North American scientists are struggling with the same issue. If H5N1 spreads primarily by contact with migratory birds, then the huge US poultry industry may be under threat from waterfowl returning from summer breeding grounds in the northern part of the continent.

Cornell University ornithologist Dr Kevin McGowan notes that there are still no thoroughly documented records of wild birds infecting domestic poultry or humans with H5N1. He suggests that migratory birds may be the least likely source of avian influenza infection, despite the variability of migration.

In any case, US public health and veterinary authorities are taking the risk from migratory birds and from smuggled birds and poultry meat very seriously. See http://www.wattnet.com/newsletters/poultry/htm/wattpoultryenews.htm.

Bird flu: Some EU countries allowing domestic poultry outdoors
Last week government agriculture authorities in the Netherlands lifted an order keeping all domestic poultry indoors, following an easing of concern over infection of H5N1 virus.

European Union neighbors - Germany, Britain, Denmark, and France - had reported cases of infected wild birds, while the Netherlands and Belgium have not. Switzerland also has lifted the outdoor production ban.

According to recent press reports, the release of birds to outdoor operation in Germany may take place later this week, while France is releasing farms from the restriction case-by-case in the Ain region where a H5N1-infected turkey operation was found in February.

The Netherlands' Agriculture Ministry attributed the lack of bird flu cases to the independent action by Dutch authorities in early 2005, well in advance of a subsequent recommendation from the European Union Commission. However, ministry spokeswoman Nynke van der Zee also credited the avoidance of H5N1 to a measure of good luck. Since February, more than 13,000 dead wild birds had been tested, with none positive for H5N1.

The Netherlands lies along the same migratory routes on the North Sea coast as Germany and Denmark, so the Dutch vigilance is likely to resume in the autumn migratory period as birds return from arctic areas.

For more: See WATT Poultry E-News (http://www.wattnet.com/newsletters/poultry/htm/wattpoultryenews.htm) and news source (http://hosted.ap.org/dynamic/stories/N/NETHERLANDS_BIRD_FLU?SITE=NDBIS&SECTION=HOME&TEMPLATE=DEFAULT)

Forecast: EU poultry supply balance
The latest forecasts from the European Union Commission for 2006 show an expected fall in poultry meat gross indigenous production of just over 1%, to 10.85 million metric tons. This is 2% lower than previously forecast, partly due to the impact of avian influenza outbreaks in several member states.

Imports are expected to remain stable whilst exports are forecast to be 10%, leading to an overall fall in self-sufficiency of almost 1%. Per capita consumption of poultry meat is expected to be marginally lower in 2006 as a whole (see table).

Seminole Feed wins 2006 Feed Truck of the Year
Seminole Feed, a privately owned commercial feed company based in Ocala, Florida, USA takes top honors in the 2006 Truck Fleet of the Year program. The Most Improved Truck Fleet of the Year for 2006 is Southern States Cooperative at Park City, Kentucky, USA.

The international feed trucking performance improvement and recognition program, jointly sponsored by the American Feed Industry Association and FEED MANAGEMENT magazine, attracts contestants from the USA, Canada, and Mexico.

Program rules require the completion of an application in which fleet managers record basic facts about their operation along with details in key categories such as safety, service, efficiency and overall trucking performance. More details are requested of the highest scoring fleets and then representatives of AFIA and FM visit the top fleets. Winning truck fleets receive AFIA-FM awards and industry-wide recognition through AFIA and FM articles, which draw popular media attention.

Seminole's trucking operation, under fleet manager Stephen Temple with subsidiary Branch Logistics LLC, consists of 18 trucks and drivers covering more than 1.6 million kilometres to deliver more than 60,000 metric tons (mt) of horse feeds. Based in central Florida, the operation supplies dealers, breeders, stables, and other customers in three other US states. FM's May-June 2006 issue carries a cover story about Seminole's winning trucking operation.

The Southern States Co-op's Park City truck fleet operates nine trucks in all-bulk delivery of more than 45,000 mt, driving more than 720,000 km. FM May-June 2006 reports on the top-contender performance of the Park City fleet.

The 2006 Truck Fleet of the Year program is the 17th annual showing . For articles about past winners, see the FM article archive at www.feedindustrynetwork.com. Details on the program appear at www.afia.org.

Enter now: 2006 Feed Mill of the Year program
The American Feed Industry Association and FEED MANAGEMENT magazine recently announced that entry applications are available for the 2006 Feed Mill of the Year program. This is the 22nd consecutive year for the feed plant performance improvement and recognition program, which showcases overall excellence in feed manufacturing. A winner, 'most improved', and several finalist feed plants are chosen.

AFIA's vice president Rex Runyon says, "Your firm has an excellent chance to be recognized."

Entry forms are available from AFIA, with details available from AFIA's Keith Epperson, a contender in the program himself when he was employed at USA-based commercial feed company Kent Feeds. Contact Mr Epperson at tel +1 563 263 7329, kepperson@afia.org, and visit http://www.afia.org/Feedgram_Articles/2006/Volume_20___7/Feed_Mill_of_the_Year.html

Please note: AFIA membership is required to submit an entry. All participating mills must be capable of handling medicated feeds. Size, age, and degree of automation are not factors. There is no limit on the number of mills that can be entered; however, an application form must be completed for each.

Completed entry forms must be returned to AFIA on or before 2 June, 2006. Entry form information is reviewed by AFIA staff only and is kept in the strictest confidence. Semi-finalists are chosen and contacted for additional information required to make final choices and to schedule a visit from AFIA and FM.

The winner and most improved mills will have articles on their operations in Feed Management, with the winning mill appearing on the front cover. They will also be featured in the AFIA Journal. Semi-finalists and honorable mentions will appear in both publications.

For more, see: http://www.afia.org/Feedgram_Articles/2006/Volume_20___7/Feed_Mill_of_the_Year.html

Mycotoxin webinar: Key economic control points
Mycotoxin risk control requires assessment of risk accumulating along the whole feed supply chain, Dr Gerardo Morantes of Cargill Animal Nutrition told participants in a WATT web seminar on 25 April. However, Dr Morantes noted, control is more economical at certain links, especially early in that chain.

Risk of mycotoxins contaminating the final feed product and human food products remains a significant, but controllable risk, added Dr David Ledoux, a professor at the University of Missouri, USA, and researcher in the effects of mycotoxins in poultry. Mycotoxins contaminate more than a quarter of all harvested grain and play a major role in poor animal performance and subclinical disease.

For the grain and feed industries overall, the experts agreed, ‘prevention’ of molds and mycotoxins in the grain and feed is likely to be more cost-effective than a ‘cure’ for contaminated feedstuffs using adsorbents. However, in critical situations, including long transportation and storage under humid, tropical conditions, then adsorbents targeted to specific mycotoxin threats may be the best choice.

Cargill offers the PROMOTE™ program, which includes risk assessment for mycotoxins in manufactured feed. For the archived edition of the web seminar ‘Mold and Mycotoxins: Managing Risk in the Global Feed supply chain’, see: http://w.on24.com/r.htm?e=21926&s=1&k=F932DFF27A0042F218E7E7E1EF2B6416

Also on mycotoxins
Further announcement on behalf of the fourth World Mycotoxin Forum set for Cincinnati, USA, 6-8 November 2006, reveals emphases on food supply chain implications and on methods of sampling and analysis. There will also be discussions of the use of biomarkers to show mycotoxin exposure. For more, see http://www.bastiaanse-communication.com/html/wmf4_new.html

Feed big in world’s top poultry show
The first International Feed Expo and International Poultry Expo, taking place 24-27 January, 2007, in Atlanta, Georgia, USA, combines a top feed industry trade show with the world’s largest annual poultry industry trade show.

Both FEED MANAGEMENT and FEED INTERNATIONAL magazine have reported the US Poultry & Egg Association’s IPE as the “world’s largest annual feed trade show” as up to a third of the exhibits offered feed-related equipment, feed ingredients, or consulting or other services.

“Together,” says the American Feed Industry Association’s Rex Runyon, “these shows offer an unparalleled combination of buying opportunities and educational forums.”

Mr Runyon advises potential exhibitors to “get in on the ground floor”: “No other event, global or domestic, will offer you this incredible opportunity to obtain new leads, increase your sales, and build brand awareness and network.... Space assignments are being made now and prime spots are going fast.”

For more, visit www.ipe07.org or contact Angee Powell (apowell@afia.org) or Rex Runyon (rrunyon@afia.org, tel +1 703 524 0810).

Open to all: Feed Ingredient Institute
An intensive short course on all types of feed ingredients and their practical use in feed formulation and manufacturing takes place 19-22 June at the Crowne Plaza O’Hare Hotel, Chicago, Illinois, USA.

The biennial Feed Ingredient Institute (FII) is now in its 20th year, offering a very quick, but detailed introduction to animal nutrition, feedstuffs and specialty ingredients used worldwide. FII, which is sponsored by the American Feed Industry Association, is designed for feed manufacturers, ingredient suppliers, and others interested in learning more about the feed industry. Industry professionals conduct the educational sessions.

Both feed manufacturers and ingredient suppliers find their FII graduates return with vastly more job knowledge and productivity, says feed industry and feed ingredients regulatory consultant Betty Pendleton. The FII class typically includes a wide variety of personnel, including purchasing agents, quality assurance personnel, nutritionists, sales, administrative, accounting, information systems, transportation and manufacturing staff.
For program details, registration and hotel information, visit
http://209.70.188.116/nlt3u/nph-csnlr.cgi?52616e646f6d495652a63b3d3569de5ea7b4c4a536d9867fe1e28f16cd1052d87261e66d4379f2d8 or www.afia.org
http://209.70.188.116/nlt3u/nph-csnlr.cgi?52616e646f6d495652a63b3d3569de5ea7b4c4a536d9867fe1e28f16cd1052d8941ff86b69255459

Brazil: Feed output growth slowing
Current forecast from the Brazilian feed association is that 3.5% more feeds will be produced in Brazil this year than in 2005. Although this represents a downturn from the rates of annual growth recorded previously — the expansion in 2005 was around 8.5%, for example — the actual amount of increase in 2006 will depend on how the country’s animal sector recovers after bouts of foot-and-mouth disease and an embargo on meat exports to customers such as Russia.

Poultry feed uptake may rise by only 1.7%, says Sindirações, whereas 6% rises are predicted for pig and cattle feeds. In round terms for the three major markets, it could mean a growth only from 45.3 million metric tons (mmt) of feeds in 2005 to 46 mmt.

Philippines: Feed makers to import more corn
Making more than 8 million metric tons (mmt) of industrial feed per year, the Philippines industry now plans to import more corn this year to fill the projected corn supply deficit of 1.3 mmt. Ricardo Pinca, vice-president of the Philippine Association of Feed Millers Inc. (Pafmi), was reported to tell the 4th National Corn Congress that the requirement of feed millers cannot be met by domestically-produced corn.

The country’s nearly 700 feed manufacturers, including commercial feed makers and integrators such as San Miguel Corp, Cargill Philippines, Swift Foods, General Milling Corp, Universal Milling Corp, and Tyson Agro-Ventures, are reported to be expanding their output to keep pace with growing demand.

Philippines population is growing at 3% per year and demand for poultry and pigs is increasing at nearly the same rate, Mr Pinca noted. One challenge to the feed industry is the limit of corn imports allowed under minimum access volume (MAV), which refers to the minimum volume of a specific commodity a World Trade Organization member country is allowed to import at preferential or lower tariffs. The projected 2006 corn exports would significantly exceed MAV.

Mr Pinca said the industry needed about 4.3 mmt of yellow corn, while the Philippines government was projecting domestic supply of only 3.5 mmt. According to Mr Pinca, corn comprises half of the total feedstuffs required, with most of the rest consisting of feed wheat and soybean meal.

World wheat forecast down, but corn and barley up
World wheat production in 2006 is forecast by the International Grains Council at 598 million metric tons (mmt), down from the record crop of 619.3 mmt produced in 2005. However, the Council predicts increases this year for maize (yellow corn) and barley output. It sees maize production worldwide rising by 8 mmt to 690 mmt, while barley is forecast up by 8 mmt tons to 147 million tons.

With less competition from low-priced wheat, says IGC, the use of maize in animal feeds may grow this year by 4 mmt. But the biggest rise in corn usage will be for industrial purposes, especially the production of ethanol in the USA. Some 18 mmt tons more corn than in 2005 looks likely to be used industrially in 2006. Early predictions for crop year 2006-07 expected industrial applications to take up to 30 mmt tons more maize than in 2005-06.

Wheat inclusion in feeds could fall globally to 99 mmt or about 10 mmt tons less than in for 2005-06, IGC adds. Most of the decline will involve the European Union and the eastern European countries near Russia. In the EU, some wheat in animal feds may be replaced by an increasing use of protein-rich ingredients such as rapeseed meal from the expanding biodiesel industry.

Higher feed maize demand is forecast for a number of countries in the Asia-Pacific region, including Indonesia, Malaysia, and Taiwan. Their livestock production is showing a modest recovery following recent Asian outbreaks of avian influenza.

In China, about 75% of all maize used goes into feeds. The outlook for Chinese usage in feeds is a slight rise to 99 mmt. Driving the current usage, IGC says, are an expansion in the country’s meat consumption and a shift towards larger-scale livestock production. Even so, the Council comments, the rate of growth for maize uptake has been slower than anticipated in recent years due to increased inclusions of high-protein feeds and of by-products from the starch and brewery industries.

Pakistan’s extrusion research centre
Dr Mian N. Riaz, head of the Extrusion Technology Program and Graduate Faculty of Food Science and Technology Program at the Food Protein Research and Development Center, Texas A&M University, in the USA, and Dr Faqir M. Anjum, director of the Institute of Food Science and Technology, University of Agriculture Faisalabad, in Pakistan, have received a grant of more than US$700,000 to establish an Extrusion Center at the University of Agriculture, Faisalabad, Pakistan.

The two-year award is from the Pakistan-US Science and Technology Cooperative Program (National Academy of Sciences, US Agency for International Development, and Higher Education Commission of Pakistan). Although extruded food and feed products can play a significant role in human and animal nutrition, to date this technology is absent in Pakistan, where it could have a major impact on food quality and utilisation.

The new centre at Faisalabad will conduct teaching, research, and product development, as well as educational support to private and government entities.

EU animal census figures
Provisional results of the farm animal census undertaken in all 25 member states of the European Union at the end of 2005 have now been published by Eurostat in Luxembourg. They show only small changes from 2004 figures for both pigs and cattle, although the latest data do confirm a declining trend in the number of milking cows.

For pigs, the EU-25 total for 2005 was 151.7 million compared with 151.1 million in 2004. Cattle numbers fell back from 86. 4 million to 85.8 million.

A commentary by the European Market Survey bulletin from the UK’s Meat & Livestock Commission says a growth in sow numbers in the new member states from eastern Europe counterbalanced a 1% fall in the pig breeding herd in the former EU-15 area. The only country to record a significant increase in its cattle numbers was Poland, up by 4% from year-end 2004. Virtually all other countries in the European Union suffered a cutback, although these reductions were mostly modest.

The most notable part of the dataset may yet prove to be where it refers to dairy cows. Their inventory in 2004 had been 23.4 million, itself well down from previous years. For 2005 the figure given is 22.97 million, representing a further decrease of 1.8%. The worst downturn proportionally was in Slovenia, where numbers were down by 10.3%.

Feed output slipping in Germany
German feed producers association DVT has assessed regional trends within Germany for feed production on agricultural ministry statistics. German saw its feed output slip 2.6% from 20.14 million metric tons (mmt) in 2004 to 19.6 mmt in 2005. DVT notes how the slippage affected all areas.

Among the different farm species, the pig feed tonnage went from approximately 7.6 mmt to 7.5 mmt and that for cattle from 6.4 mmt to under 6 mmt. Broiler feed output increased slightly, however, from under 3 mmt to almost 3.1 mmt.

GMP+ quality assurance program expanding
Animal feed product board PDV in the Netherlands has issued its latest annual report, which notes the continued expansion of GMP+ quality assurance certification to feed companies in other countries. In 2005 the overall number of certified companies rose by 1,700 to 6,700. Another development of note during the year has been the publication of a new manual on calculating the feed value of raw materials, produced by the Central Livestock Feed Office CVB. See details at details at www.pdv.nl.

Also in the Netherlands, an industry overview has said that the 10 largest Dutch feed enterprises now account for over two-thirds of all feeds produced nationally. The biggest co-operatives are names as Cehave Landbouwbelang, Agrifirm, and ABCTA. The largest private-sector suppliers are Hendrix UTD (Nutreco) and De Heus-Brokking-Koudijs.

Out of a national output of 12.5 million metric tons of feeds for all farm species, some 43% is for pigs and 25% each for pigs and cattle.

Danish feed industry data
Further details of industrial feed production in Denmark in 2005 have emerged from an analysis prepared by Efterretninger Landbrug. First this confirms a 5.5% reduction in total volume from 5.63 million metric tons (mmt) in 2004 to 5.319 mmt last year. Then it shows the downturn mainly affected pig feed output in the second half of 2005.

Six-month figures for all species had been balanced at 2.693 mmt in the first half and 2.6.626 mmt in the second half. But the slide in pig feeds is shown to have been from 1.746 mmt in January-June to 1.715 mmt tons in July-December as poor producer prices for pigs began to take effect on annual feed contract agreements.

Polish feed slipped in 2005, but prospects brighter
Poland saw a 15% fall in its feed volumes last year alongside a big drop in livestock numbers nationally, according to an Agra Europe report. However, end-of-year inventory data have highlighted a recovery in the number of farm animals, especially pigs. Sources suggest that the 7.6% increase that took pig numbers from 17.4 million in 2004 to 18.7 million in 2005 could be followed by another big jump in 2006, possibly up to 19.5 million.

Estonia: Fewer and larger pig farms
Statistics Estonia reports that the number of pig farms in Estonia has fallen since 2001, but the size of farms has increased. In 2005, 85% of all pigs on farms in Estonia were to be found on farms with more than 1,000 pigs each. The report noted that the concentration of pig production in Estonia has been much more rapid than in the European Union as a whole.

Thank you, Professor McEllhiney
Kansas State University Professor Emeritus Robert R. McEllhiney, 78, die recently. Professor ‘Bob’ McEllhiney was known and respected by many in the global feed industry, having had a long and distinguished career in both the commercial feed industry and in the Feed Science and Management program in the Department of Grain Science and Industry at Kansas State University. Professor McEllhiney taught a number of feed science courses and served as technical editor for Feed Manufacturing Technology III and Feed Manufacturing Technology IV, which continue to serve as basic texts for feed plant managers worldwide.

Professor McEllhiney was a feed good friend of the feed industry and will be sorely missed by many, including this editor for whom he was a wonderful mentor beginning more than 20 years ago. More on Professor McEllhiney’s enduring legacy in feed science, education, and industry will appear in coming issues of FEED MANAGEMENT and FEED INTERNATIONAL.

The Robert R. McEllhiney Feed Science Scholarship has been established in his honor at K-State. Contributions should be made payable to KSU Foundation and sent to the Department of Grain Science and Industry, in care of Professor Fred Fairchild, 201 Shellenberger Hall, Manhattan, Kansas 66506 2201, USA.

Industry News

Ridley: Energy and logistics costly
Ridley Nutrition Solutions Division faced twin challenges in 2005 of hurricane-related logistics problems and higher energy costs, with spillover into 2006. However, Ridley's third quarter results (through March 2006) were “broadly in line with our own expectations” said Steve Van Roekel, Ridley Inc. President and CEO.

“Ridley's net earnings for the third quarter are $3.9 million compared with $5.7 million for the same period last year, when a claim settlement of $1.5 million on an after-tax basis increased reported earnings. For the year to date, earnings are $11.1 million, an increase of $1.4 million over fiscal 2005."

Ridley is one of the largest commercial feed companies in North America, based in both Mankato, Minnesota, and Winnipeg, Canada. More at: www.ridleyinc.com.

ADM: Operating profits off with exit from European feed business
USA-based Archer Daniels Midland (ADM) reported its third-quarter results last week, noting that operating profit decreased $8 million to $76 million for the quarter due principally to decreased results of Food and Feed Ingredients. ADM said this lower performance was related principally to costs associated with exiting the European animal feed business.

“Financial results for the quarter were comparable to last year as an $18 million reduction in earnings of the Company’s private equity fund investments was offset by improved earnings of ADM Investor Services and captive insurance operations. For the nine months, Other segment operating profit declined $ 86 million to $236 million. Food and Feed Ingredient operations declined $65 million due principally to impairment charges of $32 million, decreased operating results of natural health and nutrition, and costs associated with exiting the European animal feed business.

“Financial results declined $21 million primarily due to a $63 million decrease in earnings of our private equity funds partially offset by improved earnings of ADM Investor Services and captive insurance operations.”

Devenish Nutrition’s new premix plan
The latest newsletter to clients from Devenish Nutrition in Northern Ireland records that the company has commissioned its new premix plant. Investment in the automated plant will reduce overheads and so help offset spiraling costs on other fronts, the company remarks.

China: Imported product to fight bird flue
Kiwa Bio-Tech Products Group Corporation recently reported that it has signed annual distribution agreements with organizations in China to expand distribution of the AF-01 Anti-viral Aerosol Agent for use in “preventing” or “blocking” bird flu. More at: www.kiwabiotech.com.

DSM buys CRINA feed additive business
Intervet International and DSM Nutritional Products signed an agreement on sale and purchase of the Switzerland-based CRINA business, which specializes in plant extracts and essential oils used as feed additives.

Glycinates of trace elements approved in EU
Official approval for glycinates of trace elements in the European Union was reported by feed ingredients supplier PANCOSMA. Regulation (EC) N° 479/2006 published in the Official Journal of the European
Union on 24th March 2006 approves these new sources of trace minerals for inclusion in
animal feeds. Glycinates of zinc, copper, iron and manganese are now authorized for all animal
species, reports PANCOSMA, which markets B-TRAXIM®2C.

Danisco’s new distributors for betaine
Danisco Animal Nutrition recently announced the appointment of new distributors for Betafin® feed betaine in Poland, Italy, Spain, Benelux and Portugal, effective from the 1st May 2006. For details, see www.danisco.com/animalnutrition.