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Comments Off on Mexichem acquires world’s largest irrigation company, Netafim

Mexichem acquires world’s largest irrigation company, Netafim

Posted by | August 23, 2017 |

Button dripperPot irrigation by on-line drippers. (Image source: Borisshin/Commons)

Kibbutz Hatzerim, the founder, will retain the remaining 20 per cent stake of Netafim’s share capital. The total enterprise value of the transaction is US$1.895bn.

Netafim is the world’s largest irrigation company. In the past few years it has achieved strong financial performance, with top line growth and improving profitability, reaching total sales of US$855mn for the year ended 31 December 2016. Mexichem will fund the acquisition with a combination of cash and debt.

“This is a transformational acquisition that advances Mexichem’s drive into specialty products and solutions and establishes us as a leading innovator in the high growth, micro-irrigation market. At the same time, Netafim positions us to become a leading developer of solutions to address food and water shortages, and respond to the need of increase crop yields and meet higher sustainability standards for fertilisation. Netafim has a long history of being at the forefront of creating smart solutions for the irrigation market. This acquisition will give Mexichem access to this smart technology which can be applied to heating and cooling, water management, Datacom, and other sectors, providing a platform from which to create smart industrial solutions around our existing product lines that serve the infrastructure, housing and Datacom markets,” said Antonio Carrillo Rule, Mexichem’s Chief Executive Officer.

Netafim is a global leader in developing, manufacturing and distributing advanced drip and micro-irrigation solutions, with local presence in more than 30 countries, 17 manufacturing plants, more than 4,300 employees and sales in more than 110 countries worldwide. Netafim’s advanced technologies and end-to-end solutions help growers across the world achieve higher and better crop yields while reducing usage of water and other inputs, such as manpower, nutrients and crop protection.

“By combining our current irrigation portfolio with Netafim’s business, we will create a formidable growth platform to drive synergies. With sales of almost US$1bn in the aggregate, this new business unit will have access to the resources, sales channels, and customer base of Mexichem’s global business. Additionally, we expect to leverage Netafim’s resources and expertise to create innovative new solutions across Mexichem’s specialty products. We also see substantial operating efficiencies over time in raw material procurement, logistics, and the sharing of production processes and technology know-how,” continued Mr Carrillo.

Commenting on the acquisition, Ran Maidan, Netafim’s Chief Executive Officer noted, “We are proud to have won the trust of a leading company such as Mexichem, and believe that together we will have an improved cost position and broader portfolio to support continued profitable growth and to extend our reach to new customers and geographies. We also will be able to apply our R&D and technical expertise in developing end-to-end innovative solutions that Mexichem can offer to its industrial customer base.”

Torsten Vogt, a Permira Partner and Co-Head of Industrials, commented, “Netafim is an outstanding business and we are proud to have supported the company’s growth and its critical mission of conserving and protecting water resources. Over the course of our partnership with Netafim’s management, Kibbutz Hatzerim and Kibbutz Magal, the company was transformed into a best-in-class global leader, with an enhanced focus on innovation and new product development, and an expanded footprint and resources. It has been a pleasure working with the Netafim team and we wish them continued success as part of Mexichem.”

The transaction is subject to approval by Mexichem’s shareholders meeting and regulatory approvals and is expected to close during the fourth quarter of 2017. Once the transaction is completed, Mexichem will consolidate Netafim under its Fluent Business Group for accounting purposes. Netafim will continue to operate under its current management and with its existing brand portfolio.

Comments Off on Farm produce quality improves in China

Farm produce quality improves in China

Posted by | August 21, 2017 |

Farm produce quality has improved consistently in China thanks to stringent oversight, official data showed Thursday.

Farm produce quality has improved steadily over the past five years as more than 96 percent of the output passed a quality check. In the first half of this year, the number reached 97.6 percent, said Guang Defu, director of the Bureau of Quality and Safety Supervision for Agro-products of the Ministry of Agriculture.

The ministry has laid out comprehensive safety standards including more than 6,000 quality standards in pesticide and veterinary residue and more than 5,000 other industry standards. Green and organic food standards have been applied in a greater scope, he told a press briefing on farm produce safety.

A national safety monitoring network has been established with 117,000 superintendents on duty, and they have intensified the crackdown on illegal use of ractopamine and other restricted pesticides.

“It is safe to say China’s farm produce is safe and reliable,” said Guang Defu, adding that problems still exist and supervision remains a daunting task.

He emphasized the importance of establishing a quality traceable system and vowed to deal with heavy metal pollution to improve food safety.

Source: Ministry of Agriculture China. Date: 2017-08-18

 

Comments Off on Chinese, Dutch firms meet to expand cooperation on agricultrue, food

Chinese, Dutch firms meet to expand cooperation on agricultrue, food

Posted by | August 21, 2017 |

More than 200 small and medium enterprises (SMEs) from China and the Netherlands gathered Tuesday for their first-ever match-making party designed to help expand bilateral cooperation in agriculture and the food industry.

The SMEs, including about 150 Dutch and 60-plus Chinese firms from a wide range of sectors such as seed cultivation, greenhouse technology, automation technology, dairy production, aquaculture and biological control, reached agreements on 196 cooperation intentions during the gathering in this biggest European port city.

A representative of the Dutch company Lely Group, which is world famous for its milking robot, told Xinhua that the company has been trying to export machinery to China in the last four years and the match-making event proved to be a good chance for them to further explore potential Chinese partners.

“We are here to meet people. We know that the dairy industry is getting more and more important in China. Of course we want to play a part in this development, as a supplier of automatic systems,” said the group’s international business manager Marcel van Leeuwen.

The Chinese SMEs came mainly from China’s biggest agricultural provinces like Henan, Jilin and Inner Mongolia.

A representative of a Chinese milk producer, who only gave his surname as Qu, said he wished to bring Dutch cheese-making technology to his hometown in Jilin. If possible, he would also try to raise Dutch Holstein cows there.

“We’ve found a partner who showed great interest. We are still in the discussion process and will continue our talks in the afternoon. The Netherlands has world-leading cheese-making technologies and is also famous for cattle breeding and its herd management systems. I think it is worth coming here,” Qu said.

The Bank of China, the organizer of the event, also joined the match-making talks. It took the opportunity to promote its cross-border yuan financing products and offered consultation services to both Chinese and Dutch SMEs.

A financial institution should invest to bring enterprises together and create more cooperation opportunities for them, said Wang Jian, head of the bank’s SME services.

“Only eyeing immediate income or profits is a too narrow vision. Clients’ needs and benefits must be given a priority. Chinese SMEs have not yet enough ability to go international. They need a national bank to help them enter the international market and get connected with their partners in foreign countries,” he told Xinhua.

Chinese Ambassador to The Netherlands Chen Xu, Commissioner of The Netherlands Foreign Investment Agency Jeroen Nijland and Mayor of Rotterdam Ahmed Aboutaleb attended the opening ceremony of the gathering.

It was the fourth SME match-making event initiated by the Bank of China since last year. The previous ones took place in Germany, Malaysia and France.

Source: Ministry of Agriculture China. Date: 2017-08-18

 

Comments Off on China’s wine joins best-sellers

China’s wine joins best-sellers

Posted by | August 21, 2017 |

Two Chinese winemakers were among the world’s top 10 best-selling wine brands in 2016, according to recently published data, as Britain’s two biggest supermarket chains begin stocking Chinese wine.

A list compiled by UK trade publication The Drinks Business had China’s Changyu as the fourth best-selling wine brand, by volume. It sold 15 million cases, which was the same volume it sold in 2015.

Beijing-based Great Wall was the 10th best-selling brand. It sold 7 million cases in 2016, down from 7.8 million in 2015. United States brand Barefoot was the best-selling product last year, selling 22.5 million cases.

Chinese wine consumption rose by 7 percent last year, and The Drinks Business estimates that, by 2020, China will have surpassed the UK to become the second-most-valuable wine market, behind the US.

Changyu and Great Wall dominate domestic consumption in China, and the companies are making inroads into the international market. Great Wall owns brands in Chile and France, while Changyu exports to several major European markets, including the UK.

This year, the UK’s two leading supermarket chains, Tesco and Sainsbury’s, began selling mid-range Changyu wines, starting at 7 pounds ($9) a bottle. UK wine merchant Berry Bros & Rudd has had four Changyu wines in permanent stock since 2013.

Chris Mercer, online editor for wine magazine Decanter, said the appearance of affordable Chinese wines in the UK comes as supermarkets look to import more wines from outside the eurozone.

“You are seeing the exchange rate between sterling and the euro becomes really unfavorable,” Mercer said.

“Everyone has realized that China is producing a shedload of wine, and the general consensus is that the quality is getting better.”

In January, Sainsbury’s began stocking Changyu Noble Dragon Red Cabernet Gernischt at an introductory price of 8 pounds a bottle.

Source: China Daily. Date: 2017-08-18

Comments Off on Asia at risk from intensive farming

Asia at risk from intensive farming

Posted by | August 17, 2017 |

A range of health and environmental risks associated with Asian meat production has the potential to significantly impact businesses and threaten investor returns in the region, a new report has warned.

Asia’s meat, seafood and dairy industries face a range of badly managed sustainability risks, from deforestation and greenhouse gas emissions to food fraud and the misuse of antibiotics, according to a new report by the Farm Animal Investment Risk and Return (FAIRR) initiative.

The report reviews risks around five issues that it says could result in greater regulatory controls, price volatility, weaker consumer demand and continuity problems in supply chains, all of which could impair businesses and jeopardise investor returns.

The issues highlighted are food safety and nutrition; public health risks due to antibiotic resistance and the outbreak of livestock viruses; the high environmental footprint of meat production; changing consumer views on animal welfare standards; and labour standards.

Asian meat demand is predicted to grow 19% from 2013 to 2025 to 144m tonnes.

FAIRR noted that a shift towards more intensive farming practices in China in particular is driving up antibiotic use, just as there is a global push to reduce usage in the face of antibiotic resistance. China already consumes almost half of the world’s antibiotics, and due to increased intensive farming, Asia is estimated to increase antibiotic usage in chicken and pigs by 129% and 124% respectively by 2030.

The report stated that threats in Asia also affect the global supply chain. In 2016, China’s demand for animal feed saw it import 35% of Brazil’s total soybean production – encouraging further deforestation in South America – with potentially enormous consequences for global carbon budgets.

Despite the focus on risk, the report said there are also excellent opportunities in Asian markets for more sustainable production. It highlighted that consumer concerns, particularly over health and safety, are resulting in increased demand for differentiated products such as organic meat, vegetarian and plant-based foods or higher welfare meats. Between 2012 and 2016, new product launches with vegetarian claims increased by 140% and new product launches with vegan claims increased by 440% in Southeast Asia.

Source: Footprint. Date: 2017-08-17

Comments Off on In India, an Uber for farm machinery aims to make a difference in rural areas

In India, an Uber for farm machinery aims to make a difference in rural areas

Posted by | August 17, 2017 |

Uber has inspired countless businesses to adopt its asset-light and on-demand approach to their industries. The examples are countless. Food delivery, dry cleaning, jet planes, home services rental bikes, or even phone chargers to name but a few — but how about farming equipment?

That’s the case in India, where a startup called EM3 AgriServices is helping rural farmers literally get their hands on specialist (and expensive) equipment and machines that would ordinarily be out of their reach. The goal is to help them earn their livelihood with cutting-edge tech without breaking the bank.

The concept is actually quite straightforward. EM3 works with farmers who own equipment like tractors, harvesters and other mechanical implements by allowing them to ‘rent’ out their assets to help pay off the purchase or generate additional revenue. Farmers, typically those in remote regional with small holdings and limited capital, then get access to quality implements and machines on a pay-as-you-use basis on either an hourly or acreage pricing.

That’s important when most farms in India are smaller than three acres. Tight economics, and a reliance on loans to make big-ticket purchases, are thought to be a key factor responsible for a high level of suicides among farmers over the past twenty years.

“The average Indian farm holding is just one percent of what you’d find in U.S., so farmers aren’t able to afford technology, even basic mechanization, because the capital load is too high,” EM3 founder and managing director Rohtash Mal (pictured above) told TechCrunch in an interview.

And he should know. Mal, a 63-year-old self-confessed “corporate world veteran,” started EM3 with his son Adwitiya Mal (CEO) in 2013 after a spell in charge of agriculture machinery manufacturer Escorts gave him a glimpse into the struggles of Indian farmers.

“In the farm equipment business one thing became clear, we did everything we could to help customers buy our products, but the fact is that the small farm could not afford the rate of technology,” Mal senior said.

“We’re inspired by what happens in tech world, but this hasn’t been done in agriculture before. The need wasn’t there in a lot of markets, such as the U.S., which were the foundation heads of technology, but the need is here in India,” he added.

The company calls its business farming-as-a-service — or Faas.

Unlike Uber, which has pioneered an online business model, EM3 is ‘tech-enabled’ rather than ‘tech.’ That’s to say that while it uses common on-demand tech to manage supply-demand, customer data and more, the majority of its business is offline. That’s because, quite simply, its customer base remains disconnected from the internet.

“The majority of farmers are not on smartphones,” Mal junior said. “The smartphone penetration is increasing but it isn’t at critical mass yet so we have a physical on the ground presence.”

So where there are apps for those ahead of the curve, EM3 operates call centers for handling requests from farmers — both inventory owners and prospective renters — and it deploys local representatives in the villages that it serves. But even the select farmers who are online and own smartphones find something comforting and secure about talking to a person on the other end of the phone when it comes to business matters that impact their life, the EM3 execs said.

To date, EM3 has focused on central parts of India where it claims to have worked with 8,000 farms through its 10 service centers. Mal senior explained that its platform covers machinery and services that span all seasons, but customer activity levels do vary during different parts of the farming calendar and based on location, crop type, etc.

The startup recently partnered with the local government of Rajasthan, India’s largest province by size and a major agriculture producer, to make a push into helping thousands more farmers. It is planning further forays, too, after raising significant funding from investors.

EM3 closed a $10 million in Series B financing led by Global Innovation Fund and VC firm Aspada which will be put to work expanding into more regions, increasing its inventory and developing tech. EM3 previously raised a $3.3 million Series A round led by Aspada in 2015.

Further down the line, Mal senior said he can envisage its business moving into other areas of a farmer’s business where it believes it can add value.

“There’s no other company [offering this service yet, but I’m sure there will be me-toos,” he said.

“We are still significantly ahead, but will have to add more and more to the menu of services to keep our lead. We want to become more dedicated to the farmer and look for more opportunities in farming and adjacent spaces.”

Already there is competition with Gold Farm and Trringo, a subsidiary of automotive conglomerate Mahindra & Mahindra, opening similar services over the past year.

Interest in agritech in India has heated up in recent years. Earlier in 2017, Accel backed AgroStar, a startup that offers a range of guidance and e-commerce services targeted at rural farmers, in its first deal in the sector. Plenty of other VCs in the country have expressed their interest about getting into the space, which has the potential to harness the power of technology to help many farmers in a profound way.

Source: Techcrunch. Date: 2017-08-17

Comments Off on Chinese authorities to visit Irish beef plants in the coming weeks

Chinese authorities to visit Irish beef plants in the coming weeks

Posted by | August 17, 2017 |

A group of Chinese inspectors is set to visit a number of Irish beef plants later this month.

Members of the Chinese Certification and Accreditation Administration (CNCA) are due to arrive in Ireland during the last week of August to inspect a number Irish beef processing facilities.

This visit is a step in the right direction for Irish beef exporters’ hopes of accessing the lucrative Chinese market. And, a successful outcome would further advance the process of opening the market to Irish beef.

This is particularly important as China was the second-largest importer of beef on the global stage in 2016. In addition, Chinese beef imports are expected to reach 1.2 million tonnes by 2025.

Back in April, the Minister for Agriculture, Michael Creed said it’s “a case of when, rather than if” when it comes to accessing the Chinese market with Irish beef.

He made the comments following a meeting with the the Chinese AQSIQ Minister Zhi Shuping, who has responsibility for the Chinese Quarantine and Inspection Service.

At the time, both minsters signed a formal protocol on beef exports to China. The protocol specifically focused on frozen beef under 30-months-of-age.

US Beef Moves A Step Closer To Accessing China

American beef exports to China are set to resume again after a 14-year absence, the US Department of Agriculture (USDA) announced in June.

The US has reached an agreement with Chinese officials on export protocols, which will allow for shipments to begin.

China’s beef imports have increased from $275 million in 2012 to $2.5 billion in 2016, according to the USDA. China was the second-largest importer of beef in the world last year, taking in 825,000t.

However, the US has been banned from China’s market since 2003. China implemented the ban on US beef amid concerns about BSE.

Following negotiations, it has been agreed that US beef exports to China must meet specified requirements under the USDA Export Verification (EV) Programme.

Source: Agriland. Date: 2017-08-17

Comments Off on Japan, South Korea Counter Weaker Chinese Pork Imports

Japan, South Korea Counter Weaker Chinese Pork Imports

Posted by | August 17, 2017 |

JAPAN, SOUTH KOREA & CHINA – Both Japan and South Korea have reported year-on-year increases in fresh/frozen pork imports during the first half of 2017, according to Bethan Wilkins, AHDB Pork analyst. 

With Chinese import demand slowing in the second quarter, these destinations have become increasingly important outlets for the global pork market.

During the first six months of 2017, Japan imported 459,000 tonnes of pork, 7 per cent more than in the same period last year. Shipments from Canada in particular were 19 per cent higher year-on-year.

Meanwhile, the other key suppliers, the EU and US, saw more modest increases of 3 per cent and 4 per cent respectively.

The expansion in EU shipments was largely driven by increasing imports from Spain in the second quarter. Conversely, US shipments actually fell 1 per cent on the year in Q2.

For South Korea, fresh/frozen pork imports increased 12 per cent on 2016 during the first half of the year, reaching 257,000 tonnes.

Disease outbreaks in both the beef and poultry sectors have reportedly boosted demand for pig meat this year.

EU shipments, which were up 25 per cent year-on-year and now provide over half of import requirements, drove the overall expansion.

Within this, volumes from Germany and the Netherlands were up 46 per cent and 58 per cent respectively.

The sharp increase in German shipments in particular is likely related to the temporary suspension of exports to China from a number of key plants earlier this year.

The UK also supplies pig meat to South Korea, albeit in small volumes (1,600 tonnes), but shipments were nonetheless 50 per cent higher than a year earlier.

 

Looking forwards, Chinese import demand is could remain behind 2016 levels in the latter half of the year.

Reports suggest there are expectations extensive farm closures could occur during Q3 under environmental regulations, leading to a temporary oversupply of pork on the market.

As such, how Japanese and South Korean import demand develops throughout the rest of 2017 could be key to global market balance.

Nonetheless, the outlook for South Korean demand at least seems positive, with pork likely to continue benefitting from disease pressures in the other protein sectors.

Source: The Pig Site. Date: 2017-08-17

Comments Off on Vietnamese forum promotes vegetables, fruits trade to China

Vietnamese forum promotes vegetables, fruits trade to China

Posted by | August 14, 2017 |

A forum promoting trade in Vietnamese and Chinese vegetables and fruits took place in the northern border province of Lang Son on August 11.

Speaking at the event, Vice Chairman of the provincial People’s Committee Ly Vinh Quang said Lang Son has an important geographical location in the Nanning – Lang Son – Hanoi – Hai Phong economic corridor, and has been a gateway for Vietnamese farm produce to access the Chinese market via Tan Thanh, Coc Nam and Huu Nghi border gates.

In 2016, Lang Son’s border gates allowed the export of nearly 478,514 tonnes of dragon fruit; 223,455 tonnes of watermelon; 240,345 tonnes of longan fruit; 81,198 tonnes of litchi; 8,135 tonnes of rambutan; and 17,837 tonnes of dried cashew nuts to China.

Over the past years, the province has opened additional auxiliary border gates such as Na Hinh, Co Sau, Binh Nghi, expanded roads leading to border gates, built infrastructure in border gates, and improved the capacity of goods transit and customs clearance.

Quang took the occasion to commit all possible support to enterprises.

Vice Mayor of Guangxi’s Chongzuo city said Chongzuo borders Lang Son province and shares similar customs and climate, adding that there remains room for bilateral cooperation in cultivation and farm produce processing.

Each year, Vietnam exports 1,866,000 tonnes of farm produce worth 6.89 billion CNY to China via Chongzuo’s border gates. Vietnamese fruits such as litchi, mango and dragon fruits are popular in China.

The Ministry of Industry and Trade’s Border and Mountainous Trade Department said farm produce, including fresh fruits are mostly exported to China via border gates, accounting for more than half of the total. Several commodities saw export growth such as rubber, cassava powder, fisheries, confectionary, coffee and tea.

According to the Ministry of Agriculture and Rural Development’s Plant Protection Agency, Vietnam shipped more than 2 million tonnes of fruits and vegetables worth 1.6 billion USD to China last year. In the past seven months of this year, the country earned over 1.3 billion USD from exporting roughly 1.2 million tonnes of fruits and vegetables to the neighbour.

Source: VNA. Date: 2017-08-14

Comments Off on ‘NI’s approval to export pork to China could be worth in excess of £10 million’

‘NI’s approval to export pork to China could be worth in excess of £10 million’

Posted by | August 14, 2017 |

Northern Ireland’s final approval to export pork to China could be worth in excess of £10 million (€11 million) to the local agri-food industry, according to the North’s Chief Veterinary Officer, Robert Huey.

He made the comments as he welcomed the announcement of the approval, which was made by the Department of Environment Food and Rural Affairs (DEFRA) earlier today.

This welcome news follows concerted efforts by the Department of Agriculture, Environment and Rural Affairs (DAERA) over time working closely with DEFRA, he said.

“Ministerial visits to China by former Agriculture Ministers, O’Neill and McIlveen, in support of our industry were an essential element of this success story.

“We are also indebted to Madam Wang, Consul General of the People’s Republic of China in Belfast for her support.

“This joined up approach between government, industry and key stakeholders is central to this announcement today,” Huey said.

The new UK export deal with China will bring a £200 million (€220.2 million) boost to the UK food industry and support 1,500 jobs, according to DEFRA.

In Northern Ireland, two slaughterhouses and two cold stores have now been given the green light to export pork.

The commencement of pork exports to China – including exports of trotters – will represent a major boost for the local pork industry, Huey explained.

“It will expand markets and secure jobs. By recommending approval for Northern Ireland, the Chinese authorities have recognised the rigorous standards we have in place to produce our high-quality, safe and wholesome pork.

“This approval to export pork represents a tangible outcome in DAERA’s long-term engagement strategy with China and also represents achievement in securing access to one of the primary new markets outlined in the Going for Growth initiative,” he concluded.

Source: Agriland. Date: 2017-08-14

 

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