Duxton’s Agri Bits and Pieces – Vol. 357
Posted on: November 10th, 2017

This week’s quote of the week comes from Fonterra NZMP Ingredients General Manager Hamish Gowans, on how Asian consumers are increasingly seeking specific nutritional benefits to support their growing interest in health and active living with the Asian protein ingredients market forecast to grow by 11.5% from 2016 to 2021.

Dairy in particular is an excellent source of high quality protein…markets like Indonesia, Thailand, Vietnam, Singapore, are becoming a bit more sophisticated in terms of the consumer offerings and convenience requirements.”


Global wine production has dropped to the lowest point in decades, with world-wide yields expected to drop a further 8.2% in 2017, following “climate hazards” in many of the main producing countries.

This was the main finding in the latest Global Economic Vitiviniculture report by the International Organisation of Vine and wine (OIV) released this week.

According to the OIV, 2017 world wine production estimated at 246.7 million hectolitres, a fall of 8.2% compared with 2016’s 268.8mhl – one of the lowest levels in several decades.

One of the biggest risks to South Africa’s wine production is the ongoing drought in the Western Cape, which is the country’s biggest wine producer.

Current projections warn that the province is at serious risk of running out of water as early as February 2018, with harsh water restrictions in the major metro areas such as Cape Town already in effect. According to wine experts, yields could be down between 25% and 50% in South Africa, which will push up costs.


Salt-resistant species could boost country’s rice harvest by nearly 20 per cent, top research says. Rice grown on a commercial scale in diluted seawater has made it into the rice bowls of ordinary Chinese people after a breakthrough in food production following more than four decades of efforts by farmers, researchers, government agencies and businesses.

The rice was not grown in traditional rice paddies, where fields are filled with fresh water, but on a salty beach on the Yellow Sea Coast in Qingdao, Shandong.

China has one million square kilometres of waste land, an area the size of Ethiopia, where plants struggle to grow because of high salinity or alkalinity levels in the soil.

Agricultural scientist Yuan Longping, told mainland media that if a tenth of such areas were planted with rice species resistant to salt, they could boost China’s rice production by nearly 20 per cent.

They could produce 50 million tonnes of food, enough to feed 200 million people, he said.

Last month, at the nation’s largest seawater rice farm, in Qingdao, the output of Yuan’s seawater rice exceeded 4.5 tonnes a hectare, according to state media reports. The seawater rice developed by Yuan and other research teams is not irrigated by pure seawater, but mixes it with fresh water to reduce the salt content to 6 grams per litre. The average litre of seawater contains five times as much salt.


CHART OF THE WEEKThis week’s chart of the week comes from beefcentral, where prices for live export steers in northern Australia continues to defy the strong headwinds buffeting demand in key South East Asian markets, where prices have remained consistent and eluded the usual ebb in prices that comes with the dry season turnoff.






This newsletter has been prepared by Duxton for circulation to its clients, who are accredited or institutional investors as defined in the Securities and Futures Act, Chapter 289 of Singapore and the Securities and Futures (Prescribed Specific Classes of Investors) Regulations (”Permitted Investors”), and is not intended for use by retail investors. The fund management industry in Singapore is regulated by the Monetary Authority of Singapore (”MAS”), and no person can act as a fund manager unless they are the holder of a capital markets services licence for fund management or are operating as a registered fund management company. Duxton Asset Management Pte Ltd holds a Capital Markets Services Licence to conduct the regulated activity of fund management for accredited and/or institutional investors.

This newsletter is for distribution only under such circumstances as may be permitted by applicable law. Nothing in this newsletter constitutes financial, investment, tax, legal or any other form of advice, recommendation or a representation that any investment strategy or recommendation contained herein is suitable or appropriate to a recipient’s individual circumstances, or otherwise constitutes a personal recommendation. In particular, nothing in this newsletter is intended to constitute financial advice under the Financial Advisers Act, Chapter 110 of Singapore. Duxton, its employees or its affiliates may from time to time hold, either directly or through the portfolios that it manages, an interest in some or all of the stocks or companies discussed in this newsletter. Where stock or company names are mentioned, it should not be construed that these are recommendations to buy or sell those stocks or companies. If you require investment advice please contact a regulated financial adviser.

This newsletter is published solely for general information purposes, does not constitute an advertisement and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments in any jurisdiction. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the markets or developments referred to in the newsletter.

This newsletter is not the basis for any contract to deal in any security or instrument, or for Duxton or their affiliates to enter into or arrange any type of transaction as a consequence of any information contained. Information from this newsletter must not be issued in any jurisdiction where prohibited by law and must not be used in any way that would be contrary to local law or regulation. Specifically, this newsletter is not directed at US persons.

To the fullest extent permitted by law, neither Duxton nor any of its affiliates, nor any of Duxton’s or any of its affiliates’ directors, employees or agents, accepts any liability for any loss or damage arising out of the use of all or any part of this newsletter.

Duxton specifically prohibits the redistribution of this material in whole or in part without the written permission of Duxton and Duxton accepts no liability whatsoever for the actions of third parties in this respect.

All third party data (such as Bloomberg) are copyrighted by and proprietary to the provider.