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Themed newsletter | Thursday August 06, 2015 | 08 | worldpoultry.net PROCESSING /6 1 WORLD POULTRY FOCUS FOCUS New IPC secretary general eager to help IPC grow Main EU producers focus on prospects of differentiation Securing carcass quality with minerals IN SHORT ARTICLE ARTICLE ARTICLE IN SHORT There is no question that the production of con- ventional broiler chick- ens for mainstream mar- kets all around the world has a bright future. However, a new main- stream is emerging - the market for premium chickens. During the first Hubbard Premium Forum the main producers in Europe of these type of chickens exchanged knowledge and shared results on what has become much more than a niche market. Consumers in Europe are willing to pay extra for value added meat, especially when it is marketed in a specific way. Over the last 5 years broiler car- cass prices remained below 1.8 €/kg and cut prices were stag- nating ranging from 1 to 2.5 €/kg of carcass. Good carcass quality has become a minimum requirement for trading and a constant focus on preventing downgrading is imperative. Trace element supplementation in feed can help. Stork Poultry Processing nominated for award Huge poultry processing plant built in Tatarstan Rosselkhozbank invests in poultry complex Potential biomarkers of broiler gut health identified Thailand’s CPF invests €614m in Russian poultry market US consumers prefer labelled meat products Eurodon boosts its turkey meat production capacity Rabobank: 10 rules for thriving in EU poultry industry The International Poultry Council appoint- ed a new secretary general. The Brazilian Marilia Rangel will start her new role on 1 August. Bringing new members to the IPC and supporting the upcoming rapid growth of the sector are her focal points. “For me it is an honour to be chosen as the IPC’s next secretary general. There are so many things that can be done as an international organization. The people behind the organization are very passionate about the industry and its possibilities and I am looking forward to working along them in my role as secretary general.” > Read more on page 2 > Read more on page 4 > Read more on page 5 01 | 02 | 03 | 04 | 05 | 06

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New IPC secretary general eager to help IPC grow

Main EU producers focus on prospects of differentiation Securing carcass quality with minerals

IN Short

artIClE artIClEartIClE

IN Short

There is no question that the production of con-ventional broiler chick-ens for mainstream mar-kets all around the world has a bright future. However, a new main-stream is emerging - the market for premium chickens. During the first Hubbard Premium Forum the main producers in Europe of these type of chickens exchanged knowledge and shared results on what has become much more than a niche market. Consumers in Europe are willing to pay extra for value added meat, especially when it is marketed in a specific way.

Over the last 5 years broiler car-cass prices remained below 1.8 €/kg and cut prices were stag-nating ranging from 1 to 2.5 €/kg of carcass. Good carcass quality has become a minimum requirement for trading and a constant focus on preventing downgrading is imperative. Trace element supplementation in feed can help.Stork Poultry Processing nominated for award

Huge poultry processing plant built in Tatarstan

Rosselkhozbank invests in poultry complex

Potential biomarkers of broiler gut health identified

Thailand’s CPF invests €614m in Russian poultry market

US consumers prefer labelled meat products

Eurodon boosts its turkey meat production capacity

Rabobank: 10 rules for thriving in EU poultry industry

The International Poultry Council appoint-ed a new secretary general. The Brazilian Marilia Rangel will start her new role on 1 August. Bringing new members to the IPC and supporting the upcoming rapid growth of the sector are her focal points. “For me it is an honour to be chosen as the IPC’s next secretary general. There are so many things that can be done as an international organization. The people behind the organization are very passionate about the industry and its possibilities and I am looking forward to working along them in my role as secretary general.”

> Read more on page 2

> Read more on page 4

> Read more on page 5

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CoNSUMErS wIllINg to Pay for valUE addEd ChICkEN

Differentiation is the name of the game when it comes to the European poultry market. Consumer demands are changing with more attention paid to animal welfare, the use of antibiotics in animal production has to come down to a minimum level due to societal demands and government legislation. Also, supermarkets are moving more and more from anonymous bulk products to added value upper market products.

By Fabian Brockötter

Wilbert Hilkens from ABN-Amro bank researched consumer behaviour and looked 5 years ahead. “Price still is an impor-tant factor when someone is buying poultry meat, but con-sumers prefer meat concepts with unique selling points such as taste, ease of use and with benefits for health of unique origin. On top of that the welfare and environmental aspects of production are a nice add-on.”When it comes to production in Europe a shift to added value broiler meat is essential for profitability. Agricultural economist Peter van Horne showed that third countries have significantly lower production costs on farm and at slaughter. Compared to Brazil and Argentina the EU is about 30% more expensive and compared to Ukraine and the US about 20-25%. “The weaker competitive position for the EU poultry meat industry is a threat for conventional produc-tion,” according to Van Horne.

Not leading on cost priceIt may be so that ‘feeding the hungry world’ is foremost on the minds of many, but the question is if Europe has to feed the whole world? Europe has the technical know-how to pro-duce at least part of the world’s meat demand, but on cost price it is not leading. And societal demands won’t allow the European producers to go to the proverbial maximum produc-tion possible. Even within the existing legal constraints the

industry is facing headwind, especially from animal welfare and animal rights organisations. And the pressure groups have success. By targeting individual retail-ers they convinced them to replace the conventional chicken meat with meat from slower growing, less densely stocked birds.The slower growing birds lead to a 20% hike in production costs, leading to a price rise of €1.75 per kilo breast meat. Paul van Boekholt of Hubbard states, “Consumers in Europe are willing to pay extra for value added meat, especially when it is marketed in a specific way. With households spending up to US$500 per week for food alone that cannot come as a surprise.

Room for differentiationThe marketing supporting product differentiation will be helped by the development of the conventional broiler on the one hand and the restructure of supermarkets on the other. Van Boekholt explains: “In 1992 the conventional broil-er took 46 days to reach its targeted slaughter weight, opposed to 56 days for the slow growing certified bird and 81 days for the label chicken. Nowadays the conventional bird is kept only 35 days and we foresee that in 2020 that will be only 32 days.” The age gap between conventional broilers and 56-day broilers is growing, allowing for more differentiation. An EFSA report from 2010 showed that 7% of all broiler par-ent stock in the EU was for the production of slow(er) grow-ing broilers and that developed fast with initiatives such as the Dutch ‘Chicken of Tomorrow’, the French ‘Certifé’, the British ‘RSPCA Freedom Food’, the German ‘Tierschutzlabel’ and the Dutch ‘Beter Leven’ mark. “France has always had a focus on cuisine and tradition and 35% of all breeders are producing slow(er) growing broilers, but the Netherlands is

at the forefront of recent development with the ‘Chicken of Tomorrow’ which should replace all conventional poultry meat by 2020, as agreed between the poultry sector and all supermarkets.”

Supermarkets to become specialty shopsBanker Wilbert Hilkens sees other movements in the super-market sector which are favourable towards added value products as well. “‘Fresh foods in 2020’ is about changing consumer preferences and its implications for the supply chains of meat, eggs and vegetables. Well educated and higher income consumers look for something extra in meat, such as better taste, known origin and intrinsic value of good production.”Even more important is the supermarket sector tuning in to those demands: “Supermarkets will become more and more specialty shops, places of inspiration and taste experience. Actual food delivery will move more and more to home delivery and pick up points after internet orders. Products with the ‘right story’ and a meat supply chain which is in touch with the challenges of food retail and food service will be successful. The world of consumers is on the move and that is more an opportunity than a challenge.”

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NEw horIzoNS for aNIMal rENdErINgBy Fabian Brockötter

Renowned speakers Gilson Spanemberg from Apex Brazil, Dutch rendering expert Jacques Wijnoogst and American professor Charles Gooding zoomed in on the sustainability aspect of animal rendering. Chemical engineer Spanemberg stated that if we want to meet the needs of the growing world population, with the little resources we have, we have to do the utmost to use every source we have. “As it is, the earth cannot sustain everyone. If we demand that all the people in the world have a decent food supply, we would need a second and even a third earth.” But according to Spanemberg sustainability is more than just environmental preservation. “Social and econom-ic needs are also part of the equation when it comes to sustainability. We have to preserve resources, caring for the needs of people while also creating revenue. Only profita-ble companies can ensure the other aspects.”

Green industry“When it comes to rendering, we are a ‘green’ industry, but we have to prove it,” says professor Charles Gooding. He was involved in making lifecycle assessments and crunched the numbers regarding sustainability of the ren-dering industry. “By rendering animal by-products instead of composting it, you prevent 70% of CO2 emissions. Further when taking in to account all transport, energy and

so forth, which is needed for rendering, meat and bone meal can compete with vegetable protein every time. The thing is, there is nothing more efficient than bringing an essentially waste product to value.” With the inclusion of 5% rendered material in feed to replace the same energy and protein value of soya the CO2 value is reduced from 794 to 752 kilo per tonne of feed.“And there are even more gains to make,” is the opinion of Jacques Wijnoogst. “Especially in pet food and aquaculture feed we can be much more efficient. Nowadays we tend to use dried feed ingredients, with a relatively large CO2 foot-print due to energy use in the drying process.” Wijnoogst is an active promotor of using liquid or semi liquid rendering products. “The human food business shows us there are no limitations in using liquid products, we in the animal feed industry are just not used to it.”

Rendering in BrazilEmbracing the idea of using liquid rendering products may be somewhat far-fetched for the Brazilian renderers, but the industry in Latin America has a really straight forward thought about how to utilise rendering products in animal feed. “Discussions, like the ones in Europe, where rendering material cannot be used in feed, we don’t know,” says Lucas Cipriano, discussion leader of the symposium on behalf of ABRA. Some 80% of meat and bonemeal and 25% of ani-mal fat goes back into the animal protein production

chain, excluding ruminants. Brazil has some 500 relatively small rendering plants throughout the country, keeping transport of processing waste to a minimum in the tropics. These plants process only waste streams from slaughter houses, all fallen stock in Brazil is destroyed on farm. The total amount of rendering material sums up to 12.5 billion kilos, after rendering some 2 billion litres and 3.4 billion kilos of meat and bone meal are left for recycling.“By legislation we can feed anything to swine and poultry, using bonemeal instead of soy protein our poultry industry can be more profitable,” Cipriano states. Even sitting on top of the largest pile of soy in the world, replacing soy with meat and bonemeal an extra saving of 7% can be achieved. “And on top of that, rendering products have phosphor, calcium, protein and energy, which makes it much easier to formulate good feed.”

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CarCaSS qUalIty ESSENtIal of ProfItablE oPEratIoNBy Catherine Ionescu, Ewenn Helary, Pancosma

Some grading systems exist for broiler chicken carcasses. In the European Union, grading includes mainly 2 categories. They include a level of nonconforming carcasses that can-not exceed 16.6% for grade A (good quality) and 33% for grade B (intermediate quality). Scoring criteria of broiler chicken carcasses are related to the following parameters: • they have to be intact including the presentation, • clean and free from visible foreign matter and from

foreign smell• free of visible bloodstains except those which are small

and unobtrusive, • no protruding broken bones or severe contusions.

In some countries, attention is also given to disjointed bones. The quality of blood vessels, the strength of bones and ten-dons are therefore becoming targets to improve broiler car-cass grading. The 2 major pathologies dealing with bone strength and tendons are tibial dyschondroplasia and perosis. They are known to impact negatively animal performance due to lameness prevalence and this makes them even more important to control. These 2 pathologies have been partly related to nutritional issues which, still today include trace mineral supply. Tibial dyschondroplasia, perosis pathologies and the trace minerals deficiencies known to be involved in the disease will be described hereafter.

Tibial dyschondroplasiaOf the different criteria identified that induce tibial dyschon-droplasia, the most known is copper deficiency. The most strin-gent proof of copper implication in disease modulation is that diets deficient in copper have been successfully used to pro-duce tibial dyschondroplasia lesions in experimental models.Some deficiencies in other trace elements such as zinc were also shown to inhibit chondrocyte (cartilage cell) prolifera-tion and to increase their apoptosis in broilers. The lesions induced by zinc deficiency were similar to the ones observed during tibial dyschondroplasia. Research indicated

that most of the trace elements are able to intervene in bone formation as they act as co-factors of different specific enzymes involved in the process. The zinc acts through its effect on protein and nucleic acid metabolism, as a cofactor of alkaline phosphatase or collagenases, or through the modification of the crystalline structure of apatite (bone mineral matrix).

PerosisPerosis symptoms are enlargement of the tibio-metatarsal joint, bending of the distal end of the tibia and the proximal end of the metatarsus and displacement of the Achilles ten-don. Locomotion is impaired and in severe cases the animal is unable to stand. Some trace mineral deficiencies have been identified as one of the possible causes of perosis. As an example, the omission of manganese in diets resulted in a depressed growth rate and an increase in the incidence and severity of bone abnormality. Doses of 55 mg/kg man-ganese as MnCl2 decreased perosis incidence. Already in 1938, it was observed that perosis was associated with a decrease in phosphatase activity in both blood and bones.A reduction of these 2 pathologies has a direct impact on broiler carcass quality grades. In addition some specific car-cass parts such as paws have gained some economical interest. In fact, the revenue from chicken paws in 2008 alone was worth $280 million in the US. In 2012, their mean price was set at 13.67 $/kg making it the third most impor-tant chicken export revenue. Paw quality is becoming an important economic issue.

Securing carcass qualityExcept for paw quality, trace element deficiencies have been clearly identified as a source of the diseases. Providing a trace element source that is recognised to be highly bioa-vailable in several animal species such as B-TRAXIM 2C would improve animal trace mineral status and reduce the occurrence of deficiencies. The final consequence is the reduction of pathologies, which have been related to trace element deficiency such as tibial dyschondroplasia and per-

osis. For example, some trace element sources have shown to be more efficient as an enzyme co-factor than others. A numerical increase in alkaline phosphatase levels was observed in rats fed B-TRAXIM 2C Zn compared to ZnSO4. These results indicate that B-TRAXIM 2C Zn would probably be more efficient than a sulphate source in reducing the incidence of perosis in Zn deficient animals and therefore limit carcass down grading. In the cases, where the patholo-gy has not been related to trace element deficiencies such as footpad dermatitis, a comparison of different trace ele-ment sources is necessary.

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>Read the full article online in the digital edition World Poultry nr 5.

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By Marleen Teuling

What is your view on the development of the poultry sector?“I think the development of the poultry sector in the past and the future is very bright and there is a lot to do. In my opinion the poultry sector is going to be on top of the list of animal protein sources in the future. It will be the number one con-sumed meat protein among beef and pork. It will surpass pork soon. Secondly, contrary to pork there are no religious restric-tions associated with chicken. Everybody can eat it. The areas where we see a vast expansion of chicken consumption is exactly in those countries where the Islamic religion is grow-ing. Plus, chicken is the most affordable meat protein that we have. We call it an entrance protein. As soon as wages are increasing and cities are growing – think of Africa and Asia for instance – the first thing people want to improve is their diet. Animal protein consumption as a whole will increase, and chicken is the first in line, due to the fact that their production cycle is shorter, they are easier to produce and producing them requires less recourses such as grains, land and water.”

Which opportunities and weaknesses do you identify?“The greatest strength of the poultry sector is its potential to be a great source of high quality protein to growing countries and sustainable production. It is the key strength of our sector as a whole. In terms of weaknesses there is still a lot to do about animal health. Avian Influenza (AI) for instance. We have to find out how to treat it, as it will affect all poultry produced all over the world. Every country has a market where chicken is being sold, so AI will influence every single country when it faces trade barriers. Trade barriers are complicated, as they have a side that imposes barriers and a side that jeopardises them. As IPC we can’t stand against or in favour of it, but we can help in order to find the best standards in science. By help-ing international organisations set standards based on science we will help make it more difficult for countries to impose

trade barriers that are not consistent with the World Trade Organisation agreements.”

In what respect do you think IPC can make a differ-ence?“The IPC can be one of the key factors in helping industries throughout the world develop, by gathering industry associa-tions in different parts of the world. The IPC can also work a lot with countries which are not yet IPC members. Industries that are not so much developed, but do want to develop. IPC has such a great network, which can leverage industries in those countries who want to develop. Cooperation is a key factor that IPC can contribute to the industry. Additionally, poultry meat being the number one source of protein must be addressed carefully. We know it will be the main consumed meat but at the same time this growth has to be organised and based in good manufacturing practices. I think IPC can play a role in helping countries develop and care for sustaina-bility. We can help them take issues such as animal welfare and animal health into account and help them organise them-selves and grow their own industries. We don’t grow it for them but we can give them advice and information.”

What will your focal points be as secretary general?“My main objective is bringing more members to the IPC. The IPC is very active in discussing animal health, which is a topic we want to promote, along with animal welfare, food safety and sustainability. We have been promoting these dis-cussions and it is one of our top priorities to enhance com-munication of these matters outside the group of IPC mem-bers. Bringing more members will mean more people can be part of the discussions. As we grow, our presence in interna-tional discussions grows too. We are the unified voice of the sector, giving the entire poultry industry one single voice. We represent more than 80% of the global production of chicken, but it can be a 100% soon. That is my main objec-tive: to grow our presentation within countries and within the international organisations.’’

oPPortUNItIES aNd wEakNESSES IdENtIfIEd by MarIlIa raNgEl

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