Oil & Food Journal May 2016

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Vol 11 Issue 07 May 2016

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CONTENTS

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X-ray Inspection systems fulfil pharma-Ishida

To make its presence prominent Lactalis going for more buyouts in India

Prabhat Dairy launches Ghar Jaisa Dahi

54

Joining the protein revolution with algae and insects

Bridging the difference; FSSAI and Food Industry

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56

Nestle, packaged foods industry seek opportunity in medical foods

55

Burger King is looking to position itself as a leader in India this year

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54

HRS technology to achieve energy efficiency in Oils & Fats Industry at OFI India 2016

53

Patanjali’s misleading advertisement on Kacchi Ghani force Solvent Extractor Association to approach regulators

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Dairy sector to see investments worth Rs 9,000-10,000 crorein 5 years

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E-commerce player must register withFSSAI now

A tale of abundance On the pulse: and challenges sustainable The Indian seafood industry production need of hour 14

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THE RIGHT GREASE Lubrication for Greater Quality in food processing

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The inquisitive case of India's inflation 31

The flourishing Indian snack Industry

Gaining Competitive Edge

Government has set a target toincrease food processing sector 2.5 times in 10 years CONTENTS Finance Minister Jaitley holds meeting with officials for methods to push 100% FDI in Food products

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47

‘Green Channel’ & GST to attract investment from UK Companies in Food Supply Sector: Report

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I 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 07 May 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, Amar Jyot 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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EDITORIAL

t is nice to have valid competition; it pushes you to do better”.

The food processing industry is definitely going places with its innumerable ventures, innovation and development. It is creating a new spotlight for India in the International arena. The “Make in India campaign”, 100 per cent FDI that is bringing foreign food companies to India for manufacturing and business, development of Mega Food Park, Framing of National policy for food processing and etc. The Indian food processing has now entered the international competitive prix that is already making its mark.

Talking about competitions PepsiCo seems to be in a race with many Indian companies nowadays, as it has ventured into the Indian snack categories a rivalry has been ignited as its competing with likes of Haldiram, ITC, Prakash snacks and a new entrant, Patanjali Ayurveddomestic Indian snack companies that know the market and the taste of its consumers.

Of course the latest hitch on the way for PepsiCo came withParle Agro’s Frooti going ahead of PepsiCo’s Slice and gaining the Number Two slot for Mango beverage. Competition is getting tougher with Coca-Cola aiming to turn Maaza into its first billion-dollar juice brand in India, in an effort to increase the market share of its non-carbonated drinks portfolio.

Competition in food processing sector is never ending – just have a look at the dairy industry with so many new entrepreneurs coming in this industry and many giant companies like Kwality, ITC, Mahindra and etc.venturing into diary sector. Even international dairy sector are quite active in this race, look at French dairy giant Lactalis is eyeing more buyouts in the Indian dairy sector to consolidate its presence and hopes to seal a large buyout shortly and the company bought South India's second largest dairy firm, Tirumala Milk, for Rs 1,750 crore in January 2014. Recently, the world's largest dairy group agreed to acquire the dairy business of Indore-based Anik Industries for Rs 470 crore. Then there is Danone and Nestle who have their own individual presence and customers.

India giant dairy –Amul is the frontrunner in and is looking to more than double its turnover to Rs 50,000 crore in the next four years on account of rising demand for milk and valueadded items. In the last six years, the dairy cooperative's turnover has jumped nearly threefold to Rs 23,000 crore and have set a target of Rs 50,000-crore turnover by 2020 on the back of expected growth in sale of both value added products and milk.

The adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP) by the food processing industry offers several benefits. It would enable adherence to stringent quality and hygiene norms and thereby protect consumer health, prepare the industry to face global competition, enhance product acceptance.

Though food safety is most important aspect in food industry, the FSSAI stepped on the wrong foot with the food industry after the Maggi scandal, as its interference became more of a liability then an asset. But recently FSSAI has become more subtle and has tried to eradicate the fear psychosis that had been developed because of the ascendancy.

Currently,FSSAI has invited public comments on an amendment to allow use of ethylene gas for ripening of fruits and vegetables. It has proposed amendment in the regulations of Food Safety and Standards Act, for inclusion of use of ethylene gas for ripening of fruits.

Climacteric fruits are able to continue ripening after being picked, a process accelerated by ethylene gas. It is mostly used in case of banana, as it is picked when green and artificially ripened after shipment by being gassed with ethylene.

FSSAI has also proposed to fix new permissible limits of heavy metals in the various food products. It issued draft quality regulations and fixed the foreign matter limit at a maximum 3 per cent by weight in the import of pulses. Foreign matter means anything extraneous other than food grains. It can be inorganic matter like metallic pieces, sand, stones and organic matter consisting of husk, straws, weed seeds and other inedible grains.

Coming to quick service market of India – QSR’s such as Yum, Dominos and McDonalds may have reported consistent decline in same-store sales growth throughout 2015, but the overall food service market in India jumped 11 per cent to cross $100 billion in sales, according to Euromonitor International. In terms of transactions, 125 crore Indians purchased food more than once a week. Quite a figure and it shows that growing income and awareness among the consumers has provided a platform for the food sector both in domestic and internal market.

Being a part of this great industry, I have seen food sector growing and emerge as a highgrowth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry.

The food industry, which is currently valued at US$ 39.71 billion! It is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 per cent to US$65.4 billion by 2018.

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PULSES

On the pulse:

sustainable

production need of hour

The United Nations officially dubbed 2016 to be the International Year of Pulses, to heighten public awareness about the crops and to increase sustainable food production. Oil & food journal tries to find more about its presence in the Indian scenario.

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n November 2015, the United Nations (UN) declared 2016 to be the International Year of Pulses (IYP).

The initiative is aimed at encouraging connections between the food chain, in which pulse-based proteins are utilised, as well as raising awareness about the benefits of pulses for health, food security, and the world climate.

Pulses have great potential to help eradicate hunger, plus tackle many chronic health conditions, such as obesity and diabetes. In fact pulses also offer broader societal benefits.

With more than 800 million people

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PULSES pulses growing in the West.

Serving as a key ingredient in many traditional cuisines, the availability of food pulses across the developing world varies and is highest in sub-Saharan Africa, Latin America and the Caribbean, South Asia and the Middle East and North Africa. According to the UN Food and Agriculture Organisation in sub-Saharan Africa, pulses represent 4% of total calorie intake, yet they are responsible for more than 10% of protein intake. In Burundi, East Africa, pulses represent an impressive 55% of total protein intake.

On the Indian subcontinent, pulses have been a central ingredient of food culture, with India growing and processing more than 17 million tonnes of pulses in 2011 and consuming over 21 million tonnes.

worldwide suffering from acute or chronic undernourishment, it is important to educate the public about the integral role of these nutrient-dense foods and the part they can play in sustainable agricultural practices.

The Food and Agriculture Organisation of the United Nations (FAO) is collaborating with governments and relevant organisations to highlight how pulses can form the backbone of food production, whilst simultaneously helping local authorities.

By growing pulses, small business owners will have a more stable source of income and crop rotations will be better utilised. "Pulses also offer broader societal benefits. In developing markets, pulses are often grown by smallholders, in particular women.

Pulses provide these farmers with an additional source of food and income and boosting global pulse consumption would have the potential benefit of increasing incomes among these families.

Pulses can play a key role in reducing global food system risks brought about

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by the overreliance on staple crops such as wheat, maize and rice. They have been cultivated by civilizations for over 10,000 years and, on a global scale, there are more than 70 million tonnes of different pulse varieties, including peas, beans and lentils, which are produced.

The dried edible seeds of the legume crops are high in protein, fibre, various vitamins and amino acids and because of their nutritional values, pulses are also part of the 'food basket' used by the World Food Programme in food assistance strategies.

There is a surprising increased interest in

Pulses are traditionally grown in developing countries, which contribute to 70% of pulse production globally with the exception of dry peas. In 2010, the regional distribution of global pulse production was 45.43% in Asia, 19.09% in the Americas, 17.15% in Africa, 14.66% in Europe and 3.67% in Oceania.

In developing countries, smallholder farmers play an important role in growing pulses, because they are mostly grown for their own consumption and to sell locally, in addition to the introduction of improved varieties and better management techniques, pulses have become a valuable source of income.

Increased interest in pulses is also growing

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PULSES Canada has become the second largest pulse producer globally, with excess production contributing $2.2bn.

The current Indian scenario The severe drought across India should hopefully help focus attention on the overuse of water in agriculture. A data analysisshowed that the average water footprint for five major crops—rice, wheat, maize, sugarcane and cotton—is far higher than global averages.

in the West with a huge resurgence due to their health properties. Canada and the US are two of the developed countries that are significant growers of pulses and in 2010, the former accounted for 32% of world pea production and 38.5% of world lentil production.

'orphan crops.

Although pulses are not a staple ingredient in many developed countries, a large proportion of the pulse production is destined for export, with Canada accounting for approximately 35% of global trade per annum, totaling a value of nearly $2.7bn in 2011.

There has been a call to action for more investment in orphan crops with the hope of other countries following a similar method to the one that Canada has.

Canada's pulse production has "grown over 500% since the early 1990s due to investments in world-class breeding programmes to bolster 'orphan crops'.

After creating new varieties that have been adapted to the country's agroecology,

Along with promoting the use of pulses, there is a need to draw attention to orphan crops as orphan crops could be a solution to global food system risks and a possible investment opportunity for future agricultural research.

'Orphan crops' are crops that are largely grown and used locally by communities.

They are not part of the main crops that are traded internationally and which have often been considered staple crops, such as rice or maize.

Pulses are traditionally grown in developing countries.Several pulses are considered orphan crops, along with certain types of cereals, fruits, nuts, vegetables, roots, tubers and oil seeds.

For example, in Africa, several types of beans such as cowpeas are considered

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However, a lack of commercial use has led to lower levels of research investment around orphan crops, despite them being an important diet competent in many countries.

At the root of the problem is a policy framework that is dominated by concerns about food security rather than water usage. The dominant role given to waterintensive cereals is a hangover from the harsh lessons of the 1960s, when a shortage of rice and wheat not only forced millions to go to bed hungry but also compromised India’s strategic autonomy, thanks to the dependence on US emergency imports under the PL 480 programme.

It is time India switched its policy focus to the efficiency of water use rather than adding to the food mountain. One key element of this switch should be greater incentives for the cultivation of pulses as well as millets—not just because they use less water for every unit of output but also as a weapon in the fight against hidden hunger. It is in this context that recent policy moves by Maharashtra deserve more attention.

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PULSES aggravate hoarding instead of curbing it, severely disincentivizing storage firms from storing pulses in the first place. The move by Maharashtra to impose price controls on pulses will also lead to more hoarding.

The Devendra Fadnavis government has taken a few baby steps to help farmers move away from crops that use water intensively. It will make it more attractive for farmers to grow pulses by offering to pay a guaranteed price that is 5-10% higher than the central minimum support prices (MSPs) for pulses, as well as provide free seeds and fertilizers to farmers who grow pulses. This is a welcome beginning in a state that is dominated by the sugar lobby, and an experiment that other state governments should keep a keen eye on.

Domestic demand for pulses has anyway shot up in tandem with growing incomes.

It is no secret that the rising prices of these pulses are not only a big contributor to high food inflation but also a political hot potato. Farmers in countries as distant as Canada have begun to grow pulses to feed growing demand in India.

India has to focus on increasing the area under pulses as well as its productivity.

It also needs a more transparent system of price discovery through unified agricultural markets and revival of systems such as forward and futures markets with adequate risk management provisions.

The MSPs for pulses have often been lower than wholesale prices. Procurement levels are often low or nil. The central

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government had revised support prices of certain pulse groups last year as an incentive to farmers, but the Commission for Agricultural Costs and Prices’ report on kharif crops said that a more substantial hike in MSPs of pulses will be needed to reduce shortages and keep inflation under control. In addition, to minimize the wedge between domestic prices and zero-tariff import prices, the government should also consider doing away with export duties on pulses. This will prompt farmers to produce more for both the domestic and foreign markets.

This year, the centre has issued an early directive to the states—to project pulses demand and keep hoarding in check.

A warning is in order here. Imposing unrealistic limits on stocking will

To prevent another full-fledged pulse crisis, a sum of Rs.500 crore was allotted to pulses under the National Food Security Act, and a Price Stabilization Fund with a corpus of Rs.900 crore was made in this year’s budget exclusively for pulses.

Three agencies—Food Corporation of India, Small Farmers Agri-Business Consortium and National Agricultural Cooperative Marketing Federation of India Ltd—purchased more than 50,000 tonnes of pulses from farmers as buffer stocks during the fiscal year.

The centre and states would also do well to simultaneously focus on insuring farmers, raising yields within water constraints, enhancing food processing and storage facilities and abandoning export controls. A shift in the highly skewed cropping pattern of the country is the need of the hour.

Why the is pulse price skyrocketing Confederation of All India Traders (CAIT) held MNCs and big retailers responsible for high prices of pulses, saying the gap in demand and supply of pulses in India is filled by imports controlled by them due to failure of the government to secure imports from its own channels.

CAIT has suggested that the price level

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PULSES to meet the demand, and one major thing that has to ensure for imported pulses is food safety. For this food safety watchdog FSSAI has issued draft quality regulations and fixed the foreign matter limit at a maximum 3 per cent by weight.

"The limits for foreign matter (extraneous matter) shall be maximum 3 per cent by weight, of which the maximum 0.5 per cent by weight may be the inorganic matter and impurities of animal origin," Food Safety Standards Authority of India (FSSAI) said in a notification.

can be maintained reasonably only when MNCs, FDI and corporate sector (are) kept out from foodgrain and pulses sector. They have suggested imposing stock limit on first importer and a clause of compulsory sale in 15 days of arrival of goods in the country. It further suggested that only domestic process houses be allowed to import foodgrain and pulses.

According to CIAT, whenever there is high increase of prices in foodgrain and pulses, government takes immediate action on small whole-sellers and processing units and no action is taken against hoarding of big retailers, MNCs. Another important factor of price escalation is online trading and NCDEX operations where the speculators, by paying a nominal amount, enter into an agreement of future purchase in huge quantity at a higher price which forces an automatic increase in current prices.

However, the government has claimed to have procured over 62,000 tonnes of pulses from local farmers to create buffer stock and contracted imports for 26,000 tonnes to increase domestic supply and check prices and till now, a total of 50,424.07 tonnes of tur and urad from kharif marketing season 2015-16 and 11,754.06 tonnes of chana and masur from rabi marketing season 2016-17 have already been procured. In addition, imports have been contracted for about 13,500 tonnes of tur and 12,500 tonnes of urad. Andhra Pradesh, Telangana,

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Maharashtra, Tamil Nadu and Rajasthan have so far requested for allocation of pulses from buffer stock.

The government has also has become quite vigilant to prevent importers from misusing the facilities of Customs Bonded Warehousing facility. Domestic searches and surveys have also been conducted on a number of importers, traders and financiers engaged in pulses trade.

India is estimated to have produced 17 million tonnes of pulses in the 2015-16 crop years as against the annual demand of 21-22 million tonnes. The shortfall is met through imports, largely by private traders.

Prices of pulses will not be allowed to cross Rs 120 a kg according to Union Food Minister Ramvilas Paswan who claimed that his ministry has prepared a buffer stock to ensure that prices of pulses does not spiral.

Currently about 50 tonne pulses have been purchased and an additional 26 tonne was being imported. Also around production of around 173 lakh tonne of pulses was expected in the country this year, while the country consumes 235 lakh tonne of pulses.

So importing pulses has become mandatory for the food industry

Foreign matter means anything extraneous other than food grains. It can be inorganic matter like metallic pieces, sand, stones and organic matter consisting of husk, straws, weed seeds and other inedible grains. The presence of foreign matter in food grains is considered as adulteration and the grains could be found unsuitable for human consumption.

The move has come at a time when the government is turning to imports to keep pulse prices in check. The government has been taking several measures to boost domestic supply as well. It has created a stock of 50,000 tonnes of pulses and states have been asked to place their demand for timely release of stock for retail distribution.

Imports by both government and private agencies are also expected to boost supply.

As per the Agriculture Ministry's second estimate, pulse production is estimated at 17.33 million tonnes in 2015-16 crop years (July-June), marginally higher than the previous year's 17.15 million tonnes.

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TECH-UPDATE

THE RIGHT GREASE Lubrication for Greater Quality in food processing

With the food and beverage industry under sustained pressure to improve productivity and safety while reducing costs, proper machine maintenance is of utmost importance. Oil & Food Journal, discusses the role that lubricants play in helping to improve equipment efficiency and reduce maintenance cost.

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n today's competitive nutrition industry, food and beverage manufacturers are constantly challenged to find new ways of boosting processing efficiencies while also maintaining the highest food safety standards, including the on-going focus on avoiding product contamination.

The food-grade lubricants market was estimated at 41,040.6t in 2015, and is projected to reach 60,566.9t by 2020, at a compound annual growth rate of 6.7% between 2015 and 2020. The growth of the food-grade lubricants market is primarily triggered by the increasing demand for processed food.

While one must take all precautions to avoid lubricant contamination during production in any industry, in the food processing industry the need to ensure zero lubricant-contamination becomes even more critical.

A crucial component of the food-grade

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lubricants market is grease. In a recent survey, it was found that more than half of industrial equipment operators are unaware that selecting the right grease can positively impact the performance of their equipment.

Grease keeps food machinery running smoothly. In the context of so many challenges that accompany the stringently regulated food environment, greases help to ensure that the highest levels of product integrity are maintained as well as maximising equipment longevity and productivity.

When compared to mineral base oil, grease formulated using synthetic base oil can offer enhanced oxidation-resistance, and a higher lubrication film thickness - ensuring continued performance and protection even in high temperature conditions. In addition, synthetic base oils have the potential to contribute to

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TECH-UPDATE worldwide are paying close attention to their choice of equipment greases. The good news is that with best practices and recent advancements in industrial greases, manufacturers no longer have to choose between safe operations and optimal productivity.

Application in food industry Lubricants may be vital for machines to function properly, but they also have a huge effect on quality control and a company’s bottom-line.

reduced energy consumption as a result of reduced friction.

Greases have varying priorities which are designed to ensure that they can best operate under certain conditions. In this respect, it is important to ensure that the grease matches the application. To select the right grease, it is essential to consider the conditions under which your bearing will operate - think about machine speed, load level, ambient temperature and the type and size of bearing.

When selecting grease, consider the base oil viscosity. This viscosity should be appropriate for the load and speed of the application at operating temperature and will help to ensure maximum protection and component life. Greases formulated using a higher viscosity base oil are usually more water resistant and are suited to heavy-duty or high temperature applications. Greases with lower viscosity base oil can help to enhance the protection of slow speed, heavily loaded bearings or low temperature performance.

Incorrect application and over-greasing is the cause of more than 90% of costly bearing failures. In addition to bearing failures, it can also lead to problems due to migration of the lubricant into the windings.

Typically, a bearing should never be more

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than two-thirds full of grease, leaving one-third air space, to allow for optimal operation. Likewise, an insufficient amount of grease could lead to bearing failure due to lack of lubrication.

Ahead of applying new grease, thoroughly clean - or flush out - the previous grease from the bearing. This avoids compatibility issues and helps ensure that the new grease can perform at an optimum level.

As a result of the increasingly competitive nutrition industry and tightening food safety legislation, leading manufacturers

All the food product manufacturers know that the key to a good product is a good recipe. This applies both for the ingredients used in beverage, meat, bakery or dairy products and for the operating materials used in a plant.

Using the right lubricant for the machineries in the food industry is not only essential for the smooth running of the machinery but also plays a vital role in avoiding contamination of food products.

Choosing and implementing the right lubrication programme will ensure that a plant operates more safely and efficiently, in addition to making it more profitable.

One of the challenges that food manufacturers are facing today is to avoid contamination of food products during manufacturing, while making production processes as efficient as possible. One of

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TECH-UPDATE 2002: A consignment of bottled soft drink ‘Big Thirst’ in Victoria, Australia, was recalled due to lubricant contamination.

Food Standards Australia indicated that the lubricant may cause irritation if consumed.

2002: Milk powder manufacturer Arinco (owned by Arla Foods) that is based at Vidabaek, Denmark, found contamination in approximately 1,100 tonnes of its milk powder after a customer in Thailand complained it had a pale gray tint. It was contaminated with ½ to ¾ litres of lubricating oil containing very fine iron particles, which seeped out through a ball joint due to a worn axle in a gearbox.

This led to a large recall of several brands of milk powder, which included Dumex’sMamex Infant Formula and Mamil Follow-on in Thailand, Permilac Formula 1 and 2 in China, and Gain in the Philippines.

the best practices followed in the industry is to use specially registered and certified lubricants so that the contamination risks in the plant are as low as possible. This control of contamination risks is the key focus area in the HACCP guidelines.

There are many applications in the food industry such as agitators, blowers, mixers, fillers, ovens, compressed air and packing machines, where the lubricant used in components could come into contact with food products. The risk is of using a lubricant that is non-compliant with the regulatory standards of food machinery lubricants and using it for an application which comes in contact with the food product, thereby contaminating the food.

Lubrication Contamination Incidents While it is often tainted raw ingredients that come under focus, runoffs or leaks from machinery can form potential hazards as well. Below are some examples where food safety was compromised by contamination from non-food grade

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lubricants.

1996: Jennie-O Foods recalled a total of 4,740 pounds of turkey sausage because it was contaminated with grease.

1999: Coca-Cola Bottling Works recalled both glass and plastic bottles of Coca Cola Classic after it was found to be contaminated with gear lubricant.

2000: Farmland Foods in Kansas City, Missouri had recalled about 86,000 pounds of sliced turkey after complaints that it caused intestinal discomfort and had an unusual colour and odour. It was later revealed that the turkey was exposed to non-food grade lubricants during processing.

2000: A mother in Stoke-on-Trent, England, complained that a can of Heinz Cheesy Parsnip and Potato Bake smelled of tar. It was found to be contaminated with mineral oil lubricant that may have been from a machine in the food manufacturing process or the can manufacturing process.

As evident in the Arinco case, a single contamination incident can literally have far-reaching effects. With increased globalization and trade, today’s retail environment and supply chains are no longer localized or as straightforward as it used to be. It will therefore be prudent for manufacturers to ensure that both their own processes, as well as their suppliers, are well-managed so that potential risks can be minimised.

NSF certification There are several certifications that are relevant for lubricants in the food industry. Food machinery lubricants have to comply with the food regulations as listed by the certifying authorities. They

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TECH-UPDATE which includes annual inspection of the lubricants-producing plant by an NSF auditor to check strict adherence to hygiene requirements, preventing contamination during the manufacture of H1 lubricants.

Halal & kosher certification In addition to the NSF approvals, there are certain approvals associated with religious affiliations that are sought after for incidental food contact. The two key approvals are Kosher and Halal.

have to be physiologically inert, should not have any taste or smell and should be internationally approved. Apart from this, food machinery lubricants also have to meet the following general technical requirements.

lubricants in the industry and may be used below the line. The distinction between these two designations—H1 and H2— is especially critical when dealing with issues of contamination and potential product recall.

• Reduce friction and wear • Protect against corrosion • Dissipate heat and have a sealing effect National Sanitation Foundation (NSF), registers lubricants for use in the food industry.The lubricant manufacturer has to prove that all the ingredients used in its formulation are on the Food and Drug Administration (FDA) list of allowable substances, in accordance with the guidelines of security Code of Federal regulations (CFR) 21.

Many food-manufacturing plants are now using H1 lubricants for the complete production line, in order to reduce the risk of having the wrong lubricant being used in the wrong place, ie: using an H1 lubricant where H2 can be used. This can also result in lower stock inventory and lower costs.

Different categories of NSF certification NSF H1 lubricants are suitable for incidental, technically unavoidable contact with a food, beverage or pharmaceutical product. These lubricants may be safely used in applications like agitators, blowers, mixers, fillers, ovens, compressed air and packing machines, where the lubricant used in these components could come into contact with food products.

NSF H2 lubricants, on the other hand, are suitable for use in the food-processing, beverage and pharmaceutical industries, provided that contact with the food, beverage or pharmaceutical product is absolutely impossible.

These lubricants are sometimes referred to as food-plant or food-machinery

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In addition to the above, there are also other categories like NSF 3H, NSF K1, and NSF HT1 for products that are used for different applications like release agents, cleaner and Heat transfer fluid respectively.

New standard for the future Until now, a lubricant’s recipe and its intended use were the only items that were reviewed and regulated.

However, the ‘ISO 21469—Safety of machinery—Lubricants with incidental product contact—Hygiene requirements’ certification programme, is much more comprehensive and covers the manufacturing processes too.

ISO 21469 is the international standard for the hygiene requirements for the formulation, manufacture and use of H1 lubricants used in the food-processing and pharmaceutical industries.

The NSF developed a certification procedure on the basis of ISO 21469,

For Kosher and Halal, manufacturers of lubricants should ensure that the plant and process where the product is made must be Halal or Kosher compliant, and the components or finished lubricant itself must be Halal or Kosher certified. The Jewish dietary laws are termed as Kosher and the Muslim dietary laws are termed as Halal.

Halal Lubricants—A Stamp of Approval With an increased production of Halal foodstuff, food grade lubricant manufacturers have also started to explore the opportunities in this sector, especially in countries like Malaysia, Brunei, Singapore and Indonesia where halal food products are frequently manufactured.

According to the Islamic Food Research Centre Asia (IFRC Asia), the process of halal certification for food grade lubricants is similar to other products, which requires the filling in of an application form and following through a standard procedure.

All products, inclusive of its ingredients

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TECH-UPDATE Authority of India (FSSAI) has now tightened its rope on the use of mineral lubricants in this sector for manufacture, preparation, treatment, packing & transportation is considered seriously as result of environmental contamination.

In the event, awareness and concept of usage of food grade lubricant is gaining more importance in India.

and processing flow, have to be declared.

The manufacturing plant must also undergo a compulsory desk audit and site inspection before the product can be approved as Halal.

In addition, the product has to adhere to several guidelines which state that: • It must be free from non-halal animals, as listed in the Codex Alimentarius General Guideline for the Use of the Halal Term CAC/GL 24-1997.

• If a halal animal ingredient is used (slaughtered according to Islamic Law), it must be tanned or truly cleaned through washing, or any other methods of cleaning such as blowing, or being placed under sunlight.

• These guidelines might impose limitations on the variety of additives or thickeners that can be used in the food grade lubrication formulation, as substances like alcohol and by-products from non-halal animals (e.g.: pig, animals slaughtered in the name of anyone but God) are Haram (prohibited).

Lifting the bottom-line Lubricants are a small part of the whole plant operating budget. However, the real cost benefit of a lubricant, which facility managers cannot see in the lubricant budget, shows up in other areas. A good lubrication programme impacts on the

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three biggest pieces of the budget pie: energy consumption, components (spare parts inventory) and labour.

If facility managers are using the right lubricant, which extends the duration of re-lubrication intervals, they can save on maintenance personnel’s time, because they do not have to lubricate the machines as often.

Facility managers also save money, when it comes to spare inventory, because components last longer. This saved capital can then be used for other projects.

Meanwhile, energy efficiency is something which is important to everyone. When using a high-quality, specialty lubricant, facility managers not only drive up efficiency, they also see a decrease in the amount of energy needed to operate the overall facility.

Through these factors, it can be seen that food grade lubricants plays a role in contributing towards a safe and hygienic processing facility. This in turn benefits users, not just with lower contamination risks, but also with time and budget savings.

Food grade lubricant gains importance in India Food processing is an important link between agriculture & industrial segments of the economy and it is a sunrise sector. Food Safety & Standards

Use of food grade lubricant has so far been limited to few manufacturers in India due to lack of awareness and absence of stringent regulation in place.

Besides food grade lubricants is often misunderstood to have low performance in protecting the Tribological components and have lower lifecycle compared to nonfood grade lubricant that adds significant cost to operation. Till now the requirement of Food Grade Lubricants was largely met by import. Today, BalmerLawrie& Co. Ltd., a multi-unit, multi-technology conglomerate with joint ventures in India & abroad, with its sustained R&D efforts have, for the first time, come out with indigenous full range of food grade lubricants which have received the globally recognized NSF accreditation for H1 category of Lubricants and exceeds customer’s needs & satisfaction. H1 category lubricants are food grade lubricants used in food processing & pharmaceutical machineries and environment where there are possibilities of incidental food contact.

BalmerLawrie& Co. Ltd., established in 1867 and became a PSU company under Ministry of Petroleum & Natural Gases, in 1972. All four plants strategically located at Mumbai, Silvassa, Chennai and Kolkata, are ISO 9001:2008, 14001:2004 and OHSAS 18001-2007 certified & NABL accredited.

Food grade lubricants are not intended for human consumptions but they formulated in such a way that if applicable, incidental contamination with food product would not have any adverse influence on health, taste and odor on the product. They shall withstand chemical, thermal and mechanical loads to meet the tribological challenges under expected operating conditions.

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

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HIGH & DRY

The inquisitive case of India's inflation Several entwined factors contribute to keeping inflation high, and an untimely RBI rate cut could jeopardize the fight against it

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eyond the hysterical coverage of JNU, Vijay Mallya and assorted acts of intolerance, every media outlet today has carried news about inflation. As per the figures released on March, 14, 2016, wholesale inflation has seen a decline for the 16th consecutive month and was reported to be (-) 0.9% on a point to point basis in February, 2016.

More important, the consumer price index witnessed a decline for the third consecutive month and was reported to be 5.18% on a point to point basis.

There were some self-congratulatory pats on the back from finance ministry

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bosses. Economic Affairs Secretary Shaktikanta Das tweeted that the decline in inflation rates was along expected lines and was primary caused by decline in food inflation.

All this has prompted pundits to speculate on how soon RBI governor

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India’s Only Monthly for Agro, Processed Food & Allied Sector

10 successful years of operations, 1,80,000 readers across the country Gateway to B2B business opportunities Your messenger to the fastest growing Agro & Processed Food Industry in the world Direct reach to thousands top brands of Agro & Processed Food Industry in the world Available free e-copy to millions of readers across the world on, agronfoodprocessing.com

Advance A Publication of

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HIGH & DRY shown as 2.14% while that in urban India is (-) 1.9%. Anyone who has travelled to villages in India knows that prices of vegetables in villages are substantially lower than in towns and cities. You might say that these numbers talk of the rate of increase in prices and not the actual prices. But something doesn't quite add up. Common sense says that non-food items might see higher prices and higher rates of inflation in rural India. Exactly the same is vindicated by these numbers.

Clothing, footwear, personal care products, education and health all show higher takes of inflation in rural areas.

But there is another mystery here. The data suggests that the rate of inflation for the category "fuel & lighting" is 6.4% for rural India as compared to 1.5% for urban India. This can perhaps be explained by the fact that urban India uses petrol, diesel and gas more intensively than rural India.

Raghuram Rajan will announce an interest rate cut. Most analysts suggest that 25 basis points cut is more or less guaranteed while some have stuck their nexus oit by saying 50 basis points cut is more likely.

In this age of instant news replaced quickly by more instant news, the one about declining inflation will almost certainly go off the radar by tomorrow; except speculation about interest rate cuts. But look closely at the data and some troubling questions do emerge. Perhaps qualified statisticians and economists would have plausible explanations for some "peculiarities" observed in the inflation numbers. But till that happens, this author at least will remain baffled by the numbers. Firstly, it has been quietly announced that the base year to measure consumer inflation has been shifted from 2010 to 2012. The release that states this also says that NSSO volunteers in select towns and post offices in select villages have been used to collect the raw data.

Now let's look at the raw data. The rate of inflation for almost every item under the category food is much higher in rural areas than urban. Common sense

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suggests that in the case of at least some food items, prices would be much higher in urban areas because of transport and "middlemen" charges. But exactly the opposite is shown by the data. For example, in cereals, the rate of consumer inflation in rural India is 3.08% while it is 0.4% in urban India. Vegetables are even more mystifying. The rate of inflation for vegetables in rural India is

But look at state wise figures and the mystery deepens. According to the latest data, the poorest states of India suffer from the highest rates of consumer inflation. The rate of consumer inflation in rural Jharkhand is 8.36% while it is 9.09% in Chhattisgarh and 9.52% in Odisha. It is well below 4% for rural Punjab and Haryana. But to add to the confusion, rural Gujarat reports a flatiron rate of 7.2%. Till less than two years ago, they were one state. But now, rural

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HIGH & DRY percent, respectively, in June) with rising consumption. So, while food prices have been declining everywhere else, why are they rising at such a fast clip in India?

Former Prime Minister Manmohan Singh had famously said high food inflation was the result of people eating better; a reasonable response from an economist accustomed to cold facts, but a politically naïve statement in a country where a third of the population starves.

Inflation, however, is not only a function of the growing consumption of more nutritious food items like pulses, meat, fish and eggs (versus cereals), but also of the sorry state of harvesting, transportation and distribution.

Andhra Pradesh reports a 9.01% rate of inflation while breakaway state Telangana reports a 6.61% rate of inflation. The other question to ask is: how can there be such massive differences in rates of inflation across India states? It ranges from 2.86% in Punjab to 9.52% in Odisha.

Clearly, there is more to the inflation numbers than meets the eye. One hopes better qualified statisticians and economists are able to explain these "mysteries". In recent times, many doubts have been expressed over the quality and validity of data released for GDP. More questions about inflation data would surely add to the confusion.

The story so far The clamour for further rate cuts had been building on the back of falling inflation, fed by globally tumbling prices of oil and commodities. Additionally, as shown in a recent Crisil report, the capacity utilisation in 10 of the top 12 industries in India is at a five-year low, suggesting ample spare capacity in the system. This, combined with improving government finances (again, mostly on the back of lower oil prices, which have reduced the fuel subsidy burden by 70 percent since FY13) prompted the RBI to reduce policy rates by 75 basis points so far.

Yet, some real concerns persist. While the annual CPI data does show a moderating trend in inflation, the monthly data

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(especially for year-to-date 2015) is not as one-sided despite further falls in commodity prices: Even as global prices declined 6 percent up to June 2015, prices in India continue to inch higher.

Factors leading to inflation Food prices are to blame to some extent: High protein and nutritious items like pulses and milk continue to see high rates of inflation (22 percent and 7

Farm output has been growing consistently year-on-year: From 208 million tonnes (mnt) in FY06 to an estimated 265 mnt in FY14, a 3 percent annual growth, compared to a 1.2 percent population growth rate. Hence, food production is clearly not the issue.The issue is wastage.

Between poor farm productivity, bad roads, lack of supply chains and pitiable storage conditions, produce worth Rs 50,000 crore—40 percent of the total—is

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HIGH & DRY industry constrained.

What lies ahead?

If factors like copious spare capacities, collapsing commodity prices and record food production aren’t enough to allay concerns, counter-balancing factors must indeed be dominant. The RBI would also be concerned about the heavy front ending of government spending—the fiscal deficit of the first quarter of FY16 is already at 56.1 percent of the full year’s target—intended to spur growth.

wasted in the country every year. This is according to a 2013 Parliament statement by then Minister of Agriculture Sharad Pawar. Given the inflation, this figure would have grown by now.

The other major factor is fuel prices, which has a direct and indirect feed into retail inflation. Despite the precipitous slide in global crude oil prices—down 56 percent from beginning of 2013 in US dollar terms, and 45 percent in rupee terms—the retail price of fuel has not come down proportionately.

The cost of petrol before customs duty, excise, state taxes, VAT and cess is just over 50 percent of the pump price. There has been an increase of Rs 7.75 per litre in excise duties between November 2014 and January 2015; levies have gone up in some states and oil manufacturing companies have had a chance to repair their balance sheets through higher margins.

Case in point: BPCL and HPCL have seen huge run-ups in their stock prices (65 percent and 141 percent, respectively) since mid-2014 when local and international prices started diverging.

This may be a case of the adage ‘inflation is taxation without legislation’ coming true.

A good question would be: Is local inflation causing oil prices to not fall in

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tandem with global prices, or is a higher local fuel price itself causing the inflation?

A classic chicken-and-egg situation.

Services inflation, too, remains high, mainly due to the health care and education sectors.

Low capacity utilizations notwithstanding, multiple supply side constraints contribute to this inflation and, unlike food or fuel prices; there isn’t much chance of it going down.

Consider the various factors of production: • Land: Besides availability, the process of acquisition is mired in legislative uncertainty, costs and legal complications.

• Labour: Rising wages, availability and reliability of skilled labour, unrest and politicization of issues are realities.

• Capital: Credit growth is stagnant in the face of rising stressed assets and low bank capitalization.

• Power: Despite record coal availability and generation, the condition of state electricity boards and distribution companies still constrain the availability of power.

• Supply chain: Slow pace of road building, the lack of cold chains and warehouses, paucity of railway rakes, and absence of a clear master plan to integrate highways, ports and railways leave the

Besides this, the Indian Meteorological Department continues to believe (despite its poor forecasting track record) that a late El Niño will cause the second half of south-west monsoon to be worse than the first. Also, bear in mind that July 2013 and 2014 saw high inflation (9.64 percent and 7.39 percent, respectively), so the base effect has kicked in and brought the headline number—that takes into account all types of inflation—down this month. Put together, these factors have the potential to cause an inflation flare-up.

In any case, one can argue over the real value of rate cuts: a) the relevance of the RBI repo rate for industry, which, after all, is just the rate at which RBI provides bridge-funding to banks; b) the futility of rate cuts in a benign demand environment; and c) the poor rate of transmission into bank lending rates.

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SNACKS

The flourishing Indian snack Industry Gaining Competitive Edge

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nacks used to be an occasional indulgence. But today, snacking is almost synonymous with a “fourth meal”. Perceptions of fragmented meals and between-meal snacks are fast blurring. With close to $400 billion of annual global sales, the snacking industry is robust and will continue to thrive.

Notably, this growth is driven by soaring demands from developing regions such as India and China as they constitute a large part of the global population. In the savoury snacks market for instance, the Indian market has been forecasted to have the highest growth among all the other countries in the world – 16.6 percent between the years 2015 and 2020.

India’s high-growth snacks market can be attributed to rising urbanisation and

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SNACKS Daily prepared, unpackaged traditional Indian sweets used to be most prominent in the sweets category and are widely used as gifts; but there has been an evident shift of preference to packaged sweets over the years. To avoid gifting contaminated snacks, an increasing number of Indian consumers are starting to consider alternatives such as packaged sweet snacks and chocolate snacks as gifting options. Notably, standards laid by the Food Safety and Standards Authority of India (FSSAI) to ensure packaged food safety have also urged more manufacturers to offer hygienically packaged snacks.

increasing per capita income as the country develops. These changes have led to busier lifestyles, higher disposable income and a morphing food culture.

Urban Indians are opting for convenient, smaller meal portions through the day as opposed to the traditional “three square meals” dietary regime. Aggressive promotional campaigns by leading snacks manufacturers in India, such as novel offerings, intensive advertising, and fast expanding retail networks that penetrate into rural parts of the country have also influenced the mindsets of the population and contributed to the boost in India’s snack industry.

Potato chips are the bestselling snack in India. Valued at $468 million, the packaged potato chips market in India has experienced a 10 percent growth from 2014. However, preferences for this same snack vary widely across the region. Research has found that northern and southern Indian consumers prefer spicy flavours while western and eastern Indians have shown preference to tomato and cheese flavours5. Such varied tastes and preferences have resulted in a large and highly diversified Indian snack market. Currently, more than 50 percent of the snacks sold in India are sold unpackaged; but branded, packaged

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snacks are enjoying increasing popularity.

Hectic lifestyles have led to the need for convenience and packaged snacks are an apt solution. Additionally, since snacks are largely impulse purchases; the use of packaging designs as an effective pointof-sale strategy has become the obvious choice of manufacturers’ to influence purchase decisions.

Right Packaging Trend Hygienic packaging is trending in India.

Apart from hygiene concerns, Indian consumers have also started to benchmark locally manufactured snacks against those that are imported. For example, increased western influences through the availability of imported potato chips have made Indians more aware of product concepts and attributes like packaging. As such, Indian consumers are increasingly inclined to quality, well-packaged snacks as these are commonly associated with greater credibility, longer shelf life and better product quality. Moreover, with the rapid growth of the packaged snack market in India, the popularity of ethnic snacks from various regions in the country has extended to non-native consumers as well.

More snack companies are either starting

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SNACKS up the process. Some VFFS machines allow easy format changes to produce pillow, gusseted and block-bottom bags of different sizes. This gives snack manufacturers the convenience of packaging snacks in various styles and sizes according to marketing strategies, regional preferences, serving sizes and dietary needs − with just one machine.

Production flexibility is enhanced, and since only one packaging machine is required, costs for equipment and occupied floor space are also kept to a minimum.

to sell their products across the whole of India, or are exporting them to countries abroad. If several modes of transport are used, as is often the case, quality, wellpackaged snacks are necessary to endure the toughest stages of the distribution chain, including shipments and other handling options.

and help snacks manufacturers gain a significant share in this fast-growing industry. Nonetheless, snack packaging is no simple feat. Snack manufacturers have to take into account the inherent fragility and odd shapes of snack foods while ensuring minimised costs and a highly efficient packaging process.

Snacks in small packages are also highly relevant in the Indian market. The demand for small snack packs has increased considerably over the past few years, especially in the rural regions which make up about 70 percent of India. This is because price is a primary factor in snack purchase6 and small pack sizes can be marketed at lower unit prices, making the product more affordable. Additionally, since consumer brand loyalty to snacks is generally low in India, small snack packs have been an effective way for manufacturers to constantly engage their consumers through frequent introduction of novel flavours and offerings.

Furthermore, a recent survey has found an increased interest among Indian consumers for on-the-go snacking7.

Small snack packs being portable and convenient, caters to the demand.

Advanced Vertical Form, Fill and Seal (VFFS) packaging machines can help manufacturers address these challenges.

The gas-filled pouches provide protection for brittle snack products such as potato chips, while the vertical concept of the packaging solution helps to speed

Efficient Packaging Machinery Evidently, packaging is a critical aspect in the marketing and sales strategy of snacks in India. Different packaging forms and designs can influence purchase decisions

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Notably, varying bag sizes and styles on the same machine often require long changeover times, compromising on speed and efficiency. To overcome this technical hindrance, advanced VFFS machines feature proprietary software that enables precise and controlled machine movements for high-speed smooth production. Examples of such software include the memory of more than 100 recipes that snack manufacturers can easily retrieve and adjust at the push of a button, and software that facilitate line integration by enabling an easy combination with up-and-downstream equipment.

Additionally, snack manufacturers no longer have to worry about intermittent motion as enhanced VFFS machines allow continuous motion.

Snack manufacturers achieve enhanced packaging efficiency by feeding film or

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SNACKS 7% market share in 2014 in the category by launching as many as 18 flavours. It expanded manufacturing to five locations from two earlier, widened distributions and undertook a revamp in packaging.

advancing the packaging material at the same time materials are being sealed.

Apart from offering versatility and efficiency, new VFFS machines have also been designed to ease operational and maintenance challenges. The Human Machine Interface (HMI) feature for instance, is intuitive in design and displays ongoing process parameters alongside input data for fast problem detection. Operations are simplified and training time for new employees is shortened. To facilitate maintenance, new VFFS machines are also equipped with servo-technology that helps to reduce and eliminate technical errors. The machine automatically varies its speed in response to the performance of upstream and downstream equipment, avoiding product jams. Overall Equipment Effectiveness (OEE) is improved and the need for manual intervention by operators is eliminated. Snack manufacturers benefit from reliable production and accelerated changeovers that require low maintenance.

In a nutshell, technological advances in VFFS machines can help save resources, time and labour; and improve versatility, speed and automation − the goal of many Indian snack manufacturers.

However, the complexity of advanced packaging machines can often offset the benefits of new features and functions.

Snack manufacturers should work with

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professional partners that understand the unique difficulties in snack packaging and opt for solutions that offer simple, easyto-use operating techniques in order to fully reap the flexibility and productivity gains.

India snack marketing war?

As growth slows down and intense competition emerges from regional brands in potato chips, PepsiCo and ITC are shifting their focus more towards newer and healthier forms of packaged snacks, the market for which is growing at twice the speed.

While market leader PepsiCo wants to expand its Kurkure portfolio and add more premium offerings, ITC plans to launch newer variants including multigrain and regional flavours under its Bingo brand to gain share, laying the pitch for a fresh marketing war between the US giant and the Kolkata-based rival.

For ITC, this latest thrust on newer forms of packaged snacks, also called finger snacks, comes after it gained more than

ITC has cracked the formula in finger snacks by introducing innovative formats based on multi grains, pulses and "a distinctly better taste�, while potato chips as a segment has become commoditised, the scope of innovation in finger snacks is much more and hence the ability to move up the value chain. Bingo has become its umbrella brand for snacks, which has also been extended into newer forms such as 'halwai-wala type hot chips' in the South.

While PepsiCo will extend Kurkure into pricier snacks segment which are currently under development to ensure there is no slippage of market share and growth rate.

It's a strategy which the company will adopt even for Lay's potato chips, as in its recent launch of Lay's Maxx range which is priced at Rs 30 per pack.

PepsiCo is seeking to create new categories to differentiate itself from the rest. PepsiCo India pioneered the creation of the organised snacks market in India and a clear category leader. As with other categories, when the market reaches a certain size, other players enter and use low prices to try and gain share. However, PepsiCo will continue to focus on value share by creating new demand spaces and hence are pursuing a premiumization strategy.

While the packaged potato chips market in India is growing at 10%, the growth is 20% in finger snacks. Both markets are valued at Rs 3,000 crore each. However, the competition is much more in chips where domestic players like Haldiram, Balaji Wafers, Prakash Snacks and MTR Foods too are expanding their presence.

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SNACKS consumed at tea time in many parts of the country. Haldirams now provides them in a packaged form. The same is the case with Prataap Snacks.

Not many people may know about Indore-based Prataap Snacks Pvt. Ltd or even Prakash Snacks as it was previously known. But say Yellow Diamond potato chips and the answer could be different.

This is another player in this fiercely competitive market dominated by brands like Lays from PepsiCo India Holdings Pvt. Ltd and Bingo from ITC Ltd. Prataap Snacks’ revenue grew 30% in the financial year 2014 to Rs.446.9 crore from Rs.344.3 crore in the previous year.

The extruded snacks division contributed Rs.211.9 crore to revenue, the highest, followed by the potato chips division with Rs.166.9 crore.

The Sequoia Capital backed company which has grown consistently since inception is now considering an initial public offering of Rs.400-500 crore as it looks to have a national footprint.

So far, its presence has largely been regional, limited to markets like Madhya Pradesh, Delhi, Haryana, Uttar Pradesh, Maharashtra and Rajasthan.

What makes Prataap Snacks interesting is the fact it has got the taste and value proposition right and is able to scale, experts said.

As per industry estimates, PepsiCo is still far ahead in overall packaged snacks segment with more than a 50% share, compared with ITC's 16%. This is after ITC gained share in finger snacks where it now enjoys a 27% share compared with PepsiCo's more than 46%. In potato chips, PepsiCo has 60% and ITC, 8%.

are worth more than Rs 1,000 crore each.

One of the main competitions of PepsiCo is Haldiram Foods International Pvt. Ltd. The company, which sells its products under the brand Haldirams, is the largest brand by value in the Indian sweet and savories market with an 18% share, according to Euromonitor International.

Anyway potato chips will help PepsiCo and ITC overcome the volatility and severe shortage of chips-grade potatoes in India. There is also price fluctuation in potatoes, which takes a toll on margins.

Bingo has now become the fastest growing brand for ITC in the FMCG business with a brand turnover of Rs 1,200 crore. PepsiCo's Lay's and Kurkure

Haldirams has been selling products like navratan mix, Punjabi chatka, and chiwdamix and Aloo bhujia since 2003 and is well established in the market.

Haldirams, known for their Aloo Bhujia and Bhujia Sev, have become household names by catering to the Indian palate.

These savories were earlier bought from traditional sweet shops and were

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The company has created a space for itself by targeting smaller mom-and-pop stores that were not the forte of larger companies like PepsiCo. They provided direct service to these smaller stores that were traditionally only serviced indirectly by the larger companies and also gave incentives to the trade, creating a space for themselves. It is now one of the top three brands in those markets as a result.

The other reason is affordability. “Local players are gaining in popularity as they are more affordable,” said an analyst at business intelligence firm Euromonitor International, while pointing out that brands like Balaji are very strong in Gujarat and Yellow Diamond is picking up very well in South India.The company

36 www.agronfoodprocessing.com has also managed to keep its costs low as it spends little on advertising and promotions and is promoter-driven.

A new entrant in this war zone is the Patanjali Ayurved.Patanjali, the consumer products maker run by yoga guru Baba Ramdev, has entered the Indian snacks market by launching packaged fried moong dal (green gram) and chana (chickpeas), and plans to launch more ready-to-eat Indian snacks.

Patanjali Ayurveda’s products have caught the imagination of Indian consumers, thanks partly to Baba Ramdev’s vast following. An aspiring consumer product giant, Patanjali makes and markets everything from shampoo and toothpaste to biscuits and noodles, juices and sweets, rice and wheat, honey and ghee.

Balaji Wafers, the second biggest player in the potato chips segment, has seen its share rise from 16.7% to 18.5% during the period, despite being concentrated primarily in the western states of Gujarat, Maharashtra, Madhya Pradesh, Goa and Rajasthan. Besides potato chips, Balaji Wafers also sells Indian salty snacks and savories. The Euromonitor data shows that PepsiCo's entry-level brand Uncle Chipps has dropped share over the threeyear period from 2013 to15.

Anyway latest data show that somewhere in this competition of snacks - Lay's, the snacks power brand from PepsiCo has lost share in the country to homegrown players over the past three years, reflecting the uphill task the multinational has in a market heavily dependent on pricing and trade discounting.

A study by global researcher Euromonitor shows that between 2013 and 2015, while Lay's lost share from 51.1% to 49.5%, local players Balaji Wafers, Haldiram's and Prataap Snacks (maker of Yellow Diamond chips) have steadily gained share every year.

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savory snacks market growth; which is compelling companies to offer healthier snacking options. The demand for small pack sizes have been increasing considerably in certain countries, such as India and Mexico, due to increasing consumption from lower income groups and demographic changes.

People are demanding varieties in snacks, which is encouraging companies to launch new products. Several companies have been announcing the launch of products with new tastes, flavours, and shapes to maintain their competitiveness in the market. Moreover, customers' increasing inclination towards organic foods is compelling the savory snack companies to innovate their products for customer retention.

Earlier, snacks were considered as a break time light food. However, in the recent times people have been increasingly eating them between the meals. Snacks are being considered as fourth meal of the day, peoplelove to snack everywhere from theater, to workplace, to car, and even at home.

But PepsiCo India doesn’t see Patanjali Ayurved Ltd.’s entry into the salted snacks market as a threat to its Kurkure brand, as they think it is not even in competition and they don’t see it as a potential threat and is just one of the thousands of brands in the country.

PepsiCo has to look beyond western snacks like potato chips if it has to penetrate deeper into the Indian snacks market. According to data available with IMRB International, the western salted snacks market contracted by 1% in 2015, while the traditional salted snacks market, with products like bhujia and chiwda, expanded 4%.

SNACKS

Around three years ago, PepsiCo had initiated talks to buy majority stake in Balaji Wafers, the four-decade-old company based out of Rajkot, Gujarat.

The company, however, was interested in offloading a minority stake and has risen from the grassroots, do not spend on marketing and invest heavily on technology and flavours.

Conclusion The high growth of savory snacks market in Asia-Pacific region is mainly coming from the increasing demand from China and India, as they constitute large part of the global and regional population.

The healthier alternatives to savory snacks, such as bakery products, fresh fruits, and juices, are hindering the

Thus globally, the Indian savory snacks market is expected to witness highest growth, 16.6% during the period 2015 - 2020, among all the countries. The increasing numbers of supermarkets and hypermarkets coupled with growing per capita income is encouraging people for bulk buying of savory snacks, which is mostly offered by the large scale retail. Convenience stores are another format which is growing at global level due to peoples' growing demand for convenience.

Multinational companies like PepsiCo is facing raging competition from the domestic snack producers and that is why it enhanced its Indian snack portfolio and indulged into snacks that appeal to the Indian taste buds. While ITC, Haldiram, Yellow Diamond and Balaji have geared up with innovative premium snacking and is definitely giving Kurkure and Lays a stiff competition.

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SEA FOOD

A tale of abundance and challenges The Indian seafood industry

I

ntroduction

Indian seafood Industry is a major supplier in the ‘Global Seafood trade’ in exporting ‘wide range of products’.

‘International seafood trade’ had seen major change in the last decade due to factors like; ‘environment reasons’, ‘diet diversification’, ‘increased global supply’, ‘international trade barriers’ and Bioterrorism. Indian seafood trade is changing the global market scenario.

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Seafood export in India is over 50 years old. Indian seafood Industry has come a long way; shipping seafood products to more than 100 countries. Today Indian factories have grown to have world class facilities, with better quality control; meeting the stringent international norms.

On the other hand, International Seafood trade has been changing over the years; last decade had seen significant changes in the ‘supply’, ‘demand’ and ‘International trade-norms’; due to the compulsions from the importing countries. International seafood industry is caught between; increased demand for seafood due to ‘diet diversification’, and

‘over supply’ of fish production. This increase in supply and demand has created various environmental issues, like decline in world catch and over exploitation; creating long term threat to the world.

Since 1990s, three issues dominated Indian export scene: decline in overall catches particularly shrimp; fluctuations in international markets depressing prices and profitability and overcapitalization of the production and marketing activities increasing risk.

The global seafood market is a complex system of trade and sustainability issue.

Today there is need for the global seafood industry to balance ‘fisheries resources’, ‘global processing capabilities’ and the

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SEA FOOD

‘increased global consumption’ in a more sustainable way. Indian seafood processing units being a part of the global supply chain need to be a responsible global supplier in providing sustainable seafood while competing with other supplying countries in the global trade competition.

Fish Bowl Fishery is a sector that has huge potential in India, which is surrounded by coastlines on three sides. This sector employs more than 14 million people.

Coastal states and the adjoining areas are the major benefactors of this industry, which remains largely unorganised with high levels of insecurity and dangers dangling around the necks of people who are involved in it.

India has nearly 8,200 km of coastline with nearly 3,827 villages engaged in fishing as the main economic activity.

There are nearly 2,000 fish trading centres in these areas. Fresh water reserves and reservoirs in the country also present enormous opportunities for fishing and trading activities. At the beginning of the decade, marine and freshwater resources together had fishing potential of about four million metric tonnes. Increasing yield year after year has been a positive indicator of the future growth potential in the field.

About 65 varieties of marine fish are harvested in the country, which are also of high commercial importance. This apart, Pelagic and mid-water species make for more than half the amount of the total fish production. India's fish and prawn reach most South East Asian countries, the largest consumers of the sea delicacies.

To put things in perspective, India is world's third largest producer of fish and comes next only to its neighbour China in terms of fish production. But the sector is facing heavy challenges in terms of innovation, expansion and regularisation of aspects related to fishing and trading, even while security concerns of fishermen, who get arrested by neighbouring countries such as Sri Lanka and Pakistan, remain a bone of contention

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between countries.

The potential and commercial success of fisheries should ideally make it a story worth emulating for other sectors. But the constant ignorance of governments has left the sector with a feeling resentment and abandonment. Although Prime Minister Narendra Modi had promised, during his election campaign, to set up a separate ministry for fisheries, it has not

materialized yet.

India exported fish worth nearly Rs 18,856 crore and it stood at 9, 28,251 tonnes in 2012 - 13. The European market presents excellent export potential. The United States of America, Japan and China also remain loyal customers of the Indian fish.

Forecast for the future is also equally bright. Marine Products Development Authority (MPEDA) estimates $4.2

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SEA FOOD areas. Prevalence of antibiotic residues in Indian fisheries stocks is a cause of worry for those who are looking at creating infrastructure to keep fishing sustainable, safe and healthy.

Any change in the ocean areas along the water table is bound to affect the produce.

Consistent degradation of shorelines and loss of coral reefs have been major problems faced by India. Unless focus shifts to a comprehensive method of fishery, India stands the threat of losing its brownie points on this front.

But is illegal fishing undermining seafood industry Illegal, unreported and unregulated fishing (IUU), estimated to be worth between $10-23 billion annually, is undermining the seafood industry. Seafood products are among the most widely traded food commodities in the world, with estimates for 2015 placing the value of international fish trade at $130 billion.

IUU fishing, which includes operating without authorization, harvesting protected species, using outlawed fishing gear and violating quota limits, could account for up to 26 million tonne (MT) a year, or more than 15 % of the world’s total annual capture fisheries output.

Illegal fishing takes place where vessels operate in violation of the laws of a nation or a regional grouping.

billion target for Indian fish trade with Vannamei Shrimp and Black Tiger Shrimp, which are all season fish and sea food delicacies preferred worldwide.

Experts have been suggesting that the country stop taking pride in production capacity and look at sustainable methods to reach better commercial success with regard to the fishing industry. They opine

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that the fisheries sector should look at future growth, rather than just enjoying the catch with every passing year.

Adopting responsible and sustainable fishery practices, bringing together agriculture and aquaculture farms to create agro-aqua farms, improving selling efforts inland and spreading fish quality literacy among fishermen to ensure hygienic practices are some of the focus

Unreported fishing is fishing that has been unreported or misreported to the relevant national authority or regional organisation, in contravention of applicable laws and regulations. Unregulated fishing generally refers to fishing by vessels without nationality, or vessels flying the flag of a country not party to the regional organisation governing that fishing area or species.

Fishing community in India has also been complaining of large scale illegal trawling by foreign vessels in the Indian coast, particularly during the time of monsoon when mechanized fishing is banned along the coast.

Strict regulation could also help in

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SEA FOOD rise with demand.

Fish is the second largest export item, accounting for a share of about 29.44% in quantity and 11.24% in $ earnings. Export of value added products has increased to 95,436 tonne from 84,549 tonne with a growth of 12.88% and to $746.59 million from $634.67 million with a growth of 17.63%. The major contributor to the export of value added item is value added shrimp items with a share of 63.54% in quantity terms and 75.37% in US$ terms.

Dried item have shown a positive growth in terms of quantity by 3.89% and in Rupee term by 1.22%, but it has shown negative growth in $ terms by 1.41%.

stopping the destruction of endangered species like the Olive Ridley turtles of Odisha which are killed in thousands by the illegal trawlers in the Odisha coast.

dollar value, respectively. However unit value realisation decreased to $10.38/kg from $10.65 in 2015, a negative growth of 2.59%.

An international instrument to counter IUU fishing is awaiting ratification.

Improvement in supply conditions in South East Asian countries in comparison to previous year has resulted in continuous drop in prices of shrimp, a principal commodity of Indian seafood export basket. The downward trend in unit value realisation for Vannamei shrimp in US and other markets started during December 2014. The trend continued till the end of 2015. However, MPEDA is hopeful of higher exports in value terms in the next fiscal on the assumption that the prices have bottomed out and would

India’s seafood exports Seafood exports have crossed $5.5 billion in 2016 despite a sharp drop in the price of shrimp. During 2014-15, volume of exports had crossed record 1 million tonne for the first time. Exports aggregated to 10, 51,243 tonne valued at R33, 441.61 crore ($5511.12 million).

And now compared to the previous year, seafood exports recorded a growth of 6.86 % in volume, 10.69% in rupee term (10.05 % in dollar).

The export could have touched $6.5 billion-mark but the drop in unit value of shrimps due to good supply from other sources prevented it. This growth may be viewed under the prevailing international market situations — the depreciation of euro, weaker economic condition in China, devaluation of yen, depreciation of Indian rupee and improvement in supply.

Frozen shrimp continued to be the major export item in terms of quantity and value, accounting for a share of 34.01% in quantity and 67.19% of the total dollar earnings. Shrimp exports during the period increased by 18.60%, 16% and 15.54% in quantity, in rupee value and in

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The US is the largest market for Indian seafood products with a share of 26.46% followed by South East Asia (25.71%), European Union (20.08%), Japan (9.11%), other countries (8.58%), Middle East (6.04%) and China (4.02%) Exports to the US had registered a growth of 16.94% in quantity and 13.39% in $ realisation and are mainly attributed to the export of frozen shrimp, which showed a growth of about 17.49% in volume and 12.87% in $ terms.

MPEDA sources said that export to China has decreased drastically. The export has registered a negative growth of 21.46%, 23.64% and 24.45% in terms of quantity, rupee value and dollar term.

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S

trategic Nutrition for Millennials

We are pleased to provide you with Part I of a two-part series, featuring how nutrition could be used to target the Millennial generation. In part one, you will learn about some of the functional

VOl.11 Issue 07 May 2016

ingredients that may appeal to the Millennial generation, the importance of transparency, nutrient gaps to consider, nutrients for childbearing and weight management functional ingredients to consider when developing a product for this audience. In Part II, which will

HEALTH

be published later this year, you will learn more about nutrients that could be used to target their lifestyle, such as sport, exercise, relaxation and energy.

In addition, we will provide some premix prototypes that may appeal to this generation as well as manufacturing

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issues to consider for when selecting a premix manufacture.

Introduction Born in the early 1980s to around 2000, members of the Millennial generation are now forging out into the world and making their presence felt in society.

The individualistic, connected, and unpredictable members of this generation are completing their education, joining the workforce, buying a house and starting a family.

The world is starting to take note as the number of Millennials surpasses that of Baby Boomers for the first time in 20151.

Not only is this a large emerging market segment, but the characteristics of this generation are different in many respects from Generation X and Baby Boomers.

While in the eyes of some, the millennial generation is seen as egotistical, addicted to technology and, indeed, some would say spoiled, a deeper understanding of the egotistical “me” generation can shed light on other important generational traits that drives their decision making about product selection in the food and health area. For example, this generation faces a very tough economy that has many young adults worried about how they are going to repay their large educational loans. Thus, a good quality product at the lowest price is going to be an important consideration for millennials. While brand loyalty is still important, millennials are turning to brands that can offer maximum convenience at the lowest price.

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Marketing to Millennials Globally, Millennials make up around one third of the world’s population. Due to the rise of the information age during the formative years of the Millennial generation, they are considered to be “digital natives” – at home in the bustling world of social networks, mobile technology and instant access to information. The rise in international mobility over the last decades means that Millennials are more diverse than any generation before. Millennials are the most educated generation, with the highest proportion having completing tertiary education than any previous generation2.

These factors mean that marketing to Millennials demands different strategies than has worked with older generations.

The high degree of technology use and education level mean that Millennials want to, and can be, involved with new product development. Providing a means for Millennials to connect with companies stimulates engagement. New products work best if they cater to the individualistic nature of Millennials, in a way that is both fun and informal.

Qualities such as “all natural”, organic, vegetarian/vegan and locally sourced speak to this generation.

Another important observation is that millennials are less interested in “dieting” than they are in living a “healthy lifestyle”. According to a recent survey

HEALTH from the Aetna Insurance Company3, one in five millennials define healthy as a daily commitment to eating right and exercising. As previously noted, Millennials will eat more foods that are “organic”, “all natural” and “hormonefree”. Whereas, the older Gen X and Baby Boomer generations are more oriented to avoiding sickness and the development of chronic diseases, the younger millennial generation looks more for “wholesome nutrition”. The newer generation also tends to be more adventuresome in their food choices and are more open to trying new flavors than the older generations.

Perhaps this desire for natural products is the reason why Millennials are more averse to taking pills than other generations4.

Supplement manufacturers may have to explore innovative approaches to combat pill fatigue, such as chewable or gummy supplements, drink powders or mints.

Millennials show less loyalty to brands than older generations, and are on the lookout for something new: exotic flavors and innovative packaging appeal5.

Despite this, high levels of personal debt from student loans, and an uncertain job market in the wake of the global financial crisis mean that Millennials are also price conscious 2.

Importance of Transparency The concept of transparency in business operations is particularly important to Millennials. Younger people are used to having information available at their fingertips, instantly. Being open and upfront with business decisions and practices allows Millennials to decide whether a company is operating according to their own personal values. In the food, beverage and supplement industry, Millennials have shown their power in persuading large companies to change the composition of

43 www.agronfoodprocessing.com nutrient inadequacies in this age group, and the importance of good nutrition now as a preventive measure for later. As many Millennials are starting to become parents, nutrition for childbearing is also of interest. See Table 1 for Nutrients for Millennials.

some products6. Now more than ever, it is vitally important that companies can trace the source of ingredients used in their products to ensure they are safe, produced sustainably, and with the highest quality standards. Producers of food, beverages and dietary supplements should take care that their supply chain and operations follow high environmental and ethical standards. Suppliers for, and producers of consumer products need to work together to ensure that the final product can be proven to fulfil the quality standards required by local and international regulations, as well as exacting end-users such as Millennials.

Learn more about these nutrients, and many others, by viewing our monographs, which are available through the research section of fortitechpremixes.com Nutrients As younger adults, Millennials generally enjoy good health and are not experiencing the health issues that are common in older generations. Despite this, surveys show that Millennials, particularly women, can have poor diets and are at risk of vitamin and mineral deficiencies. Healthy dietary and lifestyle choices now also have a beneficial effect years down the track. Food, beverage and supplement manufacturers can raise awareness with consumers about commonly found

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Nutrient Intakes and Deficiencies in Millennials In high-income countries, energy and macronutrient intakes often exceed recommendations for young adults.

However, comprehensive surveys such as NHANES in the US show that Millennials can do better in regards to their vitamin and mineral intakes7. Poor consumption of nuts, fruits and vegetables is reflected by large gaps between actual intakes and requirements for fiber, vitamins A, E, K, magnesium and potassium in both men and women aged 19-30. In addition, women have difficulty meeting requirements for calcium, vitamin D and iron.

Get started on your next product formulation by submitting a Solution Starter form at fortitechpremixes.com Measures of biochemical status indicate further nutrients of concern for this age group8. Both men and women are at risk for deficiency in vitamin B6 (5-10%),

HEALTH vitamin B12 (3-4%) and vitamin C (37%). Morever, 9-10% of young women have low body iron. Mean urinary iodine was also found to be less than the concentration indicating sufficiency, which means that over half of young adults may not be consuming enough iodine.

Classic approaches to dietary enhancement with micronutrients include food enrichment and fortification as well as the use of dietary supplements. These product forms may be less desirable to Millennials, who are more likely to value a whole-foods approach to nutrition.

Dietary supplement manufacturers may want to expand their range to include chewable tablets or gummy vitamins, nutrition bars, drinks and gels targeted at younger adult consumers’ nutrition gaps4. Using “superfoods” – foods that contain a substantial amount of a certain nutrient – in product formulations can boost both the nutritional content and healthful appeal of foods.

Botanical Ingredients The millennial generation may be more open to less conventional ingredients, including botanicals, to protect their health. Sales of herbal dietary supplements in the United States increased by 6.8% in 2014, reaching an estimated total of more

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HEALTH acid16. Having adequate pre-pregnancy iron reserves is more effective than iron supplementation during pregnancy in preventing anemia17, and may help produce the best pregnancy outcomes18.

While it is important to get a healthy, balanced diet during pregnancy, the nutrients of particular importance include zinc, iodine, choline, DHA, and vitamins D, B6 and B1218-20.

than $6.4 billion. Some of the more wellknown botanicals are shown in Table 2. Many of these botanical ingredients have a long history of use in traditional medicine systems. A brief description and some potential uses are mentioned below.

Matcha is a finely ground green tea powder used in traditional tea ceremonies.

Pomegranate juice, derived from the juicy, gem-like seeds of the pomegranate fruit, is rich in potential bioactive components, such as the phytochemicals ellagitannin and anthocyanins. Pomegranate is used extensively in the Indian Ayurveda system of traditional medicine against diarrhea and as a tonic for the heart and throat.

Burdock, often advocated in macrobiotic diets, has been used by folk herbalist as a blood purifying agent and diuretic.

Calendula (pot marigold) is a herbaceous plant in the daisy family originally used in traditional medicine in treating disorders of the gastrointestinal tract. Calendula flowers have been also used historically to stop bleeding of wounds and prevent infection. Cinnamon is a commonly used spice that has a long culinary history. In recent years, there has been more research interest in the potential glucose-lowering effects of cinnamon in people with type 2 diabetes10.

Ginseng is another plant root product with a long history of use in traditional medicine as a stimulant. Ginseng sales in 2010 were about $2 billion in 35 different countries11. Energy drinks and

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herbal teas can include ginseng among its ingredients. Passion flower leaves and roots have been used in Native American medicine for treating insomnia and more recently has been tested as a potential treatment for generalized anxiety disorder with some effectiveness12. Schisandra (magnolia vine) is a shrub native to East Asia. The berries are used in traditional Chinese medicine to resist infection, combat insomnia and coughing13. Holy basil (Ocimum tenuiflorum), native to the Indian subcontinent, is used as a medicinal plant and herbal tea and in Ayurvedic medicine as helpful for adapting to stress14.

Nutrition for Childbearing Millennials are heading into the peak of their childbearing years. For both women and men, but particularly for women, good nutrition can help support fertility and contribute to a healthy pregnancy.

Millennials appear to be particularly prone to unplanned pregnancies, with rates increasing in younger women in recent years15, therefore it is important for all women who could be at risk of pregnancy to eat a healthy diet whether or not they are planning to become pregnant. Prior to conception, women should ensure that their folate and iron status are primed for a healthy pregnancy. Nearly one quarter of women have a folate status lower that necessary to help prevent birth defects, and the proportion increases especially for women not taking supplemental folic

As their babies begin to age, more and more millennial generation mothers are feeding their children organic baby foods. The rise of millennial concerns may promote more transparency in labelling, as well as show a strong desire to know more about the origins and practices used in food production.

Marketing to millennials will need to be sensitive to the fact that this generation is also less likely to accept authority in product promotion, which is seen as big advertising’s attempts to manipulate them. New marketing strategies, based on a deeper understanding of this generation’s characteristics, will be needed to effectively reach this generation of consumers. Millennials have a strong social conscience and believe that sustainability is important. Brands and private companies who give back to a cause or follow “fair trade” policies with food producers tend to resonate with

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HEALTH visiting fortitechpremixes.com

millennials.

Preventive Nutrition Millennials are primed for products aimed at preventive health due to their interest in healthy living. The vast array of apps, gadgets and information sources on health at their fingertips means that they are the most informed generation about their own health. For Millennials, good health means more than “not sick”: eating right and exercising regularly are most important when defining what it is to be healthy22. Millennials, more than other generations, are willing to pay a price premium for added health benefits23. College-educated Millennials appear to be particularly willing to use dietary supplements for general health24 and wellness.

Weight Management The Millennial generation wants to lose weight not for their appearance but to improve their sense of wellbeing. While older generations went on a weightloss diet, Millennials prefer to focus on healthy dietary choices supported by regular physical activity. Despite these aspirations, the Millennial generation is the first to be negatively affected by the childhood obesity epidemic, and has an uphill battle to maintain a healthy weight25. Millennials appear to be particularly enamored with convenience foods and following the latest trend, and this can work both for and against

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efforts to eat healthily26. Products that help Millennials with smart snacking – eating smaller, healthy portions that provide a benefit for weight management – appeal to their on-the-go lifestyle and can also be formulated to provide essential micronutrients along with unusual ingredients or flavors to enhance their attractiveness to this age group. For example, products with satiety positioning may appeal to Millennials hoping to make small, sustainable lifestyle changes to cut down on calories.

Get a jump on your competition and contact our formulation experts by

The addition of dietary fiber to products offers a simple, natural and efficacious way to support weight management.

Various mechanisms of action are proposed including increasing a feeling of fullness in gastrointestinal tract, delaying the time that it takes for the stomach to empty, reducing the absorption of fats or protein, and influencing appetiterelated hormones27. In particular, gelforming fibers such as beta-glucan and psyllium affect satiety, while nonfermentable fibers lower dietary energy density and provide fecal bulk27-29. In a randomized clinical trial, overweight volunteers experienced increased satiety and an improved insulin profile when supplemented with beta-glucan compared to a control breakfast30. A review of the effect of increasing the fiber content of the diet in general showed a 10% decrease in energy intake in people consuming a high fiber diet or fiber supplement, compared to controls27.

There appears to have been a downward shift in metabolic rate in adults over the past few decades 31. Metabolism boosters may help offset low metabolic rates in weight-management targeted products.

Caffeine has a modest effect on resting energy expenditure, particularly when combined with exercise or catechins

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HEALTH study illustrates the short term benefits: individuals taking a lutein and zeaxanthin supplement had a faster recovery of vision after a flash of bright light43.

from green tea32, 33, and it may also delaygastric emptying, contributing to a feeling of fullness after a meal. Some examples of the effect of caffeine on weight loss come from clinical studies.

A herbal supplement containing natural caffeine from guarana and yerba mate reduced weight by 5 kilograms in overweight subjects undergoing a 6-week randomized, placebo-controlled trial, and helped subjects to maintain their weight over the following year34.

Capsaicinoids are bioactive compounds found in chili peppers that have also been tested for their potential in weight management. Researchers have found them to increase resting energy expenditure and reduce appetite, making them an interesting ingredient as they are derived from nature and have a small yet clinically meaningful influence on weight loss35, 36. For example, a 12-week study using capsinoids generated weight loss and a significant improvement in body composition (a reduction in waist circumference) in overweight and mildly obese adults 37.

Extracts from the common bean Phaselous vulgaris contain an alpha-amylase inhibitor, which blocks the breakdown of dietary carbohydrates to simple sugars.

This means that carbohydrates are not available for uptake into the body. A

standardized bean extract reduced body weight by 3 kilograms compared to control over a one-month clinical trial38.

Staying Healthy: look to benefits now and in the future The availability of new technology developed in the last decade means that we are better at measuring and predicting chronic disease risk factors than ever before. This information can help Millennials make changes to their diet and lifestyle that will have farreaching benefits in the future. Health technology has been taken up by Millennials more than older generations, and self-treatment using supplements and functional foods is a natural extension of the desire to do something useful with this knowledge of their current health status39.

As age-related health concerns are decades away, products should be aimed at improving general wellbeing or contributing to a healthy lifestyle.

Many food or supplement ingredients traditionally aimed at chronic disease also have health benefits that may appeal more to younger consumers. For example, long chain omega-3 polyunsaturated fatty acids (PUFA) that are traditionally marketed to the older heart health market also help maintain the immune system or for sports nutrition that may be of interest to Millennials40, 41.

Lutein and zeaxanthin can help maintain vision recovery (glare) as well as possibly preventing age-related macular degeneration in the future42A randomized, placebo-controlled

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It’s important to check with the regulatory entities in your region to determine product claims We hope you enjoyed reading Part I of this two-part series. In Part II, which will be published later this year, you will learn more about nutrients that could be used to target their lifestyle, such as sport and exercise, relaxation and energy. In addition, we will provide some premix prototypes that may appeal to this generation as well as manufacturing considerations to account for when

selecting a premix manufacture.

Register with fortitechpremixes.com for free and you will be e-mailed when the second part is published, or simply check back at fortitechpremixes.com later this year.

Regulatory Considerations Regulatory bodies around the world have differing parameters regarding product claims. In developing claims for a food, beverage or supplement product label, manufacturers should seek guidance to assure compliance with the appropriate regulatory authority. The intent of the information provided within this paper is to help focus manufacturer’s thoughts and ideas surrounding product development in general and for Millenials in particular.

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AGRI BUSINESS

‘Green Channel’ & GST to attract investment from UK Companies in Food Supply Sector: Report ·Marketing System & Retail in Agri-Food sectors need to improve very fast: Siraj Hussain L-R : Mr Nikhil Khurana, Sr Consultant , D&B, Mr Dipankar De , Partner D&B (2 from Left), Mr Anthony Cooper, First Secretary (UKT&I) British High Commission, Mr JK Dadoo, Additional Secretary , Dept of Commerce, GoI , Mr Siraj Hussain, Former Agriculture Secretary, GoI, Ms Priyaa Gurnani , Director D&B Tangram and Dr Arpita Mukherjee Professor, ICRIER, Ms Tanu Goyal ( ICRIER) releasing the Report in New Delhi on Wednesday.

T

he Indian government needs to hasten various policy and regulatory reforms like right compensation for land acquisition, liberalisation of FDI in multi-brand retail, implementation of Good & Service Tax (GST) and ‘Green Channelling’ for agri produce to push India-UK collaborations and investments in Food Supply sector where huge opportunities and potential remain to tapped fully, reveals a Report.

A Report on ‘India-UK Collaborations and Investments in Food Supply Chain: Opportunities, Concerns and the Way Forward,’ was released here today. The Report was jointly released by Mr Siraj Hussain former Agriculture secretary, Government of India, Mr Anthony Cooper, First Secretary (UKT&I) British High Commission Mr JK Dadoo, Additional Secretary , Dept of Commerce, GoI . Ms Priyaa Gurnani, Director D&B Tangram Advisory Services and authors of the Report Mr Dipankar De Partner D&B, , Ms Tanu Goyal ( Consultant, ICRIER)) and Dr Arpita Mukherjee Professor, ICRIER were also present on the occasion.

The Report, a result of extensive survey

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and study, has been prepared by D&B Tangram. It also draws on the earlier survey findings of D&B Tangram and Indian Council for Research on International Economic Relations (ICRIER) on food parks and allied infrastructure.

“For last three-four years the Government is struggling hard to bring in much awaited reforms in agriculture and food

processing sector. But the progress is slow because reforms in these two sectors touches majority of the population.

We still do not have unified or national market. Marketing system has to improve very fast if we want farmers , who are in distress, to get better price,” Said Mr Siraj Hussain , while releasing the Report.

“Food Processing Industries require last

mile reform- that is in retail. Modern retail is very important. The government has allowed 100 % FDI in Food/Agri, however we are struggling to take it to investors. We need unified and national market for agri produce. With National Agriculture Market in place, I hope things will move faster for the sector.

The Report is very timely and would help in attracting foreign as well as domestic investments,” he added.

The Report suggests that the policy and regulatory reforms are likely to improve the business conditions. Implementation of “Green Channelling” for agri-produce to reduce wastage, increasing centrestate coordination to improve investor confidence, bringing in more transparency and awareness about government policies, simplifying customs procedures and food safety regulations are other key recommendations. It is also pointed out during the survey that along with transport infrastructure, there is a need to construct “truck docking stations” in fuelling stations along the national highways and state highways.

Highlighting the key findings of the

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AGRI BUSINESS and would provide them practical support in terms of market strategies and advice. The Report is extremely times in this context,” he added.

Report Dipankar De, Partner, D&B Tangram says, “The logistics and supply chain performance is currently impacting India’s global competitiveness by increasing operating costs and capital expenditures, delays and unpredictability, reduction in overall business activities and restricting potential integration with global value chains.”

Critical logistical infrastructural gaps, essential skill gaps across functions and inadequate research and development (R&D) in the food supply chain are a few of the specific immediate areas of attention, he added.

“Improving efficiency and unlocking potential in the food supply chain has been a key priority for the current government who is actively encouraging foreign investments in these supply chain sectors such as storage and warehousing, cold-chain, packaging, skill development and R&D,” Mr Dadoo said.

Presenting UK perspective about business opportunities in India, Mr Anthony Cooper said that the UK government has strong focus on food and drink sector and its exports. “We excel in cold-chain and have advanced supply chain management practices, we can help reduce wastages in the supply chain and increase the shelf life of the produce.

“Agriculture produce, fruits, vegetables, Dairy sectors are expanding in India, creating more demand for modern facilities. Our companies find huge opportunities in India. UK Trade & Invest (UKTI) is keen to make companies aware about the opportunities in India

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The Study focuses on five areas of the food supply chain, namely storage and warehousing, cold-chains, packaging technology, skill development and R&D. It provides an overview of each of these segments in India and the UK, examines the regulations, identifies the areas of collaborations and identifies the barriers faced by the UK companies in India.

Food and Drink is a priority sector for the UK government in its trade and investment with India. The report charts out clear action points for UK Trade & Invest (UKTI) and UK India Business Council (UKIBC) to increase awareness and market understanding of the UK companies and work collaboratively with the centre and state governments in India to enhance India-UK trade and investment in food supply chain.

At policy level, the Indian government has launched several national level schemes and initiatives to support the growth and development of food logistics business.

One such initiative is the “Make in India” campaign, encouraging foreign investors to invest in manufacturing facilities in sectors such as packaging. There are other initiatives such as “Skill India” that is dedicated to upgrading the existing skill levels in the country and “Start-up India” which aims to support start-ups and commercialization of R&D. However, there is still low commercialization of R&D in the country due to the lack of a proper ecosystem for protection and promotion of R&D

in India. Given this, it is important to understand the prevalent regulations in the sector. FDI upto 100 per cent is allowed in R&D and foreign multinationals are encouraged to set up R&D centres in India. Further to this, as per the Foreign Direct Investment Policy of DIPP, foreign companies that foster technology transfer are encouraged to invest in India. India and the UK have bilateral R&D programmes and the companies and institutions of the two countries can participate in other multi-country programmes such as the Horizon 2020 of the EU. Among the bilateral programmes, Global Innovation and Technology Alliance (GITA) is the most prominent one.

The Report observes that all these measures and initiatives are likely to attract foreign companies, including companies from the United Kingdom (UK), to invest in India’s food supply chain.

The food supply chain in India is fragmented, and is characterized by the presence of a large number of unorganized operators in each segment. As a result, transportation costs in India are very high and so are the wastages involved in food transport due to mishandling, lack of storage facilities, etc. With well-established food supply chain and sophisticated logistics infrastructure leading UK companies have shown interest to invest in areas like FTWZs (free trade warehousing zones) in India.

Cold –chain sector is a focus area. Coldchain sector, witnessing annual growth

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AGRI BUSINESS indication. This adversely international businesses.

affects

The Study is an eye opener and examines FDI related issues with conviction. It says, “Unless FDI is allowed in multibrand retail and the rigid conditions are removed, the food supply chain sector will not get the desired foreign investments. Global retailers play a key role in promoting agriculture exports and setting up of the food supply chain.”

of nearly 20 %, is yet another key focus area where there is plenty of scope for the Indian and UK companies to collaborate, especially in green technologies such as solar run cold storages. The Indian market is not homogenous and the UK companies should explore opportunities in Indian states that offer ease of doing business.

For the food supply sector, taxation is a major concern. GST is expected to accelerate the growth of the storage and warehousing industry and creation of true hub-and-spoke model, which India currently lacks. “Rolling out of GST is further expected to drive the technology adoption since under hub-and-spoke model technology will be of paramount importance,” the Report points out.

Dr. Arpita Mukherjee, Professor, ICRIER and one of the authors of the Report says skill development through joint efforts would be a critical component in pushing the sector through collaborations with UK companies and R&D also needs to be a focus area.

Commenting on taxation, she says, “Multi-layered taxes and variation of taxes across states make it difficult to have a pan-India pricing and hub-andspoke model of operation.”

Despite a series of reforms related to the FDI liberalisation, the presence of the UK

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businesses in India is limited. The study points out that the large foreign multibrand retailers such as Wal-Mart Stores Incorporated and Tesco Plc are present in India only as wholesale cash and carry operators. None of the UK companies have entered the food retail business. This is mainly due to the restrictions on FDI in multi-brand retail. The low presence of global multinationals and domestic corporate players in food manufacturing and retailing have led to the low presence of the UK companies in food supply chain sector of India. Most companies are waiting for FDI liberalisation across the entire supply chain. A number of companies have expressed concerns about the inability of Tesco Plc to speed up investments in India.

‘Most of the UK businesses are in the wait-and-watch mode and they are closely watching the success of other UK businesses that have entered or are planning to enter the Indian market,” the Study reveals.

Along with the tariff discrepancies, the Customs procedures in India are cumbersome. The interpretation of the policy by Customs varies across ports. According to the Report, there are licensing, labelling and packaging conditions along with other standards laid down by FSSAI that often change without prior

“The retail policy should not impose restrictions on store and non-store retail formats. Some of the UK food manufacturers have or are planning to set up manufacturing hubs in ASEAN countries such as Thailand and export the products to India through the ASEAN free trade agreement (FTA).” India will not get the desired investment in manufacturing unless the country allows global companies access to distribution and retail. It is important for the government to know that global retailers cannot change their business models to meet the conditions imposed on FDI in retail. As India competes with other countries to get FDI it should also have similar FDI policies.

It is also suggested that if GST does not happen due to lack of majority in the Upper House of the Parliament, the central government can work with the states in which it has majority such as Gujarat, Rajasthan Haryana and Maharashtra to have green channels. This will significantly benefit movement of perishable produce and reduce wastages.

Other recommendations include better centre-state coordination, infrastructural support, corruption free administrative machineries, Skill Development and policies should be directed towards investment in better technology, clean technology, and connecting farmers to the global markets, among others.

There is also need to speed up the patent process, strengthen the IPR regulation and protection of patents and copyrights.

While there are regulations in place, there has to be serious implementation of existing laws.

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NEWS

Dairy sector to see investments worth Rs 9,000-10,000 crorein 5 years Our Bureau, New Delhi

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he cooperate giant recently have started to take great interest in the dairy industry and thus the Rs 4 lakh-crore Indian dairy industry in the next five year will witness investments worth Rs 9,000-10,000. And most of these investments would be for creating infrastructure at farm for collection and storage of milk.

According to Ashok Sharma, president and chief executive, agri and allied services, Mahindra and Mahindra, the share of the organised industry is approximately 30 per cent and is growing at a robust rate of 15 per cent per annum.

The value added segment is the major driver of this growth with around 1820 per cent growth. Curd, lassi and butter milk are growing at around 18 per cent while the smaller categories like flavoured milk, yoghurt and cheese are growing upwards of 20 per cent per annum. Mahindra has recently forayed into dairying with its Saboro brand.

A Crisil ratings report said the share of value-added products in fiscal 2015 is estimated at 43 per cent, up from 35 per cent in fiscal 2010. Rising purchasing power and increasing health consciousness have spurred lifestyle changes in recent years because of which consumers have gravitated towards value-added products.

Increasing organised activity in Indian dairy and direct processor-farmer engagement will entail significant investments in creating capacities for milk procurement, milk handling and product manufacturing. Investments in the dairy business will broadly range between Rs 9,000 crore and Rs 10,000 crore in the next five years. The major share of the investment will be for creating infrastructure at farm for collection and storage of milk.

Analysts thus feel that these companies

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will also look to expand beyond their regional base.

Innovation and technology focus will be important for them to cater to emerging consumer trends, either by developing new products or creating a unique positioning in existing product categories.

Mahindra, for example, has started with 2,000 farmers and claims that it ensures that the milk collected reaches the processing plant in the shortest possible time.

The company has thus taken care to differentiate its products from what is already available in the market. The milk is fortified with Vitamin A and D. Mahindra’s poly-pack milk will be followed by value-added products like ghee, curd, and lassi and butter milk.

FMCG major ITC, on the other hand, has forayed into dairy with Aashirvaad Svasti pure cow ghee. “The ghee was launched in select southern markets and we will look at expanding our footprint across the country. ITC has set up a dairy plant in Munger.

According to the National Dairy Development Board and Crisil research estimates, India produces around 3.80 million litres per day (LPD) of milk, accounting for a fifth of global output.

About 40 per cent of this is retained by producers (farmers) for household consumption. Another 41 per cent share is with the unorganised segment. The remaining 19 per cent is procured, processed and sold through organised dairies.

Given the rising demand for branded

products and investments being made by organised sector players, Crisil believes the share of organised segment will increase to about 25 per cent by fiscal 2018. In volume terms, the dairy industry grew four per cent annually in the five years ended fiscal 2015, while the organised sector grew twice as fast.

The volume of milk processed from the organised sector is expected to grow 13 per cent annually by FY2018, way ahead of a five per cent annual growth for the industry at large.

Cooperatives, however, have a strong presence and hold over the Indian dairy market, and can pose a challenge for the growing corporate dairies when it comes to milk procurement.

While the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the Amul brand of dairy products, took its turnover of Rs 8,00023,000 crore (provisional figure of FY16) just about six years, its procurement too grew by 91 per cent in the last six years.

GCMMF would invest Rs 5,000 crore to set up 10 processing plants that would take its processing capacity to 3.2 million LPD from 2.3 million LPD.

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NEWS

Patanjali’s misleading advertisement on KacchiGhani force Solvent Extractor Association to approach regulators Our Bureau, New Delhi

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atanjali’s misleading advertisement on Mustard oil has cause quite a furor in the edible oil industry and has now forced the Solvent Extractors' Association of India (SEA) to go the food and advertising regulators to direct yoga guru Baba Ramdev's Patanjali Ayurved to withdraw its advertisement on kachhighani mustard oil.

Recent advertisement for kacchighani mustard oil aired by Patanjali Ayurved Ltd is not in good taste and according to SEA

president PravinLunkadtheir association always supports the domestic producers of edible oils of any type. However derogatory remark for other edible oils is not appreciated.

SEA has sent a detailed memorandum with documentary evidence to Patanjali Ayurved, drawing its attention and requesting it to withdraw the misleading statement made in the ad.

Unfortunately, Patanjali continued with the advertisement both in print and electronic media and therefore the

association has decided to approach FSSAI (Food Safety and Standards Authority of India) as well as Advertising Standards Council of India (ASCI) to direct Patanjali to withdraw the said advertisement with misleading facts," the association said.

HRS technology to achieve energy efficiency in Oils & Fats Industry at OFI India 2016

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RS Process Systems Ltd. (HRS PSL), part of HRS Group, UK, one of India’s leading heat transfer specialists participated in OFI India 2016, one of the largest international event for the OIL & FAT industry at Hyderabad from 13 – 14 April 2016. At this event HRS PSL displayed ECOFLUX* Corrugated Tube Heat Exchangers and HRS Funke Plate Heat Exchangers - the innovative range of products based on HRS' advanced heat transfer technology.

Ecoflux* Corrugated Tube Heat Exchangers (CTHE), flagship product of HRS on display is based on corrugated tube technology developed by HRS and widely accepted for a range of OIL & FATS processing applications like heating, cooling and heat recovery for sustainable and efficient use of energy.

It also helps in reducing operating cost.

HRS Funke Plate Heat Exchangers (PHE) are used for processes like water cooling, oil cooling and heat recovery. These heat exchangers have proven to give enhanced benefits in terms of energy savings

VOl.11 Issue 07 May 2016

when integrated into Heat Exchanger based Systems.

Speaking on the company's participation in OFI 2016, Mr. V Gokuldas, MD, HRS Process Systems Ltd. said: "Even as India continues to be the world's largest edible oils importer at 11 MT as per some industry estimates, domestic production of oils is expected to touch 9.5 MT this fiscal. Achieving energy efficiency is a natural corollary to increasing production, particularly in the Oils and Fats industry.

Our Ecoflux* heat exchanger is based on superior heat transfer technology, giving our customers competitive edge by achieving significantly high energy efficiency through optimized heat recovery. Our technical expertise and global references has enabled oil processors to choose our advanced heat transfer technology over competing products. Many companies from the Asia Pacific region have shown interest in our

solutions during OFI 2016."

The 1st OFI in India saw companies from Indonesia, Japan, Korea, Malaysia, Myanmar, Philippines, Singapore, Sri Lanka, Taiwan, Thailand, China, Europe and USA attending the event.

Many leading multinational and Indian companies including Ruchi Soya, Godrej, Lohiya Group, Desmet Bellestra, Kediya Agro, Lipico, Shivchand Agro oils evinced keen interest in HRS' heat recovery solutions.

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NEWS

X-ray Inspection systems fulfil pharma-Ishida to electric signals. An image processing system generates X-ray transparent images from the signals and detects with Ishida's exclusive 5-lavel processing software.

Safety and Security For Operators • X-ray emissions are under 1 micro Sv/h in all parts of the system.

• X-ray exposure only takes placec within the inspection tunnel.

• A high-visibility signal light indicates when exposure is in progress.

• Safety interlock stops X-ray output when the tunnel's integrity is compromised (e.g. curtain or vonveyor is out of position, or a portion of operator's body is inserted)

The Benefits of X-ray Inspection-Ishida • Inspection capability Not available in Metal Detectors or Vision Systems • Contamination Inspection for: Metal,Glass, Stone, Hi-Density Rubber and PVC Plastics of injectable, Tubular/ Molded & also Lypholized vials • Final inspection of product in sealed foil, plastic and card containers • Missing components -tablet and blister count, and presence of leaflet • Broken Product -crushed and/or damaged • Under/over fill -With real-time statistical feedback for QA & Process Control.

Principal of xray Inspaction X-ray Pass through product on the conveyor. A line sensor receives the transmitted X-rays and converts them

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For inspected products • X-ray ebsorption of the inspected product is well below 0.1 Gy. • At start-up of production, the rejector automatically rejects all products • regardless of inspection result in order to prevent jammed product in the inspection tunnel.

X-ray inspection system features and benefits Ishida X-ray Systems offer the benefits of state-of-the-art X-ray inspection, including all aspects of contaminant detection and product integrity checking.

These advanced systems perform with the accuracy, efficiency and reliability expected of a leadingedge engineering firm with well over a century of food industry experience and a worldwide installed base.

Detecting the full range of contaminants The Ishida X-ray will detect metal, glass, bone, shell, grit, plastic and hard rubber.

Small contaminant detection is a particular strength and Ishida’s GA (Genetic Algorithm) proprietary imageprocessing software can

be quickly programmed by the operator to consistently and reliably pick up low density contaminant.

Linking seamlessly into your data systems The X-ray system provides you with secure, retrievable records. Operation logs and images are automatically stored with a time stamp. All data can be saved to a CF card, and are accessible using standard PC applications. The system has an Ethernet option for integration into your wider quality and traceability systems.

Offering the highest levels of operator and product safety X-ray output is contained within the inspection tunnel and no protection curtain is required. All emissions are instantly halted by any intrusion or breach. Inspection causes little X-ray absorption, and products are not changed or denatured. As an extra safety feature, any packs in the tunnel at start-up are automatically rejected.

Simple operation, low maintenance Operation, via a colour touchscreen, is extremely simple and easy to learn.

Settings can be automatically optimised simply by passing a test product through the machine, and routine recalibration

is not required. The system is designed to speed up product changeovers by facilitating rapid cleaning, while the sealed construction of its vital parts resists dust and moisture, ensuring longterm accuracy and reliability.

382,Ground Floor, Udyog Vihar, Phase-2 Gurgaon 122 016. Haryana Tell: +91-124-3854392, Fax: +91-124-3854393 Email: sales@ishidaindia.co.in service@ ishidaindia.co.in

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NEWS

To make its presence prominent Lactalis going for more buyouts in India Our Bureau, New Delhi

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rench dairy giant Lactalis is planning to go for more buy outs in the domestic dairy sector in India to consolidate its presence even after a large acquisition a couple of south India's second-largest dairy company Tirumala Milk Rs 1,750 crore in January for 2014.

The world's largest dairy group is all ready to acquire the dairy business of Indore-based Anik Industries for Rs 470 crore. Lactalis India CEO Rahul Kumar confirmed that they had huge plans to proliferate in the Indian dairy space through acquisitions and mergers.

“We want to grow in India both organically as well as inorganically as

Lactalis has a long-term vision for the Indian dairy market," he added and further said that the company would be looking for acquisitions of large-sized dairy companies in northern India once they complete the process of takeover of Anik's dairy business and stabilize operations.

Lactalis has strong presence in south India with presence across Telangana, Andhra Pradesh, Karnataka and parts of Kerala.

With Anik's acquisition, the company has entered the north Indian market and would be looking at acquisition of successful dairy companies.

The entry of global dairy players into India could lead to more investments in milk

Prabhat Dairy launches Ghar Jaisa Dahi A first of its kind unique model ‘Raftar’ has been adopted for delivery of fresh Dahi

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rabhat Dairy Ltd has recently launched Dahi with no preservatives.

Positioned as “Ghar Jaisa Dahi” it is made from fresh cow’s milk and produced in an ultra modern state-of-the-art-plant, under strict hygienic conditions.

Today 99% of Dahi in market contains powder to give thickness.

The manufacturing process employs the latest technology to ensure a product untouched by human hand. This ensures that the Dahi contains all the natural goodness of cow’s milk which has nutritive value.

The company has adopted a unique model being used for first time in India called ‘Raftar’ which directly delivers fresh Dahi in chilled vans to 3000 local grocery shops.

Other new ways of delivery are also being worked like use of Mopeds with chilling box at the back.

Launched in Mumbai, it is available in packs of 85g (Rs 10), 200g (Rs 25) and 400g (Rs 45) across the modern retail chains.

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procurement and cold-chain because the domestic players have certain limitations and inadequate capital availability to scale up operations.

While India had been on the radar of global players like New Zealand-based cooperative group Fonterra and Dutch dairy cooperative FrieslandCampina for years, they may now revive plans going by the positive experience of global players like Lactalis.

The competition in India, the world's largest milk market, is expected to hot up further with some of the domestic FMCG players like Mahindra and ITC announcing foray into the liquid milk segment, which others may follow.

NEWS

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Burger King is looking to position itself as a leader in India this year Our Bureau, New Delhi

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urger King entered India in November 2014, as against its American rival McDonald's foray in 1996. Though a late entrant to India's fast- food market, it is trying to position itself as a leading quick service restaurant brand and is likely to add 35-40 outlets this year across the country.

Burger King India CEO Rajeev Varmansaid, "Burger King is a mass brand and the idea is to get into every city including tier 1, 2 and 3. The plan is to build a huge portfolio of restaurants in India. Objective is to lead in India as a restaurant brand in QSR (quick service restaurants)."

The company, which operates 48 stores in India, indicated that it is likely to expand at the same pace as last year - opening 35-40 stores in 2016.

Last year, burger king entered about 13 cities, with major cities like Bangalore, Mumbai, Delhi, Hyderabad, Punjab and Pune and is continuing to build at a similar pace like last year.

Burger King opened 10 restaurants in 2014, and added another 38 in 2015.

As a part of its focus menu innovation,

Burger King has brought in India recent global launch 'Angry Whopper' made of red buns and spices. It is committed to give guests in India a whole new experience in burgers/QSR.

Nestle, packaged foods industry seek opportunity in medical foods

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edical foods could be the new frontier for packaged foods companies, and Nestle is currently leading the way to tap into this estimated $15 billion market.

Medical foods, including prescriptionbased powders and drinks, provide nutritional value needed to treat chronic diseases and will become increasingly important as the global population continues to age. Manufacturers with effective medical foods on the market could offset losses in other segments.

Nestle set a $500 million budget through 2021 to undertake research into medical foods, which includes a lab in Lausanne, Switzerland that houses $1 million of machinery. These machines analyze human DNA to create customized treatment regimens for various diseases.

By researching medical foods now, Nestle is anticipating the needs of future

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consumers. The percentage of people over 60, who would be the target market for these products, is expected to increase from 12% of the global population today to 22% by 2050, according to the WHO. This strategy is critical for Nestle as it searches for new food and beverage territory that can carry the company into the future. Nestle has reported sales growth that fell below its 5% to 6% target for the past three consecutive years. In 2015, that growth rate was 4.2%, which was the company's lowest in six years.

Functional foods and nutritional supplements have been a bright spot for Nestle sales-wise, as NestlÊ’s health business grew faster than the company's operations overall in 2015. After reaching sales of about 2 billion Swiss francs ($2.1 billion) last year, the company's goal is to boost those sales to 10 billion francs in

the next few years.

Positioning these foods as legitimate medical alternatives means making carefully crafted health claims that must be backed by science. Manufacturers must also separate these foods from traditional medication to sway consumers to buy the foods. The line here is blurring as more consumers believe in the connection between their diet and their health, which could skew in manufacturers' favor.

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NEWS

Joining the protein revolution with algae and insects

Bühler and ETH Zurich (Swiss Federal Institute of Technology Zurich) are cooperating to ensure a sustainable food and feed supply for humans and animals

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zwil, Zürich – Providing enough food for the world’s population stands to become a gigantic challenge for humanity: An evaluation shows that by the year 2050, we will need an additional 265 million tonnes of protein to feed the growing population. In order to prevent a shortfall in supply, current production levels must be raised by 50 percent. Even today, protein supplies are difficult to sustain because a growing number of people are eating meat and fish. To close the looming protein gap, Bühler and ETH Zurich (Swiss Federal Institute of Technology Zurich) have entered into a close cooperation: “Together, we plan to create the basis for the industrial utilization of alternative sources of protein such as pulses, algae, and insects to ensure a sustainable supply of food and feed for humans and animals and to make them attractive for consumers,” explains Ian Roberts, Chief Technology Officer of Bühler. As part of this joint venture, Bühler is supporting the new chair of the Sustainable Food Processing Group at the Institute of Food, Nutrition and Health of the ETH Zurich, affiliated with the World Food System Center, Prof. Alexander Mathys.

Proteins are the building blocks of life.

Every adult needs about 60 grams of highgrade protein per day. To feed the global population, agriculture produces some 525 million tonnes a year of plant products containing protein such as corn (maize), rice, wheat, or soybeans. Studies, however, have shown that by 2050 an additional 265 million tonnes of protein will be required annually to feed the growing population. Closing this protein gap is a serious challenge. For even today, our protein supplies are not sustainable because we consume too much animal protein in the form of meat or fish. Two thirds of all vegetable proteins produced end up in the stomachs of livestock such as cattle, pigs, poultry, or fish. “Intensive farming, mass animal breeding and fishing do not cover our protein needs in a sustainable and environmentally compatible way,” says Bühler CTO Roberts. “What we need

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are new, innovative approaches to protein production and processing. Otherwise, our agricultural systems face the threat of collapse,” adds Prof. Alexander Mathys of ETH Zurich.

Although an increasing number of people enjoy eating meat and fish, there is no alternative in the long term to increasing the utilization of plant proteins. High hopes are currently being pinned on pulses such as peas, lentils, or beans. These gluten-free sources of protein are currently experiencing a revival, especially in Europe and North America, although they have always been part of the staple diet in Asian and African.

Bühler offers systems that not only hull, split and sort pulses but also process them in their pure form or blended with other raw materials to make pasta, baked products, snacks or meat substitutes. Such novel products make pulses more attractive for a wider circle of consumers because they do not have to change their dietary habits.

In the medium to long term, however, the use of new raw materials is inevitable.

Algae and insects especially stand out as high-grade sources of protein. Microalgae such as Chlorella or Spirulina (Arthrospira) do not compete with existing farming land, grow quickly and take up little space. Their high-quality protein may be processed, for instance, into food and animal feeds.

Whole algae and algae extracts are already available in the marketplace today. They are consumed mainly in Asian countries, but are also highly appreciated in the West by a small community of particularly health-conscious consumers. If algae-based products are to appeal to a broad mass of western consumers, they will need to be integrated in traditional foods without significantly changing their taste and texture. In addition to proteins, algae also contain valuable polyunsaturated fatty acids and color pigments.

Further, insects such as mealworms or the larvae of the black soldier fly also hold major potential. They can be fed with industrial co-products or even certain types of waste and are astonishingly efficient:

From 2 kilograms of feed, they build 1 kilogram of insect mass. Another benefit is their low space requirement. As a protein source, insect meal has similarities with fish meal. It could, therefore, revolutionize aquaculture as a sustainable source of feed and help reduce the pressure on natural fish populations. Insects are considered a delicacy in Asia and are offered in the market in a similarly wide range as meat varieties and cuts are at a butcher’s store in western countries. Europeans and North Americans, admittedly, still often find insects repulsive. However, if their distaste can be overcome by suitable processing – into protein powder, for example – and if open issues regarding food safety, the legal situation, and processing can be settled, insects may in the future become an extremely promising source of protein for human nutrition. Bühler is currently setting up a pilot facility with a partner in China for processing fly larvae and mealworms on an industrial scale. Its aim is to produce insect flour as a replacement of fishmeal plus a high-grade fat with properties similar to those of palm kernel oil.

“The benefits of algae and insects are obvious. In designing integrated biorefineries for their cultivation and processing, it is important that we collaborate at an early stage with technology companies such as Bühler,” says Prof. Mathys, summarizing the motivation for the collaboration of ETH Zurich with the Uzwil-based technology group. A lot of questions regarding industrial-scale cultivation, extraction and processing of algae or insect proteins still remain to be answered. Bühler possesses vast process engineering expertise, which could be put to use in such future processing and production systems. For instance, the Group has already demonstrated that the most cost-efficient mechanical method for rupturing algae cells today is by agitator bead mills. This wet grinding technology is also used for manufacturing printing inks or paints. It allows particularly gentle rupturing of the tough cell walls of algae for extracting and separating all the valuable constituents.

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NEWS

Bridging the difference; FSSAI and Food Industry Our Bureau, New Delhi

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he Maggi controversy had formed a darkened dividing line between FSSAI and the food industry last year, the difference was so much that the food regulator was labeled as implicating Inspector Raj in the food industry.

But over the years things have changed and many food industrialists believe that FSSAI has worked hard to become industry friendly, taken positive measures for merging the division.

The measures include operationalizing of standards on food additives for use in various categories. This has marked the entry of an ingredient-based regulatory regime, as opposed to a product-based approval system. The latter was a huge bone of contention between regulator and industry, resulting in massive backlog.

The system was eventually scrapped in August 2015 by the Supreme Court, which found the process arbitrary.

The ingredient-based regime saw some 9,000 food additives becoming a part

of the food safety regulations (issued in 2011). Earlier, these regulations, which operationalized the Food Safety & Standards Act of 2006, had only 377 food items on its list. This put companies in a spot if ingredients beyond this list were part of their food products. Resulting in ill-will and litigation.

Many food experts describe the shift to an ingredient-based regulatory regime as a progressive step as it would foster investment and innovation in packaged foods. This approach would bring India up to speed with global food standards such as CODEX, the norm abroad.

The other key measure introduced by the food safety regulator was the clarification on proprietary foods, another grey area for food companies.

FSSAI in January clarified its position on this, saying it was an article of food that had not been standardised under the regulations - excluding novel foods, food for special dietary use, functional foods, nutraceuticals, health supplements and such other articles of food the Central government had not notified.

The January 2016 notification also clarified that the full responsibility for the safety of proprietary foods would be with the manufacturer, implying a breach on their part could invoke penalties.

A more recent measure was the March 31 notification by FSSAI on monosodium glutamate (MSG). This states that in the absence of a precise method to determine if it was naturally found or added during the manufacturing process of a food product, prosecution would be launched when a manufacturer added the 'No MSG' or 'No added MSG' label when the food product actually had MSG. Food safety experts have said this will go a long way to regulate usage of MSG, commonly found in food products.

E-commerce player must register withFSSAI now

Our Bureau, New Delhi

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ood Safety and Standards Authority of India (FSSAI), has taken a tough stand and declared that theecommerce player selling food products or dealing in food business will have to get registered with food regulator.

According to Chairman Ashish Bahuguna the authority has directed online retailers that if they are dealing in food products or its business, then they have to register under the Food Safety and Standards Act,

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2006, with the FSSAI, and anybody who deals with food and food businesses come under the ambit of FSSAI so they have to just register,” he said.

The regulator said that without registration it would be “illegal” for these companies to deal in food products or food business and "an appropriate action as per the Food Safety and Standards law could also be explored" for violation.

In coming days, food specific startups Foodpanda India, Zomato, Swiggy and

Peppertap and e-commerce giants like Flipkart, Snapdeal and Amazon may have to register with the regulator.

FSSAI Chief Executive Officer Pawan Agarwal said registering with the FSSAI will also be in the interest of e-commerce players and added that there transactions are electronic but if they are selling food products or dealing in food business, then that comes under the FSSAI ambit.

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Government has set a target toincrease food processing sector 2.5 times in 10 years Our Bureau, News Delhi

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he government has set a target to increase food processing by 2.5 times in the next 10 years after being faced with mounting losses of agricultural products after harvest.

Radha Mohan Singh, Union minister of agriculture and farmers’ welfare, stated that that at present food processing has achieved only 10 per cent of India’s total agricultural output, however the government aims to raise it to 25 per cent by 2025.

The minister added that the government is promoting the processed food industry to make value-addition in agricultural products. Not only this, the government is also chalking out its programme through different schemes to increase the production of fruits and vegetables and its processing with assistance from the ministry of food processing industries.

But, the agriculture sector is facing a huge problem with mounting post-harvest management losses due to inadequate availability of scientific storage and lack of required care of the stored crop in warehouses. A recent survey showed

India’s annual loss worth Rs 1 lakh crore due to nonavailability of scientific warehouses.

Meanwhile, the entry of private players in warehouses and the collateral management sector through increased government focus has revived the storage management industry in the past few years.

The government has sponsored a regionbased strategy to focus on reduction in post-harvest losses, which is done according to the climatic diversity of every state and region by implementing the unified Horticulture Development Mission. Under this mission, the government aims to promote technical setup, extension of area under horticulture crops, post-harvest management, processing and marketing etc. India ranks second globally in horticultural crops, after China.

The government is committed to doubling farmers’ income in the next five years, as was announced in Budget 2016-17. To this to happen the National Agriculture

Market would help nationwide electronic trading of agricultural commodities, the minister said. In this programme, 585 agriculture mandis of India would be connected to each other. The farmers would get maximum price for their crops and the interference of mediators would be reduced to a great extent. Direct foreign investment was also being encouraged in this field.

The government was considering setting up a committee which would recommend measures to enhance efficiency in warehousing space to reduce post-harvest crop losses. This apart, attempts were being made to introduce new technology for handling harvested crops and therefore reduce pilferage in the entire system of grain management, the minister said.

Finance Minister Jaitley holds meeting with officials for methods to push 100% FDI in Food products Our Bureau, Mumbai

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inance Minister Arun Jaitley, recently held meeting with top officials of food processing, commerce and industry ministries to work out the modalities for allowing 100 per cent FDI in marketing and processing of foods products.

According to media reports, after the finalisation of the details on the subject,

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the Department of Industrial Policy and Promotion (DIPP) would prepare a Cabinet note for approval.

DIPP is expected to hold a stakeholder meeting on the issue.

Besides Food Processing Minister Harsimrat Kaur Badal, the other officials, including Commerce Secretary Rita Teaotia and DIPP Secretary Ramesh Abhishek attended the meet.

Recently, in the Budget, the government

in the budget had proposed allowing 100 per cent foreign direct investment in marketing and processing of food products. Jaitley in his budget-speech earlier had informed the move to benefit farmers, to give an impetus to the food industry and to create vast employment opportunities.

During April-December 2015, FDI into the country grew by 40 per cent to USD 29.44 billion

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Event Calendar-2016 Months

Events

June-2016

29th-1st Food Hospitality World, Goa

EVENT FOCUS SNACKS & NAMKEEN INDUSTRY IN INDIA 7th-11th Bel Agro Belarus 8th-10th Compack Kenya 8th-10th Afmass Kenya 8th-10th Nigeria Agrofood Nigeria 14th-17th Rosupack Russia 15th-17th Propackasia Thailand 22nd-25th Foodtech And Pharmtech Taipei Taiwan

October 2016

July-2016 8th-10th Compack Mynmar Burma 13th-15th Propak China 13th-15th Bevtek Sanghai China 22nd-24th Bakers Technology Codissia Trade Fair , Coimbatore, India 27th– 30th Packplus, Delhi 24th– 26th Food South, Chennai 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 VOl.11 Issue 07 May 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 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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EVENTS

Presents

Meetings Discussions Knowledge Entertainment

Indian

Ic e cr ea m Congress & Expo 2016

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Exhibition

28th-29th Sept, 2016 Expo Center, A-11, Sector-62, NH-24 Noida ( Delhi NCR)

Partners

Sobhagya Confectionary Pvt Ltd.

Supported By

Online Media Partner

Ofcial Media Partner

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

www.agronfoodprocessing.com

A Supplement of Beverages & Food Processing Times

Times

www.agronfoodprocessing.com

Media Partners I n d i a ’s O n l y M o n t h l y f o r A g r o , F o o d P r o c e s s i n g & A l l i e d S e g m e n t s

India’s First E Magazine log on to www .agronfoodprocessing.com

Contact for Stalls & Partnership Firoz H. Naqvi : +91-9867992299

Sameer K +91 9833325839 Seema Shaikh : +91-8689979988

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 07 May 2016

60 www.agronfoodprocessing.com

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

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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

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