The agricultural sector in Portugal was, until recently, still highly traditional, with few technological advances implemented. This has changed over the last few years, however, with the adoption of and investment in new technologies across a variety of areas, including irrigation, soil mobilization, pest and disease control and fertilization.

One of the most significant changes dealt with the types of crops being grown by these Portuguese farmers, who began to look beyond Portugal and focus on cultivating products that could be more competitive on a European scale, including fruits and vegetables. Their farming practices have also been progressively updated to make sure that they fit in with European regulations. A greater emphasis has been placed on sustainable practices with decreased residues to ensure that the crops are marketable in areas beyond Portugal.

These updated farming practices have led to an increase in productivity and competitiveness, as well as a more efficient use of resources. Over the past 20 years, 3.2 million acres — almost a third of the agricultural area under cultivation in Portugal — had been neglected, but now, there is a greater productivity of the cultivated area and a new entrepreneurial spirit driven by a new generation of farmers.   

A generation of farmers that was raised on a family farm is also becoming more prevalent, and with this influx of fresh eyes also comes the implementation of crop diversification. A farm where, previously, only corn was cultivated, for instance, may now also grow tomatoes, sunflowers, carrots and other crops.    

Rejuvenating the agricultural fabric of Portugal was imperative, since more than half of farmers in the country are older than 65. With the embrace of new technologies to meet market demands, Portuguese agriculture today is more innovative, professional, productive and customer-oriented. 

In 2015, Portugal ranked 41^st for exports in the global agri-food industry. The main products the country exported included olive oils, tomatoes and wines. Portugal’s agricultural exports go to 153 countries, with Spain, Brazil, France, Italy and Angola as its biggest external markets. Fresh fruit accounted for 40 percent of the value of those exports, with special emphasis on small fruits, oranges and Rocha pears, which were the best performers in 2016. 

However, the country is also heavily dependent on cereals and oilseeds, whose import volume accounted for 42.4 percent of the total agricultural imports during 2006–2010. While Portugal is not yet seen as competitive in dryland cereal farming, the national production of irrigated grain — particularly maize — has been on the rise.

The sector must continue to strengthen its exports and its presence in foreign markets, affirming the quality that sets its produce apart. Portuguese agricultural products are attractive to countries and customers looking for products from southern Europe, thanks to the mild and differentiated climate that the Atlantic Ocean provides. Portugal has a reputation for food safety and is recognized as a region whose products feature appealing colors, flavors and aromas.   

To learn more about international agronomic practices and how you can implement updated technology in your operation, visit www.alltech.com/cropscience and sign up for our Top Crop newsletter today. 

I want to learn more about agronomic practices.

Each growing season can present its own unique challenges, from hot temperatures and drought to excess rainfall and flooding. Extreme weather conditions can not only reduce yield but also delay harvest, increase plant stress and lead to future issues for the crop, including molds and mycotoxins.  

Mycotoxins are a concern for livestock producers, as they influence feed quality and animal safety. They are produced by certain species of molds and can have toxic properties that impact animal health and performance. Harvest samples from across the U.S. are currently being submitted to the Alltech 37+® mycotoxin analytical services laboratory, and the analysis is showing high levels of mycotoxins, as in past years, of DON, fusaric acid and fumonisin, as well as HT-2 this year.  

“The extreme weather events that we’ve seen across the U.S. this year present different challenges, different types of molds and different types of mycotoxins,” said Dr. Max Hawkins, nutritionist with the Alltech® Mycotoxin Management team. “And we monitor those risks with our harvest analysis through the Alltech 37+® mycotoxin tests to evaluate risk to livestock health and performance.”  

Mycotoxins are seldom found in isolation, and when multiple mycotoxins are consumed, they may have additive, or even synergistic, interactions that increase the overall risk to performance and health. As a result, an animal may have a stronger response than what would be expected if it was only experiencing a single mycotoxin challenge. In 2017, 95 percent of samples submitted tested positive for at least five mycotoxins. 

Testing feedstuffs and finished feeds is important to understand the risk of mycotoxins, so Alltech is currently offering a free 37+® mycotoxin test to producers. Visit knowmycotoxins.com/freetest for more information.  

Alltech will host a United States Corn Silage Report webinar with Dr. Max Hawkins on Wednesday, Oct. 24, 2018, at 3:00 p.m. CST. Register for the webinar via this link.  

Hawkins and John Winchell, territory sales representative for Alltech, recently appeared on Rural America Live to speak about mycotoxin risks. Watch the video here. 

For more information on mycotoxin management, visit knowmycotoxins.com.   

Harvest time is here. During this busy time, remember to not only monitor what’s coming in from the field, but also to think about what could be happening in other regions from which you may be purchasing feed ingredients.

Molds and yeasts can grow very rapidly as the weather warms in the spring and in the heat of the early summer months. But what about the end of summer and early fall? The weather across North America was extremely variable this summer — from extremely hot temperatures to drought to floods, week after week. How do these weather patterns affect the crops, and what should you be looking for in your feed this fall?

It is commonly understood that drought-stressed fields do not yield well. Digestibility and overall quality will be poor from feed grown in drought-stressed areas. Can living organisms like molds grow during a drought? The answer is yes: many species of molds will still grow during a drought, or they become dormant and wait for the right growing environment to return. One example of a drought-tolerant mold is Aspergillus. Many times, Aspergillus molds will appear olive green to yellowish in color on infected plants. Aflatoxins come from the mold species Aspergillus flavus and Aspergillus parasiticus. Aflatoxins are carcinogenic and thrive in hot conditions. Aflatoxin B1 can convert into M1 and can be found in milk. If this toxin is found over a set limit, the milk must be discarded. When fed to livestock, aflatoxins cause liver damage, suppress the immune system and reduce protein synthesis.

What about areas under heavy rain?

Several molds are typically found during summers of heavy rain, including Fusarium, Penicillium, Mucor, Rhizopus, etc. Fusarium is commonly found in both normal growing conditions and during wetter months. Many times, this mold first appears white and will change to a reddish-pink color. Under stress, both in the field and during storage, this mold can form many mycotoxins, including the trichothecenes family (DON or Vomitoxin, T-2, etc.), fusaric acid, fumonisins, and zearalenones. Clinical signs that these are present include immune suppression, bowel hemorrhaging, reduced intakes, poor milk production, reduced weight gains, abortions, conception challenges, vasodilation and even mortality.

The Penicillium molds will typically show blue to greenish in color, or potentially white, depending on the host crop. Penicillium molds will typically infect feed during storage, but abnormal weather patterns — such as heavy rains or, sometimes, cooler temperatures — can cause more mold to form. Certain tillage practices can also influence mold growth. When stressed, Penicillium molds can form patulin, Penicillic acid and ochratoxin. Clinical signs that these are present include edema, rumen upsets, loose manure, bowel hemorrhaging and increased rates of mortality.

This is a minute sampling of the mycotoxin challenges that can exist during harvest in your fields. Remember: the commodities or other purchased feedstuffs that are shipped in by boat, train or truck may present their own mold and mycotoxin challenges. Check the origin of purchased feed to determine what stress or abnormal weather was experienced in that region. Your local dealers, nutritionists or Alltech representatives can put together information on mycotoxin results from other regions. If you want to be especially diligent in lessening mycotoxin challenges, an on-farm RAPIREAD® mycotoxin test or Alltech 37+® mycotoxin test will check your feeds for any concerns. Remember, more information on mycotoxins is always available online at knowmycotoxins.com.

I want to learn more about protecting my feed from mycotoxins.

Wait. In China they can do what?

Where on the planet can you try out a new beer, share photos of the brew on social media, buy a six-pack through that same social media channel and have it delivered to your doorstep?

In the world’s biggest beer-drinking market: China.

Chinese consumers — as a group, the world’s largest — spent $5.5 trillion on all sorts of purchases made through mobile payment platforms last year. That’s about 50 times the amount spent in this manner in the U.S., according to the Financial Times.

And well-positioned to accommodate a rapidly changing consumer landscape across China is Alltech Brewing.

“They can go on our WeChat channel,” said Dr. Mark Lyons, global vice president and head of the company’s Greater China division. “They can say ‘I just had a Kentucky Ale^®’ and they can actually order it directly through that app.”

That’s a far cry from the China of not all that long ago. Most Chinese over age 55 readily recall the austere conditions of the Cultural Revolution of the ‘60s and ‘70s. If in those days you had suggested that private consumption would someday be a significant force in the Chinese economy, no one would have believed it.

But over time, the nation’s industrialization has steadily increased mainstream affluence. Frugality is giving way to consumerism made affordable by discretionary income. Younger generations, driven by digital technologies and social media, are entering the market relatively free of the influences of the past.

“The pace of change in China is very, very fast, and a mere couple of weeks can change the entire dynamic, which means that strategies must be adapted,” said Mark Lyons. “The Western model of quarterly plans or even annual plans does not fit well where competitors can be operating in a much more real-time pace.”

In a report entitled “Meet the Chinese Consumer of 2020,” the McKinsey Quarterly notes that an outcome of this noticeable trend in consumer spending “is a propensity to trade up, driven increasingly by consumers aspiring to improve themselves, the way they live and their perceived social standing. Many Chinese, like their Western counterparts, judge themselves and others by what they buy.”

In its own analysis, the Economist Intelligence Unit (EIU) forecasts nearly 35 percent of the population, or around 480 million consumers, will meet its definitions of upper middle-income and high-income by 2030. That’s larger than the entire U.S. population of 321 million.

The EIU predicts that the portion of the Chinese population defined as low-income will shrink from 36.9 percent in 2015 to just 11 percent in 2030.

“There will be a corresponding bulge in the middle-income bracket, with a growing portion of the population falling within its upper reaches,” stated the EIU in a recent report. “The share of high-income consumers, with annual disposable income of above RMB 200,000 (US $32,100), will rise from just 2.6 percent in 2015 to 14.5 percent in 2030. China will look and feel like a more middle-class society.”

The trend is altering the consumer landscape in the world’s most populous nation as this rapidly emerging middle class expresses changes in preferences and tastes, upgrading consumption habits and switching to more expensive and premium brands — including the libations selected for personal consumption and entertaining.

A key to the success of Alltech’s beverages in China has been savvy pricing, according to Patrick Lin, Asia manager of Alltech Brewing.

“In the past, the highest-selling alcohol products were either on the lowest end of the price scale — mass-produced beer and spirits — or in the highest range — cognacs, high-end wine, etcetera,” said Lin. “Now, the new middle-class consumer is demanding something that’s in-between. 

“They no longer want the lower-priced beer their parents drank, and at the same time, they don’t want to spend the massive amounts that previously were spent on luxury alcohol products that were consumed as gifts and at banquets,” he explained. “The middle class wants to go out to restaurants and bars that are offering unique products and environments that are affordable, but not cheap.”

The China beyond Shanghai and Beijing

China is an immense nation of 31 provinces, its regions so diverse that the whole resembles a collection of separate countries.

“I often see companies coming in and seeing Shanghai, maybe Beijing, and assuming that they understand the country,” observed Mark Lyons.

And that, he says, can be a fatal mistake.

“Many subregions are very different in not only their levels of development, but personal, cultural preferences, in terms of the types of products consumers are looking for, but also business practices,” he explained. “This is where it is crucial to have local people in each market. We have representatives in virtually every province of China, and our regional representative offices help us considerably to be able to be more in touch with these local changes.”

Alltech founder and president Dr. Pearse Lyons has long been preparing his company to capitalize on the transitions now occurring in China. Alltech has 250 employees in the country, spread among offices in Chengdu, Guangzhou and Qingdao, with a factory in Tianjin and another expected to open in southern China.

“We have been in China for over 25 years,” he said. “We know the marketplace, and they know us. Therefore, to bring the beer in was almost like a logical extension. We decided to go to the market, so we reached out to our connections. We already had the resources there. They were well-educated, could speak the language and were Kentuckians. We needed to give them something that fit, like Kentucky Bourbon Barrel Ale^®.”

With the launch of Kentucky Bourbon Barrel Ale in China five years ago, Alltech became the first independently owned American craft brewery to produce beer in China for national distribution. The division now sells 10 different brews made by Alltech, including Kentucky White Ale^® , a citrus wheat beer that recently joined the beverage line. 

Sales expanded to Taiwan in 2015, then on to Hong Kong and Japan. Today, Alltech Brewing is the largest independently owned American craft brewery operating in China.

Alltech’s spirits were introduced to the market three years ago, including Town Branch^® Bourbon, Town Branch^® Rye, Pearse Lyons Reserve^® and Bluegrass Sundown^®. The Foxes Rock^™ brand appeared two years ago, and 2017 has seen the addition of Ha’penny Pot Still Gin^®.

The brands are stocked in stores and restaurants in more than 400 locations across Greater China, including nearly all of the largest cities, such as Beijing, Shanghai, Chengdu, Shenzhen, Chongqing and Tianjin, as well as in Hong Kong and Taipei.

The current sales focus, according to Mark Lyons, is on cities where palettes have long been accustomed to big Chinese beer brands such as Tsingtao, Yanjing and Snow.

“We’re offering something to them that looks completely different,” he said. “It’s probably three times higher in alcohol, has a very different flavor and is presented in different ways. Just getting them to try a beer is one thing. Once they do that, we see the same thing that’s happened all around the world: that conversion happens rapidly.”

And he believes the beverages’ appeal extends far beyond the city limits of China’s sprawling urban centers.

“It’s not even just second- or third-tier cities,” explained Mark Lyons. “It’s already down to communicating directly with our customers on the agricultural side who are in really small places where these sorts of products are not accessible.”

Quite a different picture in Japan

Alltech’s 2017 arrival in Japan required a recognition of dynamics that are in stark contrast with those in China.

Due to the steady aging of the population and low national birthrate, the Japanese drinking population is relatively small. But the Japanese, observed Mark Lyons, make up for it with attention to quality.

“You already have this very high level of affluence,” said Mark Lyons. “The focus on quality is extraordinary. There is such attention to every single detail. It’s a super-premium market, and I think that’s where our products can fit very nicely.”

With 290 craft breweries, according to a 2017 global craft beer survey released by The Brewers Journal and Alltech, Japan leads China (170 breweries) and Taiwan (22 breweries) among Asia-Pacific craft brewers. Australia holds the regional lead with 410. The Asia-Pacific region, however, accounts for a mere 7 percent of global craft brewery production.

Raising a pint to opportunity and partnership in China

When asked to consider Alltech Beverage’s most important achievement, Mark Lyons cites its presence and stature as the largest American craft brewer in China.

“That provides us with a platform for growth, which we’re very, very excited about,” he said.

And that growth works to the benefit of others.

“We’re beginning to sell other people’s beers,” he said. “We’re in discussions with several large American craft brewers (about) helping them come into the market.”

He notes that many craft brewers cast a wary eye in the direction of the brewing giant AB InBev and its self-titled “Disruptive Growth Organization.” The company is investing in craft breweries and craft beer bars in the Asian market.

“Many independent craft brewers are worried about this,” said Mark Lyons. “They’re concerned about middlemen and ‘gray channels,’ and they’re hesitant to get in. But when they see a company doing the types of things that we’re doing, it gives them a lot of confidence. So, we’re getting a lot of people knocking on our door. We’re seeing it as a great opportunity to provide customers with a truly independent and unique product.”

By 2020, predicts the McKinsey Quarterly, “companies (operating in China) that have focused on maximizing their brands’ scale will have to adopt a model based on a portfolio of more targeted brands or sub-brands to connect with different consumer segments.”

“Our more recent strategy on the beverage side to expand our product portfolio, including other companies’ brands, and also to diversify our own portfolio, is a response to this type of feedback from the market,” said Mark Lyons.

“It is clear that, without a great number of price points and brands that appeal to different demographics, it is difficult to really scale a business in a sustainable way,” he continued. “We have to be thinking about a market for us, in terms of craft beer, that within a little bit over a decade will have three to four times more accessible consumers.”

There are challenges to navigate, warns the EIU analysis: “China’s economic trajectory has become more uncertain, and firms will need to monitor risks accordingly in order to stay ahead of the curve.”

Pearse Lyons sees opportunity. His vision for the company’s beer and spirits interests in Asia is broad and has yet to be fully realized.

“We are actively looking at producing in other areas,” he said. “Keep in mind that we have Alltech Vietnam, Alltech Philippines, Alltech Malaysia, etcetera. Some of these offices are older than Alltech China. 

“We can use Kentucky Bourbon Barrel Ale as a major differentiator for us,” Pearse Lyons continued. “The strategy has been: use the beer, use the Kentucky name. We have a unique product to promote Alltech and our home state. It will slowly but surely build up the brand image.” 

In a country of over 1.2 billion people, agriculture is the backbone of the Indian economy. It contributes to the overall economic growth of the country and determines the standard of living for over half of the population of India.   

The state of Karnataka, an agrarian area in the southwest region where much of the state is still dependent on the monsoon season, has experienced substantial growth in food and grain production through the introduction of improved seed varieties, fertilizer applications and the implementation of irrigation practices. However, these advancements have also resulted in depletion of nutrients and a decrease in organic matter in the soil. In order to overcome these challenges, the local government has implemented measures that include soil fertility status reports and then use the results of these tests to advise growers on more sustainable crop management practices.   

Karnataka’s growers face several challenges in terms of maintaining their economic viability:

• Land holdings: Nearly 80 percent of farming families own less than 2 acres of land.
• Irrigation: 70 percent of the arable land is rainfed.
• Crop technology: There is limited distribution of seeds and other primary inputs available to average growers, who find cost to be the most prohibitive factor in attaining new technology.  
• Soil erosion and depletion: Large areas of land are susceptible to soil erosion from wind and water. Soils have also historically been overused and overworked, resulting in deteriorated soil health. 

“The registration of Alltech Crop Science [in Karnataka] is just the beginning,” says Aman Sayed, Alltech’s director of India and South Asia, who is looking forward to giving growers in the region a natural alternative to the traditional fertilizers available.

The use of natural-based fertilizers can help increase nutrient availability in the soil and improve plant defenses to stressors, such as those caused by lack of irrigation, and help plants reach their full genetic potential.  

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