MLBA 10: August / September 2009
Updates on...
Thailand seafood processors set to aid shrimp farmers
Two of Thailand's major seafood exporters have entered into a contract-farming arrangement with 185 shrimp farmers from all over the country in a bid to help the industry from the current slump.
The deal, initiated by Thai Union Frozen Products (TUF) and Marine Gold Products, guarantees to buy 10,000 tonnes of shrimp, worth about THB1.2 billion, from these contract farmers until the end of this year.
Since last year, Thai shrimp farmers have been cutting down production to stabilise prices amid falling demand.
Calling it a "3 Win + 1" strategy, Rittirong Boonmechote, managing director of the shrimp business unit of TUF, said the new arrangement could help the company's shrimp business grow by 15 percent this year.
He said three parties are the key beneficiaries of this business arrangement - shrimp farmers, seafood processors and seafood buyers overseas. The government - representing the "+ 1" in the equation, also benefits from the whole programme.
The first winners in this contract-farming scheme, Rittirong says, are the shrimp farmers. This assures them a buyer for their products at a specified price. The arrangement also allows them to know ahead of time what size of shrimp to produce, eliminating any market risk in the process.
Nofima Marked joins EU farm project
Nofima Marked is representing Norway in a two-year European commission-funded project (BrightAnimal) to study the use of modern technology in the farming of cattle, pigs, chicken and salmon.
During the two-year project, a best practice framework will be developed and aimed at small and medium-sized enterprises in the farming industry worldwide. The recommendations in the framework will take into consideration factors such as efficiency, the use of IT tools for identification, monitoring and traceability, as well as animal welfare and sustainability.
In order to improve the health and welfare of farmed species, as well as increase profitability, the project will assess various technologies to gain the best possible utilisation of food and other resources.
Pas Reform clinches new deal
Bangladesh's Provita Group has commissioned Pas Reform to refit existing hatchery operations with Smart hatchery equipment as part of an expansion programme.
Pas Reform will help Provita Group install SmartSet Setters, SmartHatch Hatchers, hatchery automation and climate control systems. That will increase production to 250,000 day-old chicks per week by the end of this year, with plans to further increase weekly targets to 500,000 day-old chicks by the end of 2010.
Pas Reform Academy will provide a full onsite training programme, as well as ongoing monitoring and advice to tailor Provita's incubation programmes for peak performance.
China Marine Food Group leads research on seafood product development
China Marine Food Group, a China-based processor of seafood-based snack foods and fresh and frozen marine catch, announced July 2 the company's plans to lead a government-sponsored research project that will be focusing on developing consumer-ready seafood products from low-cost seafood items using newly developed technologies.
Organised by the Ministry of Science and Technology, the project was awarded to three commercial fish processors operating in the Fujian province. The study will focus on each participating company's efforts on harvesting seafood only in the Fujian province and categorised as low-cost marine catch.
The participating companies have already received a provincial grant of US$0.7 million out of the total budget of US$2.3 million for the three-year development period.
Saudi dairy group enters poultry business
Almarai, a Saudi Arabian dairy group, is entering the poultry business by acquiring local agribusiness Hail Agricultural Development Co (Hadco).
Almarai, which is the Gulf's largest dairy firm, has reached an agreement to buy all shares in Hadco. The Hadco board had accepted the bid, valued at SAR30.1 per share, which is 3.4-percent above close on June 30.
For each five Hadco shares, shareholders will get one new Almarai share and SAR2.50, meaning Almarai will issue six million new shares, which represents a 5.5-percent capital hike.
The deal values Hadco at about SAR949.5 million, Almarai said. The group initially offered SAR22.25 to Hadco's shareholders in November. Almarai has been diversifying its revenues through acquisitions and has earmarked SAR6 billion for investments to expand outside the Gulf region, according to Trade Arabia.
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