GLOBAL – French animal feed company attracts takeover bids – 29 Jun 2011

Provimi SA, a French animal feed company has received several takeover bids from US agricultural giant Cargill, China’s New Hope Group, Dutch animal feed company Nutreco plus Dutch life science company DSM.

Provimi was bought by Permira Advisers in 2007 from private equity rivals CVC Capital partners and PAI Partners. The eventual sale of the company is expected to fetch more than €1.8 billion.

Some market experts say the animal feed business worldwide is fragmented and a candidate for consolidation. Only a third of the industry is owned by large international companies; the rest is owned by smaller firms, many of them family owned.

A second round of bidding is expected in about 6 weeks.

Information Intellasia.net

GLOBAL – Asia is High–Growth Market for Feed Additives – June 20, 2011

GLOBAL – A report has been published on the global animal feed additives market to 2016.

Global Animal Feed Additives By Types, Livestock, Geography, Regulations, Trends & Forecasts (2009-2016)  is the title of a new report from Fast Market Research.

The market research company explains that animal feed additives are pharmaceutical or nutritional substances that are not natural feedstuffs and are added to made-up and stored feeds for various purposes, such as to control infectious diseases in animals, to promote growth, and to enhance feed digestibility in animals.

The global animal feed additives market is growing at a steady pace and has a promising future because of the globally increasing demand for meat and meat products. Feed additives are becoming an important part of feed for animal growth and nutrition. Recently, disease outbreaks such as avian flu and foot-and-mouth diseases have also increased concern over animal health across the world. Environmental concerns, such as reduction of phosphorous content in manure are promoting feed additives consumption for animals.

The Europe and the US are the largest markets for animal feed additives and Asia is emerging as a high growth market. The report provides a comprehensive review of major market drivers, challenges, and products such as vitamins, feed acidifiers, amino acids, and antibiotics. The market is further segmented and forecasted for major geographic regions: North America, Europe, Asia, and Rest of the World including South America (Brazil and Argentina), Oceania, Africa and the Middle East. Top players of the industry are profiled in detail with their recent developments and other strategic industry activities.

The report covers the markets for antibiotics, vitamins, antioxidants, amino acids, feed enzymes and acidifiers for pigs, cattle, poultry and aquaculture.

Information ThePigSite

SOUTH KOREA – Feed Antibiotic Ban Ahead for South Korea – June 01, 2011

SOUTH KOREA – The country is to ban the use of antibiotics in animal feed from July.

South Korea plans to ban the mixing of antibiotics with animal feed from July in an effort to raise consumer trust in the safety of livestock products, the government said yesterday, 31 May.

Yonhap reports that South Korea allowed 44 types of antibiotics to be mixed with feed until 2005 but it has gradually cut the number since then as scientists warn of serious side-effects when livestock receive too many antibiotics.

Information ThePigSite News Desk

VIETNAM – Charoen Pokphand plans to buy Modern State in Vietnam – 03 Jun 2011

C.P. Pokphand plans to buy Modern State for HK$4.74 billion (app. US$ 610 million) in order to obtain the company’s animal feed manufacturing, animal breeding, meat processing, and food manufacturing businesses in Vietnam, according to a company filing.

Modern State is affiliated to a Thai-registered subsidiary of Pokphand’s parent.

By acquiring 70.8% of the Vietnamese animal-feed producer C.P. Pokphand Co (the Chinese arm of Thailands Charoen Pokphand Group) is to expand into Southeast Asia, in a bid to tap into new markets outside China, the origin of 96% of its sales last year.

Modern State has a 20% share of Vietnam’s commercial feed market which has expanded about 16% annually between 2005 and 2009, and 30% of its broiler-farming market.

Unique opportunity

As one of the largest corporate acquisitions in Vietnam, the deal represents a unique opportunity for CPP to acquire a controlling stake in a market leader and expand into one of the fastest growing feed and farming markets in South East Asia. The acquisition enables CPP to broaden and diversify its business base.

Established in Vietnam in 1993, CPVL’s integrated livestock and aquaculture businesses span the entire food production value chain, from the manufacturing and distribution of animal feed, to breeding and farming of livestock and aquatic animals, as well as processing and production of meat and food products. CPVL commands a leading position with approximately 20% of commercial feed market, 77% of industrial swine farming markets and 30% of broiler farming markets in Vietnam. For the year ended 2010, CPVL recorded an audited total revenue and net profit of VND20,077,880 million (US$1,046.5 million) and VND964,584 million (US$50.3 million), respectively.

Strong demand

Vietnam’s strong demand for meat and seafood products is driven by its young and expanding population, with a median age of 28. The country is also a major exporter of seafood in Asia. Capitalising on this favorable environment, Vietnam’s commercial feed market has been growing strongly, enjoying a compound annual growth rate (CAGR) of approximately 16% between 2005 and 2009, and strong growth is expected to continue in the coming years.

Industrial farming is also growing faster, driven by a structural shift to large scale production through scientific farming. Industrial production of poultry and swine in Vietnam registered a robust CAGR of approximately 22% and 24%, respectively, between 2005 and 2009.

Meanwhile, CPVL’s feed production, poultry and swine farming businesses achieved revenue CAGRs of 28%, 34% and 44% respectively between 2005 and 2009, consistently outperforming the market.

CPVL currently has four livestock feed mills with a total capacity of approximately 2.26 million tons per year and three aquatic feed mills with a combined capacity of approximately 0.61 million tons per year. CPP expects the acquisition of CPVL’s feed operations in Vietnam to be synergistic with the CPP’s existing 78 feed mills in China by enhancement in its economies of scale in raw material procurement.

Positioning as leader

Dhanin Chearavanont, chairman and executive director of CPP said, “This strategic acquisition will immediately position CPP as the leader in the commercial feed and industrial farming market of Vietnam. We expect the fast growing business in Vietnam to become a key growth driver and to contribute to a broader and more diversified income base for the Group going forward. We are confident that this, together with our leading business presence in China, will move CPP closer to our goal of becoming a significant player in Asia’s promising agri-food market.”

Information AllAboutFeed.net

NEW ZEALAND – Major feed business created in New Zealand – 19 May 2011

Ballance Agri-nutrients is joining forces with two of New Zealand’s independent suppliers of customised animal feeds to create a new nationwide business focused on meeting farmers’ complete animal nutrient needs from pasture through to supplements.

The company is purchasing a large share of two of New Zealand’s leading animal nutrient manufacturers; Seales Ltd in Morrinsville and Winslow Feeds and Nutrition in Ashburton.

The new operation, Seales Winslow, will be 51% owned by Ballance Agri-Nutrients. The shareholders of Seales Ltd and Winslow Feeds and Nutrition will each own half of the remaining 49% of the new business. Seales Winslow is expected to begin operations by June 1, 2011.

Natural fit

Ballance Agri-Nutrients Chief Executive, Larry Bilodeau, said the two firms were both recognised as leaders in producing high performance compound feeds and additives and were a natural fit with a farmer-owned co-operative focused on higher farm production.

“All three companies take a strong science-based approach to product development and on-farm advice, and this gives us great common ground.

“Better animal nutrition is the greatest single opportunity to boost the productivity of pastoral farming and New Zealand urgently needs to do this.

“We are offering a whole farm nutrient management approach which will improve productivity and animal fertility, health and welfare while reducing agriculture’s environmental footprint,” said Bilodeau.

Platform for growth

Seales Winslow’s inaugural Managing Director is Ross Hyland, current MD of Seales Ltd, who says he is looking forward to leading a nationwide firm able to service the needs of farmers right across the country.

“The new venture will provide a great platform for growth and ensure we can meet the expanding demand from farmers for a complete animal nutrition package.

Winslow Group’s Managing Director and new Board director of Seales Winslow, Craig Carr says the merger creates a New Zealand first with an operation which will now fully link all aspects of nutrition on a dairy, deer or sheep and beef farm.

Ballance Agri-Nutrients and Summit Quinphos will continue to provide shareholders and customers with specialist farm-gate service through their Technical Service Representatives. Seales Winslow will also continue to maintain a team of specialist feed representatives.

Information AllAboutFeed

THAILAND – Thai feed makers cancel soy meal shipments – 20 May 2011

Animal feed makers in Thailand have cancelled around 50,000 tonnes of soy meal imports and delayed another 40,000 tons as global prices fall amid plentiful South American supplies.

The Philippines is seeking to defer around 40,000 tons due from Argentina in June to August, traders said.

Bumper soy crop

Traders said most cargoes being cancelled or deferred are from Argentina, the world’s biggest exporter of the feed ingredient, which is on track to produce a bumper soybean crop.

The benchmark Chicago Board of Trade soybean meal has lost around 7% since the start of April on bumper soybean output in South America.

Prospects for Argentina’s 2010/11 soy crop are improving as healthy yields in northern farming areas compensate for poorer conditions in Buenos Aires province, the Rosario grains exchange said.

Information AllAboutFeed