Oil & Food Journal July 2016

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Vol 11 Issue 09 July 2016

Food Agrprocessing

100/-

Indian’s 1st News Portal for Agro, Food Processing & Allied Segments

www.agronfoodprocessing.com

11th

Volume

THE ACCURATE FACTS ABOUT POTASSIUM

BROMATE/IODATE IN

BREAD AND BAKERY PRODUCTS

SWEET TOOTH

India one of the fastest growing chocolate markets in the world

The Fat Tax

Should Governments Tax Unhealthy Foods And Drinks?

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FSSAI to crack down on mineral water packaging units operating without licence

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Rs 3,000 crore to be invested by Amul over a period of four years on expansion Amul registered a quantum growth of 187 per cent in the 6 years with CAGR of 19.2 %

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Premium Ingredients develops two new stabilizers for analogue pizza cheese

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Roha Continues To Display Incremental Growth Through Global Expansion…

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Sugars are not alike - Better metabolic profile with next generation sugar

APCCIF wants special food processing policy 2015-2020 an open-ended

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Amul is keen on setting up an Rs 400 crore project in drought-hit Vidarbha region

FDI in food processing puts Maharashtra state in advantage

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Patanjali to enter cattle feed segment and launch dairy items

Nestle to develop and market an experimental milk allergy test for infants

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Due diligence must for making food safety reports public to avoid panic: FSSAI

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FSSAI to fix limits for various additives for alcoholic beverages, including wine and others

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Instead trained food safety official, customs officers to ensure safety of imported food

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ITC to invest Rs 4,000 crore to set up 8-9 food manufacturing factories across India

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The story of edible oil A commodity indispensable for any meal in India

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SWEET TOOTH India one of the fastest growing chocolate markets in the world 23

The Accurate Facts About Potassium Bromate/Iodate In Bread And Bakery Products 30

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Seafood Processing

The Fat Tax Should Governments Tax Unhealthy Foods And Drinks?

Nanotechnology in Food and Dairy Industry 42

One & Only Show

For Indian Ice Cream Industry-IICE 2016

YES BANK: Catalyzing business and financial transformation of Indian Dairy Sector

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Training the catalyst for change in Dairies!

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EDITOR Manzar Aftab Naqvi CONSULTING EDITOR Basma Hussain GROUP EDITOR Firoz H. Naqvi firoz@advanceinfomedia.com Graphic Designer Naved H. Kazmi naved@advanceinfomedia.com Circulation Seema Hayat Shaikh Seema@advenceiifomedia.com Delhi Sayyed Shahnawaz +91-8375034558 Gujarat Brijesh Mathuria +91-9924546999 Genreal Manager Gyanendra Trivedi Marketing & Circulation Office 121,1st floor, Rassaz Multiplex, Station Road, Mira Road (E), Dist. Thane- 401107 Telefax : +91-22-28555069, Tell.: +91-22-28115068 Mob.: +91-9867992299 E-mail: info@agronfoodprocessing.com sub@advanceinfomedia.com Vol 11 Issue 09 July 2016 Annual Subcription Rs.950/By Normal Post Add Rs. 400/-For Courier Charges Add Rs. 50/- For Outstantion Charge Overseas $80 By Air Mail Email:sub@advanveinfomedia.com Single Copy Cost Rs. 100/Printed, Published & Owned By Manzar Aftab Naqvi RNI No. MAHENG /2005/15987 Postal Regd. No. THW /50/2014-2016 WPP License No. MR /TECH /WPP-308/TW /2016 Regd. Office Advance Info Media & Event 103,AmarJyot Apartments, Pooja Nagar, Mira Road (E) Dist Thane-401107(Mumbai) Printed At Rolleract Press Services A-83,Ground Floor, Naraina Industrial Area Phase-1, New Delhi -110028 The views expressed in this issue are those of the contibutors are not necessarilly those of the magzine. though every care has been taken to ensure the accuaracy and authenticty in infomation, "Oil & Food Journal" is however not responsible fordamages caused by ministerpretation of infomation expressed and implied with in the pages of this issue.

All disputes are not to be referred to Mumbai Jurisdiction

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EDTIORIAL

here is no sincerer love than the love of food - George Bernard Shaw The food industry, which is currently valued at US$ 39.71 billion! is expected to grow at CAGR of 11 per cent to US$65.4 billion by 2018. The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 14 per cent of manufacturing GDP, 13 per cent of India’s exports and six per cent of total industrial investment.

Like heaven has a serpent, this allure of the Indian food processing industry also comes with drawbacks and hitches……..like the debate on tax imposed on fast food in Kerala.

The multinationals are crying fouland adaging it to be a one sided decision asthe Indian junk foods like samosas, jalebis, pooris, etc. are not into fat tax criterion – though they have higher energy and fat quotient than an average burger or pizza.

Fat tax, in particular, is intended to check obesity, a trend rapidly gaining ground in the state of Kerala. Food itemsspecified for fat tax are pizzas, burgers, tacos, doughnuts, sandwiches, pasta and burgers, sold in upscale restaurants would fall under the fat tax ambit. It may be noted that fat tax had been imposed by countries such as Denmark and Hungary earlier to fight obesity.

Diversifying from fat tax and analyzing the Indian Seafood industry; India suffered a big setback in 2015-16 when the seafood exports fell 10-15% due to a production dip and sluggish prices. But now prices have improved encouraging the producers to increase supply. The sea food industry now has seen at least 15% growth this fiscal as it is poised to benefit from the shortage in the global marine products market because South East Asian countries are yet to recover from the disease attack in the farms.

Still on fish, FSSAI is revising the list of fish species having potential to cause histamine poisoning and also set limits of histamine levels in fishery products. Histamine, a foodborne toxin, is formed as a result of time and temperature abuse of certain fish species that can cause illness to consumers.

Food is a humongous business and in it the frozen food category is swelling due to busy lifestyles and urbanisation. And today the global frozen food market is estimated to reach USD 306 billion by 2020, according to Allied Market Research. So it’s not a surprise for the Pickle giant Mother's Recipe, to target a turnover of Rs 500 crore by 2018-19, as it is preparing to enter the frozen food category in the next two yearsand will set up a dedicated unit in Gujarat. In financial year 2016-17 Mothers recipe is expecting a 25 per cent growth.

Many manufacturers have put considerable time and investment into developing natural color replacements, there is much work to be done. Although the demand for natural ingredients will continue to grow, there will always be a need for a certain amount of what may be described as synthetic ingredients. Natural colors aren't asstable as artificial colors, and costs of using natural colors can be higher.

While on food ingredients dyes and flavor-Solvay, the Belgian chemical and advanced materials company, is all set to tap the escalating Indian processed food industry by developing food-grade antioxidants, and determined to reinforce its position by bringing the highest level of food safety for the benefit of Indian consumers. The company considers India as a strategic market and will start production of tertiary butylhydroquinone (TBHQ), a highly effective antioxidant, in the country very shortly.

TBHQ, an aromatic organic compound and a derivative of hydroquinone, is widely used as food preservative.

I believe the food processing industry is a mode where food can be presented in the best way to the consumers. Processing has eased the lives of many people as well as provided a way out in their busy schedule…..but at the same time it has received a lot of flak for been a source of diseases and obesityin the present generation, issues on food safety has staggered it again and again, deleterious marketing as tainted it often.

But does anyone know that food processing is not only about nihilism, rather it is a path that will make India the food basket of world and will be the main protagonist in eradicating hunger and malnutrition in the world.

Food processing industry of India is the next big thing and needs to be projected in the veracious light and positive insolence.

Till next time!

EDIBLE OIL SCENARIO

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ndia is the world’s second largest consumer of edible oil —used to in our daily food, deep fry our pooris and fish, make the tadka/chounk tempering to add flavour and aroma to dals, and impart necessary texture, mouth-feel and bite to biscuits and cookies. Out of India’s 20-21 million tonnes (mt) annual consumption, next only to China’s 34-35 mt, 14.5-15.5 mt is imported and like petroleum, this one, too, is largely imported.

In India, edible oil costs roughly $10.5 billion in annual forex outgo, but never makes to the headlines or editorial commentary like petrol, gold, mobiles, coal and other big-ticket import items do. Like petroleum, it is also shipped in tankers and processed in giant refineries.

But unlike regular “commodities”, there are strong regional patterns and preferences dictating its consumption.

And most important, it’s indispensable to any meal, even while being a rare food article that has recorded very little price increase in recent times.

The story of edible oil

A commodity indispensable for any meal in India

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Traditionally, Indians used broadly two types of edible oils. The first was ‘vegetable’ oils obtained from crushing local oilseeds — mustard in northern and eastern India; groundnut in Gujarat, Maharashtra, Karnataka and Andhra Pradesh; sesame and groundnut in Tamil Nadu; and coconut in Kerala – in kachchi ghanis. These were mostly bullock-driven cold presses that extracted the oil at below 50 degrees Celsius, the normal heat produced through friction. Besides, there were the bigger mechanical expellers or screw press plants that compressed the seed at temperatures going up to 100 degrees Celsius.

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EDIBLE OIL SCENARIO & Fertilizers Ltd established a solvent extraction plant to produce oil from rice bran, a by-product of paddy milling.

This was at Tadepalligudem in Andhra Pradesh’s West Godavari district, a rice bowl.

The second cooking oil medium was ‘animal’ fat, mainly desi ghee from milk.

This was an expensive option households could exercise, maybe once a week or to make Mysore pak and ladoos on special occasions.

The evolution of edible oil consumption is itself a story worth telling……..

A look back…..

The first major revolution came in 1937, when Hindustan Unilever (then, simply Lever Brothers) launched Dalda. This was essentially vanaspati or hydrogenated vegetable oil. The purpose behind hydrogenation — adding hydrogen to convert “unsaturated” liquid fats into “saturated” solid fats — was to harden or raise the melting point of the oil, yielding a product mimicking desi ghee. Just as ghee, its higher melting and smoke point (at which the molecules start breaking down) made vanaspati better suited for deep frying than normal vegetable oil. The samosas and vadas fried in vanaspati were crispier. Cooking in it also extended the shelf life of foods, not a small consideration when few homes had refrigerators. Above all, it was cheap; even today vanaspati retails at under Rs 80 per kg, as against Rs 350-plus for ghee.

By the 1950s, many others — from DCM (Rath) and the Sahu Jains (Hanuman), to Wipro (the company was originally Western India Vegetable Products Ltd) — had their hydrogenated oil brands. They all marketed it as “vanaspati ghee”, only to technically distinguish from desi ghee.

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The second revolution happened with solvent extraction and refining, these processes, unlike normal expellerpressing and filtering, involved use of chemicals. While with mechanical pressing, only about 85 per cent of the oil from groundnuts could be recovered, the use of solvent (edible-grade hexane) could take it to 99 per cent by squeezing out even the residual oil in the expeller cake. The raw edible oil was further refined — that is, de-gummed (to remove gums, waxes and other impurities), neutralized (to remove free fatty acids), bleached (to remove colour) and deodorized (to remove volatile compounds) — by treating with sodium hydroxide and other chemicals.

The first solvent extraction plants came up during the late 1940s, mostly in Gujarat’s Saurashtra region for extracting oil from groundnut cake. By the early Fifties, Ahmed Umar Oil Mills in Mumbai had also introduced refined groundnut oil under a onceiconic Postman brand. In 1962, a company called Foods Fats

But the real solvent extraction boom took place with soyabean cultivation spreading in Madhya Pradesh, Rajasthan and Maharashtra from the late-Seventies onwards. “With this technology, you could process even low oil-bearing materials like soyabean, rice bran and cottonseed cake, which wasn’t possible with mechanical pressing,” says B V Mehta, executive director, Solvent Extractors’ Association of India.

This period also coincided with the Yellow Revolution spearheaded by the National Dairy Development Board (NDDB). Acreages under mustard, groundnut, soyabean, and also other oilseeds like sunflower and safflower, rose considerably. Refined sunflower oil particularly saw an explosion of brands: ITC’s Sundrop, Hindustan Lever’s Flora, and Sweekar of Bombay Oil Industries (which also sold Saffola refined safflower oil).

The NDDB, too, had a range of both filtered and refined groundnut, mustard and sunflower oil, marketed in tetra-packs under the Dhara brand. In the early to mid-Eighties, India was importing some 1.5 mt of edible oils a year. With domestic oilseeds production climbing from 12.65 mt in 1987-88 to 21.50 mt in 1993-94, the country became near self-reliant.

Liberalization All changed with liberalization. The third phase of the Indian edible oil saga the surge in

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EDIBLE OIL SCENARIO become the major oils, yet not eliminated groundnut and cottonseed.

Sunflower was already being grown in Karnataka, Andhra Pradesh and Maharashtra, just as soyabean was in Madhya Pradesh. Consumers south of the Vindhyas and MP upwards, therefore, knew about the two oils. Imports only expanded the markets that domestic production had initially seeded.

imports, from just over 0.1 mt in 1993-94 to 4.2 mt at the turn of the century and 8.4 mt by 2010-11. In the last oil year ended October 2015, imports totaled 14.42 mt, mainly palm (9.54 mt), soyabean (2.99 mt) and sunflower (1.54 mt).

This is also mirrored by consumption. Till the early Seventies, groundnut accounted for almost 60 per cent of India’s edible oil consumption, followed by mustard, cottonseed and other domestically produced oils (coconut, sesame, etc.).

But in 2014-15, groundnut oil’s share had plunged to hardly 1 per cent and mustard’s to 10 per cent. Their place has been taken over by palm oil (45 per cent) and soyabean (20 per cent), with even sunflower registering a significant jump.

Virtually the whole of the country’s palm oil consumption is imported, with the ratios slightly lower for sunflower (92 per cent) and soyabean (71 per cent).

The nature of the industry itself has changed as a result of this huge shift to imported oils. Much of it today comprises not expeller or solvent extraction units processing domestically grown oilseeds, but mere refineries importing crude palm, soyabean or sunflower oil. There are many corporates now — Ruchi Soya, Adani Wilmar, Cargill India, Bunge India, Liberty Oil Mills, Emami Agrotech and JVL Agro — each with annual refining capacities exceeding 0.5 mt and plants near ports such as Mundra, Kandla,

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Mangalore, Chennai, Paradip and Haldia.

Krishnapatnam,

While all this massive quantum of imports in tanker vessels may have turned edible oils into a “commodity” business, what is interesting, nevertheless, is that it hasn’t totally obliterated regionspecific consumption patterns and even local oils. Soyabean oil, for instance, is predominantly consumed in the North and the East, but in both regions, mustard remains the first choice. Sunflower oil, by contrast, is popular mainly in the South.

In the West, sunflower and soyabean have

That still leaves the mystery of palm oil: Where is all the 9.5 mt going? Although some of it gets sold as palmolein through the public distribution system, especially in the South and states like Odisha, not even a third of the palm oil is directly consumed in home kitchens.

Palm oil is predominantly used by the food industry — for everything from mithais, Namkeens, bread and biscuits to noodles —and quick-service restaurants. It is the cheapest oil and, moreover, amenable to deep as well as multiple frying. Vanaspati manufacturing, too, is now entirely based on palm oil.

Being cheap also makes palm oil ideally suited for adulterating other oils, from mustard and groundnut to sesame. It is neutral oil, with no aroma of its own and can easily mingle with other oils.

12 www.agronfoodprocessing.com Whenever prices of other oils go up, you’ll see a spurt in palmolein sales, much of which is for so-called blending.

The present scenario The growth in production of domestic edible oil has not been able to keep pace with the growth of consumption. Thus, this gap is being met by the imports that account for almost 55 -65% of the total oil consumption during past five years.

Continuous increase in the gap between demand and supply of edible oil has forced India to do huge import from leading exporter countries of edible oil.

The demand supply gap is becoming wider mainly due to limited availability of oil seeds, shifting of acreage to other crops and increase in demand of edible oil.

Pushed by the rising use of oil as a medium for cooking in rural areas and the falling production of oilseeds, India’s edible oil imports more than doubled in the decade to 2015. Consumption in rural households rose 40% and in urban, 29% between 2004 and 2012, and oilseed production declined 7% between 2005 and 2012, according to data from the Ministry of Consumer Affairs, Food and Public Distribution.

Source: Department of Food and Public

EDIBLE OIL SCENARIO

Distribution, Ministry of Consumer Affairs.

Indian use of edible oil has varied based on prices and availability, but demand appears uninterrupted, a likely consequence of rising population and growing prosperity.

Growth has also been driven by government policies relating to oilseeds production, domestic processing and imports, all of which have affected the edible oil price and demand in the country.

With India’s population increasing from 541 million in 1971 to 1.02 billion in 2001, and 1.28 billion at present, and per-capita income growth rising throughout the last three decades, consumption growth in India has been almost uninterrupted till recently and consumption growth has been variable in recent years, primarily because of sharply higher product prices.

More than 14 million tonnes of edible oil was imported with a total value of Rs.64, 396.49 crore during OYFY15. In terms of volumes, crude edible oil contributes about 89 % and refined oil contributes about 11% of the total import during OYFY15. Of the 89% of imported crude edible oil, palm oil, soybean oil and

sunflower oil contributes about 54%, 21% and 11%, respectively.

India is importing edible oil from Indonesia, Malaysia, Argentina and Ukraine contributing about 36%, 23%, 17% and 13%, respectively, of total imports.

Demand of edible oil is mainly driven by increase in per capita consumption of edible oil, rising income levels and improvement of living standards.

However, the Indian edible oil market continues to be underpenetrated as current per capita consumption level of India (at 14.4 Kg/year for 2014 -15) is much lower than global averages (24 kg/year).

Furthermore, domestic consumption of edible oil is expected to increase with enhancement in income level and population Indian oilseed production cannot cope Edible oil is produced from oilseeds, and the department of food and public distribution report suggests that production of edible oil seeds fell by a million tonnes over a decade ending 2015.

Source: Department of Food and Public Distribution, Ministry of Consumer Affairs Some reasons proffered for stagnant

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EDIBLE OIL SCENARIO more convenient to import refined palm oil directly from Malaysia and Indonesia and sell it in the domestic market thus placing the edible oil processing units to operate at hair line margins or in worst case scenario wherein the units are small the operations have become unavailable.

The performance of the companies in edible oil sector for medium term period will depend upon the demand of CPO in India post recent increase in import duties on refined edible oils, movement of domestic edible oil prices, performance of Indian Rupee against US Dollar, anticipated sales volumes and profitability margins from the specialty fats business with comprehensive product range including bakery shortening’s, chocolate & confectionary fats, ice cream fats and a range of cooking oils.

production of oilseeds: 1. Oilseed crops are largely grown under rain-fed condition and are more prone to biotic and abiotic stresses. Only one fourth of oilseed producing area remains under the irrigation.

2. Oilseeds are energy rich crops but are grown under energy starved conditions (with minimum inputs with high risk).

3. Majority of oilseed growers (more than 85%) are small and marginal farmers having poor resource base.

4. High seed rate (number of seeds (Kg) to be used per hector or acre for maximum yield) and cost of seeds coupled with nonavailability of quality seeds of varieties and hybrids.

5. Limited adoption of improved varieties and technologies.

6. Unorganized marketing infrastructure and procurement mechanism.

7.External price shock on account of dependence on import is a major challenge in this sector.

8. The cultivation of oil seed farms such as palm has long gestation period of about

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3-7 years before the cultivators could actually begin to derive benefit from thereof.

As demand rises, imports are taxed The government hiked import duties on edible oils to protect the domestic industry, the in September 2015, from 7.5% to 12.5% on crude edible oil and from 15% to 20% in 2014-2015 on refined oil.

Imports now account for two-thirds of the India’s edible oil demand, which is unlikely to reduce as the population grows and incomes continue to increase.

The consumer is likely to pay for taxes imposed on imports.

Conclusion Indian Edible oil Industry has witnessed financial stress due to droughts, rising production costs and cheaper imports thus forcing several small firms to shut shop.

India imports nearly 67% of its edible oil requirements; the rest is being met from domestic production.

Area expansion under palm oil fell by over 50% over the last couple of years due to low prices of crude palm oil and poor rainfall. Though the duty differential between crude and refined palm oil is 7.5%, edible oil sellers are finding it

The long-term outlook of edible oil demand in India is favorable on expectation of increasing population, increase in per capita consumption which in turn would be driven by changing lifestyles, growing urbanization, increasing proportion of middle -class population and steadily rising affluence levels.

The near -term outlook for the edible oil companies is expected to be stable on steady edible oil domestic demand and improvement in operating margin due to increasing refining operation.

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CHOCOLATE STORY

SWEET TOOTH

India one of the fastest growing chocolate markets in the world

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ndia is working up a voracious appetite for chocolates.A delectable combination of rising disposable incomes, changing lifestyles and a young population’s growing penchant for indulgence has transformed India into one of the world’s fastest growing chocolate markets.

A reportfrom French investment bank

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SocieteGenerale predicts that in the next five years, global confectioners will see the highest growth in four markets: India, Mexico, China and Brazil.

But it’s not just affluent Indians who are craving for chocolates, although they still comprise nearly 80% of country’s chocolate sales, according to Technopak,

a retail consultancy. Lured by smaller, more affordable offerings, the rural hinterland and tier 2 and 3 cities—still dominated by traditional Indian sweets— are developing quite a sweet tooth.

Overall, India’s per-capita spending on confectionery is tiny—and that means there’s plenty of room for growth.

The Indian confectionery market is

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CHOCOLATE STORY called Cadbury—introduced chocolate packets that cost as low as Rs5. This was mainly to persuade non-users to try the products and to penetrate into rural areas.

At the other end of the market, Mondelēz is also expanding its range of premium chocolates for an urban clientele with a more international palette and to keep up with the growing demand in the premium segment, the company has introduced new products in recent months.

growing at a decent clip and – in a global context – it is one of the markets that have fuelled sector-wide revenue expansion.

Research from KPMG stresses India is one of the eight global markets that accounted for 70% of sales growth in the category in the five years to 2013. "Percapita consumption in India is low – 0.7kg – yet the market are booming, with sales expected to reach US$2.3bn by 2017.

Demand growth is underpinned by changing consumption patterns. Premium and dark chocolate varieties have found favour with adult consumers – who increasingly view it as an indulgence purchase – while chocolate is also expanding in the gift-giving segment, taking over from traditional Indian confectionery items.

According to Euromonitor, over the last few years, premium chocolates have become an indulgence for adults. Adult consumers, especially the ones who have travelled abroad or the ones who visit modern retailers, frequently are aware of the international brands and better quality chocolate brands like Mars.

These adults are willing to spend more on better quality chocolates and dark chocolates. As a result, premium chocolate brands such as Lindt have gained further popularity.

Such preferences have also attracted many international manufacturers, such as

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Japan’s chocolate manufacturer, Royce to open retail stores in India. While there is growth at the premium end of the market, pricing remains an issue in the Indian chocolate sector.

The chocolate industry in India is growing at nearly 20% every year and the chocolate companies have huge opportunity to expand their chocolate portfolio in the country in the coming years. Factors such as rising cocoa prices and lack of supply-chain infrastructure in India have not exactly dampened the enthusiasm of chocolate makers.

The game is on In as early as 1998, India’s largest chocolate maker, Mondelēz—earlier

With product and packaging innovations like Mondelez’s various home treat packs, they are also focusing on creating new consumption occasions in the mainstream segment. Alongside, the traditional notion that chocolates are meant only for children is also changing.

Previously chocolates were predominantly seen as a confectionary product for children, which also limited their consumption. However, market leader Cadbury’s (Mondelez) has focused on growing chocolate consumption by adults, for gifting as well as a celebratory consumption instead of traditional sweets.

This has made it possible for other companies to bring niche products to the Indian market including premium chocolates (such as those by Ferrero Rocher) and imported products.

In last few last month after the company reported its fourth-quarter numbers,

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CHOCOLATE STORY rather than looking at new product lines or brands.

Nestle does not break out numbers for its confectionery sales in India, but total sales in the market were up 11.3% in the fourth quarter of 2014.

Cadbury and Nestle have the benefit of diverse product portfolios, spanning economy to premium items. Innovation and marketing in India has kept consumer interest in the products offered by the market leaders high. But perhaps its greatest advantage is the power and heritage of the Cadbury and Nestle brands.

Mondelez International CEO Irene Rosenfeld noted price increases had dampened demand in the market during the period. "Industry-wide price increases in chocolate tempered category growth in the fourth quarter. In the near-term we expect this trend to continue until consumers adapt to the new pricing levels," she noted.

Mondelez is the largest chocolate manufacturer operating in India.

According to Euromonitor, the company's Cadbury brand generated around 55% of category sales in 2014. Nestle, the secondlargest player in the market, accounted for 17% the market, while Ferrero, the third-largest manufacturer, racked up just 5% of category sales.

According to Rosenfeld, Mondelez's Indian business generated "doubledigit" growth during 2014. Expansion at has been underpinned by product development.

The company recently launched Cadbury Glow, a new premium gifting chocolate brand in India. Rosenfeld noted: "Initial results have been strong, already reaching 13% of the Indian chocolate gifting segment last quarter."

Likewise, Nestle is using innovation to

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launch confectionery products that appeal to the premium end of the spectrum. Over the past year, Nestle has extended existing brands with premium-leaning offerings, such as KitKat Senses and Nestle Éclairs and Milkybar.

Nestle has sustained its drive to launch premium products in existing brands.

Chocolates have seen the launch of KitKat Senses, Nestle Extra Smooth, Éclairs and Milkybar. The strategy to re-focus on existing large brands and launch premium extensions is positive for driving volumes

Mars Inc.is investing US$160m to establish a production plant for its Snickers brand in Pune, Maharashtra.

The company said it is setting up local production to cater for growing demand in the Indian confectionery sector.

Products of companies like Mars are in a higher price range making it unaffordable to all strata of society. Also, Indian consumers generally associate chocolates with brands like Mondelez (Cadbury). As a result, it will take a while for players like Mars to compete with long established players in the industry, like Mondelez or Nestle... the current players are likely to continue to dominate the industry for the next few years.

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CHOCOLATE STORY optimization in chocolates, as well as seeking premiumization at a time when demand was slowing. That apart, the failure to innovate beyond the wafer segment when consumer tastes were evolving is also blamed for the growth decline.

Nestlé’s market share in chocolates has fallen from 29% in 2006 to 14% now, as per Euromonitor data. Leaders such as Mondelez have introduced smaller stock keeping units (SKUs) at lower price points and increased penetration into rural India even as slowdown in consumption and the lowering of discretionary spend affect several food categories including chocolates.

Ferrero has been aggressively investing too — it passed a resolution to invest Rs 375 crore in the Indian arm and double its authorised capital to Rs 1500 crore, as per latest regulatory filings last submitted last week. Around nine months ago, it had raised its borrowing limit to Rs 2,500 crore and said it will invest Rs 367 crore.

Nevertheless, Euromonitor data does suggest the likes of Mars and Ferrero are making small gains and stealing a percentage point or two of market share from the dominant players.

"While Nestle has been losing share consistently for the last two years, Mars and Ferrero have been gaining small percentage points in terms of value share.

According to Euromonitor data, Ferrero India recorded an increase in value share from 4% in 2012 to 5% in 2014 and Mondelez’s market share dipped 0.8 points from 2013 to 2014.

Talking of Ferrero India, the maker of Kinder Joy chocolates and Nutella chocolate-hazelnut spread overtook Nestle in India chocolate revenues nearly eight years after entering India. Italian chocolate maker posted revenues of Rs 929 crore during the seven months ended March 2015, while Nestlé’s chocolate division, which sells Kit-Kat and Munch among other brands, had revenue of Rs

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1,110 crore in calendar 2015. Just three years ago, Nestlé’s chocolate business was three times that of the Italian company.

Mondelez, which sells Cadbury chocolates, still dominates the segment with annual revenues of over Rs 6,500 core. Experts attribute this to Ferrero's differentiation strategy.

Brands like Ferrero with no historic baggage has discovered and led the top down approach of premiumising through innovation versus old school thinking of focusing mainly on low priced products.

Ferrero has shown that there is a large market even at the top end.

According to a recent report by Nomura, Nestlé’s portfolio issues lead to revenue declines and market share loss. "Growth in the chocolate and confectionery business for the company has been in decline since calendar 2010, but revenue has declined from calendar 2013 onwards.

Reasons for this decline are portfolio

The Indian unit of US-based Mars Inc., too, has announced an investment of Rs 1,005 crore to set up manufacturing plant in Maharashtra, while Mondelez has invested $190 million to open a manufacturing facility in Andhra Pradesh, its largest in the Asia-Pacific Region.With strong growth in demand and a growing tendency for consumers to trade up to higher-margin products, could Mars' push in India challenge the established players in the market?

Toy story But the real surprise in India’s booming chocolate market isn’t black, white or milk. Instead, chocolates with toys (such as Kinder Joy) have caught the attention of young Indian consumers. From sales of only around Rs66 crore in 2009, the number has grown 15 times to Rs1, 007.5 crore in 2015. And these chocolates now comprise the third biggest segment in value terms.The overall market, however, is dominated by chocolate tablets and countlines, which are boxes of bars packed and supplied to retailers to be sold individually.

21 www.agronfoodprocessing.com key growth platform for Mondelez International’s long-term chocolate strategy and Mondelez India’s vision is to be the undisputed leader in the premium chocolate market.

Mondelez’s rival Nestle India launched the Alpino in 2013 and has been tweaking its portfolio to add more premium products.

It recently launched Kit Kat Senses, which the company says has been made with a unique process of premium chocolate making called the ‘Slow churn processes.

Price is no bar for that premium chocolate Indian consumers are fast becoming more discerning when it comes to satisfying their sweet cravings, even at a premium.

While the likes of Mondelez India and Nestle India are wooing consumers by upgrading their existing portfolios and bringing in global products, domestic companies such as Amul are also looking to become a sizeable player in the premium chocolate category.

The domestic chocolate market is estimated to be worth Rs 6,000-7,000 crore with premium chocolates accounting for just 10-12 per cent. Experts, however, say it’s growing and there’s sufficient buzz in the category.

Chocolate hasn’t traditionally been the sweet of choice in Asian markets but as the economies are growing, the demand for indulgent treats has also seen a visible upward movement. Adult consumption of chocolates is growing at the fastest pace in India.

Premium chocolates have seen explosive growth since 2010, which was led by Mondelez… It has been identified as a

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Chocolate penetration is still low; hence, there is great growth potential for both premium and regular chocolates. On one hand, in the high-end category, consumers are looking for an enriched experience.

On the other, there is always a potential to tap the low-end entry level customers.

For domestic giant Amul, the endeavor is to not just provide a quality product, but also flatten the perception that premium chocolates meant imported ones.

The company, which launched its premium variants in late 2012, now makes chocolates that are “foreign” in terms of packaging and taste, but Indian in terms of pricing.

Reasonable pricing has always been Amul’s strategy so we maintained that policy for the premium products.

The performance has been excellent.

Amul has seen greater potential in the premium category, which is why Amul had launched three new variants — Hazelnut, Belgian Chocolate, and a fruitinfused chocolate containing blueberry, cranberry, etc. Chocolates account for just Rs 100 crore of Amul’s ₹20,730-crore business.

Chocolates are selling like hot cakes and it’s difficult to meet demand since chocolates account for a fraction of Amul’s returns.

CHOCOLATE STORY Oil and food insight Chocolates are among most demanded products in India, there are several renowned companies manufacturing premium to moderate quality chocolate products.

The likes of Mondelez India (Cadbury’s) and Nestle India have quite a strong hold, (something good for Nestle after the Maggi row). The home grown companies like the government backed Amul and massive private multi-industry player ITC looking to snatch bigger pies in the circle. The domestic chocolate market is estimated at bit more than 7,000 crores INR. This is quite a big industry when considered that chocolate isn’t a natural sweet dish in India. The premium range of chocolates has a presence of 10-12 % which is constantly on an upward growth.

By 2015, the Indian industry for chocolates was calculated at 58 billion INR and it is projected to reach 122 billion INR with a CAGR of 16% by 2019.

Milk chocolate is undoubtedly the most liked chocolate variant in India with a strong hold of 75% market. The dark chocolate which was once ‘not so preferred’ is today the fastest growing segment with a 9% market share.

Moreover, companies like Cadbury’s, Nestle India and ITC are introducing products like Bourneville and Dark Chocolate to pump in the dark chocolate segment in India.

80% of India’s chocolate consumption comes from the urban regions. Unsound infrastructure, defective warehousing and transportation facilities are some factors which are hurdles in the growth of rural chocolate market in India. Although, the scene is much better than what it was in the past as villages and towns today are increasingly aware about products and consume chocolates more often.

Smaller quantities worth less than 30 grams priced around Rs.10 are the fastest growing category which has the largest sales volume in India.

22 www.agronfoodprocessing.com

121, 1st Floor, Rassaz Multiplex, Station Road, Mira Road (E), Dist Thane - 401 107, Maharashtra.

Ph. : +91-22-28115068, 28555069, 8689979988 Email : info@agronfoodprocessing.com www.agronfoodprocessing.com

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CONTROVERSEY

The Accurate Facts

About Potassium Bromate/Iodate In Bread And Bakery Products

O

UTLINE Use of chemical food additives is a common practice in packaged and processed foods. Not all of them are safe.

One such additive is potassium bromate (KBrO3) which, until over two decades ago, was routinely used in most parts of the world to treat flour for bread and bakery products. KBrO3 helped give the product a high rise and uniform finish. Its

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use as a flour treatment agent was allowed based on the assumption that no residues of bromate would be found in the final product.

But following studies demonstrating detectable residues and linking bromate to cancer, global scientific expert committees – during the 1980s and early 1990s – first suggested reducing the allowed limit of

use; subsequently, it was recommended that potassium bromate should not be used as a flour treatment agent. Countries across the world started to ban it – but India did not. Use of potassium bromate continues to be allowed to treat flour in our country.

Because of this, Centre for Science and Environment (CSE) had decided to check

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for levels of potassium bromate in breads and bakery products produced in India, and the results had created havoc in the bread industry. And the tests conducted by CSE’s Pollution Monitoring Laboratory (PML) found residues of potassium bromate/ iodate in over 84 per cent of bread and bakery samples sourced from Delhi.

Pollution Monitoring Laboratory (Pml) Test The PML collected a total of 38 bread and bakery samples from retail shops, bakeries and fast food outlets in Delhi in MayJune 2015. The samples included popular varieties of white bread, whole wheat/ Atta bread, brown bread, multigrain bread, sandwich bread, pav, bun, readyto-eat burger bread and ready-to-eat pizza bread. The tests were conducted on UV-visible spectrophotometer using a published method which can detect the presence of both potassium bromate and potassium iodate, as both of them oxidize the dye producing the same color.

Over 84 per cent (32/38) samples tested were found having residues of potassium bromate/iodate in the range of 1.15–22.54 ppm (parts per million).All samples of white bread, pav, bun and ready-toeat pizza bread were found to contain potassium bromate/iodate.

Over 79 per cent (19/24) samples of bread and about 75 per cent samples of readyto-eat burger breads were also positive.

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The highest level of potassium bromate/ iodate was present in sandwich bread.

This was followed by pav, bun and white bread. Even the average levels were high in these products.

Products of Perfect Bread, Harvest Gold and Britannia were found with high average levels of potassium bromate/ iodate. Harvest Gold sandwich bread had highest concentration.

Products of all seven popular fast food outlets selling pizza and burger were found positive with potassium bromate/ iodate – but at levels lower than those found in bread, pav and bun.

Labelling Practices For Potassium Bromate And Potassium Iodate While there were no labels on the samples of bread for ready-to-eat pizza and ready-to-eat burgers, the labels on other packaged samples of various brands were checked by the PML. And it was found that only one brand – Perfect Bread – labels potassium bromate. This directly suggests use of potassium bromate in it and the bread industry in general.

No maker among those tested labels potassium iodate.

Two brands – Harvest Gold and Defence Bakery – did not even label the class title (flour treatment agent) as required by the Food Safety and Standards (Packaging and Labelling) Regulations, 2011.

CONTROVERSEY Ban Of Potassium Bromate Across The World Many countries across the world have banned the use of potassium bromate as a flour treatment agent. The World Health Organization (WHO), its expert scientific committees and associated organisations have recommended not using it due to detectable residues of bromate in the end product and relation of potassium bromate with It is used as a dough conditioner, the International Agency for Research on Cancer (IARC), associated with the WHO, classified potassium bromate in 1999 as Class 2B, i.e. possibly carcinogenic (cancer causing) to humans. The agency in its earlier evaluation of 1986 had already stated that there is sufficient evidence in experimental animals of carcinogenicity of potassium bromate. It was found to cause renal tubular tumors (adenomas and carcinomas), thyroid follicular tumors and peritoneal mesotheliomas in laboratory animals.

The Joint Expert Committee on Food Additives (JECFA), administered by the WHO and Food and Agriculture Organization (FAO), started evaluating potassium bromate as a flour treatment agent in 1964. In 1983, the committee temporarily accepted the use limit of 75 ppm provided that there are negligible residues in the end product.

Clearly, the understanding that allowed its use was that all bromate gets converted into bromide during baking process. In 1989, the committee endorsed its earlier recommendation that “as a general principle, bromate should not be present in food as consumed”. As residues of bromate were still detected, the committee further reduced the use limit to 60 ppm.

Later in 1992, JECFA concluded that “use of potassium bromate as a flour treatment agent was not appropriate”. The previous acceptable limit was withdrawn as the committee was aware that alternatives were present. Based on longterm toxicity/carcinogenicity studies and in vivo and in vitro mutagenicity studies, potassium bromate was considered a ‘genotoxic carcinogen’.

27 www.agronfoodprocessing.com The committee commented that “Experiments using new sensitive methods have also demonstrated that, when it is used for flour-treatment at what were regarded as acceptable levels, bromate is nevertheless present in bread.”

In 1995, in view of more residual data and new residue detecting techniques, JECFA considered that its conclusion of 1992 applies.

In 2012, the Codex Alimentarius, an international food safety reference agency run by the WHO and FAO formally withdrew specifications of potassium bromate in line with the JECFA view.

Ill Effects Of Potassium Iodate In 1965, the JECFA recommended that potassium iodate should not be used as a flour treatment agent due to the possibility of a higher intake of iodine as the chemical is considered a good source of it. The committee considered that “the use of a food additive for the treatment of a staple, such as flour, of a substance having such physiological significance and potency as iodine is highly undesirable”. It is not found in the approved list of food additives in these countries.

The European Food Safety Agency in its scientific opinion of 2014, mentions that various mechanisms can lead to thyroid disorders, and hypo- and hyper-thyroid status can be observed in cases of both insufficient and excessive iodine intake.

It mentions that chronic excessive iodine intakes may accelerate the development of sub-clinical thyroid disorders to overt hypothyroidism or hyperthyroidism, increase the incidence of autoimmune thyroiditis and increase the risk of thyroid cancer.

The Use Of Potassium Bromate And Iodatein India India allows the use of potassium bromate and potassium iodate. As per the Food Safety and Standards (Food Product Standards and Additives) Regulations, 201125, maximum level of use of potassium bromate and/or iodate in bread is set at 50 ppm and in flour for bakery is set at 20 ppm.

While both chemicals are allowed, there

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are certain noteworthy issues in the existing regulation: • Monitoring maximum level of use in bread may require onsite inspection to be able to ascertain the quantity of added chemical which would be difficult. On the other hand, in the absence of a set residue limit, presence of residues cannot be used to establish overuse. Therefore, when assumption of no residues in the end product was found to be failing in other countries, it was quite appropriate to completely prohibit use • There is limited clarity on clubbing potassium bromate and/or iodate, as one of the two (potassium bromate) is linked with cancer and is individually addressed otherwise, for example in flour for bakery.

Clubbing the two anyways leaves a big range for bread makers to use potassium bromate.

• As per the current Food Safety and Standards (Packaging and Labelling) Regulation, 2011, for pre-packaged foods ‘flour treatment agent’ is the relevant class title to be labeled together with specific name or international numeric identifications for the food additives used for this purpose. With reference to labelling on flour for bakery, the existing laws do not require disclosure of the chemical(s) used. Instead, they merely require mentioning “wheat flour treated with improver/bleaching agents, to be used by bakers only”. This leaves another gap in knowing about the presence of potassium bromate or potassium iodate or other flour treatment agents/improvers at the level of bakers.

• Bureau of Indian Standards (BIS) provides Standards for few bread variants. Potassium bromate and/or potassium iodate is allowed for use in white bread and wheat meal bread. For protein-fortified bread and milk bread potassium bromate is allowed. Effectively potassium bromate can be used at up to 50 ppm levels.

Why Industry Favors Potassium Bromate?

It is clear that potassium bromate is

CONTROVERSEY widely used and the main reason for preferring it over other alternatives is the quality of results it provides. It is an oxidizing agent which typically increases dough strength, leads to higher rising and uniform finish to baked products. It is a slow acting agent and can be used at any stage during baking. In comparison, ascorbic acid is considered a healthy alternative by experts, but it is a fast acting oxidizing agent and does not lead to comparable results. Glucose oxidase is another alternative known to perform similar functions and was approved by the FSSAI in November 2015. There are several other improvers and flour treatment agents approved by law such as ammonium persulphate, ammonium chloride and amylases.

Bread is a low-value, low-margin and high volume business which is growing at about 9 per cent per annum, with an estimated turnover of Rs 33 billion in 2015. However, the cost of adopting safer alternative is insignificant.

What Should Be Done FSSAI should set and ensure appropriate labelling for flour treatment agents in pre-packaged breads, bakery products, improvers and flour for bakery. This would add another layer of check on those who may knowingly or unknowingly are using potassium bromate or potassium iodate. The FSSAI should also conduct inspections and test for use and presence of potassium bromate and take necessary action against those who are currently flouting labelling norms by not mentioning it.

BIS should amend relevant available standards. This should ensure that both potassium bromate and potassium iodate are not allowed as improver/flour treatment agents in bread and bakery products.

Also, the use of potassium iodate as a flour treatment agent in breads should not be allowed by the FSSAI. It is not recommended as a flour treatment agent in several countries due to possible higher intake of iodine which can potentially affect the functioning of thyroid.

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Aqua Partner

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The Fat Tax

Should Governments

Tax Unhealthy

Foods And Drinks?

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FAT NOT OR BED TAX

T

he Bihar government’s decision in January this year to impose a tax on samosas and all sweets costing more than Rs 500 per kg must have given a lot of food for thought to the new government in Kerala.The Left Democratic Front (LDF), elected to power in May, has decided to impose a “fat tax” on junk food, as it looks to increase tax revenue by 25 per cent this financial year.

At 14.5 per cent, the fat tax is expected to

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FAT NOT OR BED TAX been suggested as possible targets for taxes, including fat, saturated fat, salt, artificial sweeteners, and caffeine.

Our sense, though, is that only sugar might be a plausible candidate.

hit fast-food chains in the state, including KFC, McDonald’s, Domino’s, Pizza Hut and Subway. These are popular with nonresident Indians and tourists in the state, who, the government believes, are in a position to absorb the tax.

The Bihar government, in January, had imposed a 13.5 per cent value added tax on items such as samosas, salted peanuts, sweets and a few branded snacks, to make up for the revenue loss on account of the ban on liquor in the state.

The Kerala government, meanwhile, also imposed a five per cent tax on packaged wheat products such as Atta, Maida, sooji and rava.

The state government is expecting additional revenue of around Rs 50 crore from this initiative alone, sources said.

Tax for packaged Basmati rice has also been increased to five per cent, which is expected to bring Rs 10 crore into government coffers.

Should the fat tax be imposed?

With obesity and diabetes at record levels, many public health experts believe globally governments should tax soda, sweets, junk food, and other unhealthy foods and drinks. Denmark, Finland, France, Hungary, and Mexico have such taxes. So do Berkeley, California and the Navajo Nation.

Do such taxes make sense? Should We Tax Unhealthy Foods and Drinks?

Many nutrients and ingredients have

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Sugar in foods and drinks contributes to obesity, diabetes, and other conditions.

By increasing the price of products that contain sugar, taxes can get people to consume less of them and thus improve nutrition and health. Health care costs would be lower, and people would live healthier, longer lives. Governments could put the resulting revenue to good use, perhaps by helping low-income families or cutting other taxes.

That’s the pro case for a sugar tax, and it’s a good one. But policymakers need to consider the downsides too. Taxes impose real costs on consumers who pay the tax or switch to other options that may be more expensive, less enjoyable, or less convenient.

That burden would be particularly large for lower-income families. We find that a US tax on sugar-sweetened beverages would be highly regressive, imposing more than four times as much burden, relative to income, on people in the bottom fifth of the income distribution as on those in the top fifth.

Another issue is how well sugar

consumption tracks potential health costs and risks. If you are trying to discourage something harmful, taxes work best when there is a tight relationship between the “dose” that gets taxed and the “response” of concern.

Taxes on cigarettes and carbon are welltargeted given tight links to lung cancer and climate change, respectively. The dose-response relationship for sugar, however, varies across individuals depending on their metabolisms, lifestyle, and health. Taxes cannot capture that variation; someone facing grave risks pays the same sugar tax rate as someone facing minute ones.

That limits what taxes alone can accomplish.

In addition, people may switch to foods and drinks that are also unhealthy. If governments tax only sugary soda, for example, some people will switch to juice, which sounds healthier but packs a lot of sugar. It’s vital to understand how potential taxes affect entire diets, not just consumption of targeted products.

A final concern is whether taxing sugar is an appropriate role for government. Some people strongly object to an expanding “nanny state” using taxes to influence personal choices. Others view taxes as acceptable only if individual choices impose costs on others. Eating and drinking sugar causes such “externalities”

32 www.agronfoodprocessing.com when insurance spreads resulting health care costs across other people.

Others go further and view taxes as an acceptable way to reduce “internalities” as well, the overlooked harms consumers impose on themselves.

Policymakers must weigh all those concerns when considering whether to tax sugar. If they decide to do so, they should focus on content, not proxies like drink volume or sales value. Mexico, for example, taxes sweetened drinks based on their volume, a peso per liter. That encourages consumers to reduce how much they drink but does nothing to encourage less sugary alternatives.

see the new fat tax imposed by Kerala's Communist government, as tax on multinationals rather than a sincere effort to curtail the intake of fat.

Their argument is that mithais, pooris, butter dosas and other traditional savories that are fattier than their products are let off.

However Kerala isn't currently a big market for these products, and so the impact on the financials will be limited for the chains, there is a fear among them that this may set a precedent for other states to follow. And, they are up in arms against the move.

That’s a big deal because sugar content ranges enormously. Some drinks have less than 10 grams of sugar (2 ½ teaspoons) per serving, while others have 30 grams (7 ½ teaspoons) or more. Far better would be a content-based tax that encourages switching from the 30-gram drinks to the 10-gram ones.

Focusing on sugar content would bring another benefit.

Most sugar tax discussions focus on changing consumer choices. But consumers aren’t in this alone. Food and beverage companies and retailers determine what products they make, market, and sell.

Taxing drink volumes or the sales value of sugary food gives these companies no incentive to develop and market lowersugar alternatives. Taxing sugar content, however, would encourage them to explore all avenues for reducing the sugar in what we eat and drink.

Are multinational been targeted?

Kerala is the first state to bring in such a tax that some European countries like Hungary and Denmark already levy.

But chains selling burgers and pizzas

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FAT NOT OR BED TAX big impact on volumes as taxes become almost double versus the existing 15% service tax.

Fat tax burden would be passed on to consumers selectively though the firm and is directly "business-unfriendly".The development is happening at a time the segment isn't doing that well.

Almost all players in the western style foods segment have been posting singledigit same-store sales growth over the past six quarters, as consumers scale back on discretionary spends.

Same-store sales compare sales at stores open for at least a year and are a key retail performance indicator.

A Goldman Sachs report last month attributed the sectoral slowdown to persistent store expansion which led to supply outstripping demand growth.

Also, "affordability continues to be a challenge", the report, titled India Consumer Closeup said.

Anything in excess is unhealthy, which includes most traditional Indian savories and sweets and targeting a cuisine segment which is not more than 10% of Indian food consumption and taxing the organised sector is an easy scapegoat.

The tax clearly singles out multinational brands. What about local Indian brands — some of their products are that much unhealthier and many do not follow basic hygiene standards. Edelweisssaid the tax is sentimentally negative for the quick service restaurant sector as it may lead to copycat actions from other states.

This (such actions) will have a potentially

However, it projected that the sector would grow 20% annually over the next few years, up from a compound growth rate of 16% in the past decade.

Apart from QSRs, the government should target the unorganised sector if it really wants to address the problem of increasing consumption of unhealthy food.Close to three-fourths of the food service business in India constitutes the unorganised sector, which doesn't contribute to any taxes or have any compliance of food safety and standards.

Policies of the state should focus towards spreading awareness which result in moderation, and not deprivation.

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GLOBAL SEAFOOD

Seafood Processing 1. OVERVIEW OF THE 1.1 Introduction he world seafood industry plays a significant role in the economic and social wellbeing of nations, as well as in the feeding of a significant part of the world’s population. Fishing and fish farming has emerged as one of the major food processing occupations of mankind. In ancient times, economically and socially backward people were

T

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employed in this profession. The advent of modern mechanized fishing vessels has brought vast changes in the attitude of the public fishing and seafood processing.

From low income and socially backward communities the profession has shifted to the hands of industrialists and technologists. Today fishing and processing activities provide employment to millions of people around the world.

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GLOBAL SEAFOOD There are several product categories from seafood industry, based on raw material type (fresh/frozen) and value-addition (degree of processing and value content).

The following figure depicts few seafood product categories in a seafood industry.

Important canned fish products are tuna packed as solid pack, chunks, flakes, grated or shredded in water or oil, sardines or sardine-like fishes in oil, tomato sauce or other types of sauce, presmoked sardines in oil or tomato sauce, kippers (pre-smoked herring), salmon, mackerel, fish paste products and pet food.

Table 1: Source and approximate yields of by-products from various fish canning operations

1.2 Global supply and demand The world’s population is expected to increase by 36% in the years 2000 to 2030, from approximately 6.1 billion people to 8.3 billion. It is also expected that the estimated total seafood demand will be 183 million tones by 2030, but the estimated supply will be only 150 to 160 million tones.

Thus, there is a sizable gap between demand and supply. However, global capture fisheries will be able to provide only 80-100 million tones of fish annually on a sustainable basis. [Source: Yves Bastien, 2003] The global seafood market is estimated at US$ 100 billion per annum. Also, the world demand for seafood increases by 3% each year. The world largest seafood consumption in the world is by Japan, followed by European Union.

The top five consumed species are salmon, shrimp, tilapia, catfish and crab (major consumption in China and India). [Source: World Nutrition Forum, September 7th - 8th, 2006, Vienna, Austria] As shown in Figure 1 above, the contribution of developing countries in

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the export of seafood products is being increased every year and reached the level of production by developed countries.

The Figure 2 shows that the largest importer of seafood is European Union (EU), followed by Japan.

2. Seafood Production Process 2.1 Products

2.2 Raw Material 2.1.1 Fish and other Marine species: Many types of fish and other marine species are suitable for seafood production and the size of the individual fish varies from that of the smallest sardines to that of the largest tuna species. For some species like tuna and sardines canning is the most common processing method.

Other species, suitable for canning are salmon, mackerel, herring, clams,

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GLOBAL SEAFOOD description, material balance, environmental issues and cleaner production opportunities (Refer Table 3).

3. Environmental Issues Related To Seafood Processing Environmental issues in fish processing industries primarily include the following: Water consumption and wastewater generation, Solid waste generation and by-products production, Emission to air and energy consumption.

3.1 Water Consumption

oysters, shrimps, octopus, crab and white fish paste products.

To plan the handling and processing of seafood and to manage problems connected with all operations from transport to processing through storage, it is essential to know the properties of the species involved.

2.1.2 Ingredients: There is wide variety of liquid solutions available that can be added in seafood canning process. Some of them are as listed below: 1. Salt 2. Olive oil 3. Soya bean oil 4. Tomato sauce Seafood Processing Some examples of other ingredients and additives used in the canning process are: • Pepper Curry powder • Cardamom Starch (potatoes flour) •

Ginger

• Onion • Spirit vinegar Ground mustard seed Beer

Mono Sodium Glutamate (MSG) Milk Sugar Wine

Note: The ingredients should be suitable for human consumption and be free from abnormal taste, flavour and odor.

2.2 Packaging Materials

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The most common material used for manufacturing containers for fish products are Tin plate Tin free steel (TFS) Aluminum alloys Enamel coatings Lacquered steel plate Glass jars Retortable pouches 2.4 Production Process Production process depends on the type of the seafood species, end products, machineries used, etc.

In this report Tuna Canning process is described in detail including the process

Most seafood processors have a high baseline water use for cleaning plant and equipment. Therefore, water use per unit product decreases rapidly as production volume increases. Major sources of water consumption include: fish storage and transport; cleaning, freezing and thawing; preparation of brines; equipment sprays; offal transport; cooling water; steam generation; and equipment and floor cleaning.

Water consumption in fish processing operations has traditionally been high to achieve effective sanitation. Several factors affect water use, including: the type of product processed, the scale of the operation, the process used, and the level of water minimization practices in place (Environment Canada, 1994a). General

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GLOBAL SEAFOOD it can be said that for the fish canning process the major energy consumption is for fish precooking and sterilization process.

Energy is utilized to produce steam from boilers. The capacity of boiler depends on the steam requirement.

Fuel oil is generally used to produce steam in most factories. Besides, LPG and coal are also used.

cleaning contributes significantly to total water demand so smaller-scale sites tend to have significantly higher water use per unit of production.

3.2 Energy Consumption Seafood processing industries consumes large quantities of electrical energy.

Most of the power is used for magnetic induction equipment, such as electric motors (compressors for freezers, cold stores, ice-making machines, water pumps, etc.) and lighting that requires magnetic ballasts, airconditioning [UNEP, 1999]. For fish and fish meal processing energy is required for cooling, cooking, sterilizing, drying, evaporation, can cleaning, fork-lifting. For wastewater treatment energy is applied for pumping and aerating. Energy consumption depends on various factors like age and scale of plant, the level of automation and the range of products.

Processes which involve heating, such as canning and fishmeal production need more energy than other processes (UNEP, 2000).

From the above table and pie-chart,

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In addition to fish processing, electricity is consumed for refrigeration, lighting, water and wastewater treatment. A typical value of this kind of energy consumption for a seafood industry located in Vietnam is given in below: 3.3 Effluent Discharge Sources of effluent from fish processing include the handling and storage of raw

fish prior to processing, fluming of fish and product around the plant, defrosting, gutting, scaling, portioning and filleting of fish and the washing of fish products.

Effluent streams generated from seafood processing contain high loads of organic matter due to the presence of oils, proteins and suspended solids.

They can also contain high levels of phosphates and nitrates.

In canning operations, effluent is also discharged from the draining of cans after precooking, from the spillage of sauces, brines and oil in the can filling process, and from the condensate generated during precooking.

Effluent quality highly depends on the type of fish being processed and type of processing undertaken.

Pollution loads generated from the processing of oily fish species are much higher than from white fish species, due to the high oil content and the fact that these species are usually not gutted or cleaned on the fishing vessel.

If the effluent streams described above are discharged without treatment into water bodies, the pollutants they contain can cause eutrophication and oxygen depletion. In addition, fish processing

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GLOBAL SEAFOOD form of air pollution in fish processing. Major sources include storage sites for processing waste, cooking by-products during fish meal production, fish drying processes, and odor emitted during filling and emptying of bulk tanks and silos.

3.5 Noise Pollution Noise is not a significant problem in seafood industries.

Noise may be generated during cutting, pre-cooking, filing and weighing the can, can seaming and sterilization.

industries have been known to pollute nearby beaches and shores by releasing wastewater containing oils. Since oil floats on water, it can end up on the surrounding coastline. Refer Table 8 for Wastewater characteristics of various species.

3.4 Emission to Air Point-Source Emission: These emissions are exhausted into a vent or stack and emitted through a single point source to the atmosphere.

The major air pollution sources in a typical seafoodmindustry are from combustion sources like boiler and generators for electric power. Boiler is used for steam supply during pre-cooking and sterilization process.

The examples of fuels used in the boilers are electricity, fuel oil, coal and LPG. [UNEP, 1999] The Table 6 highlights common air emissions and their sources from seafood processing.

Odor: Odor is often the most significant

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[National Pollutant Inventory. June, 1999].

3.6 Solid waste generation Solid waste is mainly in the form of organic wastes generated in the production processes. It consists of fish shells and heads from the seafood processing.

The majority of captured species are ground fish and it is estimated that only 25-50% of the raw material is utilized for primary products.

The noise measurements at any sources in the process do not exceed the standard of Maximum Sound Level (140 dB) [Ministry of Interior, 1976], but they have more value than Equivalent Continuous Sound Level 24 hours.

The remaining 50-75% of the raw material is considered processing waste and is utilized for low-valued products or disposed. Seafood processing activities generate potentially large quantities of organic waste and by-products from inedible fish parts and endoskeleton shell parts from the crustacean peeling process.

The waste generation depends on the species and the process. If coal is used as a fuel in the boiler, ash will be generated depends on the ash content of the coal.

Generally, 80% of the ash becomes fly ash and the remaining 20% will be bottom ash.

Table 9: Sources of noise pollutionThis deterioration causes the formation of odorous compounds such as mmonia, mercaptans, and hydrogen sulphide gas

Table 10: Source and quantities of solid waste (Source: M.T. MORRISSEY, Astoria Seafood laboratory, Oregon State University, 2001)

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NANO TECH

Nanotechnology

in Food and Dairy Industry

Dr. Rutu Parekh Asst. Professor, VLSI & Embedded system group Dhirubhai Ambani Institute of Information & Communication Technology, Gandhinagar, Gujarat.

N

anotechnology is the technology of 21st century. It is a science, engineering and technology conducted at the nanoscale, which is about 1 to 100 nanometers. A nanometer is one billionth of a meter; a human hair is roughly 100,000 nanometers wide. The potential of nanotechnology in the future of food and dairy is unprecedented and its applications are expected to revolutionize the food and dairy

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industry. But yes, there is a long way to go. Till date dairy products made with nanoengineered materials are in market and still entering.

When a particle size is reduced in a nanometer range, the resulting material exhibits physical, chemical and optical properties that are significantly different from the properties at macro scale of the same substance which enables novel applications. The advantage of nanotech in food and dairy industry is

not just limited to basic food and nutrition science but also in things that surrounds food like food packaging, processing and sensory systems. Application of food nanotechnology is in improved delivery of micro nutrients and bioactive food components, controlled release of bioactive compounds, product traceability, food safety and bio security (nano sensors).

Nano materials with application in food and dairy industry can be classified into

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NANO TECH

during storage. In addition, today’s nanotech food products include a new variety of canola oil containing tiny materials that can block cholesterol from entering the bloodstream, and a chocolate milkshake that tastes better and is more nutritious than conventional shakes because of the unusual properties of nanoparticles. The idea of “on-demand” interactive food is to allow consumers to modify food depending on their own nutritional needs or tastes by adding nano capsules containing flavor or color enhancers, or added nutritional elements (such as vitamins), would remain dormant in the food and only be released when triggered by the consumer.

Edible biopolymers based nanoparticles are used to encapsulate and deliver micronutrients like iron, vitamin, proteins and other bioactive compounds like curcumin. This will lead to better delivery of plant or herb based bioactive compounds through milk and milk products without affecting the organoleptic properties.

(a) Nanoparticles, (b) Nanofibers / fibrils, (c) Nanoemulsions and (d) Nanoclays.

Nanoparticles can further be divided into organic and inorganic nanoparticles based on their ability to carry different ingredient and react to different environmental conditions.

Inorganic nanoparticles like silver is used in cutlery, storage containers, fridges and worktops, whereas titanium dioxide, a food colorant, can be used as a UV protection barrier in food. Organic nanoparticles (sometimes referred to as nano capsules when used as vehicles for delivery) are likely to be used to enhance the nutrient value of food systems through improvement or alteration of food functionality. They are designed to deliver vitamins or other nutrients in food and beverages without affecting the taste and appearance. These nanoparticles encapsulate the nutrients and carry them via the gastrointestinal tract into the bloodstream, increasing their bioavailability. Example include liposomes and micelles. Nanofibers like globular proteins are used for thermal stability, increased shelf-life, formation of transparent gel network for use as thickening agent. Nanoemulsions are emulsions which are thermodynamically stable compared to conventional emulsions under a range of different conditions. The applications

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of nanoemulsions are delivery of active compounds in the body, stabilization of biologically active ingredients, extended shelf-life due to increased stability, increased viscosity at lower concentrations of oil phase.

Nanoclay particles dispersed throughout the plastic are used to provide an impermeable barrier to gases such as oxygen or carbon dioxide in plastic bottles, cartons and packaging films. It blocks oxygen, carbon dioxide and moisture from reaching fresh meats or other foods and also enables the plastic to be made thinner, lighter, stronger and more heat resistant.

Development of new age dairy products include production of milk with low fat and more calcium, milk for lactose intolerant people, low fat icecream by decreasing the size of emulsion particles that give ice-cream its texture, betterment of frozen yogurt quality by preventing creaming or sedimentation occurring

Furthermore, Diagnostic kits to detect animal health and adulteration kits for milk are developed using nanoparticles. Nanosensors and nanocantilevers are used to detect food spoilages. Nano sensors can be placed into the packaging material where they serve as electronic tongue or noses by detecting chemicals released during food spoilage. Nanocantilevers are a class of biosensors that can detect biological-binding interactions, such as antigen and antibody, enzyme and substrate through physical and/or electromechanical signaling.

Novel food packaging technologies are extending the life of food and drinks and

41 www.agronfoodprocessing.com improving food safety. When it comes to packaged food it is nearly impossible to distinguish between fresh foods and their inedible counterparts. It is now possible to integrate a sensor film into the package itself, where it takes over the role of quality control. And if the food has spoiled, it changes color to inform the fact. Smart packaging materials will absorb oxygen, detect food pathogens such as salmonella and e. coli, and alert consumers of spoiled food. Scientists in Netherlands are taking smart packaging a step further by not only being able to sense when food is beginning to spoil, but will release a preservative to extend the life of that food.

According to the latest study, in next 20 years food production and consumption will change dramatically due to population increase, water problems, energy use and climate change. Millions of people today strive for food and it will be worse in the future.

The possibility to shape food on a molecular level will make it locally available around the world. Nano produced food shall no longer be affected by limited reasons, bad crop weather, water problem, etc. it will have correct nutritional composition, taste and texture of organically produced food.

The government of India has established the Nanoscience and Technology Initiative in 2001 involving the Department of Science and Technology (DST). It has granted approval for the Nano mission worth Rs. 650 crores in its second phase in the 12th Plan Period 2012-17.

Owing to increased surface area of nano materials, they are more reactive, mobile and likely to be toxic. The risk may vary depending on the particles size and chemical composition of he engineered nanoparticle.

There is a need to understand whether enhancing the bioavailability of some nutrients or food additives might affect human health. Nano particles can enter through inhalation, ingestion and dermal exposure leading to DNA mutation, cancer and possible fatality. A detailed study about potential risk in regard to nanoparticles entering the human body, penetration sites, accumulation and translocation needs to be conducted. The issue needs to be addressed before the commercial

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exploitation of nanoparticles. There is an urgent need of an international regulatory system capable of managing risks associated with nanofoods and the use of nanotechnology in food and dairy industry.

Food Packaging (Nano Outside) Customers today demand a lot more from packaging in terms of protecting the quality, freshness and safety of foods and the nanotechnology, which uses microscopic particles, is effective and affordable and will bring out suitable food and dairy packaging in the near future (El Amin, 2006).

NANO TECH thermal properties to ensure better protection of foods from external mechanical, thermal, chemical or microbiological effects with an addition level of safety and functionality.

A scientific group at the Norwegian Institute of Technology is using nanotechnology to create tiny particles in the film, to improve the transportation of some gases through the plastic films to pump out unwanted carbon dioxide that would shorten the shelf life of the foods. They are also looking at whether the film could also provide barrier protection and prevent gases such as oxygen and ethylene from deteriorating foods.

Nano-capsules: Casein micelles (CM) plays a role as natural nano-capsular vehicle for neutraceuticals.

They are very stable to processing. A novel approach is to harness CM for nanoencapsulation and stabilization of hydrophobic neutraceutical substances for enrichment of low-fat food products.

Such nano – capsules may be incorporated in dairy products without modifying their sensory properties.

Food packaging is considered to be one of the earliest commercial applications of nanotechnology in the food sector. Many scientist have reported that about 400-500 nano-packaging products are estimated to be in commercial use, while nanotechnology is predicted to be used in the manufacture of 25% of all food packaging within the next decade.

The significant purpose of nano-packaging is to set longer shelf life by improving the barrier properties of food packaging to reduce gas and moisture exchange and UV light exposure.

For example, Du Pont has announced the release of a nano-titanium dioxide plastic additive namely "DuPont light stabilizer210", which could reduce UV damage of foods in transparent packaging.

Nano-packaging can also be designed to release antimicrobials, antioxidants, enzymes, flavours and nutraceuticals to extend shelf life. Further more, nano materials are being developed with enhanced mechanical and

Conclusion The prediction is that nanotechnology will transform the entire food and dairy industry in near future. Nanotechnology has already entered into food and dairy industries, research facilities are established, potential applications are under study. Although only a handful of nano food products are now available in the market, the tremendous potential will attract more and more competitors in this field.

However, there are few issues, particularly regarding the accidental or deliberate use of nanoparticles in food, or food-contact materials, that consumers are concerned about the potential negative effects of nanotechnology-based delivery systems on human health and also regulatory stands. Several critical challenges, including discovering of beneficial compounds, establishing optimal intake levels, developing adequate food delivering matrix, product formulations and safety of the products need to be addressed.

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SHOW PREVIEW

One & Only Show

For Indian Ice Cream Industry-IICE 2016 Indian Ice Cream Congress 2016, 28-29 Sep 2016, Noida

I

ndian Ice-cream Congress (IICE) is one of the most significant events in the global ice-cream industry, only one of the three of its kind in the world and South-Asia’s only gathering of icecream manufacturers. Hundreds of ice cream manufacturers from different parts of the country and world exchange their views on this platform.

This is the 6th edition of IICE and it is growing with 100% rate of growth year on year. This is not because we have done something very different but we have actually filled the vacuum in this segment by organizing an event for ice cream industry.

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Last year in Bangalore IICE 2015 received 2123 visitors, 106 exhibitors and over 618 ice cream companies. IICE 2016 is expected to be bigger in size than all previous shows. Indian Ice Cream sector has become one of the faster growing sectors in Indian food processing industry.

Investment in technologies and new trends has broken all previous records in the last 3-4 years.

Companies providing freezing and handling machines, packaging machines and materials, equipment and component suppliers, cone manufacturers, food ingredients companies, cold chain companies especially cold rooms and deep

freezers, consultancy services, traders and stockists, raw material suppliers, milk powder and chocolate suppliers, ice cream bands looking for expansions will participate as exhibitors in the show. We are expecting around 200 exhibitors and 3000+ visitors in 2016 at Noida, DelhiNCR show.

About Indian Ice Cream Industry: Indian ice cream industry is one of the fastest growing segments of the dairy or food processing industry in India at the moment. Broadly we can see this at two levels one is organised which is about Rs 10,000 cr and two is unroganised which is unaccounted and experts say that it is

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as big as organised sector.

All the major ice cream companies came together and established ‘Indian Ice-Cream Manufacturers Association’IICMA in 2011 as the National Association of Ice Cream Manufacturers.

Ever since, IICMA has been leading on all fronts by organising seminars, exhibitions, workshops, meeting with government departments, etc.

Our consumption is way too low when we compare it with the USA or Australia. It is even lesser than China or Pakistan as well but we have seen in the past 3-4 years it has doubled from 200ML to 400ML which is a significant development. If we carry on with the same rate of growth will soon we can touch the level of China’s per capita consumption which is around a litter. In India ice cream is considered as a seasonal food product and due to various

midwife myths people intend to consume it during in summers only. Where in other countries ice cream is considered as a daily dessert or outing food. If we are able to break these myths our consumption will automatically increase.

This growth of 400ML to 1000ML will provide enormous opportunities to the allied segments to grow with the industry. Consumption of chocolate, SMP, additives and machinery is already

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growing in leaps and bounces but future is even brighter. Allied segment has a challenge in front of them how they cater this fast growing industry. They also have a challenge to provide good quality machinery in huge numbers along with tons of raw materials to make the ice creams, to provide them good color, flavour and texture also to provide huge amount of primary and secondary packaging to the said industries.

There is another area of growth for the allied industry, the cold chain. This is

one of the most important aspects of this trade. Without cold chain nothing can be done or planned. Ice cream industry needs huge amount of cold chain machinery, transportation and display machinery.

Right from the point of processing till the cup or cone ice cream needs continuous cold chain facility. This industry is short of cold chain by about 50%. So this is a green spot for all those who are providing cold chain solutions.

Food safety also has been on top of the agendas of the ice cream processing companies and companies have improved significantly processing quality and standards of their products in past few years. Still we need to be vigilant to keep a check on each and every entry and exit of the ice cream processing unites.

SHOW PREVIEW

In India ice cream industry is mostly regional there are hundreds of brands focussing only one or two districts or in some case only upto state level. There are very few national brands that are doing business nationally and the major reason behind slow growth is high perishability of ice cream products. In recent times we have seen many companies have improved their supply chain and going beyond the boundaries.

Ice cream industry is the biggest victim of bad infrastructure of road and power supply. Due to this, rural India where power comes just for few hours in a day which is not less than 50% of the country’s population is not able to store

ice cream for sale on nook and corners of the inhibited areas. Continuous power supply in these regions will open huge opportunities for ice cream industry to cater all together a new territory for their products.

Many international players have also launched their brands nationally with huge investments and tie-ups. This is a very positive trend for the Indian ice cream industry and we see a great future ahead. If the ice cream industry grows consumption of milk and milk products which directly relates with farmers will increase.

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TRANSFOMATION

YES BANK: Catalyzing business and financial transformation of Indian Dairy Sector

T

he Indian dairy industry has grown consistently ever since the White Revolution of 1970s, making India, the world’s largest producer of milk with 17% global share. With an annual production of over 146 million tonnes of milk, India generates approximately USD 70 billion of revenues. The Indian dairy market is expected to double within the next decade, primarily driven by over 15-20% growth in value added dairy segment.

Dairy sector has received special attention

by YES BANK on advisory, research and credit fronts. Increased organized private sector participation in dairy production and processing is likely to occur due to high profitability of the value added dairy products, increased consumer awareness towards safe, consistent and good quality products and increase in demand of value added dairy products with functional properties. .

In line with YES BANK’s approach towards being a knowledge driven organization, Food & Agribusiness Strategic Advisory & Research group (FASAR) is a specialized team comprising industry specialists with immense sector specific knowledge and relevant experience and expertise in the conceptualization and implementation of food and agri initiatives. FASAR works with a broad range of stakeholders, including local, state and national governments, corporate sector, MSME sector, MNCs, Government departments and multilateral agencies in sectors, such as dairy, agri-inputs, food processing, SEZs, food parks and skill development, rural retail and various aspects of rural infrastructure and supply chain.

Advisory Services in Dairy Sector Some of the key mandates undertaken by FASAR in the dairy sector include: • Advised a leading corporate on

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•

•

• •

•

•

•

market entry strategy for juice/dairy manufacturing in India.

Advised a leading Indian conglomerate on assessment of markets for Dairy products and preparation of business plans for the short-listed products.

Mandated by the Embassy of the Kingdom of the Netherlands to study the cold chain sector in India including dairy in identified states and dairy value chain studies in the States of Maharashtra, Uttar Pradesh and Andhra Pradesh with potential opportunities in cheese and UHT milk market in India.

Advised UNIDO on charting out the dairy development strategy for Ethiopia.

Advised a leading multinational Dairy company for assessment of key supportive metrics for setting up a large scale Dairy plant in India.

Mandated by a global corporation for profiling of the Indian Dairy sector and its key players for enabling India entry strategy of the company.

Advised a leading Indian conglomerate on preparation of detailed project report for development of Integrated Dairy Farm in the states of Haryana and Uttar Pradesh.

Advised a North East based Dairy player in valuation of their business and assisted them in finding prospective buyers.

Knowledge Initiatives in Dairy Sector Knowledge Reports FASAR also conducts in-depth research on various sub-sectors of Food and Agriculture domains and has published insightful knowledge reports on key topics such as biotechnology, food processing, and on specific sectors of the rural economy such as sugar, dairy and skill development. Some of the key knowledge reports apart from various thought leadership articles in this sector include

•

Dairy Farming in India: A Global Comparison in association with IFCN launched during 4th IFCN Regional Workshop India 2015.

• Making Indian Dairy Farming Competitive: The Small Farmer Perspective released during 43rd Dairy Industry Conference of Indian Dairy Association (IDA) • Actualizing The Second White Revolution launched during 2nd YES Bank-HBL Food and Agribusiness Conclave.

Delegations YES BANK-Austrade Dairy Delegation to Australia: YES Bank in association with the Australian Trade Commission (Austrade) had organized a dairy delegation to Australia during June 2014. The visit was aimed to facilitate cooperation between the two countries in the areas of Agri-Dairy business services, including dairy technology & automation, pasture & grazing management, crop soil & water management, modern dairy farm management, as well as milk processing, dairy products, and education and training.

YES Bank believes that there is an imminent need to adopt an innovative approach to dairy farming models in India so that they are sustainable, inclusive and scalable in nature. Indian agriculture and dairy sectors offer several lucrative synergies and joint development opportunities between Indian and Australia, which is a global leader in the Dairy sector. The delegation strived to foster avenues for technology transfer and increased investment and cooperation with Australia.

The delegation comprised key people from cooperative and private dairy sector companies in India. Austrade had organized interactions with leading Australian dairy farming, processing technology, waste management, breeding and genetics companies, as well as research institutions in Melbourne and

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TRANSFOMATION robust profitable portfolio. The Bank adopts various dairy financing models on case to case basis.

YES Kisan Dairy Plus YES Kisan Dairy Plus represented a comprehensive suite of financial products, tailor-made for dairy farmers. The Bank could immediately credit the milk payment in the farmer’s account (wherever a dairy processor installed an advanced automated milk testing machinery), based on the data provided. Through YES Kisan Dairy Plus, farmers experienced the services of a formal financial institution firsthand, a first-of-itskind experience for many. This generated curiosity to know more, leading to enhanced financial literacy. The single most important contribution of this product was in providing instant credit to a farmer for milk produce, which otherwise would take an entire day, guaranteeing timely payment.

Brisbane.

YES BANK-UBI Banca Dairy Delegation to Italy: YES Bank in association with UBI Banca, Italy’s third largest commercial Bank, had organized a dairy delegation to Italy during November 2015. The visit was aimed to facilitate cooperation between India and Italy in the areas of processing, technology, equipment, cold chain and value added products. UBI Banca had organized interactions with leading Italian dairy processing, technology, infrastructure & equipment companies, in and around Bergamo, Brescia and Milan.

Strategic Partnerships Strategic Partnership with NAFTC: In a major boost to the development of multifocal, multi sector agri-business in India, YES BANK entered into a strategic partnership with the Netherlands Agro, Food and Technology Centre (NAFTC) – India, a nodal Dutch agency which facilitates business development for its members in India, to leverage the value that globally competitive technologies, systems and processes can contribute to furthering of development of Food and Agri sector in India. The partnership shall leverage the complementary strengths of the two organizations to bring in dynamic changes in the agri-business association between the two countries. As part of the agreement,

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the two parties will be working towards the development of farming communities, agriinfrastructure, agro-based industries and skill development initiatives across sectors including agriculture, dairy, horticulture, animal husbandry and food processing.

Credit to Dairy Sector Given the importance of dairy sector in rural employment and revenue generation, easy access to credit and instant payments for sale of milk and milk products are critical for making production system remunerative and sustainable. Bank’s continued focus on agri supply chain has enabled it to be well poised to take advantage of the emerging opportunities in the area of agri supply chain including dairy. Agribusiness Product Management (ABPM) team has experienced Banking and Industry professionals with indepth knowledge of Priority Sector so that the Bank can deliver efficient and customized banking solutions to the core sectors, such as agriculture, dairy, sugar, agri MSMEs among others, thereby playing a significant part in driving the economic growth of rural India. For developing the evolving segment of Farmer Producer Companies (FPC), the Bank engaged with regulatory agencies such as NABARD and SFAC (Small Farmers’ Agribusiness Consortium) to identify FPCs with sustainable business model and create a

YES Kisan Dairy Plus was implemented as a pilot project in collaboration with one of the largest dairies in South India, based in the Villupuram district of Tamil Nadu. As crop and livestock farming are quintessential characteristics of the Indian agriculture production system, a much-needed intervention in the form of YES Kisan Dairy Plus enabled the Bank to reach out to rural communities, especially farmer households, that were conventionally unbanked or underbanked, offering them zero or low-cost financial products and services.

Conclusion Use of modern information technology, universal access to financial services along with innovative models for reaching the last mile farmers, development of human resources through knowledge and skill development as well as increased participation will enable strategic development of the dairy sector. YES BANK is committed to catalyze the business and financial transformation of the Indian dairy sector through its cutting edge products and services developed for all the stakeholders in the dairy value chain.

Mr. Nitin Puri Senior President- Food & Agri Business Strategic Advisory & Research (FASAR), Yes Bank LTD

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GMP

Trainingthe catalyst for change in Dairies!

I

n this competitive environment a Dairy has many tools for productivity improvement like Kaizen, 5S, ISO, TQM, TPS etc. The problem kailash ashar is, how does one get people to know and understand these tools ? Training need not be restricted to the job functions. There are several other areas such as soft skills, personality development and team-building, which are equally useful and should be explored.

For e.g. trainings like 5S, Kaizen, Problem solving, Pre-requisite programs, Team building, Goal setting, Identification & Traceability, Stess management etc.

Present scenario of training in the Dairy industry is more of technical nature. There are many reputed institutes like NDRI, NDDB, Vidya Dairy, KVKs, Mansing Institute of Technology etc. which are providing training. What is required to be

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emphasised is the Non-technical trainings in the form of Soft skills. Trainings in areas of communication skills, delegation skills, team building, time management, decision making skills, change management skills etc.

Training is the only tool which can bring about improvements because the improvements happen only after people have understood what is to be done. Dairy performance is affected by a number of factors. The larger the Dairy, the greater the number of potential variables that can influence Dairy performance. These include the level of competition in the market, the level of investment in new technology, the demand for the products and services of the Dairy, the skills of the management team and so on.

Industry training is essentially an investment in human capital, the economic benefits of which can be thought of as being shared between: • The individual trainee, through higher

wages (a proxy for labour productivity) • The firm, through enhanced profitability (a proxy for capital productivity) • Society as a whole, through “externalities” (returns over and above the private returns to the individual trainee or firm who pays for the training).

These benefits are difficult to measure.

However, there is a weight of evidence from the literature relating to the positive wage effects of training.From the literature, we can infer that an industry training qualification isl ikely to increase the earnings of an individual by between 5% and 20%.

Operating in an open economy environment, having a competitive edge becomes imperative. Dairy strategies focus on gaining and sustaining the competitive edge. Often that translates into investments, efficiency of operations, deployment of resources, hard-sell, and so on. But, at some point of time it becomes apparent that competence of the staff is

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the key differentiator, and the focus shifts to competence development.

And therein lies the dilemma. Should the Dairy find competent persons and then expect them to perform or should they look for appropriately qualified persons and put them through a competence development program. It's the classic case of `fitting the job to the man', versus `fitting the man to the job'.

Experience will bear testimony to the fact that competence is not easily assessed when recruiting new personnel. Also, qualifications do not necessarily equate to high level of competence. Therefore, going the `competence development' way would make more sense in the long-term.

However, there could be a number of constraints: some purely physical. For example, No time/Can't spare the people for training activity/Not enough budget for training etc.

Other reasons are more notional: They're doing okay as it is/We'll train and then he will quit and join elsewhere/ Can't see the returns on investment in training, etc.

It has been my experience that best of dairies are not able to capitalise on training.

This is because there is no periodicity defined. Despite there being training, a large amount of variation remains e.g. different batches of employees give different time/temp. combinations for CIP cleaning, people going to collect samples of milk are not able to give one procedure, there is no idea as regards developing a sampling plan etc.

As we go higher up the hierarchy in the organisation, we find that the thinking process changes from `what-to-do' and

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`how-to-do' towards `why-to-do'.

Internalisation of the Dairy's training policies and acceptance of training programmes as a means for selfdevelopment are quite dependent on the attitude of the employees.

They are the ones to reap the direct benefits of training, which is passed onto the organisation.

The growth of the individual and the organisation is in tandem — a potentially win-win situation.

Training Defined It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviours to enhance the performance of employees.

Training is activity leading to skilled behavior.

• It’s not what you want in life, but it’s knowing how to reach it.

• It’s not where you want to go, but it’s knowing how to get there.

• It’s not how high you want to rise, but it’s knowing how to take off.

• It may not be quite the outcome you were aiming for, but it will be an outcome.

• It’s not what you dream of doing, but it’s having the knowledge to do it.

• It's not a set of goals, but it’s more like a vision • It’s not the goal you set, but it’s what you need to achieve it.

Training is about knowing where you stand (no matter how good or bad the current situation looks) at present, and where you will be after some point of time.

Training is about the acquisition of knowledge, skills, and abilities (KSA) through professional development.

Benefits Of Training Some of the benefits, but not limited to, that can accrue to organizations conducting regular trainings are: 1. Optimum Utilization of Human Resources – Training and Development

GMP helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals.

2. Development of Human Resources – Training and Development helps to provide an opportunity and broad structure for the development of human resources’ technical and behavioral skills in an organization. It also helps the employees in attaining personal growth.

3. Development of skills of employees – Training and Development helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons of human intellect and an overall personality of the employees.

4. Productivity – Training and Development helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal.

5. Team spirit – Training and Development helps in inculcating the sense of team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the employees.

6. Organization Culture – Training and Development helps to develop and improve the organizational health culture and effectiveness. It helps in creating the learning culture within the organization.

7. Organization Climate – Training and Development helps building the positive perception and feeling about the organization. The employees get these feelings from leaders, subordinates, and peers.

8.Quality – Training and Development helps in improving upon the quality of work and work-life.

9.Healthy work environment – Training and Development helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal.

10. Health and Safety – Training and Development helps in improving the health and safety of the organization thus preventing obsolescence.

11. Morale – Training and Development helps in improving the morale of the work force.

12. Image – Training and Development

49 www.agronfoodprocessing.com helps in creating a better corporate image.

13.

Profitability – Training and Development leads to improved profitability and more positive attitudes towards profit orientation.

14.Training and Development aids in organizational development i.e.

Organization gets more effective decision making and problem solving. It helps in understanding and carrying out organisational policies 15. Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display.

Training Objectives : Training objectives tell the trainee that what is expected out of him at the end of the training program. Training objectives are of great significance from a number of stakeholders perspectives : 1. Trainer 2. Trainee 3. Designer 4. Evaluator Training objectives must be connected to the organizational vision and mission.

1.Trainer – The training objective is beneficial to trainer because it helps the trainer to measure the progress of trainees and make the required adjustments. Also, trainer comes in a position to establish a relationship between objectives and particular segments of training.

2. Trainee – The training objective is beneficial to the trainee because it helps in reducing the anxiety of the trainee up to some extent. Not knowing anything or going to a place which is unknown creates anxiety that can negatively affect learning. Therefore, it is important to keep the participants aware of the happenings, rather than keeping it surprise.

Secondly, it helps in increase in concentration, which is the crucial factor to make the training successful. The objectives create an image of the training program in trainee’s mind that actually helps in gaining attention.

VOl.11 Issue 09 July 2016

Thirdly, if the goal is set to be challenging and motivating, then the likelihood of achieving those goals is much higher than the situation in which no goal is set. Therefore, training objectives helps in increasing the probability that the participants will be successful in training.

3. Designer – The training objective is beneficial to the training designer if the designer is aware what is to be achieved in the end then he will be buy the training package according to that only. The training designer would then look for the training methods, training equipments and training content accordingly to achieve those objectives. Furthermore, planning always helps in dealing effectively in an unexpected situation.

For example, the objective of one training program is to deal with

Workplace Organization through ‘5S’.

Since the objective is known, the designer will design a training program that will include ways to improve attitude, discipline, communication leading to better coordination.

Therefore, without training objective, the training may not be designed appropriately.

4.Evaluator – It becomes easy for the training evaluator to measure the progress of the trainees because the objectives define the expected performance of trainees. Thus, training objective is an important tool to judge the performance of participants.

Instructional System Development (ISD) model : 1. ANALYSIS – This phase consists of training need assessment, job analysis

GMP and target audience analysis.

2. PLANNING – This phase consists of setting goal of the learning outcome, instructional objectives that measures behaviour of a participant after the training, types of training material, media selection, methods of evaluating the trainee, trainer and the training program, strategies to impart knowledge i.e. selection of content, sequencing of content etc.

3. DEVELOPMENT – This phase translates design decisions into training material. It consists of developing course material for the trainer including handouts, workbooks, visual aids, demonstration props etc, course material for the trainee including handouts of summary.

4. EXECUTION – This phase focuses on logistical arrangements, such as arranging speakers, equipments, benches, podium, food facilities, cooling, lighting, parking and other training accessories.

5.

EVALUATION – The purpose of this phase is to make sure that the training program has achieved its aim in terms of subsequent work performance. This phase consists of identifying strengths and weaknesses and making necessary amendments to any of the previous stage in order to remedy or improve failure practices.

The ISD model is a continuous process that lasts throughout the training program. It also highlights that feedback is an important phase throughout the entire training program. In this model, the output of one phase is an input to the next phase.

Learning is a continuous process and those who think that there is nothing more to know are as good as deadwood.To bring about upgradation of human capital, improvement, sustainability, consistency in productivity the only tool to enable it is TRAINING !!!

DEEP TRAINING & CONSULTANCY kailash ashar principal thought leader Email : dtckba@gmail.com

50 www.agronfoodprocessing.com

NEWS

Instead trained food safety official, customs officers to ensure safety of imported food

I

nstead of appointing full-time technically qualified and trained food safety officials, the Food Safety and Standards Authority of India (FSSAI) has made customs officials responsible for ensuring the safety of imported food across 125 points of import and clearance as an additional task. The move, which contradicts FSSAI’s own regulations, has been made as part of government’s push for ease of doing business.

In March 2016, these custom officials were designated as what the FSSAI Act calls "authorised officers". Besides undertaking all other custom duty related tasks, they are now additionally in-charge of supervising, taking samples, sending these to labs, reviewing the lab results and approving the safety of all imported food products coming into India against the set standards for more than several thousand products and ingredients that FSSAI approves.

Their appointment comes in contrast to the regulations FSSAI passed this January. Under these norms the FSSAI mandated that the technical qualifications and training of those posted at customs to check safety of imported should match that of ‘food safety officers’ as prescribed by law.

Under the regulations, at the time of

joining, Food Safety officers - a category of specialised officers enshrined in the law are supposed to “have a degree in food technology or dairy technology or biotechnology or oil technology or agricultural science or veterinary sciences or bio-chemistry or microbiology or a Masters in chemistry or degree in medicine from a recognized university”.

But the custom officials were not individually identified and checked against these qualifications before the additional charge of food safety was handed over to them. The examiners, superintendents, inspectors and appraisers at these 125 locations were appointed in their ex-officio positions instead. They were also not trained to handle import of food products under the law at the time of handing them this additional charge.

The US, EU and many other developed and developing countries, including those in Africa have dedicated food safety officials across their importing points.

In fact the US food safety officials carry out checks of food safety on their own as well as through third party certification

even at the manufacturing units of the exporting countries. A hard application of sanitary and phyto-sanitary standards and conditions by developed countries has many times lead to disputes with exporters, including with India.

The appointment of unqualified custom officials for food safety comes as part of a larger package of the reform through the single window process. In January regulations for safety of imported foods were revised without mandatory public consultations. FSSAI is empowered to use emergency provisions to bypass consultations when there is an ‘urgency concerning food safety and public health’.

But, the agency used the emergency provisions of the law for ease of food import business.

FSSAI to fix limits for various additives for alcoholic beverages, including wine and others

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SSAI has called for suggestions, views, comments etc. from stakeholders within a period of 30 days on the draft notification related to additional additives, enzymes, processing aids for use in alcoholic beverages including alcohol free and low alcoholic counterparts. The regulator has also included new additives in the list.

In the notification, the regulator has

VOl.11 Issue 09 July 2016

mentioned the list of additives or enzymes which can be used for production of grape wine and distilled spirituous beverages containing more than 15 per cent alcohol.

FSSAI CEO Pawan Agarwal had said that the regulator has finalised a list of food additives and standards with respect to alcoholic beverages and the standards are in alignment with International Organisation of Vine and Wine (OIV) standards.

51 www.agronfoodprocessing.com

NEWS

Due diligence must for making food safety reports public to avoid panic: FSSAI

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SSAI said studies should be made public only after "due diligence", as otherwise it creates in public.

This comes against the backdrop of a report claiming carcinogenic contents in bread.

Food Safety Standards Authority of India (FSSAI) CEO PawanAggarwal stated that while they appreciated the case... that highlights issues and points out various risks associated with the food we consume, there is also serious concern in terms of implications when such studies are reported in the media and tend to create panic.

The scientific committee will also examine that issue in the context of recommendation of the joint parliamentary

28th and have invited CSE to make a presentation on potassium iodate and also on potassium bromate in terms of their findings.

committee that had recommended a very cautious approach in reporting of issues relating to food without proper due diligence.

FSSAI have referred the issue to the scientific panel which is meeting on (June)

Last month, Centre for Science and Environment (CSE) in its report had said commonly available brands of pre-packaged breads, including pav and buns, tested positive for potassium bromate and potassium iodate banned in many countries as these are listed as "hazardous" for public health.

Following that, FSSAI banned the use of potassium bromate as an additive in food products.

Handle Appicator: High Levels Of Performance And Flexibility

A

CE Technologies Handle Applicator combines elements of models with mechanical action along with characteristics of the electronic models to offer high levels of performance and flexibility, at the same time maintaining great functioning reliability. · This machine is capable of applying self-adhesive handles made out of a special transparent tape and carton label. · Effective ,Low cost way to bundle consumer products into multipacks and value packs. · Significant reduction in energy use and secondary packaging weight. · High Quality custom printing in upto 8 colors,making product stand out at shelf while delivering a brand or promotional

VOl.11 Issue 09 July 2016

message. · The energy efficient multipack cost enhances production speed and easy to implement into any production line. · precut cardboard labels · pre-handled adhesive tape reels · paper and polypropylene handles on reel For further details, please contact: ACE Technologies 223, Blue Rose Industrial Premises, Western Express Highway, Borivali (East), Mumbai – 400066.

Tel/Fax : +91-22-28700281 / 42089211 Email: acetechnologies@vsnl.net Website: www. acetechnologiesgroup.com; www.ace-technologiesgroup.com

52 www.agronfoodprocessing.com

NEWS

Rs 3,000 crore to be invested by Amul over a period of four years on expansion

G

ujarat Co-operative Milk Marketing Federation (GCMMF), which markets milk and dairy products under Amulbrand, is planning to set up of new plants and add capacity to existing facilities.

Amul will invest Rs 3,000 crore over the next four years on its expansion plans of entering states like Bihar, Jharkhand,

Odisha, Kerala and North-East to expand business. n dairy sector, if you have to grow then you have to increase milk handling capacity. We are increasing our milk processing capacity to 320 lakh litres per day from the current 280 lakh litre per day. We target to increase this capacity to 360 lakh litres per day by 2020," said its managing director R S Sodhi said.

"We are investing Rs 600-800 crore every year. We will invest about Rs 3,000 crore by 2020 on expansion," and are setting up new plants in Uttar Pradesh, Maharashtra, Gujarat and West Bengal as well as raising the capacity in existing plants, he added.

GCMMF

achieved

a

turnover of Rs 23,005 crore in 2015-16 and aiming to reach Rs 50,000 crore by 2020.

Elaborating on expansion, Sodhi said the new plants in Kanpur and Lucknow are expected to be operational in next two months. A cheese plant in Gujarat will start operation soon.

Amul is also setting up new plants in Mumbai and Kolkata and entering Assam market through third party manufacturing, and there are plans to enter Bihar, Jharkhand, and Odisha and Kerala markets soon.

The cooperative will soon launch sweet 'Rasmalai' with a shelf life of one year.

GCMMF has about 60 processing plants, of which 40 are in Gujarat. The cooperative's milk procurement for 201516 increased to 186 lakh litres per day as against 148.50 lakh litres in the previous fiscal.

Amul registered a quantum growth of 187 per cent in the 6 years with CAGR of 19.2 %

D

uring the last three years,Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the popular Amul brand of milk and dairy products, achieved a growth of 67 per cent to clock a turnover of Rs 23,004 crore during the year 2015-16.

Amul has registered a quantum growth of 187 per cent in the last six years, indicating a whopping cumulative average growth rate (CAGR) of 19.2 per cent.

The group turnover of GCMMF and its constituent member unions, representing the figure of all products sold under the Amul brand, was Rs 33,000 crore or $5 billion.

Rapidly moving up the global rankings,

VOl.11 Issue 09 July 2016

Amul is now ranked as the 13th largest dairy organisation in the world, according to the latest data released by the International Farm Comparison Network (IFCN). It is ranked well ahead of other dairy companies such as Land O'Lakes & Schreiber Foods of USA, Muller of Germany, GroupeSodiaal of France and Mengniu of China.

In the last two years, when dairy farmers across the world saw a sharp decline in farm-gate prices of milk, only farmer-members of Amul cooperative family have witnessed growth in milk procurement price."

During the last six years, Amul’s milk

procurement has witnessed a phenomenal increase of 87 per cent. This enormous growth in milk procurement was a result of high milk procurement price paid to our farmer-members which too has increased by 90 per cent during this period.

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NEWS

Patanjali to enter cattle feed segment and launch dairy items

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atanjali will soon launch more dairy products, cattle feed and natural manure and will come out with more dairy products like liquid milk as it is aiming total turnover of Rs 10,000 crore by next year. We shall set up 3-4 dairy projects so that farmers can be empowered and people get commodities unadulterated said Yoga Guru Ramdev.

He said the Patanjali Group would focus on six sectors natural medicine, natural food, natural cosmetics, dairy products, cattle feed and natural manure in a big way.

Ramdev claimed that he had seen feed being given to cattle contains 1-4 per cent urea which made adverse impact on more than 50 per cent of bovine in the country, and Patanjali Group would also roll out

natural manure which shall contain micro nutrient, vitamins etc. for crops.

Ramdev said that Patanjali group would never roll out unhealthy products in the market. "I will never bring unhealthy items in the market, like meat, liquor, non-veg items which are harmful," he said adding that Patanjali had no plan to make bread.

Ramdev said that more than 250 products including flour, medicine, rice are sold on 'no-profit no loss' which helps in rising prices of essential items.

Amul is keen on setting up an Rs 400 crore project in drought-hit Vidarbha region

U

nion Minister Nitin Gadkari said that Amul is keen on setting up a Rs 400 crore project in drought-hit Vidarbha region of Maharashtra where farmers are committing suicides.

to more than 38 million litres per day in the next four years.

With Amul’scooperation milk production will increase by four to five times and farmers will get much relief.

Besides Amul project, Gadkari said several steps have been taken for farmers including their orientation towards beekeeping, sericulture, goat farming and improving the breeds of popular cows like Sahiwal and Gir.

Vidarbha which houses 75 per cent of forests of Maharashtra has so far not been

able to be successful in dairy business and west Maharashtra's Kolhapur district has much better production, the Road, Transport, Highways and Shipping.

Gadkari said Amul recently revived a dairy in Jalgaon and now it has evinced interest in Vidarbha. They are ready to buy milk. Their rate is better than the Market.

Amul is planning to invest about Rs 2,500 crore to raise its milk processing capacity

VOl.11 Issue 09 July 2016

54 www.agronfoodprocessing.com

NEWS

Sugars are not alike - Better metabolic profile with next generation sugar

K

uala Lumpur, Malaysia, 2 June 2016 – Addressing participants at the 31st Nutrition Society of Malaysia Scientific Conference 2016, BENEO-Institute Nutrition Communication Manager Goh Peen Ern asserted that choosing the right type of carbohydrate is instrumental to achieving long-term metabolic health.

It is a well-known fact that a high glycaemic diet increases the risk of type II diabetes. In fact, leading scientists agree that there is convincing evidence demonstrating a carbohydrate-rich diet that keeps blood glucose levels low reduces the risk of type II diabetes and helps people with diabetes control their blood glucose levels in the long run.

Ms. Goh referred to a recent scientific study by Professor Dr Andreas Pfeiffer and his team at the German Institute of Human Nutrition, Germany. The results clearly show that not all sugars are alike in their metabolic profile. They provide new scientific evidence that the favourable metabolic profile of BENEO’s

Palatinose™ (isomaltulose) results from the opposite effect it has, compared to sucrose on the incretin hormones GIP (Gastric Inhibitory Polypeptide) and GLP-1 (Glucagon-like peptide-1). The benefits of Palatinose™, observed in direct comparison with sucrose in this study, suggest that the hormone (incretin) response plays a key role for the sugar effects in metabolism and health.

The reason for the significantly different incretin response of Palatinose™ compared to sucrose is explained by its unique molecular bond and slow release properties. It is a fully digestible disaccharide-type carbohydrate composed of glucose and fructose. However, the bond between the two molecules is much stronger than in sucrose. Consequently, Palatinose™ is fully yet slowly digested and absorbed resulting also in a lower blood glucose rise and less insulin release in the body when consumed.

“The scientific results of Professor Pfeiffer’s latest clinical study demonstrate once again that the physiology and not the

chemistry of carbohydrate matters. More consumers are becoming increasingly aware of the importance of low glycaemic products and their long-term health benefits. The combination of consumer interest and evidence-based science is a winning formula, and the food industry should maximise the health claim options available in food legislation. In this area, BENEO is supporting with sound science, formulation advice, as well as market and consumer insights,” said Ms. Goh. The prevalence of diabetes in Asia is projected to grow drastically to 70 percent, according to the International Diabetes Federation. Awareness of the importance of sound blood glucose management to good long term health is growing.

Consumers are also more conscious of the impact that sugars and carbohydrates can have on their metabolic health. Food manufacturers can cater to these concerns and needs by formulating food products with the right/high quality ingredients that can help consumers better achieve blood glucose management.

Premium Ingredients develops two new stabilizers for analogue pizza cheese

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remium Ingredients, company belonging to the Blendhub Corp. group and specialized in the design, development and production of food powder ingredients, has just launched two new stabilizers for analogue pizza cheese.

On the one hand, Premitex® XLK-15043 allows the manufacturing of the final product in simple machines and less optimized than the expensive twin screw equipments with direct steam injection. It facilitates the process of making analogue cheese. Moreover, Premitex® XLK15067 is ideal for making vegan high quality cheese without animal protein.

Premitex® XLK-15043 is a stabilizer based on starches, hydrocolloids and melting salts, and adapted to any type of machinery. It makes it possible to produce

VOl.11 Issue 09 July 2016

mozzarella analogues in equipment which are not optimized for this task in terms of speed stirring and heating, as traditional spinners. Therefore, it is specifically designed for SMEs and companies in which investment in cookers or twin screw blenders with direct steam injection is not an option, a situation in which a large number of cheesemakers are found throughout the world.

Moreover, Premitex® XLK-15067 is a stabilizer designed to meet the needs of the growing market for vegan products free of animal protein, a booming sector in countries like Germany, Austria or Switzerland in the European market, or the United States, in the American.

It consists of a blend of starch, hydrocolloids and fiber, allowing a total

replacement of casein and therefore making analogue cheese in stick for pizza slices, completely removing the milk protein.

Premium Ingredients, a company with twenty years of experience and leadership in the powdered food ingredients industry, markets these products as part of what it calls "Our formulation", a wide range of food powder blends for processed cheeses, beverages, dairy and other processed foods.

Apart from the development of "Our formulations", Premium Ingredients offers services such as the stability analysis of finished products, the analysis of existing formulations for identifying areas for improvement, such as cost or process optimization, or consulting services.

55 www.agronfoodprocessing.com

NEWS

Roha Continues To Display Incremental Growth Through Global Expansion…

W

ith the presence of globalized economies, there are more opportunities for organizations trying to spread their wings. As the leading Indian MNC, engaged in Manufacture and Marketing of colors and food ingredients, ROHA has made exciting advances through expansion in 2016. It is going to be a big growth year for us with many more plans to be announced in the near future.

We are proud to announce the launch of an avant-garde Global Center of Expertise (GCE) in St. Louis, U.S.A. with an investment of $ 5 million. GCE will fuel the current innovative product range and will ensure ROHA’s competitive advantage in quality and pricing. We have built pilot plant facilities to conduct real application trials and testing of our colors. It shows ROHA’s tireless commitment for consistently researching for better alternatives in production and unearthing new product segments to expand horizontally are as important as strengthening our roots. Innovation will help us secure prolonged relationships with existing clients and will increase our chances of acquiring more key partners.

We also acknowledge the ‘Make in South Africa’ initiative of the South African government. ROHA is going to prolong its twenty-two-year long commitment

VOl.11 Issue 09 July 2016

with yet another state of the art facility and ultra-modern office set up recently. This $ 2 million investment will eventually become a hub for all African operations.

We are strengthening our presence in UAE by setting up a new office in Dubai as ROHA is conscious of Middle East being a key market for future growth. As widely known, UAE is the third largest re-exporter in the world and Dubai is the hub for food trading in the Middle East. Food and beverage companies from around the world have formed a base in Dubai.

Argentina, one of the leading producer and exporter of foodstuffs.

It has become one of the world’s fastest growing markets owing to the centralized location, liberal economic policies and freely convertible currency. Moreover, robust infrastructure and business environment is encouraging the food trade offering huge potential for ROHA.

Along with a focus on international expansion, we are also committed towards a strong presence in India. The production output has been increased to two-folds with a new plant in Maharashtra. We have a history of fulfilled commitments that goes long back. In order to maintain our reputation and be more efficient with production, this ultramodern plant will be equipped with much higher capacities in future.

We are excited to announce the opening of an office in Japan, a market promising abundant opportunities for ROHA .With the evolving consumer preferences and the growing popularity of Western food, Japans food industry is witnessing a period of transition giving boost to the color industry.

Brazil’s food sector is very dynamic and supports some of the largest players in the global meat market and leading exporter of sugar, soybean and other raw materials for the food industry. Their beverages sector is seeing a steep upsurge in the consumption. To meet the emerging requirements of these industries, ROHA established a manufacturing facility in Brazil.

ROHA has also set up a new office in

ROHA has announced the launch of a windmill project in Madhya Pradesh.

This huge wind mill boasts a 14 megawatt capacity.

To revisit last year, we acquired esteemedRavenswood Australia’s color division realizing ROHA’s vision of a robust foothold in Australia. Team ROHA embarked upon Ravenswood’s pre-established facilities in Australia and New Zealand and further modified them to suit the organizational objective of developing these countries as thrust markets. 2015 also witnessed our Turkish and Colombian subsidiaries functioning at full strength.

The future for ROHA is bright and until now all the decisions focused on a firm global strategic advance have favored us.

Our mission is to become the forefront of color manufacturers worldwide.

56 www.agronfoodprocessing.com

NEWS

APCCIF wants special food processing policy 2015-2020 an open-ended

T

constitution of a task forceempowered committee with stake-holders from different quarters like the horticulture department, marketing, APEDA, CFTRI, DGFT and other trade bodies to address challenges confronted by the industry.

he Food Processing sub-committee of the Andhra Pradesh Chambers of Commerce and Industry Federation (APCCIF) has urged the State Government to make the food processing policy 2015-2020 an open-ended one and incentivize the stand alone food processing units continuously.

The sub-committee, Chairman P. BhaskaraRao, pointed to the inadequate access to credit which, he said, was a major concern, and said the Government should set up a separate financial institution to cater to the credit needs of this sector on the lines of the National Housing Bank and the Mudra Bank.

Bhaskar said, NABARD should consider direct lending to stand alone units and the industry should be insulated against the volatility in power tariff, at least for a minimum period of five years. Tax holiday for 10 years will help sustain

growth in the sector.

Mr. Rao suggested that the Government develop model agricultural villages and set up organisations to ensure production of processable variety of crops. A mango and banana board on the lines of the coconut/rubber boards was the need of the hour.

The members had also sought

Establishment of an exclusive marketing network with an apex body (under food processing society) at Statelevel, cargo facility with reefer containers at airports, institutions like the Indian Institute of Crop Processing Technology (IICPT) and the National Institute of Food Technology and Entrepreneurship Management (NIFTEM) and industry status for food processing were other demands of the committee members.

FDI in food processing puts Maharashtra state in advantage

T

he Union Ministry of Food Processing has listed Maharashtra among the four states with potential to derive maximum benefits from policy reforms in food processing.

The other states are Punjab, Haryana, and Andhra Pradesh. Maharashtra also leads in horticulture produce in the country, with 40 per cent produce.

100 per cent Foreign Direct Investment (FDI) in the food processing sector is likely to boost agro-industrial investments in Maharashtra. The state government also believes that the decision would help them override the agrarian crisis in the state.

The food processing units would help

VOl.11 Issue 09 July 2016

Maharashtra to process 40 per cent vegetables and 30 per cent fruits, which are wasted due to lack of infrastructure.

The inadequate food processing sector also is a primary reason for poor remunerations farmers get. They cannot bargain in absence of robust market linkages.

It also implies that the gap between supply and demand is met from processed food imported from abroad. At present, the state’s processing capacity of vegetables and fruits does not exceed one lakh metric tonne (MT). Interestingly, Maharashtra, a leading state in agriculture as well as industries, has failed to develop the food processing sector.

The NABARD report mentions,

“Although the state is leading in agroindustry, it ranks way below others in investment by international standards in food processing infrastructure.”

The state government has already taken steps, with four mega food parks in Satara, Ahmednagar, Wardha and Nagpur getting a go-ahead.

The districts for food/fruits processing units include Nashik, Pune, Kolhapur, Ahmednagar, Jalgaon, Nagpur, Latur and Sindhudurg.

The chief minister believes the food processing sector should also be promoted in districts reeling under farmers’ suicide and drought.

57 www.agronfoodprocessing.com

NEWS

Nestle to develop and market an experimental milk allergy test for infants

N

estle, the world’s biggest food company, is stepping up its push into medicine with a global deal worth up to 100 million euros ($111 million) to develop and market an experimental milk allergy test for infants.

The Swiss group will pay DBV Technologies 10 million euros upfront for rights to its skin patch test for cow’s milk protein allergy, with the balance depending on successful development.

Shares in the FrancoAmerican biotech company had risen 6 percent to 61.30 euros on the news by 0800 GMT and the deal underscores Nestlé’s ambitions for its Health Science division, which it believes could eventually generate more than 10 billion Swiss francs ($10 billion) in annual sales.

It also complements the company’s infant formula business and could help lift sales of formula for babies with food intolerance.

Nestle has signed a series of similar deals with other small companies in its bid to create a new kind business that is midway

between food and pharmaceuticals.

The goal is to find new ways to treat, diagnose and prevent a range of diseases, from gastrointestinal problems to Alzheimer’s.

An allergy cow’s milk

to

affects up to 2 or 3 percent of infants and toddlers, according to the companies.

Many others, however, have symptoms suggestive of the condition, creating a need for a simple diagnostic test.

Under the terms of the agreement DBV will be eligible to receive up to 90 million euros in development, regulatory and commercial milestones – on top of the upfront payment – and will also collect royalties on eventual product sales.

extensive clinical trials before it is cleared for sale and DBV expects it to be submitted for approval to regulators worldwide by 2021.

Nestle Health Science, which employs around 3,000 people, is an expanding part of the Swiss group’s operations.

Given ageing populations around the world and spiralling cases of lifestyle diseases, Nestle sees big opportunities in health – but the initiative also poses new challenges, since it takes Nestle into the highly regulated medical field.

Strategically the shift towards health offers Nestle a hedge against slowing growth in packaged foods and may also offset crackdowns on unhealthy foods blamed for obesity and other lifestyle problems.

For DBV the deal is a vindication of its Viaskin patch technology. The company has another test for peanut allergy in clinical trials, as well as an earlier-stage programme for egg allergy.

The new test will need to go through

ITC to invest Rs 4,000 crore to set up 8-9 food manufacturing factories across India

I

TC will invest Rs 4,000 crore over the next 2-3 years to set up 8-9 factories across India for manufacturing of food products.

ITC's branded packaged foods division grew by around 11 per cent to clock a turnover of Rs 7,097.49 crore in 2015-16.

The company, which recently expanded its new SunfeastFarmlite biscuits portfolio catering to health conscious

VOl.11 Issue 09 July 2016

consumers, is looking at tapping this fast growing consumer segment.

ITC Foods CEO V L Rajesh said that, health segment of the biscuit market is about one per cent of industry right now but it is growing the fastest. Key approach is to have a full portfolio across segments.

We will make a big play in this segment for sure.

He further said: "Our claims on health

benefits are validated by our labs and research centre in Bengaluru. We recently launched Sugar release control Aashirvaad Atta for people who have sugar issues. We back our claims with science."

The company entered into the dairy segment with Ghee in October last year and launched dairy whitener in North East this month.

58 www.agronfoodprocessing.com

Event Calendar-2016 Months

August 2016 22nd– 24th FI INDIA & HI, New Delhi September 2016 1st-2nd Vita Food Asia Hong Kong 7th–9th FoodPro, Chennai 22nd–24th International Foodtech Mumbai 22nd–24th Annapoorna, Mumbai 28th– 29th Indian Ice Cream Congress & Expo 29th-1st Food Hospitality World, Goa October 2016 4th-7th Tokyo Pack Japan 4th-6th Innopak Spain 5th-6th Easyfairs Sweden 10th-14th Agroprodmash Moscow Russia 11th-14th China Brew & Beverage Sanghai 15th-16th Evenord Germany

VOl.11 Issue 09 July 2016

Events

21st-23rd Cake Fest Poland 22nd-25th Sudback Germany 22nd–24th Dairy Feast, Lucknow 25th-28th Cibus Tec Italy November 2016 1st-3rd Foodtech Denmark 2nd-4th Worldfood Kazakastan 2nd-6th Indagra Food Romania 2nd-5th Eurasia Packaging Turkey 9th-12th Interfood & Drink Bulgaria 14th-17th Emballage France 19th–22nd Agro Tech,chandigarh 23rd-24th Packaging Innovations Netherlands 25th-26th Empack Belgium 27th-30th Intervitis Germany December 2016 15th–17th Drink Technology , Mumbai 30TH-1st palmex Latin America Columbia

59 www.agronfoodprocessing.com

South Asia’s One & Only Ice Cream Industry Event

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Indian Ice Cream Congress & Expo

121, 1st Floor, Rassaz Multiplex, Mira Road (E), Thane - 401107. India. Tel: +91-22-28555069 / 28115068.

Email: info@indianicecreamcongress.in Web: www.indianicecreamcongress.in INDIAN ICE CREAM MANUFACTURERS ASSOCIATION Sudhir Shah-+91-9849025027 (Secretary IICMA) Samrat A. Upadhyay- +91-76988 69800 (Secretary General – IICMA) Regd. Ofce : A/801, 8th Floor, “Time Square” Building,C. G. Road, Nr. Lal Bunglow Char Rasta, Navrangpura, Ahmedabad - 380 009, Email: info@iicma.in Web: www.iicma.in

VOl.11 Issue 09 July 2016

60 www.agronfoodprocessing.com

WPP License No. MR/TECH/WPP-308/TW/2016

Technology. Quality. Leadership. Buhler plants for processing Pulses, Spices and Sesame seeds are designed to deliver higher yields, increased productivity, better product quality and thus improved profitability. With more than 150 years of experience in providing innovative solutions in the global grain and seed processing industry, Bühler can be a competent partner offering you superior technology,expert engineering support and best services contributing to the overall growth of your business.

Buhler (India) Pvt. Ltd. Kapil Complex 1/4 Main Baner Mahalunge Road Pune – 411 045 T +91 020 6649 7777 F +91 020 6649 7700 pulses-spice.processing@buhlergroup.com www.buhlergroup.com

Multi-product Cleaning, Grading and Optical Sorting Complete processing system for wide variety of pulses Natural and Hulled Sesame seeds processing All seed Spices processing and grinding

Innovations for a better world.