-time favourite drink, Yeo's soy milk with the Canada Brand icon on its new and upbeat packaging.

UO KL

Readers may recall that Yeo Hiap Seng, a major soy beverage producer in Malaysia, signed the first international co-branding agreement (with the Canadian Soybean Exporters Association) to use the Canada Brand (see issue 7, January - March, 2008). To enhance their market share in the beverage sector, specifically the soy drinks category, Yeo Hiap Seng has embarked on a marketing blitz. Road shows and consumer contests (lucky draws) were organised to showcase the synergy between Yeo's and the Canada Brand. The events also enable them to highlight that Yeo's soydrinks are made from high quality Canadian soybeans and to increase brand visibility in different channels by employing different communication tools.

 

Carrefour Subang Jaya

A co-branding agreement allows a foreign entity, such as Yeo's, to use the Canada brand graphics on a product, highlighting the Canadian ingredient content. The Canada Brand logos are embedded in Yeo's posters, buntings, block displays, sampling booth and are displayed at major retail outlets. Consumers can take part in lucky draws by purchasing the drinks.

The photos show the displays at two retail outlets.

Vietnam Agriculture Min Proposes Halting Fertilizer Exports

The Vietnamese Ministry of Agriculture and Rural Development has proposed the Ministry of Industry and Trade to stop granting fertilizer export licenses in a bid to meet the domestic demand as prices of fertilizer products is rising, the Thoi Bao Kinh Te Sai Gon newspaper said Wednesday.

The move is also aimed at damping local speculators, the newspaper cited the MARD sources as saying.

Global prices of fertilizer is soaring after several big fertilizer makers, including China raised export duties, while the government of Vietnam is still subsidizing prices of gas and coal for local fertilizer makers and has not imposed export tariffs, the MARD officials said.

China, which the world's main source of fertilizers with a 30% global market share, recently hiked export duty on fertilizers to 135% from 35%, they noted.

"This Chinese policy will likely have a bad affect on Vietnam's agricultural production," said Nguyen Dinh Hac Thuy, general secretary of the Vietnam Fertilizer Association (VFA).

"Prices of Chinese-imported urea fertilizer will likely rise to $800 a ton from current $300 a ton due to the change," Thuy said.

Currently, urea fertilizer is offered at VND8.5 million ($531.25)/ton in Hanoi and VND8.6 million/ton in HCMC and VND8.2 million/ton in Mekong Delta province of Can Tho, according to the Trade Information Center under the Ministry of Industry and Trade.

The agricultural sector still faces shortage of fertilizer for summer-fall crop season this year as domestic fertilizers can meet only 45%-50% of the urea demand, the newspaper added.

Vietnam now has to import 100% of DAP, Kali, SA fertilizers, the newspaper said.

Vietnam's fertilizer demands reach between 1.8 million and two million tons a year, but local producers can make only 900,000 tons.

Vietnam has so far this year spent $870 million importing 1.633 million tons of fertilizers, up 165% on year in value and 45.2% in volume, the General Statistics Office (GSO) said.

Source : Vietnam News, May 7, 2008

Animal Breeding Industry Left behind 9% Growth Target

The Animal Breeding Department under the Ministry of Agriculture and Rural Development has asked its provincial services to take urgent measures to fulfill its set growth targets at 8%-9% in 2008, the Vietnam News Agency reported.

Under the department's direction, localities should re-arrange its animal breeding in line with industrial farms and centralized slaughter to ensure safe and hygienic meat, the agency said.

The department also highlighted the importance of improving animal breeds while tightening control over animal feed quality.

According to the department, local animal breeding industry is now faced by a number of difficulties resulted from cold snap occurring early this year and porcine diseases. The cold snap caused a huge loss of VND637 billion and the blue-ear disease has so far this year killed 270,000 pigs, valued at more than VND500 billion.

In a move to support farmers hit hard by the disease, the government has decided to provide farmers with VND25,000/kilo of culled pork, and encouraged them to buy new pigs for breeding with VND1 million per boar and VND700,000 per sow.

The department said it will supply around 13,400 breeding pigs for farmers by the end of this year to farmers to recover their flock.

Currently in southern province, prices of pork are growing to new highs due to thin supply. A kilo of high quality port is selling for between VND47,000 and VND48,500 per kilo, up VND2,000 per kilo from a weak earlier.

Source : Vietnam News, May 27, 2008