Tuesday, April 29, 2008
Malaysian Poultry Industry
As I had reported in a previous post the government has set a ceiling price for chicken in Malaysia that is below the actual cost of production. However, from what I can tell it only relates to fresh or frozen chicken not to further processed products. Therefore this company is producing a variety of value added products using their poultry meat in order to survive and make a profit. At lunch we ate at a local Chinese restaurant in a relatively small town. Later this evening I have dinner with several Malaysian Eisenhower Fellows.
Monday, April 28, 2008
Penang
On Saturday morning I flew from Kuala Lumpur to Penang, which is an island along the coastline north of Kuala Lumpur. It is also its own state within Malaysia. I was picked up at the airport by my driver, Dave. Our first stop was Kek Lok Si Temple. One of the finest Buddhist temples in Southeast Asia, The Kek Lok Si Temple stands majestically on a hill in Air Itam. Built in tiers, the temple boasts the beautifully crafted “Pagoda of Ten Thousand Buddhas”. Taking more than 20 years to build, the temple is set against scenic surroundings. It features a turtle pond, gardens, shrines and sculptures. I took a lot of pictures of this beautiful place, below is one of the pagoda, which unfortunately was under renovation.
Next we went into Georgetown the island’s largest city. Our first stop here was the Seven Clans Village. This area is built right on the water and in some cases over the water near the harbor. It is where the Chinese immigrants from these seven families first settled when they came to Penang. Their lifestyles have stayed much the same and by the way Penang is the only Malaysian state to have a majority Chinese population. The area has a great view as you can see in the picture below.
On Monday I met with three groups that all oppose the use of genetically modified organisms and free trade agreements. The first meeting was with the Consumers’ Association of Penang. The first two gentlemen I met with here were willing to have a back and forth discussion with me but it was apparent that the only thing we agreed on was the need for Malaysian consumers to be better informed about food safety and sanitation. Otherwise they had a lot of preconceived notions about American agriculture that simply are incorrect. I attempted to correct some of these ideas but I am not sure how successful I was in changing their minds. Later I attempted to have a meeting with the president of the organization. There seemed to be communication issues and this is the first time during my fellowship that I felt unwelcome.
I briefly visited the local chapter of the Friends of the Earth. The person I really needed to talk to here was out of the country. The two young ladies that were in the office tried to answer my questions but they were simply not the right people for the task. They did give me a booklet about why they oppose GMOs. My third meeting of the day was with the Pesticide Action Network Asia and the Pacific. The ladies who run this organization have good reasons to be concerned with many of the issues that they try to address. They seem to legitimately want to make life better for rural people (especially women) in this part of the world. Though we don’t agree on many issues, we were able to find several other things that we do agree on. I felt a lot more welcome here and we had a good discussion of the issues.
Friday, April 25, 2008
Malaysian Agrifood Corporation
Next Mr. Chan and I were joined by Pack Huang who has been coordinating my schedule while I am in Malaysia. We drove quite a distance to the other side of the mountains that run down the Malaysian peninsula to an area that the state government has opened up specifically for food production. Farmers and companies can apply to lease a portion of this land. MAFC has 100 acres here on which they have established a Papaya farm. I was unaware that papaya grew so fast. Plants that were planted in March started producing fruit in November. The papaya that they have at this location is a new variety that has been breed to have all of the best characteristics. The plants will produce for about 30 months before they get too tall for harvest and are replanted. This farm is a demonstration farm using all of the best management practices and it is hoped that the small, surrounding farmers will learn from this operation and improve their operation thus building a viable industry for export. Even now the young plants are producing two metric tons a week and one ton is being exported to England. In the future they will also rotate production with a new variety of pineapple. We tried some of the papaya and it was delicious.
Thursday, April 24, 2008
Ministry Visits
On Thursday, I met Chan Han Hee, Senior Vice President of the Malaysian Agrifood Corporation. He took me to Putrajaya, which is their planned national administrative city (Think Washington, DC without all of the surrounding areas). Our first meeting was at the Ministry of Health to discuss Food Safety, Defense and Traceability. They have a very tough job in a country that is not used to sanitary and phytosanitary regulations. However, the actual enforcement responsibilities lie with the officials in each state. The Ministry simply establishes the policy and does research. They briefed me on their food safety efforts and critical incident plan. We also talked about the relatively new labeling regulations that they have implemented. I enjoyed this visit and felt very welcome. After being in Japan where I met with very few women, it was nice to be in a room with mostly women.
After the meeting Mr. Chan and I looked around the city. It is a very attractive, planned city. Below is a picture of the Mosque and the Prime Ministry building. We also made a brief stop at the botanical gardens.
Our afternoon meeting was at the Ministry of Agriculture. I received briefings from officials from several different divisions. They have a pilot program called MFIT, which is an electronic traceability system. With all of the talk of a food crisis, I asked about their self sufficiency rate and they said it was 72%. This is much better than Japan’s 39%. Malaysian agriculture faces many problems but they seem to be working to fix many of them. I asked about the poultry ceiling price which I had been told in an earlier meeting was below production cost. They said they were meeting with industry people the next day to try to fix this issue. The person who is most involved with trade issues was unable to attend, so I didn’t get many answers on that topic.
Carey Island
I spent Tuesday and Wednesday at Carey Island, which by the way is not exactly an island. It lies on the Straits of Malacca on one side and a river flows on the other two sides. But the river on one side hasn’t always gone all of the way through; many years ago there was a land linkage on one side. But for most of the history of the plantation the only access to the “island” was by ferry or other boat. In the mid 80’s a bridge was built allowing people to drive to Carey Island. The Sultan of Selangor granted an Englishman named Edward Valentine Carey the right to open up the island around 1899. Over the years the plantation has produced rubber, tea, coffee, coconuts, cocoa and oil palm. It is a very historic place.
I learned about palm oil production. This is a very interesting crop. Seedlings are planted when they are 12 months old. The first harvest is when they are 4 years old. Four to 10 years is considered young, 11 to 20 years are prime and over 20 years is considered old. The fruit bunches are harvested every 15 days. There is a picture below of harvest. The plantation is currently averaging 6.4 metric tons of oil per hectare per year. This is a much higher tonnage than other oil crops. From the plantation the bunches go to the mill where the oil is extracted. All of the parts of the bunch are used. The oil comes from the orange outside of the fruits but the internal kernel is also used. The kernel can be seen in the second picture below of the fruit bunch - a couple fruits got sliced open during harvest. The kernel is cracked like a nut and the external shell is used to fuel the boiler at the mill with any extra sold to other industries for use in their boilers. The inside of the kernel is processed into a different kind of oil. The empty bunch is returned to the field to decompose and provide nutrients to the trees. Each bunch is marked to show what field it came from and who harvested it. Harvesting the bunches at the correct stage of ripeness is important because premium quality oil with a fatty acid content of less than 1.2% can only be produced from perfectly ripe bunches. From the mill the oil goes to the refiner where the oil is refined to make it clear and odorless and processed into a number of different products. There is a huge demand for palm oil products right now because they are healthy and produce very crispy fried products. After the refiner, some of the oil can go to the biodiesel plant to be processed into fuel. Right now there is such a demand for palm oil food products that there isn’t very much palm oil being refined into biodiesel. I toured all of the different facilities along the supply chain. I should also mention that at the end of the palm oil trees productive life span which is over 25 years they are chopped up and returned to the soil to provide nutrients for the next crop of trees. This process in shown in the third picture below. They do not burn in Malaysia and most of the large palm oil companies around the world also do not burn. Only the very small producers in countries like Indonesia still burn. Also they use integrated pest management to control insects. There are certain beneficial insects that must be present to pollinate the bunches, also they plant flowering plants to attract other beneficial insects that then control the worms that attack the palms. They also use owls and hawks to control the rat population. Everything is done with a great respect for nature. Every part of the palm is used, there is no waste. This industry appears to be extremely sustainable. This plantation has been producing oil palm since the 1950’s, the mill has been in operation since 1966, the refinery started in 1977 and of course the latest addition is the biodiesel refinery. Oil palm can only be successfully grown seven degrees north and south of the equator. I know that there has been a lot of negative publicity about palm oil in the media lately but I think part of the reason for that is that this industry is making a lot of money right now. Just like the oil industry in the U.S., it is easy to pick on the companies that are making big profits.
Monday, April 21, 2008
First Day in Kuala Lumpur
Thirty percent of the broilers produced in Malaysia are slaughtered at inspected plants and sold frozen. The other 70% are still sold through wet markets which in many cases are less than sanitary. These chickens are fresh not frozen and the consumers prefer them. They are also much less expensive. There is concern about drug residue in these birds. Malaysia produces 40 million broilers per month and 10% are exported to Singapore live and slaughtered there. Most of the feed comes from the U.S. and Brazil. The number of farms has shown a sharp decrease in the last 15 years and is expected to continue in this trend. The pork and poultry industries are predominately run by Chinese Malaysians. When the British were in control of Malaysia they tended to encourage immigrants from certain countries to do certain jobs and many of those trends continue today.
I had lunch at a Chinese restaurant with Johan Raslan, my Program Coordinator; he is Executive Chairman of PricewaterhouseCoopers and Honorary Secretary of the Eisenhower Fellowships Alumni in Malaysia (EFAM). Another guest was Tan Sri Dato’ Mohd Ramli Kushairi, President of EFAM and Chairman of the South Malaysia Industries Berhad. He is also a member of the Prime Minister’s Malaysia Business Council. Cody White, Cultural Attaché, and Loh Lee Pin, Assistant Marketing Manager of the Office of Agricultural Affairs, also joined us from the American Embassy. I enjoyed meeting everyone and we had a good conversation.
My afternoon appointment was with Dr. M. Ghazie Ismail with the Halal Industry Development Corporation (HDC). He gave a PowerPoint presentation on the HDC and explained the requirements to meet Halal Standards. The HDC is focusing on Halal Integrity, Industry Development and Branding and Promotion. Halal products are being promoted to all residents of Malaysia as higher quality, more sanitary products. In addition to following Halal slaughter practices they require strict sanity compliance which is not always used in other products in Malaysia. They are working to increase the Halal Industry in Malaysia not just in food but also in pharmaceuticals and cosmetics. Brazil is currently the largest exporter of Halal products and Australia also has a good sized Halal industry. I think that there may be some opportunities for U.S. businesses in the Halal industry. Since we already have excellent sanitary systems in the U.S., I think the only added requirements would be to have a Muslim do the slaughtering and have an Imam bless the animals. The Halal market is growing around the world.
In the morning I leave for a palm oil plantation where I will spend the night so I don’t think I will have internet access. I will post again as soon as possible.
Sunday, April 20, 2008
My Visit to Malaysia Begins
Saturday, April 19, 2008
Last Day in Japan
Tonight I went to dinner at a very good restaurant with my Program Coordinator, Noko and her husband Sunao. Noko got teary eyed when we said good bye at my hotel and I kind of did too. I have really enjoyed my time in Japan. I was extremely busy but I wouldn’t have had it any other way.
Tanegashima
In the late 1800s an American ship wrecked off of the coast of Tanegashima and the local residents rescued the crew and took care of them. After the crew got back to the U.S. President Cleveland and congress sent a letter of appreciation to the residents along with $5,000. This was in recognition of them going out of their way to help strangers. This event is still celebrated each year with a ceremony to help instill this helpful spirit in today’s children. The $5,000 gift was used to improve education on the island. I began my day by visiting one of the schools that benefited from this gift. It is where my friend Hiromi went to Elementary School and she teaches English there twice a month. The school is first through sixth grades and only has 16 students. I showed a PowerPoint slide show with pictures of our farm and Hiromi translated my descriptions. Afterwards, Hiromi had each of the children come up and introduce themselves to me in English. Most were very shy about trying this, but they all eventually did. Below is a picture of me with the kids.
Our next stop was a beef cattle operation. It is in a beautiful location. Check out the picture below – how would you like to have that view? They are a cow-calf operation and produce native Japanese cattle. Once again we were shown around by the son who is involved in the operation. The major difference in their operation is they wean the calves from the mother almost immediately and feed them milk replacer. This is done for two reasons. First, these cows don’t always produce very much milk and second, they want the cow to breed back as soon as possible. They have an automatic feeder for the calves that uses RFID tags around the calves’ necks to know which calves are eating. They are able to produce all of their own hay and also feed the tops of sugarcane that is produced locally, which would otherwise go to waste. All of their calves are shipped off of the island to other growers. When the BSE outbreak occurred in Japan the market was depressed for about two years but he also has a fishing business that helped with the family’s income during this time. Below is a picture of Hiromi and one of the friendly calves.Kagoshima
When I arrived at Kagoshima airport, my interpreter and I were met by Hiromi Nagano a Japanese Eisenhower Fellow who had offered to show us around that part of Japan. We drove to the Kanoya area, which is the #1 pork and beef production area in Japan. The drive was on very steep, winding road and reminded me of where I grew up in the mountains of western Virginia. Most native Oklahomans would have gotten car sick. First we visited Fukudome Pig Farm Ltd. Mr. Hiroaki Fukudome and his son Toshiaki showed us around their operation. This was exciting because this is the first operation I have visited where a second generation is involved with the farm. His other son is studying meat science in Germany. They are currently part of a marketing association but they want to start processing and marketing their own pork products. Toshiaki studied English in Great Briton and was able to tell us about the operation in English. They have 350 sows. Most of the hogs appeared to be Yorkshire and Yorkshire cross but they have recently started importing some Hampshires, including one they are very proud of from Ohio. Mr. Fukudome was proud of the beautiful landscaping at the front of the farm and the trees they had planted. He said they want to provide a good environment for the pigs. They have a urine processing system that removes all smell from the urine and makes it safe to release into the river. And they also recently put in a manure processor that makes high quality compost. There is a government subsidy to support the installation of this equipment. Fifty percent of the total cost comes from the national government and 25% comes from the local government. He was also very proud of the fact that they mix all of their own feed. All of the feed inputs are imported, including fish meal from the U.S. and seaweed from Holland. When I asked about free trade agreements he said he was opposed to them because they couldn’t compete with producers in other countries. Below is a picture of some of their pigs and by the way they still use farrowing crates.
Our next stop was a dairy farm. At this farm not only is the owner’s son involved but his grandson who is eleven is also involved with the dairy and wants to be a farmer after he gets out of school. They have recently built a new facility with a 120 cow capacity and an automatic robot milking machine on one side. This has given them more time to do other things and allowed them to milk more cows. The facility cost 200 million yen and again the government subsidized its construction with 50% from the national government and 25% from the local government. They also have 130 hectares where they produce the corn silage for the dairy. His son asked me about using DDGs and I shared my limited knowledge with him. The neighbors that moved in recently near their corn fields complain when they spread manure for fertilizer. This is just one more thing they have in common in with the U.S. All of the livestock in Japan is so calm and friendly. Below is a picture of my friend Hiromi making friends with a cow.One was Ryuzo Sakata, Rear Admiral, Japanese Maritime Self Defense Force (JMSDF). He spoke good English and had been to the U.S. several times. I told him that my husband loves Naval History, especially the Pacific Theater of WWII and he invited us to the base. So, the next morning we were given a tour of the Kanoya Naval Aviation Museum. This is an impressive museum that focuses on the history of Imperial Naval Aviation and the development of the JMSDF. It also has a large section devoted to the Kamikaze pilots that sacrificed themselves during WWII. There is a display with pictures of all of the more than 2000 Kamikazes. The average age was 19 and one was only 16 years old. Below is a picture of a Zero that is in the Museum. They also had several other planes on display outside. Those of you who know my husband, Ryan, know how much he would have enjoyed this visit and I thought about him the entire time. Next we were escorted on to the Kanoya Air Station to Admiral Sakata’s office. He is a naval aviator and commander of the air wing which has 20 XP1 aircraft. The base also has several helicopters. It is considered an important, critical point of defense from China. Recently there was a dispute over an oil spill that happened right on the line where the two countries’ waters meet. Also, a couple of years ago the coast guard sunk a North Korean boat that was coming too close. The Admiral told us about the new law that has recently been passed allowing them to rescue any U.S. personnel that might need their assistance and provide logistical support for U.S. vessels. Below is a picture of us with the Admiral.
Tuesday, April 15, 2008
Traceability Systems and Reception
My next appointment was at DNP which is a massive company that started out in the printing business but has expanded into all kinds of high tech fields. They are developing RFID chips for a variety of uses including tracking which products consumers are looking at and the obvious supply chain tracking applications. The building we were in is a show place for all of their high tech gadgets and was extremely impressive.
I ended my day at a reception that was given in my honor by Mr. and Mrs. Post. Mr. Post is the Public Affairs Minister-Counselor at the U.S. Embassy. All of the Japanese Eisenhower Fellows were invited and there were probably about 30 people in attendance. I really enjoyed talking to all of the fellows. It was a very nice evening. I may not have internet access for the next couple of days but I will post again as soon as I do.
Monday, April 14, 2008
Kobe
In 1979 the Kobe Beef Distribution Promotion Association was established. It's mission was to establish a clear definition of Kobe beef and make the product clearly identifiable. They registered the Kobe brand. There are 500 registered Kobe growers and of these 5 are located within the Kobe city limits (this is more like a county in the U.S.). There are 500,000 tons of beef consumed in Japan each year of that only 8,000 tons is Kobe beef. When BSE was found in Japan there were no cases in Kobe beef and only one case in Japanese beef the remaining cases were all in dairy cattle. 100% of the cattle are checked for BSE and if a positive is found it is burned and all of the cattle that were feed with it cannot be shipped. Also, all the Specified Risk Materials are vacuumed and burned. They also change knives between each cow they process. When the BSE outbreak happened in Japan the prices of most beef went down but Kobe already had complete traceability so their prices were not impacted. As I said above, each animal has a ten digit number that is on its ear tag and registration papers and can be traced to the cow it came from. The meat packages also have this number. Consumers can input this number on the internet through their mobile phones and access all of the information about the animal. There are also displays in some meat shops where this information can be accessed. The government pays for the traceability system and BSE testing. The producer incurs no costs except the labor involved with keeping the records.
Next we drove to Teishin Chikusan Meat Company. This is one of the largest beef processors in Japan. I met Mr. Sotoike Yoshimitsu the President of the company and we looked at some beef in their freezer. They pointed out the difference in the feel of the fat on Kobe beef as opposed to other Japanese beef. It is much softer, the other Japanese beef’s fat is very hard. The most popular cuts of beef change with the season in the summer BBQ is popular and the short rib is used and in the winter Shabu Shabu is popular which is the very thinly sliced meat usually cut from the loin or sirloin and cooked at the table.
Next we went to the Meat Center for a beef auction. They do not auction the live cattle they auction the carcasses after slaughter. The cattle are brought to the Meat Center and they are slaughtered and then tested for BSE. Two days later they are auctioned and 4 days after slaughter they are available to consumers and restaurants. They do not age their meat as we do in the U.S. I was told that not very many people ever get to watch an auction and especially not on a day when there is a lot of Kobe beef in the auction. I feel very honored to have had this opportunity. We walked around with the buyers before the auction and looked at the carcasses. This was very interesting to me since I used to coach meat judging teams. They were all marked with the official grade and it was interesting to compare them. They were also marked as to whether they were Kobe beef or other Japanese beef. Kobe beef brings significantly more than other beef. When the sale starts the buyers sit on heated cushions because it is cold in the market and they want the buyers to be comfortable. Any farmers that want to watch their beef sell stand at the back of the room. Mr. Yoshimitsu insisted that my interpreter and I take his seats and he stayed and explained the auction process to us. As you can see from the pictures below the carcass is brought in and a TV monitor shows a close-up view of the rib eye. Also displayed is the name of the producer, place it was produced, father’s name, mother’s father’s name, age in months, whether it is a steer or heifer and weight. All of these can change the final price that will be paid. The bidders have buttons they push to bid and the display indicates how many people are bidding at any time. When we were looking at the carcasses before the sale we met the producer of lot 506 and were told that he was a famous farmer. The pictures below are of his beef and it brought the most per pound of any in the sale on this day. It brought 3,310 JPY per kg or a total of 1,037,354 JPY which is approximately 10,600 USD. A Japanese beef actually brought more total dollars because the other breeds are much larger than the Kobe beef it weighted 448.2 kg and brought a total of 1.3 million JPY or approximately 13,300 USD.
I really enjoyed talking to the manager of the farm. He seemed to like it that I had come to visit his operation. He joked that in WWII our soldiers ate beef and the Japanese soldiers ate fish and if the Japanese had eaten beef maybe they would have won. He also said that when he was visiting Oregon he ate steak every night. I asked how he liked to flavor of the steak and he said it was very good since he was eating it every night. You couldn’t eat Kobe beef every night. When I asked about Free Trade Agreements and WTO, he said he was in favor of free trade and we should all compete. He also said that he thought that many Americans would like to have Kobe beef. I agreed that they would and asked if he would support lowering or eliminating the tariffs on beef imports and he again said “Yes, we should compete.” He also said that he thought that opening the market would be good for his business. I really like this gentleman and this whole day was a wonderful experience that I am sure will be one of the highlights of my fellowship. Check out the pictures of the farm below.
Sunday, April 13, 2008
Yoshino and Nara
Saturday, April 12, 2008
Kyoto
Next we visited Kitano Tenmangu Shrine. This Shinto shrine was built in 947 and the current main hall was constructed in 1607. There were almost no crowds here because there are no cherry trees on the grounds of this shrine; it is known for its plum trees which bloomed last month. Mr. Doi educated me on Shinto beliefs and we had a nice peaceful stroll around the shrine grounds. The picture below is the front gate of the shrine.