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Oil & Food Journal Vol. 08, Issue 07, May 2013

Vol 8 Issue 7 May 2013

“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that most frightens us. We ask ourselves, who am I to be brilliant, gorgeous, talented and fabulous” but eventually “It doesn’t matter who you are, or where you came from. The ability to triumph begins with you. Always.” ~Oprah Winfrey. The status of women in India has been subject to many great changes over year. From equal status with men in ancient times, through the low points of the medieval period, to the promotion of equal rights by many reformers, the history of women in India has been eventful. In modern India, women have held high offices in India including that of the President, Prime Minister, Speaker of the Lok Sabha and Leader of the Opposition. However, women in India continue to face atrocities such as rape, acid throwing, and dowry killings while young girls are forced into prostitution; as of late rape has seen a sharp increase following several high profile cases of young girls brutally raped in public areas. According to a global poll conducted by Thomson Reuters, India is the “fourth most dangerous country” in the world for women, and the worst country for women among the G20 countries. But not that is showed black is always battered. The Food processing industry of India rather shows up heaved women popularity and power. There are numerous examples of rural women cooperative entries in this industry along with the sector drive to enhance women participation in its development. If we have Indra Nooyi at the helm of the second largest Food and Beverage business in the world –PepsiCo, then we also have women working as entrepreneur at top, middle and ground level of the food industry chain. Rural women have created their own niche in various sectors and now even have equity in cooperatives like Amul, Mother dairy etc. If we are talking about women empowerment in the Indian food industry what would be better than to remember and revisit the biggest achievement of rural Indian women in the sector of food industry….Shri Mahila Griha Udyog Lijjat Papad, popularly known as Lijjat - an Indian women’s cooperative involved in manufacturing of various fast moving consumer goods. The organization’s main objective from the beginning was empowerment of women by providing them employment opportunities. Started in the year 1959 with a seed capital of Rs. 80, Lijjat has an annual turnover of around Rs. 650 crore (over 100 million USD), with Rs. 29 crore in exports. It provides employment to around 42,000 people. Today, Lijjat is headquartered in Mumbai and has 67 branches and 35 divisions all over India. Lijjat is primarily a cottage industry, urban by its origin, which has spread to the rural areas. It is considered as one of the most remarkable entrepreneurial initiatives by women that are identified with female empowerment in India. It also manufactures other household products like spices, bakery products and detergents. The key to Lijjat’s success lies in the feeling of oneness that it creates and the women that it enhances. Amul a top brand in diary industry enjoys its position in part due to the ground-level work women do to make it a success. The Amul Model of dairy development is a three-tiered structure with the dairy cooperative societies at the village level federated under a milk union at the district level and a federation of member unions at the state level. The model has been known to empower thousands of village women, who benefit at the grass-root level by selling milk to Amul. Amul claims that its model helps women gain economic independence. Also Gujarat’s pilot project, women enterprise along coastline - seaweed cultivation is hugely successful. Small farmers living next to the sea shore can venture into this cultivation in a big way, not just to earn high-value-added incomes the produce can give, but also to improve nutrition. In the past four years, Bihar got nearly 60 per cent of the proposed investment in the food processing sector. The State has decided to offer 40 per cent subsidy to women entrepreneurs for investments in the food processing industry. If a woman is setting up a food processing unit, she will get 40 per cent subsidy on capital investment. It has to be ensured that the project is registered in her name. We definite need such step all over India to make women come out and do business and make a change. Women are contributing to the foundation of the food industry but with time their position and their hard work will ascend their position on the chart of empowerment. Not only are the rural women realizing their authority and potentiality. But big food companies have also understood that with employing them and making they can get a dedicated employee and also contribute in making the women self sufficient and able. The need of the hour is to give these assiduous ladies a standing ovation and also contribute in increasing the power of Indian women both rurally and urbanely.

Oil & Food Journal Vol. 08, Issue 07, May 2013

News

Contents

CCI gives green signal to Cargill JV in North America Mitsui & Co Ltd : Participation in Processed Tomato Business in India Five farm products that can change India’s agriculture landscape FSSAI’S Norms for Cleanliness at Food Outlets Schedule McCain Foods hands Law & Kenneth creative duties No plans to hike edible oils’ import duty: Govt Ready to Eat Market in India 2013 Andhra CM seeks Food Processing Park for Nizamabad district

28 29 35 36 38 44 48 50

11 Attaining The Best Bake

Meat & Poultry Automatic poultry processing plant may soon see light of day in Chandigarh MPI to export meat products soon India Frozen Food Market, Volume & Forecast to 2017

13 The Indian Biscuit Industry Shifting To Premiumisation

28 29 40

Beverages Atom 2nd mainstream cola brand from Pepsi Dabur India opens $16mn fruit beverage plant in SL Coke, Pepsi bet on health drinks now Rasna launches ready-to-drink beverage Coca-Cola eyes India, China for its diet Cocoberry stirs up frozen yogurts Parag Milk Foods enters beverages

31 32 32 33 38 49 52

16 The Aromatic Rivalry of Tea & Coffee

Dairy Amul to begin international auction of its dairy products soon India seeks place among top world dairy exporters Goa will have its Anand for milk

Edible Oil RICE Bran Oil the ‘heart oil’ for healthy living Law & Kenneth picks up Allanasons’ edible oil business Edible Oil Exports Seen by Oil World Rising on Palm Oil Demand

18 Indian Agri Can Go Places

40 47 53

34 51 51

20 Food Safety & Standards Authority of India Expert Group On Milk And Milk Products

Fruits & Vegetables ‘World’s No 1’ mango export market may be missed again-Pakistan Tamil Nadu to unveil organic project Punjab announces 50% subsidy on planters for potato cultivation Kochi ports top in cashew exports Pakistan sets 2013 mango export target Delay in transport subsidy ruining mango export opportunities

37 44 45 45 45 52

22 What’s Behind That Glass of Milk?

Food Ingredients Arla Food Ingredients Develops New Clean-Label Natural Improvers Moody’s Rating Action One Notch Down for Barry Callebaut to Ba1 ADM Mitigates Rising Meat Costs With Soy Ingredients DuPont Puts Value into Meat Innovation at IFFA FDA Is Keeping Many Ingredients in Our Foods Secret From US

55 56 56 57 57

41 Sugar Reduction In Baked Goods

Oil & Food Journal Vol. 08, Issue 07, May 2013

BAKERY

Attaining the best bake Focusing on flexibility When considering new equipment, snack manufacturers often express concern about versatility. They want to be prepared for the widest range of products as well as anticipate new product needs in the future. To achieve this goal, baked snack processors can rely on a combination of convective and radiant heat. There are several means of delivering radiant heat to the product in a snack oven: traditional direct-gas-fired burners, direct-gas-fired radiant panel burners, patented SMART Zone radiant tubes and electrical radiant elements. “When configured within convection baking, these can ¬offer the greatest amount of baking flexibility.” Impingement recirculated air ovens can bake products ranging from pizzas, flatbreads, cakes, pies and muffins to breads, rolls and baked snacks. Oil & Food Journal Vol. 08, Issue 07, May 2013

onsumers want variety, and processors must answer this challenge. That’s why bakers and snack manufacturers rely on myriad baking options, including tunnel, decks, conveyorized, serpentine, rack, hearth, direct- and indirect-gas-fired, thermal oil, convection, impingement and hybrid ovens. And then there’s the matter of baker’s preference.

The biggest challenge for the modern industrial baker is baking high-quality products at the lowest cost and to stay competitive, bakers are increasingly converting to highly automated continuous production systems that offer minimal changeover time and high yield; this retains the flexibility to manufacture a wide range of products. Serpentine ovens presented by Dunbar Systems, Inc., Lemont, IL in US produces conveying pans through multiple horizontal levels in an S-shaped path, saving space in plants. The high level of automation not only minimizes cost, but ensures repeatable results because all aspects of the baking system such as zone temperature, line speed and air velocity are maintained in the menu of the industrial PC. So now it is no longer necessary for line operators to have baking skills to ensure high-quality product on a continuous basis.

BAKERY

Another huge challenge is consistency thus monitoring and feedback at critical points are key to quickly identifying a downward trend before any product is lost. So a new technology from this company is its BiVex dual-air oven recirculation system that independently controls top and bottom forced-air convection in the curves of the oven. This advance provides greater control of crust, color and moisture content for the evergrowing variety of products. Improved sensor and control technologies benefit ovens’ energy consumption. If one adds more checkpoints in an oven to regulate a given recipe it in turn, gives broad flexibility to users running a variety of products in a single oven and affords faster changeover. Enabling energy efficiency The future of baking and oven technology will undergo radical changes over the next decade. Higher speeds, more product variability and lower costs will continue to dominate the marketplace and beyond that it is estimated that the bakeries would be moving toward cogeneration where they begin to really increase their overall energy efficiency across the plant. By taking fuel — generally natural gas — and converting it into heat and electricity onsite, they become energy producers, and their net energy consumption efficiency can improve by as much as 50%. Auto-Bake’s Serpentine oven design offers energy-saving advantages through its smaller footprint and surface area and its on-board energy monitoring system. Compact serpentine ovens will provide energy savings of at least 30% compared with legacy systems. Baker Thermal is another company that is working with a number of bakers to implement active exhaust technology that will aid overall oven efficiency and bake quality. This system is available as an option on new ovens, and it can also be retrofitted in a standalone fashion for installed base. Engineering team of Baker Thermal is partnering with key providers of heat recovery systems. They aim to move beyond simple recovery of sensible heat to tap into more of the lost energy. By enabling bakers to track energy usage trends, AMF Bakery Systems, Richmond, VA, helps them become more sustainable

regarding energy consumption. It added energy management options to track energy per pound of product baked. The oven manufacturer applied newly designed ribbons in its burners for a more efficient gas-to-air mix. Additionally, AMF can assist bakers in reducing energy consumption and increasing capacity of their ovens by using a nano emissive coating inside the ovens. Emisshield broadens the total bandwidth of the infrared (IR) radiation generated by natural gas as it burns. Emisshield makes use of more radiation in the useful IR baking range. This results in two different complementary advantages. First, the baker can reduce the amount of energy needed to bake, thus saving energy. Or the baker could increase the capacity of an existing oven, also saving energy. In either case, sustainability ¬significantly increases. Modulating and modular Tunnel ovens with independent zone control for moisture evacuation feature excellent radiation characteristics, allowing bakers to adjust moisture retention during baking. Gemini Bakery Equipment Co., Philadelphia, PA, indirect-fired ovens with multiple baking zones are equipped with true vertical turbulence zones that provide maximum flexibility for specialty bread and rolls. Modulating gas burners on its directgas-heated ovens ensure flame intensity that automatically adjusts to the capacity required for energy-efficient baking. Den Boer Baking Systems BV, has implemented IR burner technology on its Multibake modular ovens to maximize the efficiency of the direct-heated and hybrid ovens. “Because the infrared gas heating technique transfers heat rapidly and penetrates quickly into the core of the dough, it is ideal for very short bake processes such as flat or crisp breads, pizzas and pitas. “It is also used to heat up the belt, bread straps and lids from the bottom in the first baking zone.” Its ovens also use a “green tool” to avoid unnecessary energy losses and monitor the energy usage for components. “The Multibake I, using the impingement principle, is unique in that hot air is transported at high velocity to the top and

bottom of the product to achieve lower baking temperatures and reduced baking times in a smaller, energy-saving oven. The modular layout allows bakeries to reuse waste heat for the production of steam or hot water. Hot oxidized exhaust air helps heat the initial indirect-gas-fired zone on Turbo Thermo tunnel ovens from The Henry Group, Greenville. It could reduce energy costs by 17% using this hybrid oven by recapturing energy from the direct-gasfired zones putting the exhaust through an oxidizer. Ethanol is being reburnt, so there is a cleaner emission and is able to heat the first 20 ft of the oven. Turbo Therm direct-gas-fired tunnel ovens feature individually controlled burners above and below the hearth for even heat distribution. “Multiple thermocouple sensors determine bake chamber temperature and provide zoned temperature control for complete flexibility. Spiral ovens also feature space-saving designs. Heat and Control, Hayward manufactures spiral ovens that evenly distribute heated air across the width of the product conveyor on all tiers top to bottom. Unlike ovens that distribute air from one side of the spiral conveyor to the opposite side, Heat and Control’s design continuously circulates air in an even 360-degree pattern around the entire spiral conveyor for uniform processing. Its Air Force impingement tunnel oven distribute air at velocities from 2,000 to 9,000 ft per minute across the full belt width to ensure even and controllable baking of a variety of baked goods. The highly controllable airflow allows for rapid baking and excellent color development. Indirect-gas-fired impingement tunnel ovens from CPM Wolverine Proctor, Horsham, give processors the highest level of heat transfer and heat treatment uniformity and uniform heat treatment lowers operating costs, increases product quality and decreases scrap,” he said. Ovens function as the essential processing system in making baked goods and snacks; therefore, equipment manufacturers continue to focus on this technology to ensure they meet the industry’s needs for dependable and repeatable results.

Oil & Food Journal Vol. 08, Issue 07, May 2013

BISCUIT INDUSTRY NEWS

The Indian Biscuit Industry Shifting To Premiumisation By: Basma Husain India’s Rs 150-billion ($3 billion) biscuit industry, the third largest in the world, is witnessing a major shift towards ‘premiumisation’ as consumer preferences change, fuelled by soaring disposable incomes in smaller towns and health awareness. People with lower incomes are also upgrading from the ‘affordable’ glucose biscuits to mass cream biscuits and mass cookies.

Booming bazaar The biscuit industry is invaded by new players even as older players struggle to discover new markets and grow the market share. In India, the turnover of the industry is pegged at 3000 crores of which the unorganized sector accounts for as much as 35%. India is the third largest manufacturer of biscuits after USA and China. The industry is expected to grow at a rate of 15 to 17% in the next few years. Britannia, Parle-G, Priyagold, ITC Sunfeast are some of the popular brands. Biscuits are placed at a higher value chain than Bread in India. This is the reason biscuits occupy 60% of the production capacity of bakeries. Cadbury, Nestle and Brooke Bond tried to enter the biscuit market but their efforts flopped. But things are changing now. Batteries of new players (Kraft, PepsiCo, United Biscuits, Glaxo, and Danone) are waiting to enter the biscuit market. The domestic players are competing Oil & Food Journal Vol. 08, Issue 07, May 2013

against each other in their respective product segments. Though the demand for glucose biscuits is strong, the market share continues to decline as healthier brands (fiber rich) are available. Surprisingly, the Indian market is still largely un-penetrated and this offers ample scope for growth. At present, it stands third in position among food industry in revenue generation. The organized sector continues to face competition from the unorganized players. Bakeries and retail coffee shops have started making biscuits inhouse. Even as the established players continue to innovate with new products, sustainability is definitely a cause for concern. The biscuit industry, which consists of economy, middle, premium and superpremium segments, is likely to grow at 20 percent annually in the next few years. But the premium and super-premium segments, according to industry experts, are believed to be growing at a much faster rate, probably more than 30 percent

on a year-on-year basis. Currently, economy and middle segments (mass segment) comprise about 70 percent of the total biscuit market in India. And in the next five years, the share of the mass segment would come down to 60 percent and the rest would be premium and super-premium segments. The industry saw a number of product launches in the premium end of the market in 2011 and 2012. National and regional players launched premium biscuits within an existing brand name. Britannia Industries’ launch of premium GoodDay Fresh Bake cookies is a good example in this case. ITC launched Sunfeast Dark Fantasy Chocó Fills under an existing brand – Dark Fantasy. This is a chocolate-filled biscuit, which is a unique product because there are many chocolate sandwich biscuits but heretofore no chocolatefilled biscuits on the market. The companies were going for premiumisation because they realised that consumers are willing to spend more with rising disposable incomes. Moreover, it also helps companies make better margins when rising input prices have made it extremely difficult to operate in the low-priced segment of the market.

BISCUIT INDUSTRY

Parle Products is set to lead biscuits with a value share of 34% in 2012. The company successfully held on to its share in the low-priced segment, whilst launching new products in the premium end of the market. The company continued its thrust in glucose biscuits through its product Parle-G. Glucose biscuits are volume driven as the margins are thin due to a low price point of Rs5 for an 85g pack. Parle even tried to expand the glucose biscuit market by launching new variants. It launched Parle-G Gold priced at Rs10 for a 100g pack in 2012. The company has a very effective distribution strategy due to which its products can be spotted in all retail formats – modern retail, departmental stores, kirana stores and even paanbeedi shops (shops which sell paan, a traditional mouthfreshener, and beedi, traditional tobacco). Shift in preference Indian consumers are clearly moving towards premium biscuits. This shows that cookies and sandwich biscuits will continue to perform well in future. These categories are expected to see more product launches over the forecast period. More action is expected in the health and wellness segment, due to increasing concern about lifestyle-related ailments. There will be more products on the market which are naturally healthy. Many biscuits, which are good for health, but are not advertised as such, will see a change in their marketing pitch. This includes all Marie biscuits, which are naturally high on fiber and low on sugar but are not advertised as good for health. Parle, which is India’s largest biscuit maker with a 45 percent market share, said biscuit companies in the country are coming up with more products in the

rapidly growing premium segments to tap the market. Competition in the economy segment is extremely difficult as it would put pressure on the bottom line (profit) and the reasons for the consumers’ growing preferences towards the premium biscuits than the mass products; he said smaller towns were now having modern trade centers with consumers possessing more disposable incomes, which resulted in spreading of mall culture. While the economy segment is growing at a range of 15 percent to 18 percent annually, the premium segment was expected to clock 30 percent growth. As a

result a lot of companies have introduced products in the premium and superpremium biscuit segments in the days ahead. Parle, which owns brands like Parle-G glucose biscuits and 20-20 in the mass segment, also possesses brands like Hide & Seek and Hide & Seek Milano in the premium segment. While biscuits priced at Rs.100-150 per kg are categorized as middle segment, biscuits with an MRP of Rs.125-150 per kg fall in the premium category. Priced at below Rs.100 a kg is in the economy segment and above Rs.150 a kg in the

super-premium segment. Another biscuit major Britannia seconded Parle’s observation on the consumers’ preference shifts towards premium products. Over the last few years, the biggest shift that has been happening (in the country’s biscuit industry) is the premiumisation shift and this is best borne out by the reducing contribution of the glucose segment. The glucose segment used to contribute 33 percent by value a couple of years ago and this has dropped to 24 percents. This is because people belonging to the lower income group are upgrading to mass cream biscuits and mass cookies. The current trend would grow in magnitude and people would prefer not just ‘affordable delight’ but seek specific benefits in food products, including health needs. The industry sees the benefits of health as well as indulgence being played out – these benefits will democratize and not just be the purview of top-end audiences. Health and convenience are primary drivers of food consumption – with the health need being very key. The health wave in India was being fuelled by the high prevalence of diseases such as diabetes and hypertension as well as awareness driven by the media. The biscuit guys believe the biscuit market will continue to grow in the range of 20 plus percent – with premium segments growing much faster. Foreign firms face fight for India’s biscuit market India’s US$2.4bn biscuit market is drawing multinational companies to its shores. According to Euromonitor data, the sector is growing at 14% annually, Oil & Food Journal Vol. 08, Issue 07, May 2013

Oil & Food Journal Vol. 08, Issue 07, May 2013

growing at 10% consistently over the last three to four years. This is why Kraft had launched Oreo through its local arm Cadbury India. “There is tremendous opportunity in the biscuits category as the fastest-growing processed food segment in India. Quoting an AC Nielsen study, the biscuit category grew by 17% in 2010. Indian consumers are looking for newer and more innovative products, and are seeking global products to meet their own local taste profiles and preferences. Starting at a price tag as low as Indian Rupees INR 2 (USD0.04 cents), biscuits offer the easiest and cheapest entry point for branded food companies in India. The organized sector in India - the country’s commercial food makers - makes up 70% of the total biscuit market and produce 2m tonnes of biscuits annually. Still, India’s annual per capita biscuit consumption is a mere 2kg, compared to 6.8kg in the UK and 7.2kg in the US, says K P Mohandas, secretary general of New Delhi-based Indian Biscuit Manufacturers Association. The functional segment (including glucose and digestives) has dominated the Indian market and is remains in steady growth, with sales up 8% per annum. However, by contrast, the smaller indulgence segment, comprising cream, chocolate biscuits and cookies is growing at an annual rate of 25% to 30% thanks to rising disposable incomes and growth in modern retail outlets, according to a study by the ICFAI Business School in Ahmadabad. Market shares are shifting as a result. Functional biscuits once made up 80% of total biscuit sales but this is now down to 70%, according to Parle’s Shah. The move has prompted Parle to venture into the cream and cookie segment in a bid to consolidate its leadership position – it

currently controls 42% of India’s biscuit market followed by Britannia Industries at 25% and Indian Tobacco Co.’s (ITC) 10%. Parle, through its Parle-G brand, has been almost synonymous with glucose biscuits in India but has now expanded its portfolio with 20:20 cookies and the Hide & Seek and Hide & Seek Milano chocolate biscuits. Britannia, meanwhile, launched premium cookies Pure Magic in 2007 and Treat –O in 2010, although the latter prompted a lawsuit from Kraft, which claimed they were too similar to Oreo. Meanwhile, Cadbury’ is eyeing retail outlets in both urban and semi-urban markets to reach consumers, especially the wealthier ones. “Our priority segments include the 10m households across India that contributes to 70% of cream and biscuit sales. But this enthusiasm is, however, not shared by Indian equities firm IDFC Securities Ltd. According to their research, there is “limited room for global players in the biscuit sector” and notes that GlaxoSmithKline or Unibic have “so far failed to make a mark. The global players are making a big strategic blunder. They should enter the glucose segment, take the market share and then move the customer up (to premium and indulgence brands). Remember that US food maker Sara Lee vanished from the sector in 2001 after a brief stint. This is a high volume, low margin industry. The MNCs are eyeing the high-end market which accounts for less than 30% of biscuits sold in India.” And the Indian consumer does look for value - Parle G created huge sales by offering cream cookies at INR5 (US$0.11) for 80 grams. In the absence of product differentiation, the game is about pricing and distribution. The local players are already active here. Even at the peak, the MNCs will not capture more than 10% to 15% of Indian market share. Manufactured locally, Oreo is offered at affordable price points of INR5 for three biscuits, to INR20 for 14. “The new entrants can give three biscuits for an offer price of five rupees but they will need volumes to sustain at that level. The likes of Kraft, then, have their work cut out for them as they look to take a bite out of India’s biscuit market.

BISCUIT INDUSTRY

so the channel holds much promise, but will the world’s food giants have the nous to turn this local demand into significant profits? The ingress of Oreo, from US giant Kraft Foods, is the most recent international arrival to this multi-billion dollar biscuit party. GlaxoSmithKline Consumer Healthcare launched high-end cookies and cream biscuits under its Horlicks brand, to join its existing value lines and a Junior Horlicks biscuit for young children. UK’s United Biscuits, meanwhile, has its McVitie’s digestive biscuits to India. PepsiCo is set to soon follow up its 2009 offering of Aliva, a baked-savory cracker, with a healthy oat-based cookie. And there have also been rumors that Hindustan Unilever is developing plans to re-enter the Indian biscuit market it left in 2005. India offers volume and value-based growth for these companies. What was considered as a sick-man’s diet earlier is now a favored quick bite by most people. Because of this, the category has been

BEVERAGES WAR

The Aromatic Rivalry of Tea & Coffee

THE STORY Both coffee and tea have legendary pasts, including wars that have been waged for access to these products. Tea was discovered by the ancient Chinese ruler Shen Nong, when a fateful leaf fell into his boiling water. The history of coffee began much later and is believed to have been first cultivated in Arabia near the Red Sea in 674 A.D. The story of Coffee dates back to the 1400s, when a Yemeni shepherd named Kaldi noticed that his sheep began to act unusually frisky after eating berries from an unfamiliar plant. Curious, Kaldi picked one and popped it into his mouth. Within a few minutes, he was as hyperactive as a kid. He told of his discovery of this stimulator to scholars who used it to keep awake, and then someone made a “tea” out of it (“tea” out of coffee fruits without the bean is still known in Yemen and has a similar, but milder effect). The story says that then one day someone dropped a bean into the fire by accident, and thus coffee was born. Mocha, an old Yemeni port, was the first and for a long time the only place to export coffee, hence the name “Mocha Coffee”. But still why do people the world over drink tea? Is it because they prefer its taste to flavorless water, or because it clears the head, as opposed to clouding it like alcohol does? Caffeinated coffee, however, also fits that bill, so these cannot be the only reasons. What leads people to choose tea over coffee, its biggest rival for affection? According to the International Tea Committee (ITC) and the International Coffee Organization (ICO), global tea production rose 40 percent over the 10-year period to 2011, reaching 4.3 million tons annually. Over the same time span, coffee production saw an increase of just 7 percent, reaching an annual production

Tea and coffee are two drinks that have their own strong status globally. They are loved, appreciated and many believe that much can happen over a brewing hot cup of tea or coffee. Today in India both these drinks are battling over the tag of National drink.

Oil & Food Journal Vol. 08, Issue 07, May 2013

TEA AND COFFEE RIVALRY An intense rivalry brewing between India’s tea and coffee sectors, as each vied for national drink status, has been simmered by the commerce ministry as it took the decision to not promote one drink over the other. Tea promoters were left with an especially bad aftertaste as a parliamentary standing committee on commerce had recommended national status for tea. The panel had said the recognition would help the export market for the beverage. The tea industry, concentrated in Assam and West Bengal, had got minister for development of the northeastern region, Paban Singh Ghatowar, to back its quest for national status. But, commerce minister Anand Sharma Oil & Food Journal Vol. 08, Issue 07, May 2013

wrote to Ghatowar: “…being competing beverages having respective market shares, declaration of one as a national drink is likely to hurt the interest of the other and raise an avoidable controversy.” Meanwhile, coffee retailers like Bangalorebased Café Coffee Day, have been aggressively promoting the drink across the country with coffee consumption rising at an annual 5% in recent years. Although tea remains a popular drink, its consumption has risen by a mere 2% annually, as per the commerce ministry. The North Eastern Tea Association chairman Bidyananda Barkakoty is distraught, “Did people stop eating bananas or oranges because mango was declared the national fruit?” he said, vowing to keep the struggle going. THE MARKET The humble cup that cheers is now set for huge growth in the ready-to-drink (RTD) tea and coffee sectors, thanks to the proliferation of cafe culture among urban youth, and is expected to double to a whopping Rs.2,250 crore ($410 million) by 2017. The domestic RTD tea and coffee market, which currently stands at an estimated Rs.1,100 crore, is dominated by fashionable outlets like Cafe Coffee Day, Baristas, Costa Coffee, Coffee World, Lavasa, Coffee Bean & Tea Leaf and the newcomer Starbucks, with many more in the pipeline. A thriving independent upscale cafe culture attracting youth will ensure huge growth in the domestic ready-to-drink tea and coffee sectors, aided by the health benefits of the beverages. For international brands, India - a market of over a billion people - is almost impossible to ignore. The total branded tea segment in India, currently valued at Rs. 6,000 crore, is expected to double in the next five years. The domestic coffee consumption too has been continuously growing annually at six percent. COMPETATIVE LINE The success of coffee chains in India estimated to be over 4,000 - has spurred tea makers to launch similar cafes selling a variety of teas, with the added advantage of being considered healthy. A majority of these retail chains of cafes, combining tea and coffee, are spread across the northern

states, Maharashtra, Gujarat and Kerala besides all the metros. And, to lure customers, many of these small-sized parlours, designed to provide a “hang-out” atmosphere, also offer snacks and accompaniments to keep the patrons busy - and drinking ever more! In places like Mumbai, such cafes, virtually one on every street, are fast becoming meeting points for youngsters, especially in the 15-20 age groups, starved of open spaces.”The clean, good ambience, comfortable air-conditioned surroundings, the wide array of tea and coffees on offer make people co to these chains regularly. According to some studies, teenagers comprise around 25 percent of the customers at these cafes. Around 40 percent comprise youth aged 20-25 years and rest fall in the “senior youth” category of 25plus but under 30 age group, including young executives, BPO workers and the like. There are many who however remain unimpressed by these flashy cafes and prefer to stick to the friendly neighborhood “chai-wala”. Some actually think nothing of sipping over a dozen “cutting chais” at a nearby roadside tea stall daily with clients and associates. It’s fresh, made right in front of you; you can even make it to order as per your taste. The quantity is just right and it’s very refreshing. While the wide varieties of coffee or tea are available in the cafes, but one cannot tend to ignore to the large crowds at the various tea stalls that practically work from 5 a.m. to 10 p.m. The outlook for tea and coffee is equally bright internationally, the worldwide market for RTD tea and coffee, pegged at $69 billion in 2011, is likely to touch $125 billion by 2017, signaling an anticipated annual growth of nearly 11 percent between 2012-2017. A recent study by the Assocham found that the Indian tea industry is growing at a compound annual growth rate (CAGR) of around 15 percent, accounting for 30 percent of the global tea output and consuming nearly 25 percent of the total tea produced worldwide. This makes India the world’s largest consumer, second largest producer and fourth largest exporter of tea, the study says.

BEVERAGES WAR

yield of 7.88 million tons. Two grams of tea are needed to brew a cup while coffee requires 10 grams. A simple back-of-the-envelope calculation tells us that enough of these two commodities is produced annually to provide the world with 5.9 billion cups of tea and 2.2 billion cups of coffee a day. Thus, on the consumption end, tea definitely comes out the winner. The same yardstick cannot be applied when comparing the monetary value of tea and coffee, however. When looking at U.S. government and ITC-supplied data for the United States, a country where both beverages are widely consumed, we can see that it cost $3,360 to import 1 ton of tea into the country in 2011, while coffee was imported at a price of $5,413 per ton. Considering that several times as much coffee is required for brewing, we can safely say that a cup of tea is considerably less expensive. Coffee is primarily consumed in developed countries. The United States, the EU and Japan alone account for most of the world’s coffee imports. On the other hand, Russia is the world’s biggest importer of tea. Pakistan, Egypt, Iran, Morocco, the United Arab Emirates, Afghanistan and other countries in the Islamic world are also big tea importers. Due to the progress of large-scale cultivation in the former British colonies of India, Sri Lanka and Kenya, tea can now be brought to market cheaply, and as a result has become widespread in the Middle East, a traditional coffee stronghold.

AGRICULTURE

Indian agri can go places

Salil Singhal

ith increasing population and income levels, the demand for food is anticipated to increase manifold, more so of safe and quality food. To respond to this, a second green revolution powered by technology, markets and partnerships is a must. More importantly, it is time that the farmers, policymakers and industry come together and strengthen forward and backward linkages. MISSION MODE The Food and Agriculture Integrated Development Action 3 (FAIDA) report, ‘India as an agriculture and high value food powerhouse: A new vision for 2030’ brought out by the Confederation of Indian Industry and McKinsey emphasises that India has the potential to emerge as a leading player in the global agri-markets, and at the same time ensure food security at home by rendering the growth process more inclusive. The report advocates that a piecemeal approach be replaced by a mission mode in order to attract private investment, critical for stepping up the growth engine to the target of 4 per cent. Why is it so important to deal with

agriculture in mission mode? Today, India is the third largest agriculture producer in the world. However, it lags significantly in terms of yield benchmarks (only half of potential yield). Only 10 per cent of output is processed, owing to high post-harvest wastage and lack of processable varieties, with implications on the potential of value addition and growth of the food processing sector. Also, India’s presence in the export market for raw and processed food products is insignificant. Although agriculture is the largest source of livelihood for Indian workers, yet a farmer earns only 30-40 per cent of the nation’s overall average per capita income. Our farmers have achieved commendable success in recent years, despite structural hurdles such as small land-holdings, vagaries of the weather, inadequate irrigation, and lack of access to formal sources of funds and their output marketing. However India cannot achieve rapid and inclusive growth until farming enters the next growth cycle. NEW GROWTH DRIVERS The FAIDA report, based on field visits

and broad-based consultations, has a holistic long-term perspective on raising farmer incomes, boosting productivity, scaling up food and agri-business, and developing capacity and infrastructure. It goes beyond the current approach of programmes and schemes to attract necessary private investment in line with the Twelfth Plan. By 2030, India’s per capita income is expected to increase by 320 per cent, with food consumption going up to Rs 22.5 lakh crore from Rs 11 lakh crore in 2010. High-value foods such as vegetables and complex proteins will be increasingly consumed. Between 2000 and 2010, for example, consumption of cereals and pulses dropped from 40 per cent of the per capita food outlay to just 28 per cent, with the share of fruits, vegetables and other items going up. There is much unmet potential to boost agriculture output to almost Rs 30 lakh crore from Rs 12.7 lakh crore in 2011 and increase food processing and exports by more than five times. Thus, farmer incomes would multiply four times, while consumers too would benefit from stable food prices and access to better nutrition. Steps are also needed Oil & Food Journal Vol. 08, Issue 07, May 2013

PRIORITY AREAS A manifold intervention is suggested to transform the sector. The first priority is to fast-track productivity and boost yields, beginning with wheat — output per hectare is only a fourth of global best yield, and rice at less than half. A National Agricultural Technology Mission and a National Agricultural Sustainability Mission can infuse scientific farming with right inputs (including critical nutrient interventions) at the right time as also focus on farm mechanisation. The second priority pertains to farmerindustry interaction. The FAIDA report offers key examples of successful winwin partnerships between farmers and corporate sector. Farmer producer organisations and farmer producer companies are rightly positioned to enable aggregation of small farms, thereby instilling competitiveness, and hence should be promoted and scaled up. Allowing farmers to select buyers and markets would considerably help such partnerships.

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The proposed amendments to the Agriculture Produce Marketing Committee (APMC) Act should be implemented by the States (which have not made any progress). To begin with, at least perishables must be delisted from the Act to ensure timely availability and also contain wastage. The third priority area is food processing and exports. Branded food with quality and safety benchmarks would create huge demand for high-value added foods which, in turn, would promote manufacturing and create off-farm employment in rural areas. A National Agriculture and Food Export Mission is urgently required for India to meet its huge export potential. Specific crops need to be identified and promoted relentlessly for overseas markets. Cold chain infrastructure and connectivity to ports will have to be strengthened by attracting private and overseas investors. Fourth, infrastructure is an imperative to accelerate yield. A National Farm Gate to Market Infrastructure Authority could consolidate initiatives by different players such as the Ministry of Food Processing and various National Boards promoting different aspects. More food parks must be established across the country. R&D INITIATIVES Fifth, agri entrepreneurs need to be encouraged, converging technocrats with

agri-business ventures. This would require strengthening extension services in public-private partnership mode. Additionally, Indian Institutes of Agriculture and Technology are needed for R&D. Further, venture capital funds can be encouraged in agri-business. Finally, to usher in the necessary changes, the report proposes five ideas — (i) enabler organisations in technology, sustainability, export promotion and agricultural universities, (ii) requisite governance structures with clear deliverables and timelines, (iii) a national agriculture and food forum to be overseen by empowered stakeholders, (iv) an empowered industrial food and agricultural council with the help of industry bodies such as CII to monitor progress, and (v) food and agriculture action committees in States. The 1991 liberalisation unleashed the potential of industry, taking India to a new growth orbit. Agriculture is still awaiting the much needed big-bang reforms that will accelerate the unfolding agricultural transformation, which strives to be inclusive and sustainable. (The author is Chairman, CII National Council on Agriculture)

AGRICULTURE

to ensure sustainability. The FAIDA report, focusing on five key crops — mango, banana, potato, soyabean and poultry — could unlock new growth drivers.

FOOD SAFETY

Synopsis of Strategy and Action Plan for Ensuring Safety of Milk and Milk Products

Food Safety & Standards Authority of India

Expert Group on Milk and Milk Products

ilk is an important food for households - both in rural and urban areas, even though consumption levels vary across income classes and regions. The household demand for milk and milk products is projected to be around 1800 lakh tonnes in 2021-2022. The dairy industry handling the marketable surplus of the milk can be broadly divided into the organized sector and the unorganized sector. The organized dairy sector registered under the Milk and Milk Products Order, 1992, rev. 2002 (MMPO) - has a good share in milk products market. But the products manufactured are mostly western-type in nature like table butter, cheese and different types of milk powders. Even though the organized sector has entered the market of indigenous milk products like ghee, shrikhand and paneer, these

markets are mostly controlled by unorganized sector. The organized sector, especially co-operative dairy sector, disposes large portion of milk as processed liquid milk and only surplus is converted into products. The unorganized dairy sector comprises numerous, small and/or seasonal milk producers/traders that are not registered under the MMPO. They are involved in selling raw liquid milk, boiled liquid milk as well as manufacturing and selling mainly indigenous milk products like peda, barfi, rasgulla, khoa, paneer, ghee etc., usually at the local level, but have a major share in these milk products. There are no official records on number of such unorganized dairy units. The organized dairy sector has been paying increasing attention, though not adequate, on improving quality of products. Enforcement of rules is also

concentrated mostly on this sector, while the unorganized dairy sector largely remains unattended. In relation to this Food safety and standards authority of India (FSSAI) has prepared a base working paper on strategy and action plan for ensuring safety of milk and milk products. FSSAI constituted an Expert Group on Milk and Milk Products with the responsibility of drawing up an action plan and strategy for ensuring safety and quality of milk and milk products. Six terms of reference were specified for the work of the Group to be completed within 3 months. The Group included 7 members representing research institutions and dairy industry, with the CEO, FSSAI as its Chairman, NDDB as coordinator and a representative of the Department of Animal Husbandry, Dairying and Fisheries, Government of India, as joint coordinator. Oil & Food Journal Vol. 08, Issue 07, May 2013

FOOD SAFETY

The basework covers 3 goals which include assessment of food legislation at national level, preparation of a country profile and preparation and implementation of national food safety programme, and evaluation of food safety activities. The expert team has analyzed few problems related to food safety/quality in export and import of M&MPs. In exports the team observed that the standards based on As-Low-As-Reasonably-Achievable (ALARA) principles are more stringent than Codex, e.g. EU ML on aflatoxin M1 in milk, also that the importing countries demand, infrastructural measures to meet requirements, e.g. use of milking machine to maintain hygiene, rapid alert system not based on a systematic approach, thus generating unfounded fears about the exported products. On the import front the team realized the scope for the emerging food safety threats: e.g. melamine in dairy foods from China, presence of non-permitted food additives in imported foods and inappropriate / inadequate labeling on the packages of imported foods. India produced 1,048 lakh tonnes of milk in 07-08 and in the same year India’s total per capita availability of milk was 252 g / per day. The estimated demand in 2021-22 is around 1800 lakh tonnes. The paper further highlights the aspects needed to be addressed under the Prevention of Food Adulteration Act and Rules, like the standards for residues of chemical contaminants are not all based on risk assessment, there are no standard for veterinary drugs in milk, laboratory infrastructure facilities need strengthening and that the enforcement of product quality and safety standards are inadequate. Similarly the MMPO (Milk and Milk Products Order) needs to be reviewed the hygiene and the requirements to be strengthened. The professional food handlers – those working in food-processing and manufacturing industry, and food catering (hotels, restaurants and street Oil & Food Journal Vol. 08, Issue 07, May 2013

food stalls) should possess necessary expertise and skills in order to comply with the food safety regulations. Training should also focus on the principles of Good Agricultural Practices (GAP) and Good Manufacturing Practices (GMP); Practices for controlling different chemical contaminants in foods and the principles and application of quality assurance system based on HACCP. The expert group has stressed on public education and participation in ensuring food safety which is not adequate, industry efforts to educate consumers on food safety limited to label information on appropriate use of products and the need to devise mechanism for proper, adequate and continual education of consumer on food safety - such as through media. The action required by the FSSAI will be to finalise food safety policy and finalise a plan of action for safety and quality of M&MP as outlined in the report, to implement the plan, food safety and quality legislation to be regularly evaluated and revised, to check if necessary and action needed to review standards as outlined in ‘Actions required.’ A system and plan of frequency of food inspection activities should be developed and implemented. The frequency of food inspection activities should be prioritized according to risk: with comparatively

high-risk milk products (like milk baby foods, milk, and ice-cream) being given the priority. Special emphasis must be given on monitoring operations in unorganized sector and adulteration. The paper esteems to ensure sustained consumer confidence that the food is safe and of the claimed quality through generation of awareness on responsibility towards food safety in all the stakeholders; availability of science – based standards elaborated through a transparent process involving all the stakeholders; and regulation of various activities in the food trade, that impact safety and other quality attributes of the food, under an integrated and well coordinated national food safety system. The group has underlined the plan for FSSAI to develop a system, to coordinate food control activities with the State Food Safety Authorities effectively, to regularly monitor and audit system performance (including performance of State Food Safety Authorities) and to participate in Codex meetings effectively. The action group wraps up by saying that the national food safety system and its activities should be evaluated after a pre-determined time frame to determine its effectiveness as envisaged and its capability to address the emerging food safety concerns.

DAIRY

Anusha Narain

What’s Behind That Glass of Milk?

he author throws light on some grim details about the cow in India, the world’s largest producer of milk. You know that child who throws a terrible tantrum over a glass of milk. How he kicks and screams and refuses to touch the stuff? Haven’t you wondered what the fuss is all about? After all, it’s just a glass of milk. It turns out the child may just have the right idea. The business of producing milk — indeed, the multi-crore rupee cattle industry it’s a part of — is sustained by a process of relentless cruelty towards animals, from birth till death, with little letup. Cruelty compounded by poorly defined, poorly implemented methods and gross violations. In 1998, India, hitherto a milk-deficient nation, surpassed the U.S. as the highest milk-producing nation, a position it holds till date. According to the Department of Animal Husbandry, Dairying and Fisheries, the government has invested Rs. 2242 crore to help meet a national demand of 150 million tonnes of milk by 2016-17. Millions of cattle will be produced (mainly through artificial insemination) for this purpose. This will be done through “productivity enhancement, strengthening and expanding village-level infrastructure for milk procurement and providing producers with greater access to markets. The strategy involves improving genetic potential of bovines, producing required number of quality bulls, and superior quality frozen semen and adopting adequate bio-security measures etc.” Today India is home to the world’s largest cattle herd, with 324 million head. The government is positioning this as a food security measure for the future. From the point of view of the animals, though, unthinkable cruelty lies ahead. That image of tender care and worship that we are raised with, the image that is propagated in films and integrated with our cultural values — that’s a myth. In reality, the life of a cow in India is a horror show. The first three stages of life — birth, maturity and motherhood — happen with inhuman haste. The female calf is born. She reaches puberty somewhere between 15 months and three years of Oil & Food Journal Vol. 08, Issue 07, May 2013

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age, depending on the breed, and is then impregnated, increasingly through artificial insemination. Arpan Sharma, external relations incharge at the Federation of Indian Animal Protection Organisations, builds partnerships for better protection of animals by bringing together various stakeholders such as industry, government and regulators. He says, “Due to poor equipment and a lack of proper training, artificially inseminated cows sometimes become infertile and develop infections with few to care for them.” Soon, the calf is born. While the cow is seen as a metaphor for motherhood, she is rarely given a chance to experience its joys for very long. Calves are separated from their mothers soon after they are born so that they don’t drink up all the milk. Just what does this do to these docile creatures? The American physician Dr. Michael Klaper, the author of books such as Vegan Nutrition: Pure and Simple and Pregnancy, Children, and the Vegan Diet, provides an insight. “On the second day after birth, my uncle took the calf from the mother and placed him in the veal pen in the barn — only 10 yards away, in plain view of the mother. The mother cow could see her infant, smell him, hear him, but could not touch him, comfort him, or nurse him. The heartrending bellows that she poured forth — minute after minute, hour after hour, for five long days — were excruciating to listen to. They are the most poignant and painful auditory memories I carry in my brain,” he said in a 2010 interview with the Northwest Veg, a non-profit organisation based in Portland, Oregon. Eileen Weintraub of Help Animals India and Vishakha Society for Protection and Care of Animals, Vishakhapatnam, takes this fact to its logical extreme. She states firmly, “With 1.2 billion people and 400 million vegetarians, anyone who does not have a vegan diet contributes to the suffering of cows.” I once asked my mother, “If we take milk from cows, then what does the calf drink?” She said the milk a cow produces is more than the calf requires, and humans use what’s left over. Apparently not. “The quantity of milk a calf gets varies. By and large, unless

the calf is what is called “replacement stock,” it will get only the bare minimum necessary for survival. Often it will not even get that,” says Sharma. To increase yield, the cows are also injected with Oxytocin, a hormone banned in India under the Prevention of Cruelty to Animals Act and section 12 of Food and Drug Adulteration Prevention Act, 1960. “Studies around the world show that cows injected with Oxytocin have a greater incidence of abortions, mastitis and lower conception rates, and their calves suffer higher than normal infant mortality and delayed puberty,” says Erika Abrams, founder of Animal Aid Unlimited, an animal rescue organisation based in Udaipur. And what happens to unwanted male calves? This is where we wade into the red zone of this bloody business. “Milk cows need to produce a calf every year and half those calves are male. While a fraction of these are used to pull ploughs, others are butchered. Their skin is used for leather, and their meat for local consumption and export,” says Abrams. Calf leather comes from male calves of which India has a huge number. The ones that live don’t fare much better. With traditional backyard agriculture slowly giving way to ‘intensive dairy farming’, hundreds of cows are confined for long periods within cramped, dark and acrid quarters. “More times than not even where there is a lot of space they are tied with a two-foot rope and in most cases all they can do is sit down and stand up even if they are in the open,” says Nandita Shah, Director at Sharan, Sanctuary for Health and Reconnection to Animals and Nature, Pondicherry. “At some places in Mumbai, calves are tied outside till they die of starvation; so technically they have not been killed.” Divya Narain, an animal rescue volunteer from Bhopal, says, “At the State-run animal shelter in Bhopal, we often get recumbent little male calves, which have been dumped on the streets to die.” In other words, male calves, more or less, suffer an early death. And what about cows? Cows and buffaloes can be productive until about the age of 14 years. But in the existing set up, in which cows are kept pregnant for almost 300 days a year, most of them

dry up by the age of five or six. And after spending most of her life being milked, enduring hormone injections and the trauma of separation, the cow is sent off to the slaughterhouse. Twenty-eight Indian states have cowslaughter protection legislations in place. Unproductive cows, therefore, are routinely trafficked to slaughterhouses in the states where laws are less stringent or non-existent — Arunachal Pradesh, Meghalaya, Mizoram, Nagaland, Tripura, Lakshadweep, and especially Kerala. A large number of cattle is trafficked to Kerala, under inhuman conditions, from the neighbouring states as it is a major consumer of beef and does not have any regulation pertaining to cow slaughter. Apuroopa Podhardha, the legal adviser of People for Cattle in India (PFCI), a Chennai-based animal rescue group, says, “Thirty animals are crammed into a truck meant for six. In some instances, the legs of calves are tied and they are dumped in one on top of the other. Furthermore, no provision for food or water is made”. Cattle are also trafficked to West Bengal, from where they are taken to Bangladesh. PFCI has conducted three cow-rescue operations in Chennai. Podhardha’s colleague Arun Prasanna G. says, “The latest delicacy in demand in the Middle Eastern markets is veal (the meat of a calf no older than three months). Flesh of unborn calves is known to bear medicinal value hence pregnant cattle are slaughtered.” Prasanna says, “In many slaughterhouses, the act of slaughtering involves smashing the head of a cow with a sledgehammer, which renders it unconscious; then skinning it; and or hanging it upside down so that all the blood can be drained from the slit jugular vein, then skinning it live.” In a recent raid in an illegal slaughterhouse in Chennai recently, there were 20 cattle. “We could only rescue six of them. The police insisted we file a complaint first, which gave the cattle owners time to hide the remaining cows.” The slaughterhouse owners received an anticipatory bail. According to the Ministry of Food Processing Industries, India has 3,600 slaughterhouses, nine modern abattoirs and 171 meat-processing units licensed under the meat products order. These do not include the numerous and Oil & Food Journal Vol. 08, Issue 07, May 2013

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drink the most milk and have the most calcium in their diets. The connection between calcium consumption and bone health is actually very weak, and the connection between dairy consumption and bone health is almost non-existent.” Also, the growing numbers of cattle casts a heavy shadow on the environment. Bovines produce methane when they pass gas. It is estimated that a bovine produces, depending on the breed, anywhere between 100 litres to 500 litres of methane a day. This is equivalent to the per-day carbon dioxide emissions of a car. India’s huge bovine population makes methane a dangerous pollutant. There is also the ecological problem. Producing fodder for 324 million cows puts immense strain on scarce land and water resources. The Humane Society of India’s report states: Animal agriculture occupies 30

per cent of the earth’s total land area. Approximately 33 per cent of total arable land is used to produce feed crops, in addition to vast areas of forested land that is clear-cut to graze or grow feed for farmed animals. What, then, is the alternative? Narain, who is also a major in Ecology from the University of Oxford, suggests a plantbased diet. “The government is using taxpayer money to subsidise dairy products (and indirectly the leather and beef industries). What it should be doing is to promote the production of protein-rich plantbased foods such as legumes, soybeans, pulses, fruits and nuts using the land and water resources that are otherwise used to produce cattle feed. That, and only that, will work if we are to put food on the plates of our starving children.” Curtsey: The Hindu

DAIRY

ever-growing number of illegal and unregulated slaughterhouses, estimated to be more than 30,000. According to the U.S Department of Agriculture’s report on Livestock and Poultry: World Markets and Trade, India became the biggest beef exporter in the world in 2012(till October) with 16,80,000 tonnes of beef and veal exports, followed by Brazil with 13,94,000 metric tonnes and Australia with 13,80,000 metric tonnes of exports. In 2013, India’s beef exports are forecast 29 per cent higher to a record 2.16 million tonnes, accounting for nearly a quarter of world trade. “The government gives subsidies to slaughterhouses because beef exports are a gold mine,” says Prasanna. A US beef export federation study states India exported $1.24 billion worth of meat in the first half of 2012. According to Tamil Nadu Veterinary and Animals Sciences authorities 1.4 million tonnes of cattle were legally slaughtered in 2012 nationwide. “One dead animal is worth approximately Rs. 30,000. Tissues from a cattle’s heart are used to rebuild livers. Horns and hoofs are used to make buttons, skin is used for leather, flesh for meat, tail is used for fertility treatment, bones are used for whitening sugar, and producing gelatin,” says Prasanna. In states such as Madhya Pradesh, where cow slaughter is illegal, trafficking is rife, and the dry cattle that are not transported are let loose on the streets, where they live the last days of their lives foraging in dustbins, eating plastic-infested garbage and drinking polluted water from open drains. The government runs several goshalas, shelters for old cattle, across the country, but these are too few and are not governed by serious norms. Suma R. Nayak, an advocate and a trustee of the Animal Care Trust, Mangalore, says, “Goshalas have started to operate along the lines of dairy farms; only accepting healthy, productive cows.” For all this, milk may not even be as rich in calcium as we have been led to believe. Amy Lanou, Ph.D., Nutrition Director for the Physicians Committee for Responsible Medicine in Washington, D.C., says, “The countries with the highest rates of osteoporosis are the ones where people

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NEWS

CCI gives green signal to Cargill JV in North America

air trade regulator CCI has approved US-based food major Cargill’s proposed joint venture with ConAgra Foods and CHS Inc in North America, saying that the deal will have no adverse impact on competition in India. Cargill sells food items, including food ingredients and edible oil brands such as Sweekar and NatureFresh, while ConAgra Foods operates in the country through Agro Tech Foods.As per the proposed deal, all the three US-based companies would consolidate their flour milling and other related business in North America, along

with that of their respective subsidiaries into a new company called Ardent Mills. In an order dated April 23, the Competition Commission of India (CCI) observed that “the proposed combination is limited to certain businesses and assets of the parties (Cargill, CHS and ConAgra) in North America and do not involve the operations or assets of the parties in India”. “...the proposed combination is not likely to have an appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination under the... (Competition) Act,” it added.

As per the deal, ConAgra, Cargill and CHS would establish H M Luxembourg S a r l (HMLS) as a joint venture, to combine their North American (Canada, USA and Puerto Rico) flour milling operations and other related business along with that of their respective subsidiaries. Cargill, an international producer and marketer of food ITEMS, is stated to operate in India through its group companies in different businesses, including edible oil and food ingredients. ConAgra, also a US-based food company operates in India through Agro Tech Foods in which it is stated to hold 51 per cent equity shares. Agro Tech Foods offers various food and food ingredient products. US-based CHS is a cooperative owned by farmers, ranchers and their member co-operatives across the US and does not have any assets in India. Following the agreement between the three companies, HMLS approached CCI for its approval earlier this month.

Automatic poultry processing plant may soon see light of day in Chandigarh

he proposal for setting up an automatic poultry processing plant in the city may finally see the light of day. The committee that was constituted to look into the issue has submitted its report in favour of hiring a consultant to set up such a plant. Once implemented, the proposal would ensure supply of hygienic meat to the city residents. The issue will come up for discussion at a meeting of the general house of the Municipal Corporation scheduled for April 30. The plant will be set up at a cost of Rs 40 crore. As per the proposal, a fully automatic poultry processing plant will be set up, eliminating the need for manually slaughtering or cleaning of the poultry. However, the slaughtering will be done as per the requirement of the meat sellers. The processing plant will be operational at night and by 10 am, the slaughtered

birds will be supplied to different shops. In 2012, the Municipal Corporation had decided to ban slaughtering of animals in shops and had ordered that slaughtering would take place only at the slaughterhouse in the Industrial Area. The move was met with a lot of opposition from the meat sellers who said that they were being made to wait in long lines for their turn. They also took the plea that people wanted freshly slaughtered meat. Thereafter, a proposal was made to have an automatic poultry processing plant for which a consultant was to be hired. The National Meat and Poultry Processing Board was asked to quote consultancy fee for setting up such a plant. An amount of Rs 34.75 lakh was quoted by the board for 15 visits. For any additional visit, Rs 35,000 would have been charged. However, this met with opposition from a section of the councillors who said the

amount being quoted was very high. A committee was constituted with councillor Surinder Bahga as the chairman to decide whether it would be feasible to set up such a plant. The committee members talked to the stakeholders and also visited a similar plant at Kharar. A meeting with the meat sellers was held where their consent was sought and their problems heard. The unhygienic conditions at the meat shops have been highlighted time and again. Lack of proper drains and inadequate places for storing the slaughtered animals are some of the problems. A few years back, the Municipal Corporation had constructed an AC fish and meat market with an aim of providing hygienic places to sell meat. However, no takers were found for the booths as the cost at which these were to be leased out was found to be quite high. Oil & Food Journal Vol. 08, Issue 07, May 2013

Participation in Processed Tomato Business in India

itsui & Co., Ltd. (“Mitsui”; Head Office: Chiyoda-ku, Tokyo, President and CEO: Masami Iijima), together with Kagome Co., Ltd. (“Kagome”; Head Office: Nagoya, Aichi, President: Hidenori Nishi), and Ruchi Soya Industries Limited (“Ruchi Soya”), one of India’s leading FMCG (fast moving consumer goods), agribusiness and food

processing companies, have agreed to establish a joint venture company (“JVCO”) for the manufacture and sale of processed tomatoes. Mitsui and Kagome will establish a special purpose company (SPC) that will acquire 60% ownership in the JVCO. India is one of the largest consumers of tomatoes, as well as the second largest

NEWS

Mitsui & Co Ltd

tomato producing country in the world followed by China. Although raw tomato consumption is the mainstream means of consumption in today’s India, the market for processed tomato is expected to expand in the near future considering the remarkable economic growth and dietary culture changes. Kagome, a leading producer of processed tomatoes with production and distribution know-how, has designated India as one of the core countries for its overseas business due to the country’s remarkable economic growth and status as a major tomato consumption. Furthermore, Ruchi Soya, which is part of the Ruchi Group, with whom Mitsui has joint business, is a leading company with an extensive distribution network as well as profound business know-how in India. We will explore the processed tomato market by combining the strength of Mitsui’s global network,

MPI to Export Meat Products Soon

o facilitate meat sales, the Meat Products of India Ltd (MPI), the public sector undertaking of Kerala Government, is all set to start a chicken processing plant at Mundayad in Kannur. The formalities for acquiring over 80 cents of land for the project is on. The total cost of the entire project will be around Rs1 crore and with the completion of the Mundayad plant, the company will start export of meat products too.

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The project is formulated as part of the expansion of MPI, which had invested Rs 3 crore recently. The company has also started a cold storage facility with a capacity of 20 tonnes at Edayar near Koothattukulam last year. The MPI is also constructing a cold storage facility in Thiruvananthapuram to cater the needs of Southern Kerala. “We hope that the construction of the chicken processing plant can be started soon. The demand for homegrown chicken and other meat products will increase in the days to come as the people are more aware of the hygiene conditions in other states. The new facility will meet this demand,” said a top official of MPI. Established in the year 1973, Meat Products of India holds a category A No 1 license from the Ministry of Food

Processing Industries, Government of India for the manufacture and marketing of meat and meat products. The company is engaged in production and marketing of various meat Aand meat products of pork, beef, chicken, mutton, rabbit and quails. MPI has been selling 25-30 tonnes of meat products per month. “On account of huge demand in Kerala market our sales have witnessed a huge increase during last financial year. We expect to register good growth numbers in this financial year too. The demand for home-grown chicken has increased five times following the ban on the import of poultry and allied products to Kerala from other states in last November. The demand is increasing considerably now a days,” MPI officials said. As part of diversification, the MPI is also introducing meat products in retorting pouches. There are about 1,000 farmers in the state who are supplying meat to the company.

Oil & Food Journal Vol. 08, Issue 07, May 2013

BEVERAGES NEWS

Atom 2nd mainstream cola brand from Pepsi P

epsi Co , the beverages and snacks major, launched its second mainstream cola brand, exclusively created for the Indian market, after 24 years of operations in the world’s second largest population. “Pepsi Atom is the second mainstream cola from the PepsiCo India portfolio, after the company’s iconic flagship brand, Pepsi,” the company said. Positioned as a ‘stronger, fizzier cola with a sharp taste hit’, Pepsi Atom will essentially compete with Coca-Cola’s second mainstream brand, Thums Up, also considered a strong cola drink. PepsiCo plans to leverage the ongoing Indian Premier League (IPL) cricket tournament to give the highest possible visibility to Pepsi Atom, both in stadia and on television. This will be followed by a massive sampling and engagement exercise across the country. The campaign will go on air on May 1. “Created for the Indian market, in collaboration with PepsiCo’s global innovation team, it is a result of extensive flavour development and consumer testing in the country. This would give more choices to the consumers. This is expected to be a strong growth driver for us. The young population who are looking for multiple experiences are the target segment, initially,” said Homi Battiwalla, category director — colas, hydration and mango-based beverages at PepsiCo India. Oil & Food Journal Vol. 08, Issue 07, May 2013

The introductory price of the Pepsi Atom, which comes in a black and blue packaging, is Rs 10 for a 200 ml returnable glass bottle in select markets, Rs 15 for a 250 ml can and Rs 25 for a 500 ml PET bottle. However, this is not the first time the company is trying to extend the cola offering in India. In August 2010, it had launched Pepsi MAX, a zero-calorie carbonated drink. It had to discontinue this product after a few months, as it failed to excite consumers. MAX has been a top seller in Europe and was launched in India for targeting the age group that drinks Thums Up, the positioning being young adults looking for a “macho” product, according to experts. “It is of great significance that a second mainstream cola from the PepsiCo portfolio has been developed for the Indian consumer. India-centric innovation is a key growth driver for our business. It is our biggest launch in recent years and we are committed to invest behind the brand and make it a key player in the carbonated beverage segment,” said Gautham Mukkavilli, chief executive officer, beverages, PepsiCo India. The latest cola from PepsiCo will be pushed in the market with a campaign tagline of ‘Piyo Josh Mein Jiyo Hosh Mein’, targeting young adults across big and small towns. To endorse the brand, PepsiCo has got Bollywood actor Sushant

Singh Rajput. “Pepsi Atom addresses the consumer need for a stronger, fizzier cola with a sharp taste hit. From robust distribution to large-scale sampling, high-visibility launch at Pepsi IPL to an insightful and relatable campaign, we have aggressive plans. We are confident that consumers will not only like the taste of Pepsi Atom but will also be able to relate to the brand,” said Deepika Warrier, vicepresident (beverage marketing), PepsiCo India. As part of its campaign, the company has decided to stay away from the traditional way of showing “unrealistic and exaggerated portrayal of male characters in advertising and movies”. “The brand’s positioning redefines masculinity and portrays the modern Indian man in a new light — someone who has the strength of mind as well as body. The soon-to-be-launched communication campaign for Pepsi Atom projects the more relevant and relatable definition of masculinity, as opposed to the much hyped mindless action,” PepsiCo said. Pepsi’s other beverage brands are Diet Pepsi, 7UP, Nimbooz, Mirinda, Mountain Dew, a fruit-based beverage called Tropicana, Slice, a drinking water brand, Aquafina and a sports drink, Gatorade. PepsiCo’s local beverage brands in India are Lehar Evervess Soda, Dukes Lemonade and Mangola.

BEVERAGES NEWS

Coke Pepsi bet on health drinks now

ith Indians taking to caloriewatching in a serious way, the demand for energy and sports

drinks, also called ‘lifestyle drinks’, is slowly and steadily gaining fizz. So much so that beverages giants Coca Cola, with

Dabur India opens $16mn fruit beverage plant in SL

ndo-Sri Lanka relations that date back to the ancient times cannot be shattered by anyone. The business dealings between the two countries have strengthened now, more than ever before, said Economic Development Minister Basil Rajapaksa. Minister Rajapaksa expressed these views at the inauguration ceremony of Dabur Lanka state-of-the-art fruit based beverage manufacturing plant located at Yakadagala Estate, Kotadeniyawa in Mirigama. Established under an agreement with the Board of Investment of Sri Lanka, this new manufacturing facility has been set up with an initial investment of US$ 16 million and with a capacity to produce 280,000 cases of fruitbased beverages every month. Speaking further Minister Rajapaksa said that the fruit growers in the area would economically benefit from the plant having modern amenities. “The factory, in addition to providing jobs, will also benefit the fruit and vegetable growers in the area as measures are being taken to facilitate them to sell their produce to the factory,” said the minister. The plant will employ around 75 people at the start of production during this month, and will increase the number of staff gradually to keep pace with demand and capacity expansion. It will also offer the opportunity of providing indirect employment opportunities for hundreds of people in this country. The plant has been set up in full compliance with the green principles by utilizing environment-friendly building practices during construction. Technology interventions have also been put in place to continuously monitor waste generation and constantly improve effluent waste treatment at the plant. The inaugural ceremony was attended by the representatives of the government of Sri Lanka. Also present were former Indian High Commissioner, Ashok K. Kantha, Dabur India Ltd Chairman, Dr Anand C. Burman and Dabur India Ltd Chief Executive Officer, Sunil Duggal.

its energy drink Burn, and PepsiCo with its Gatorade, are trying to muscle in on the $155-million nascent market, dominated hitherto by GSK, Heinz and Amway. While energy drinks have been present in India for a few years now, the category of ‘alternative beverages’ is gaining ground on conventional beverages and carbonated drinks. In fact, it is not just drinks but even water, like in the West, is being infused with vitamins. Beltek Canadian Water recently introduced Wild Water, a vitaminenriched water, in various flavors. “In India it is a new category,” said Steve Verma, director, Beltek Canadian Water Ltd. Conventional beverages cost R15 -20 per 100-150 ml bottle, while energy drinks start at R80-100 per 100-150 ml bottle. Despite the price tag, though, consumers are still opting for these new-age drinks and the market is expected to grow annually at 28-30% according to retail consultancy firm Technopak Advisory. Providing choices to consumers holds the key to success, said experts and company executives. “Energy drinks play an important functional role in consumers’ lives by vitalising the body and mind,” an executive at Red Bull, a leading energy drinks major in India, chanted. “The attempt is to provide choices to consumers that satisfy their needs on all occasions,” a CocaCola executive added. PepsiCo India’s spokesperson said the brand has been associated with marathon races, and has entered into partnerships with leading gyms in metros.

Oil & Food Journal Vol. 08, Issue 07, May 2013

ith an exclusive market strategy in place for its new brand Rasna Ju-C, Gujarat’s home-grown player, Rasna, fondly known for creating the soft drink concentrate category in beverages, is targeting at achieving a turnover of Rs. 400 crores and a market share of 4-4.5 per cent at the end of three years. Rasna has recently forayed into a new category- the read-to-drink beverages with the launch of Rasna Ju-C.

Oil & Food Journal Vol. 08, Issue 07, May 2013

The ready-to-drink beverages industry in India is already a cluttered space with PepsiCo’s Tropicana and Dabur’s Real Fruit juice as the dominant players. Rasna, which, according to estimates, enjoys more than 80 per cent market share in the powdered and concentrates category, will need to recreate the same success story for Ju-C to compete in the Rs. 5000 crore beverages industry growing between 1520 per cent. Ju-C seeks to target kids who are adventurous and its communication approach will also reflect that tonality. It will organise adventure-centric BTL activities in schools, and in association with the RWAs. The campaign will hit the market in mid-May and will be primarily be led by outdoor communication, print and radio. The company has also introduced a new Rasna girl, Avan Khambatta, who is the daughter of the Chairman of Rasna, Piruz Khambatta. Rasna has formed a separate division, Rasna Beverages, which will operate as an independent business unit and will manufacture and market Rasna Ju-C. In fact, all the subsequent readyto-drink formats that Rasna launches will be part of this

new entity. Karisma Kapoor with Rasna girl Avan Khambatta Ju-C which is positioned as a nutritionally healthy beverage having 100 per cent RDA of Vitamin Cis targeted towards 8-14 years old children. The drink has been launched in four flavours- mango, orange, apple and mixed fruit with a 250 ml bottle competitively priced at Rs. 18 and a 1-litre bottle at Rs.65 for mango and Rs. 75 for the other flavours. Arshad Siddiqui, CEO and President, Rasna Beverages Division is of the opinion that save aside Real, there aren’t many brands targeting kids, and with the strong brand equity of Rasna, there is definite traction in this space. Moreover, in his view, the juice market has move from a healthy positioning towards a lifestyle one. Juices, says Siddiqui, are no longer breakfast table products but are also consumed as snacks. For Ju-C, Rasna is targeting at achieving a turnover of Rs. 400 crores and a market share of 4-4.5 per cent at the end of three years. While Ju-C is priced a tad lower than its competitors, another differentiator that Rasna is hoping to gain from is the packaging. Ju-C has been launched in a pet-bottle; a move that Siddiqui feels will help increase the brand’s appeal among kids, who are constantly on the move. He also remarks that there is currently no other kids’ brand offering a pet bottle. The beverage has been launched in Delhi and NCR and will be launched in the rest of the country in phases, starting with the North, the biggest market for food-based drinks, West, South, and East. By March 2014, the company plans to make the product available in all markets having a population greater than one lakh. On whether the company is nursing any plans of entering into a joint venture, Siddiqui says that they are open to tying up with foreign players from a distribution standpoint but not from an equity perspective.

BEVERAGES NEWS

Rasna launches ready-to-drink beverage targets Rs. 400 crore turnover in 3 years

EDIBLE OIL NEWS

RICE Bran Oil the

‘Heart Oil’ for healthy living

he Solvent Extractors’ Association of India (SEA) are busy promoting the health benefits of one of the ‘World’s Healthiest Oil’ - RICE BRAN OIL known as the ‘Wonder oil’ to many leading cardiologists, diabeticians, nutritionists and health advisors world over. Rice Bran oil with its ideal SFA/ MUFA/ PUFA ratio and EFA ratios most ideally matches the prescribed levels suggested by World Health Organization (WHO). As per the National Institute of Nutrition Hyderabad, ‘RICE BRAN OIL’ with its anti-oxidant properties helps in lowering Cholesterol and reducing the risk of intestinal cancer

and osteoporosis. In a press conference organized in Mumbai to educate the masses on the health benefit of Rice Bran Oil Dr. Anjali Mukherjee, renowned nutritionist commented” Rice Bran oil contains ‘oryzanol,’ which increases HDL or good cholesterol in the body, while lowering LDL or bad cholesterol and triglycerides making it healthier than the popular Olive Oil. She further mentioned in a country like India we need to stress on the need for nutritional security. Rice Bran oil is edible oil with naturally balanced fatty acid composition quite close to the latest recommendations by the National Institute of Nutrition (NIN). It contains unique Nutracenticals known to maintain the right balance of cholesterol besides promoting overall good health.” Speaking further on the properties of ‘Wonder Oil’ Dr. A.R. Sharma, Chairman, SEA RBO Promotion Council said “National and international dietary advisory bodies now suggest almost balanced fat in-take with moderate levels of saturated and polyunsaturated fat and higher levels of mono-unsaturated fat. Most of the edible oils commonly used in India do not contain the recommended fat composition. But there are a few edible oils popular in developed countries which are very closer to the latest recommendations even as single oil. These are rice bran oil, olive oil and canola oil. Rice bran oil is unique edible oil which is produced from oily layer (rice bran) of nutritious brown rice. It has higher levels of natural anti-oxidants making it the most suitable oil for frying. On the other hand olive oil and canola oil are not good for frying due to very low smoke point and very high instable linolenic acid in canola oil thus not suitable for Indian cooking. Adding further Dr B V Mehta, Executive Director, The Solvent Extractors’ Association of India mentioned “India is the second largest producer of rice, after China, the country has the potential to produce over 14 lakh tonnes of Rice Bran Oil, however currently it produces about 9 lakh tonnes, of which only 3 lakh tonnes are used a edible oil while the rest is used by vanaspati industry or blended with other oils and sold as branded products. It is our constant endeavor to support the small players to create visibility in retail chains and educate the consumers about the benefit of this unique oil. He further added that “besides the health angle the price of rice bran oil is cheaper then that of Olive oil and is comparatively less than that of groundnut oil, inspite of superior health benefits. Further India imports edible oil worth 100lakh tonnes worth Rs 55,000 crores every year and it is the third largest import item”. To promote this ‘Wonder Oil’ in India as well as internationally, The Solvent Extractors’ Association along with Naresuan University, Phitsanulok, Thailand has organized the 1st Thailand Conference on Fats & Oils with focus on Rice Bran Oil on 16th and 17th May, 2013. The Conference aims to publicize and exchange knowledge involving technology of Rice Bran Oil and its products. Involving associations in fats and oils from rice bran business and its supply chain. Adding on the international conference Dr B V Mehta said “ The 1st Thailand Conference on Fats & Oils with focus on Rice Bran Oil is a good opportunity to learn more about Rice Bran Oil, its virtue and promote Rice Bran Oil as a Healthy Cooking Oil internationally”. Oil & Food Journal Vol. 08, Issue 07, May 2013

ango, banana, potato, soybean and poultry are the five main farm products which could form the bedrock of rejuvenation in India’s agriculture and allied activities landscape in the next two decades. This can be created by building a strong brand for these products in the international markets, reducing wastage by almost half and doubling the per hectare yields, according to the third Food and Agriculture Integrated Development Action Report titled: ‘India as an agriculture and high value food powerhouse: A new vision for 2030, prepared jointly by CII and McKinsey and Company. The five products have been selected based on their crop size and relevance for consumers, growers and crop diversity. Mango The report said mango production has grown consistently at four per cent per annum since the past two decades only because of increase in area as yields have remained stagnant. To achieve a target of 37 per cent increase in per hectare yield, reducing wastage by 50 per cent in the next Oil & Food Journal Vol. 08, Issue 07, May 2013

20 years and increasing exports 10 times, the report said farmers should be trained to inculcate best practices to improve yield, enhance farm-gate infrastructure and also build clusters in major growing states of Andhra Pradesh, Uttar Pradesh, Karnataka, Bihar and Gujarat. The clusters can be built with the help of cooperatives. To enhance the image of Indian mangoes worldwide a special brand should be built and export of packaged mango juice should be encouraged. A special impetus should be provided to fresh mango exports, the report said. Banana Though India is the world’s largest producer of bananas, its exports are minimal. It exported only 0.37 per cent of its produce in 2010, but produces almost 30 per cent of the world output, the report said. In 2010, India did not export any banana to Japan and Russia and exported just one tonne to China in 2010. However, it has immense potential. The real potential for bananas in India is through branding both in the domestic and export market. India could increase total production by 75 per cent to about

AGRICULTURE NEWS

Five farm products that can change India’s agriculture landscape

50 million tonnes in 2030 to meet rising domestic demand and tap the export opportunity. The report also highlighted that India should aspire to have an efficient, globally competitive supply chain and aspire to export 1.5 million tonnes by 2030, which is 25 times the current export figure. For farmers, the report said extensive tissue culture should be promoted through private participation, drip irrigation should be augmented and impetus provided for export of fresh bananas. Potato India’s domestic consumption of potato increased five per cent per annum for the past five years, though the per capita consumption is still about half of that of China and lags far behind most western countries. India produced more than 40 million tonnes of potato in 2011, with more than 1.8 million hectares of area under cultivation and yields reaching 20 tonnes per hectare. There is also abundant opportunity to double the share of potato used in processing from the current seven per cent to 14 per cent or more. In

AGRICULTURE NEWS

addition, India could also aspire to export 1.5 million tonnes to two million tonnes of potato from the current 1.2 million tonnes, to become one of the top five potato exporters in the world, especially catering to the Asian countries. To achieve this, the report said the scientific use of fertilisers, use of sprinkler or drip irrigation and adequate mechanisation to cut costs be adopted. “For example, costs can be reduced by using prophylactic pesticides which prevent late blight disease in areas with low infestation rates, and cost just Rs 200 a kg, while treatment pesticides are more than 20 times more expensive. Sprinkler irrigation increases yield by 15 to 25 per cent, and drip irrigation increases yield by 30 to 40 per cent, while saving up to 40 per cent of water,” the report said. It also suggested that industry could identify, test and promote new high yielding processing varieties from the available international basket. A successful example of branding potatoes is that of Greenvale’s Farm Fresh potatoes in the UK. Launched with the USP of better and consistent taste and freshness, the effort was a success, and Greenvale’s potatoes are now available across the UK, the report said. Soybean This is one of the fastest growing crops in India with exceptional price realisations. India currently exports 55 per cent of its

soya meal and Indian prices are linked to global prices. “India’s soya farmers and industry are ready to unlock an Rs 45,000 crore opportunity by 2030,” the report said. But, India’s soy industry is crippled by low yield, limited domestic demand for soymeal and inadequate irrigation facilities for crops. The country can overcome these bottlenecks by doubling yields through mechanised sowing and harvesting, improving market access for high yielding seed varieties, and using drip irrigation in farms. The government on its part can boost consumption by promoting soya as an integral part of a high protein diet, branding soy oil for exports. “Guaranteeing traceability and non-GM usage will ensure that India sustains 20 per cent premium over the GM soyaoils supplied by other countries,” the report said.

be urbanised and the number of working women is likely to double. This could significantly boost the market for frozen foods, including poultry products. But, the potential is constrained by recurring incidents of disease in poultry products, no awareness on frozen foods and rising feed costs. Giving an example, the report said that in India, the frozen meat market is just five per cent of the total poultry market, while the world over this is much more. To achieve its full potential, the report suggested that government should invest in mega processing hubs, increase profitability of poor poultry farmers through back-end feed manufacturing technologies and boost market for frozen foods.

Poultry India is currently the third largest producer of eggs (by weight) and the sixth largest producer of chicken meat in the world. India’s broiler meat production has grown by a brisk 10 per cent and egg production by five per cent over the past 10 years. By 2030, over 40 per cent of India’s population will

FSSAI’S Norms for Cleanliness at Food Outlets Schedule

4 of the FSS (Licensing and Registration of Food Businesses) Regulation, 2011 prescribes the general hygienic and sanitary requirements to be followed by Food Business Operators. All Food Business Operators (FBOs) in the Country should get a Central/ State licensing depending upon installed capacity and Registration in case of petty food businesses. The FBO shall comply with safety, sanitary and hygienic requirements provided in the schedule and contained under different parts depending on nature of business. The implementation of Food Safety and Standards Act/ Rule/ Regulation rests with State Government/ Union Territories. The food safety inspection of these license/ registration establishments is required to be carried out at least once in a year. This information was given by the Minister of State for Health & Family Welfare Shri Abu Hasem Khan Choudhury, in written reply to a question in the Rajya Sabha.

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akistan will again miss the opportunity of exporting mangoes to United States, world’s No 1 mango import market, Waheed Ahmed, Chairman, All Pakistan Fruit and Vegetable ImportersExporters and Merchants Association (PFVA) told in an interview. Himself one of the leading mango exporters, Waheed Ahmed regretted that lethargic approach of concerned departments in finding ways to overcome the strict quarantine requirements imposed by the United States Department of Agriculture (USDA) on import of mangoes, is resulting in loss of a huge market. Pakistan could easily export mangoes worth five to six million dollars annually if at least two radiation plants, one at Karachi and the other at Multan are set up for radiation treatment as required by USDA. Non-existence of this facility is resulting not only in loss of foreign exchange but also in providing space to India to have a firm footing in that market. Pakistani mangoes far excel Indian mangoes in taste, aroma and colour and could easily capture the market. Pakistani mangoes have been approved for exports to US market on the condition that the fruit would first be treated at the radiation plant near Chicago. Treating/ processing mangoes in US is not only a costlier business but also highly risky for the exporters. Unavailability of direct air services is another factor impeding exports, Chairman, PFVA said. Since mango is a perishable item, exports via sea routes is not at all feasible as it is time consuming due to long transit. The only way out to tap the lucrative US market is to set up radiation facility in Pakistan, he said, adding that since Ministry of Commerce had allowed the export of mango of the coming season from May Oil & Food Journal Vol. 08, Issue 07, May 2013

25, the opportunity to enter the US market has again been lost. A notification has been issued by the ministry fixing the date for starting export of mango this year to avoid losses through unplanned and premature export of the fruit. According to Waheed Ahmed, Chairman, while production of mango is expected to be 1.55 million tons, export target has been fixed at 0.175 million tones for this year. Pakistan may fetch US $60 million if that target

is achieved. He however said the crop in Sindh had been badly affected due to climatic hazards and a drop of 0.15 million tones was feared, an estimated decline of 25 percent in 2013. Since the production of mango in Hyderabad, Tando Allayar, Mityari, Mirpur Khas and others parts of the province had been badly affected it had caused delay in the mango export season by two weeks. Waheed said that mango had been successfully introduced in Japanese market. Previously, a limited quantity of Pakistani mango would be commercially exported to the foreign countries but that year the situation had largely improved as a result of processing the fruit through the existing pilot Vapor Heat Treatment (VHT) plant. In co-ordination with Trade

Development Authority of Pakistan, PFVA would be promoting the processed fruit in the valued Japanese market, he said. International barriers imposed on trade with Iran have also resulted in a decline of Pakistan’s exports to that country. Pakistani banks have stopped trade services with Iran, which previously was importing 30,000 tons of mangoes from Pakistan as a result the country has suffered a loss of $10 million for not exporting mangoes to Iran. Illegal trade or smuggling via land routes was not benefiting the country in terms of revenue, he said. Exports to Australia also could not begin because of quarantine issue. Though Australian quarantine team had visited facilities and orchards in the country to check the quality of fruit for their market, no progress has been made in this regard. Ministry of Commerce and other concerned authorities, he said should approach authorities concerned to tap another highly value market. Waheed Ahmed further said that exporters would focus on exports to Japan, Australia, South Korea, the US, Mauritius and Lebanon markets, therefore initiatives be taken to uplift the quality of Pakistani mangoes to increase exports. Pakistan was presently exporting mango to at least 40 countries of the world including Canada, Germany, United Kingdom, France, Italy, Island, Denmark, Holland, Switzerland, Belgium, UAE, Saudi Arabia, Bahrain Kuwait, Singapore, Malaysia, South Korea, Lebanon and others. The varieties commercially exported from Pakistan include: Sindhri, Sunhaira, Fajri, Began Phali, Summar Chaunsa, Black Chanusa and White Chaunsa.

FRUITS & VEG. NEWS

‘World’s No 1’ Mango Export Market May Be Missed Again-Pakistan

BEVERAGES NEWS

Coca-Cola eyes India, China for its diet drinks

oca-Cola says it will make lowercalorie options and clear calorie labeling more widely available around the world, intensifying a push against critics who say its drinks pack on the pounds. The Atlanta-based company, which makes Sprite, Fanta and Minute Maid, already offers diet drinks in most markets. But there’s no consistency in their availability, particularly in emerging markets such as China and India. Coca-Cola also said that it would support programs that encourage physical activity and no longer market to kids younger than 12. The company did not say in which countries it currently markets to children. With sugary drinks often blamed as a culprit for making people fat, Coca-Cola Co. has been more aggressive in trying to convince customers its products can be part of a healthy lifestyle. Earlier this year, the company aired its first TV ad addressing the matter in the U.S. and has since been rolling out the spot to other countries. The ad touts Coca-Cola’s wide range of lower-calorie offerings. But executives

have also made a point of standing by the company’s full-calorie drinks, saying that physical activity plays an important role in fighting obesity. “There is a place for all of our beverages in a healthy lifestyle,” CEO Muhtar Kent said in a call with reporters. The announcement from Coca-Cola comes as packaged food companies across the industry look for growth in emerging markets, where middle-class populations are growing rapidly. As more people head to cities and see their incomes increase, they’re more prone to eating convenient packaged foods that critics say have fueled obesity rates in developed nations. The shifting populations around the world nevertheless represent an enormous opportunity for companies. For example, Coca-Cola has noted that Americans on average drink 403 servings of its various beverages a year. That compares with just 12 servings per year in India and 38 in China. And the company’s diet options aren’t nearly as popular in such countries as they are back at home. In the U.S., where soda consumption has been declining for

years, diet drinks now account for 41 per cent of sales for the flagship Coke brand. That’s up from single-digits in the 1980s. Even in major Chinese cities, by contrast, the percentage of sales that diet options account for is in the “high single digits,” Kent said. Coca-Cola Co. says its goal is to have diet options available wherever regular versions are sold. But that doesn’t mean there would be a diet alternative for every particular brand. For example, if a store in India sells Coke it might also offer Sprite Zero, which doesn’t have any calories, to meet the goal. The company also says it’s working to have cans and bottles around the world display calories counts on the front of labels, as it does in the United States. But the company didn’t have a timeline for when it hoped to achieve its goals.

McCain Foods hands Law & Kenneth creative duties F ollowing a multi-agency pitch last month, McCain Foods India has appointed Law & Kenneth as its new creative agency. The agency has been mandated to build awareness for the McCain brand in India by developing and implementing an integrated brand communication approach through all media touch points. McCain Foods India is the subsidiary of McCain Foods Canada, that develops frozen food products including french fries, aloo tikki, idli-sambar combo and real cheese appetizers.

Vikas Mittal, managing director, McCain Foods India, said, “We see a big opportunity in making McCain a part of the food basket of Indian household and see Law & Kenneth team as a key partner in creating the communication platform for achieving this goal”. Gunjan Pandey, general manager, marketing, McCain Foods India, said, “We wanted to partner with an agency that has the required innovative approach to tap into consumer insights in order to create deeper connections with consumers. Law & Kenneth won the account on the basis

of their strong consumer insights and creative direction”. Talking about the new business win, Sanjeev Gauba, senior vice president and branch head, Law & Kenneth, Delhi, said, “We are very excited to come on board with McCain team. We look forward to help them in taking the brand to the next level.” “McCain offers a great opportunity to do exciting creative work on the category and the product,” added Parul Arora, executive creative director, Law & Kenneth, Delhi. Oil & Food Journal Vol. 08, Issue 07, May 2013

Oil & Food Journal Vol. 08, Issue 07, May 2013

DAIRY NEWS

Amul to Begin International Auction of Its Dairy Products soon

ujarat Cooperative Milk Marketing Federation, the maker of Amul brand milk products, will begin offering its select products to global buyers through an international auction site from next month. “We will begin selling our SMP (Skimmed Milk Products) and WMP (Whole Milk Powder) products throughGlobal Dairy Trade platform from June this year. It will provide us direct access to 900 globally big customers and also help fetch better price for our produce,” Gujarat Cooperative Milk Marketing Federation (GCMMF)Managing Director R S Sodhi told. “Internationally, the market for SMP & WMP products is improving day by day... exports are equally getting lucrative,” he said. With this, India joins the league of Europe, the US, Australia and New

products traded. GDT trading events are conducted as ascending-price clock auctions run over several bidding rounds. In each auction, a specified maximum quantity of each product is offered for sale at a preannounced starting price.

India Frozen Food Market, Volume & Forecast to 2017

ndia Frozen Food market is growing with a double digit CAGR for the period of 2013 to 2017. It is expected that India frozen food market is going to double by 2017 from its current market size in 2012. Even in terms of volume consumption India Frozen Food volume is going to be more than double by 2017 from its current market size of 2012. Frozen Food Market Shares: Frozen Vegetables and Frozen Snacks together contributes more than 65% of market share for the year 2012 and it is expected to increase further to approx 75% by 2017. Frozen Food Volume Share: Frozen Vegetables and Frozen Snacks together

Zealand in selling dairy products through the international auction route, where prices stand at record highs. Amul, which is among the top five fast moving consumer brands in India, will begin competing with international dairy brands like Europe’s Arla, US-based Dairy America and Australia’s Murray Goulburn. It would also be competing with New Zealand’s Fonterra, which owns GDT, to sell through the auction route. GDT is an auction platform for internationallytraded commodity dairy products. It has become the leading price reference indicator for the

contributes more than 85% volume share for the year 2012 and it is expected to increase further to more than 90% by 2017. Frozen Food Packet Size Range: Packet size of 301-500 Gram is the most popular range in all the segments. Whereas second most popular range is 0-300 Gram in all the segments expect frozen fish/seafood products. In order to grab the more and more market share companies are launching new products every quarter and making innovative marketing strategies. Renub Research study titled “India Frozen Food (Poultry, Fish/Seafood, Red Meat, Dessert, Snacks and Vegetable)

Market, Volume & Forecast to 2017” provides a comprehensive assessment of the fast-evolving, high-growth India frozen food Market. This 99 page report with 44 Figures and 26 Tables provides information on frozen food market and market share by value & volume, frozen food products segmentation by value and volume, frozen food products segmentations by packet value and volume; with key companies’ strategies in India frozen food market. This report also identifies the key growth drivers and challenges of the industry. Primary research on consumer preferences of various packet sizes of frozen food products captured in this report. Oil & Food Journal Vol. 08, Issue 07, May 2013

GOOD BAKING

Sugar

reduction in baked goods T

oday, almost 20 percent of India’s adult population is overweight, while approximately 20 percent of school-aged children are obese, according to a study by the All India Institute of Medical Sciences. India also has the highest prevalence of diabetes in the world today – according to the World Health Organization (WHO), which counts 50 million people suffering diabetes in the country. In view of these trends, it is no wonder that Indian consumers are starting to look for healthier food alternatives with reduced fat and reduced sugar levels, as well as low glycaemic index foods.

Oil & Food Journal Vol. 08, Issue 07, May 2013

This presents a challenge and an opportunity for food manufacturers. To address this mind-set shift among consumers, food producers need to keep a look out for functional ingredient alternatives that offer the same characteristics as sugar in terms of sweetness, mouth-feel, and texture while providing additional nutritional benefits. Previously, international companies led the charge in the adoption of high quality functional ingredients, but recent times have seen key local players joining the movement towards the production of healthier foods.

Getting more for less Sweetness profile and depth in mouthfeel are important characteristics in baked goods. However, this often translates into a lot of calories. As consumers become more health-conscious and aware of the impact the foods that they are eating it has on them, it is time to look for alternatives in the arena of baked goods. “With consumers increasingly looking for added benefits, it would stand to reason that the future looks very promising for sweetening ingredients that offer more benefits than just sweetness. Formulators should look beyond sweetness profiles alone to ingredients with nutritional and technological functionality when making their ingredient selections” stated Rudy Wouters, Vice President BENEOTechnology Center. BENEO has developed the sugar replacer, ISOMALT, which is the only sugar replacer derived from pure sugar beet and thus has a sugar-like taste with about 50 percent of its sweetness. It replaces sugar in a 1:1 ratio while being sugar-free, low glycaemic and toothfriendly. When used in baked goods, ISOMALT provides the same taste, body, colour, pore size distribution and fluffy consistency as if sugar were used. This enables the baking industry to cut down on the amount of sugar used per baked good, reducing per item calories and help to lower the glycaemic response of final products. Dietary fibre is another key ingredient in many biscuits, cereals and cereal bars as consumers see baked goods as perfect

GOOD BAKING 42

source of fibre-enrichment. Additionally, they associate with dietary fibres, the feeling of satiety and eating less. While increasing the fibre content of baked goods and cereals, BENEO’s prebiotic fibre oligofructose helps to reduce the sugar content due to its sweetness of up to 65 percent of sucrose. Containing only 1.5 kcal/g instead of the 4kcal/g of sucrose, it is often used as a caloriereduced alternative. Also, clinical studies have shown that BENEO’s oligofructose helps to reduce the calorie intake and helps you eat less. This evidence gives new opportunities to the bakery industry to approach consumers who would like to manage their weight efficiently. Derived from chicory roots, the natural ingredient does not leave a lingering aftertaste. In addition, it masks flavours often associated with high intensity sweeteners being used in “light” products. In nutrition bars, oligofructose acts as a humectant to extend shelf life by keeping the bars softer for longer. It also contributes to the Maillard browning reactions and provides desirable browning appearance found in baked goods. As a result, oligofructose is widely used in baked goods, cereals and

nutrition bars. The growing hectic lifestyles of today, less leisure time and longer working hours have resulted in consumers feel that they are lacking energy. They are looking for food sources that can provide balanced and prolonged energy. BENEO’s next generation sugar Palatinose™ is a functional carbohydrate that is slowly yet fully digestible and thus provides a balanced energy supply in the form of glucose. Naturally derived from sugar beets, it is classified as a sugar, though being low glycaemic and non-cariogenic. With its ability to provide the full carbohydrate energy over a longer period of time, it can be viewed as a carbohydrate that gives “smart calories”. Due to its nutritional benefits, it is often used in cereal bars targeted at athletic consumers and those with an active lifestyle who want a slow and balanced glucose supply. Food manufacturers today are trying to include added value to their foods to meet the requirements of the growing group of health conscious consumers. Though taste is still the buying criteria number one, food and consequently ingredients also need to cater for health purposes as

well as to maintain texture and mouthfeel. The future baker Baked products with improved nutritional profiles will see growing importance. This is mainly due to the increasing consumer awareness of healthy snacking and the growing number of governments that are pushing food producers to reduce the sugar, fat and calorie content of products. Despite being interested in healthy alternatives, consumers do not want to sacrifice taste, texture and, in turn, indulgence. Therefore food producers need to explore alternatives that allow them to provide consumers with the sensory experiences desired while ensuring nutritional benefits in each bite.

Author Koen Van Praet, Managing Director BENEO Asia-Pacific Pte Ltd

Oil & Food Journal Vol. 08, Issue 07, May 2013

NEWS

No plans to hike edible oils’ import duty : Govt

K.V. Thomas, Minister for Consumer Affairs, Food and Public Distribution

he Government has ruled out hiking the import duty on edible oils even as domestic solvent extractors have sought an increase in Customs duty on refined edible oils. “Currently, the Government has no proposal to increase import duty on edible oils,” said K.V. Thomas, Minister for Consumer Affairs, Food and Public Distribution, in a written reply to the Lok Sabha. Crude edible and refined oils currently attract an import duty of 2.5 per cent and 7.5 per cent, respectively. RISE IN IMPORTS Imports of edible oils have surged recent

years, mainly due to the stagnant oilseeds production and increase in consumption. Separately, the Solvent Extractors Association of India has demanded that the duty on refined oil imports be increased to 12.5 per cent to protect the domestic refiners from the surge in cheaper refined palm oil imports. “SEAI has strongly once again represented to Government to immediately consider raising import duty on refined oil by five per cent to 12.5 per cent to bail out domestic refiners from disaster,” the association President Vijay Data said in a statement. In January, the Government had raised the import duty on crude oils to 2.5 per cent, reducing the duty differential between the two oil categories to five per cent. DUTY DIFFERENTIAL CUT The reduction of duty differential has further led to large-scale import of refined palmolein, leading to utilisation of domestic refining capacity while encouraging the refineries of the

Tamil Nadu to Unveil Organic Project

he Tamil Nadu State government will soon come out with a comprehensive organic agriculture policy, according to K. Ramasamy, Vice Chancellor, Tamil Nadu Agriculture University (TNAU). Dr Ramasamy said that various components of the policy, including the formation of a Department of Sustainable Organic Agriculture and

establishment of a Directorate for Organic Agriculture, were under preparation and the policy was expected shortly. On SUSTAIN, which envisages promoting sustainable agriculture and improvement of quality of life of farmers through solar drying and cold storage technologies, Dr. Ramasamy said the TNAU could assist in identifying suitable locations where the project could be rolled out across the

exporting countries, mainly in Indonesia and Malaysia. “The inflation is the lowest in the last three years. Our demand is very much in line with the recommendations made by the Economic Survey and Tariff Commission to have duty difference of 10 per cent,” he said. Edible oil imports from the start of the oils year in November to January stood at 2.78 million tonnes. OILCAKES In the 2011-12, imports were 9.94 mt, up from 7.24 mt in the previous year. The association also demanded that the Government should extend duty-free import of oilcakes, used as animal feed, beyond March 31, and include rice bran, palm kernel cake and copra cake in the basket of oilcakes. In August, the Government had allowed duty-free import of oilcakes for six months to augment domestic supply. About 75,000 tonnes of oilcakes have been imported till February. State and in matching the right crop with the soil type. Dr Ramasamy says that organic certification could help the region to compete more effectively in international markets. Farmers’ collectives would be provided with Solar Drying and Cold storage energy efficient farming technologies that would help generate new and value-added products. Sreenivas Narayanan of ASSIST, an international NGO and the third partner, said the project was significant in the context of India losing almost 40 per cent or 59 million tonnes of all agriculture produce due to wastage and spoilage every year, as a result of a fragmented supply chain, inefficient harvesting facilities and a lack of post harvest management solutions. Oil & Food Journal Vol. 08, Issue 07, May 2013

n a bid to boost potato cultivation in the state, Punjab Chief Minister Parkash Singh Badal has announced an enhancement of the subsidy on diggers, graders and planters from 10% to 50%. A decision to this effect was taken by Badal during a meeting with a deputation of potato growers from the state. The Chief Minister announced to the delegation that the Punjab Government had already initiated the process for setting up an Indo-Dutch Potato and Seed Centre as a joint venture. A visit from a Dutch delegation is already planned for May. The Chief Minister is hoping the boost to the sector will help tackle an inadequate supply of seed potatoes. He also called upon the potato growers to adopt solar pumps for potato irrigation to save ground water besides establishing small processing units for their produce for which the government could provide subsidy. Badal also offered export assistance to potato growers.

Kochi ports top in cashew exports

mong various ports through which cashew nuts were exported, Cochin Port and the International Container Transshipment Terminal (ICTT) at Vallarpadam topped the list, exporting 45,243 tonnes during the ten-month period between April 2012 - January 2013. Tuticorin came to the second slot with exports of 23,192 tonnes of cashew, showed the figures provided by the Cashew Export Promotion Council of India (CEPCI). Tuticorin also became No.1 in importing raw cashew nuts during the period. Major sources of raw cashew imports to India were African countries such as Benin, Ivory Coast, Ghana, Guinea Bissau, Tanzania, Nigeria and Senegal. Among them, Ivory Coast was the top exporter to India, shipping roughly 2.5 lakh tonnes of raw cashew to various Indian ports. On a year-on-year basis, export of cashew kernels through Kochi declined 23% during the period while Tuticorin’s exports went down by 28%. However, import of raw cashew from some of the African countries had gone up during the ten month period ending January 31, 2013, while others suffered. Imports from Ivory Coast, Nigeria, Tanzania and Benin surged, but that of Guinea Bissau and Ghana came down. CEPCI data also showed that the US was the largest importer of Indian cashew kernels, importing 25,818 tonnes during the period. Second one was the UAE with 10,526 tonnes of processed cashew. Other major consumers of Indian cashew were Vietnam, the UK, Saudi Arabia, Spain, Netherlands, Japan, France and Belgium. Oil & Food Journal Vol. 08, Issue 07, May 2013

Pakistan sets 2013 mango export target T

FRUITS & VEG. NEWS

Punjab announces 50% subsidy on planters for potato cultivation

he All-Pakistan Fruit and Vegetable Importers-Exporters and Merchants Association (PFVA) has set a mango shipment target of 175,000MT this year, website Thenews.com.pk reported. PFVA chairman Waheed Ahmed said the target volume would likely earn US$60 million for the industry, in a year with production affected by poor weather conditions in the Sindh province. “The production of mangoes shall fall by about 25 percent to 150,000 tons in Sindh,” he was quoted as saying. “The production of mango in Hyderabad, Tando Allahyar, Mityari, Mirpurkhas and other parts of the province was badly affected, which has also caused delayed the season by two weeks.” The story reported forecast production of 1.55 million MT of mangoes this year. Ahmed said the sector would start exporting mangoes to Japan this year but in limited volumes. “In coordination with the Trade Development Authority of Pakistan, PFVA would be promoting the processed fruit in the valued Japanese market,” he was quoted as saying.

Oil & Food Journal Vol. 08, Issue 07, May 2013

ndia staked its claim as a dairy exporter with the announcement by its top dairy group that it is to sell through GlobalDairyTrade, the auction site, where prices stand at record highs. The Gujarat Cooperative Milk Marketing Federation, the company behind India’s Amul dairy label, said to be the country’s top fast moving consumer goods brand, is from the June 4 GlobalDairyTrade event sell through the auction. The decision adds the co-operative to a list including Europe’s Arla, US-based Dairy America and Australia’s Murray Goulburn – besides New Zealand’s Fonterra, which owns GlobalDairyTrade - to sell through the auction. And it marks the entry in earnest of India, once a noted dairy importer, to the ranks of exporters, a reflection of the improvements in output thanks to improved herd genetics and the increasing scale of milk producers and processors. Booming market Although India has grown to be the leading milk producing nation - with 2013 output forecast by the US Department of Agriculture at 57.8m tonnes, up 30% over the last five years – strong growth in domestic consumption has largely accounted for the increase. Indeed, the growth prospects for the market have attracted the attention of Oil & Food Journal Vol. 08, Issue 07, May 2013

the likes of Fonterra and French-based yoghurt giant Danone, which last year paid $355m for Wockhardt Nutrition, India’s top-ranked baby food group. However, the increasing surplus has prompted a long campaign by dairy giants, such as the Gujarat Cooperative Milk Marketing Federation, to lobby for access to the international market too, rendered especially lucrative by a recovery in prices. GlobalDairyTrade values have doubled over the past year to the highest on records going back to the 1990s, spurred by strong demand from China and weak growth in world production, held back by high feed prices and poor weather in major exporters such as Europe, New Zealand and the US. India’s government in November ditched a ban on exports of dairy products including whole milk powder, which the Gujarat federation will sell through GlobalDairyTrade, with skim milk powder. ‘On again, off again’ Nonetheless, some doubts remain over India’s commitment to exports, with the US Department of Agriculture bureau in New Delhi in November cautioning over the country’s “on again, off again” strategy towards trade curbs. “Given that India exports little whole milk

DAIRY NEWS

India seeks place among top world dairy exporters

powder and that importers are hesitant to buy from India, the [November] export policy change appears to be of little consequence,” the USDA bureau said. India’s export policy “changes frequently to adapt to market conditions and local political scenarios”. However, supporters of India’s dairy trade prospects point to the country’s growing surplus, which stands to widen further through a national dairy plan expected to double output in 15 years, and increase to 65%, from 30%, the proportion of the milk surplus handled by large dairy groups. Mixed outlook The announcement came ahead of GlobalDairyTrade auction, at which prices fell for the first time in 2013. Values have been depressed by rains which have relieved drought in New Zealand, the top exporting country, where milk production fell year on year in February for the first time since 2010. External companies selling through GlobalDairyTrade have found their product trading a discount to Fonterra’s, with Arla and Dairy America skim milk powder going $1,000 a tonne more cheaply last month. However, Fonterra product felt the brunt of recent sell-off, with the prices paid for its skim milk powder falling by up to 14.6%.

NEWS

Ready to Eat Market in India 2013

he Ready to Eat Market in India is showing remarkable growth owing to the growing income & consumption levels of the Indian consumers. In addition to this, rapid urbanization is also augmenting the demand for ready to eat products. Urban people suffer from time crunch due to their busy work schedules and this is leading to increased dependence on ready to eat foods. This is further aided with the penetration and availability of a wide variety of ready to eat products in different packaging formats at various retail points. All these factors are indicating towards the bright future of the Indian ready to eat market in the coming years. The report provides a snapshot of the ready to eat market. It begins with an overview of the major macroeconomic indicators which highlights the present economic scenario prevalent in India. It is followed by the introduction section which segregates the overall food processing industry into its sub segments, one of which is the packaged foods segment and ready to eat is one of the sub segments of this group. It then moves into the market overview section, which provides an overview of the Indian ready to eat market with details regarding its current market size and growth in the coming years. Segmental share of the market in terms of organized and unorganized sector is also provided. In addition to this, names of major players of RTE market has been mentioned along with the share held by the market leader. After this, the broad classification of the end user segments of ready to eat foods has been discussed. The next section elaborates on the value chain analysis of the sector. This is followed by a separate market segmentation section, wherein segregation of the market in terms of shelf stable & frozen products and vegetarian & non vegetarian has been done. Based on the availability of the products in the market, respective market shares of these categories have also been provided. Next section discusses about the findings of the consumer insights survey on

Ready to Eat Market in India which was conducted on social media sites and via emails. A separate section on import and export of different types ready to eat products is also provided, highlighting the growth in import and export values over the years. Then, details regarding major importing and exporting nations are also provided. An analysis of the drivers explains the factors for growth of the industry that include growing income and consumption,

government participation is provided which speaks about various fiscal incentives for food processing sector and other initiatives taken by the government of India which are indirectly boosting the ready to eat market. The major trends identified in the sector include exhibitions and events, high focus on export, adaptation of new technologies, innovative promotional techniques, gaining special attention in retail format stores, retailers going for private label RTE meals, launching innovative and region specific products and frozen RTE products gaining popularity. The competitive landscape section begins with the Porters Five Forces Analysis, illustrating the competitive rivalry, bargaining power of suppliers and buyers and threat of new entrants and substitutes. The section includes competitive benchmarking of the top players operating in the Indian ready to eat market. The report also features brief profiles of major domestic and foreign players in the market and a snapshot of their corporation, financial performance along with the key financial ratios, business highlights, their product portfolio and SWOT analysis, thus providing an insight into the existing competitive scenario. The report concludes with a section on strategic recommendations which comprises an analysis of the growth strategies for the ready to eat market in India. Companies Mentioned

rapid urbanization, increasing working women population, convenience factor, growing retail market and marketing campaigns. The key challenges include poor supply chain and distribution facility, deficit in power supply, consumer behavior and perception, rise in packaging costs and health concerns. The next section speaks about the government rules & policies which covers Food Safety and Standards Act 2006 & Regulations 2011 and other government policies. After this, a separate section of

Public Companies 1. ADF Foods Ltd. 2. ITC Ltd. 3. Kohinoor Foods Ltd. 4. Vadilal Industries Ltd. 5. Venkys India Ltd. Private Companies 1. Aakriti Foods Pvt. Ltd. 2. Gits Food Products Pvt. Ltd. 3. Godrej Tyson Foods Ltd. 4. Haldiram Manufacturing Company Pvt. Ltd. 5. Ushodaya Enterprises Pvt. Ltd. 6. MTR Foods Pvt. Ltd. 7. Veetee Fine Foods Ltd.

Oil & Food Journal Vol. 08, Issue 07, May 2013

here is an unlikely contender in the breakfast ready-to-eat market. Cocoberry, the first Indian premium yogurt chain, is set to portray its frozen yogurts as a substitute for traditional breakfast this summer. Rather than be seen only as a dessert option, much like an ice-cream, Cocoberry is set to play in the breakfast segment with its ‘long-life’ yogurt. The take-home tubs of yogurts, to be launched next month, are expected to grow sales by 15 to 20 per cent for the brand. Internationally, frozen yogurt is consumed with fruits, cereals and granola for breakfast, or else, as parfaits in desserts. In India, it is trying to carve out its niche, jostling, so far, with ice-creams for the consumer’s out-of-home dessert consumption. Cocoberry’s move into packed tubs will also give it a chance to tap into the in-home dessert consumption that ice-cream brands already exploit. However, it now wants to pitch its frozen yogurts as ‘all-day meals’, with a greater emphasis on breakfasting. Rahul Deans, the CEO of Cocoberry explains, “Yogurt is seen as an after-meal dessert in India. However, internationally it is a breakfast item.” Usually frozen yogurts cannot be stored or refrigerated. But to seed the product as an off-the-shelf breakfast meal, Cocoberry had to ensure longer shelf-life. That is why it brought in technological changes to make its yogurts last atleast six months in refrigeration. That beats the shelf life of even regular yogurts (10 days or so). No other yogurt manufacturer has marketed such a product till now, giving it the first-mover’s advantage. Cocoberry also has a galore of options Oil & Food Journal Vol. 08, Issue 07, May 2013

in the kinds of frozen yogurts it will put out, hoping to cover varied tastes across markets. The company had launched a sugar-free and a sweeter yogurt range in April. The sweeter yogurt is less tangy than regular yogurt. However, it will not be an easy ride. “There is practically no market for frozen yogurt,” says RS Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation (which markets the Amul brand and offers both frozen and regular yogurts). “Consumers don’t know the difference between yogurt, dahi and ice-cream, and prefer dahi over yogurt. The market is at a nascent stage in India and requires a lot of investment and awareness to get traction,” he explains. Targetting the breakfast market too can pose its own problems. Breakfast is seen by many food brands as the meal to grow new habits in. Lunch and dinner preferences are considered difficult to alter for wellentrenched palates that Indians have. While Kellogg’s challenge may have

BEVERAGES NEWS

Cocoberry stirs up frozen yogurts

become iconic in this respect, Deans has provisioned for it. “Corn flakes took time to become a breakfast item in India. Yogurt may also take time. But there are signs of change as at least half our customers eat at our outlets once a week. And, not because it’s healthy, but it’s tasty,” he notes. Deans is banking on the target audience for its tubs. “It is the young working mother in a fitness-conscious nuclear family who has to serve up a good breakfast but has little time to prepare one,” says Deans. Ankur Bisen, vice president and head (retail and consumer products) of Technopak Advisors, a Delhi-based consultancy firm, feels that Cocoberry’s positioning yogurt as a substitute for breakfast and in a tub may be a step forward in connecting with consumers. “Only those who have travelled the world identify with frozen yogurts. So, the players will need to connect with consumers beyond their outlets.” But could pricing play spoilsport? A small Cocoberry frozen yogurt tub is likely to cost you Rs 100. Sodhi believes expansion

NEWS 50

becomes difficult for those who are not in the mass market. After all, regular yogurt, which also has a strong health plank and a stronger familiarity, comes for much lower. A 200-ml pack from Nestle is priced at Rs 40, while Cocoberry may sell a scoop for Rs 100-125, according to observers. Regular frozen and sweeter yogurts are priced anywhere between Rs 39 and Rs 250, with the sugar-free ones priced 10 per cent higher by Cocoberry. Competing with companies with deeppockets and wider distribution has always been a challenge for frozen yogurt retailers, especially since they need to open shop in expensive, upmarket areas to cater to their clientele. The need to hedge has also led them to launch cold beverages like ice-tea, cold chocolate and snacks like waffles and sandwiches, like the US-based Red Mango which is a competitor. It also has working women comprising a good chunk of its customers and positions itself as a health-QSR (quick service restaurant), offering parfait as a substitute for lunch. â&#x20AC;&#x153;It has 320350 calories, which is better than having chhole bhature, for example,â&#x20AC;? says Tanvi Bhatia, head of marketing at Red Mango. The company also has low-fat, gluten-free and probiotic yogurts. Other players include the South Korea-based Yogurberry, Kiwi Kiss, and Mumbaibased Yogurtbay, all with outlets mostly in the metros. In comparison, Cocoberry has 30 owned-stores across the country and is eyeing the smaller cities through the franchise model. It remains to be seen whether frozen yogurts will eat into the packaged yogurt market or the branded ice-creams market. Assocham recently noted that growing at 40-45 per cent annually, the organised yogurt industry is likely to become a Rs 1,200-crore market from its current size of Rs 750 crore as a low-fat, or even no-fat, alternative to ice creams and drinks. The ice-cream market is at around Rs 1,600 crore. While frozen yogurt consumption in India is a measly 0.3 kg per capita, compared to 17.8 kg in France, ice-creams have a long way to go too, with an equal per capita consumption in India, compared to 26 litres in the US. Cocoberry hopes to tip the balance in favour of frozen yogurts with its breakfast meal pitch.

Andhra CM seeks Food Processing Park for Nizamabad district

Kiran Kumar Reddy meeting with Union Minister for Agriculture Shard Pawar at Camp office in Hyderabad

hief Minister N Kiran Kumar Reddy has requested Union Agriculture minister Sharad Pawar to sanction a Mega Food Processing Park in Nizamabad district. The Chief Minister made the request when Pawar called on him at his camp office. He also urged the Union minister to grant a moratorium for a period of one year on repayment of term loans availed by the poultry industry -including farmers, breeding farms, integrators and hatcheries. Among the other issues that came discussion were grant of interest subvention of at least 6 per cent for a period of two-three years, rescheduling of outstanding term loans and sanction of additional working capital loans. The Chief Minister suggested that the Food Corporation of India may be directed to allocate and release at least two lakh tonnes each of damaged wheat and rice for exclusive use of poultry farmers at a subsidised price of 50 per cent of the minimum support price (MSP). He also suggested that poultry farmers, breeding farms and integrators may be allowed to import soya meal for their captive consumption, at zero rate of customs duty, for a period of one year. The Chief Minister also asked Sharad Pawar to set up a World Class Aquarium in Andhra Pradesh as assured by the Centre. He informed the Union Minister that Oil Palm farmersâ&#x20AC;&#x2122; Association had requested implementation of the formula recommended by the Commission for

Agricultural Costs and called for import duty on crude Oil and Palm Oil. Food Park in Nizamabad: There was a proposal to set up an Agro and Food Processing Industrial Park in Nizamabad district, was one of the industrially backward areas in Telangana. Smart Agro Industries Corporation Pvt Limited had come forward and evinced interest in setting up this facility. Smart Agro Industries Corporation Pvt. Ltd was promoted by a group of NRI entrepreneurs, living in the US and hailing from Telangana. The proposed project envisages food, agro-processing and related industries and thereby, adds value to the local agricultural inputs, which had been the missing link for the local industry to compete and thrive in regional and national markets. The state government led by Chief Minister N Kiran Kumar Reddy had been proactively assisting/facilitating the project and had provided about 370 acres in Nandipet Mandal in the district for this purpose. The Chief Minister informed the Union Minister that in September, 2012 the proposal of M/s. Smart Agro Industries Corporation Pvt. Ltd was found eligible and kept in waiting list. The Chief Minister requested that the proposal of Smart Agro Industries Corporation Pvt. Ltd may be approved at the earliest. Sharad Pawar inaugurated plant health management training wing in the National Institute of Plant Health Management at Rajendra Nagar.

Oil & Food Journal Vol. 08, Issue 07, May 2013

picks up Allanasons’ edible oil business

he agency will be required to handle the strategy, launch campaign and positioning for the brand. After a lengthy, closely fought multi-agency pitch, Allanasons India (Allana) has selected Law & Kenneth for its edible oil brand. The agency’s Mumbai branch will handle this account. Recall that afaqs! had carried a report in October last year announcing the commencement of this pitch in Mumbai. It is leant that the company plans to foray into the edible oil space in India and launch its oil brand Sunny. However, the company may well market it under a new name in India. L&K will work on the strategy, launch campaign and positioning for the

brand. Sources, who have confirmed the pitch result, go on to say that the communication will break in around a month’s time. Sunny belongs to the IFFCO Group - not to be confused with Indian Farmers Fertiliser Cooperative Ltd, also IFFCO - that is promoted by Allanasons India. Allanasons India was founded as Allana in 1865. IFFCO was established in the UAE in 1975. Today, it is an international group that makes and markets mass market food products across the globe. Besides Sunny, other popular brands under the company’s portfolio include Noor, Tiffany, London Dairy, Hayat, Igloo and Rahma. The group is present in 28 business sectors and has 33 manufacturing plants across the world. The company has investments in oil and fat manufacturing in Egypt, Tunisia, South Africa, Turkey, Pakistan, Malaysia, Indonesia, China and the United States of America. It also plans to launch projects in Saudi Arabia and India in the near future. Among L&K’s key accounts in Mumbai are Renault, Hero MotoCorp, eBay, Fiama Di Wills, Godrej Interio, Vivel, Times Now and Dabur Real Activ Juices.

EDIBLE OILN NEWSS

Law & Kenneth

Edible Oil Exports Seen by Oil World Rising on Palm Oil Demand

orld exports of seven major edible oils and fats are expected to jump 5.2 percent on increased import requirements by China and India, led by higher palm oil deliveries, Oil World said. Export shipments of six vegetable oils and tallow may be 71 million metric tons in the 2012-13 season through to September from 67.5 million tons in the previous season, the Hamburgbased researcher wrote in an e-mailed report. World exports of palm oil and palmkernel oil are predicted to climb to a record, accounting for two thirds of combined exports of the seven analyzed oils and fats, Oil World wrote. Crude palm oil futures have dropped 33 percent in Malaysia in the past 12 months. “The global dependence on palm oil and palm-kernel oil will continue to rise this season due to insufficient supplies of other oils and fats,” the researcher wrote. Global palm-oil exports are forecast to climb to 43.6 million tons in 201213 from 40.4 million tons in 2011-12, Oil & Food Journal Vol. 08, Issue 07, May 2013

while those of palm-kernel oil may climb to 3.44 million tons from 3.08 million tons.

Soybean oil shipments are expected to rise to 9.85 million tons from 9 million tons, with exports seen accelerating in May as supplies from Argentina, Brazil and Paraguay make up for a decline in U.S. sales, Oil World said.

Sunflower Seeds World exports of sunflower-seed oil may slide to 6.46 million tons from 7.28 million tons last season, while rapeseed-oil shipments are predicted to slip to 3.96 million tons from 4.15 million tons in 2011-12, according to Oil World. “The European Union sharply stepped up imports of sun oil to satisfy interior demand,” the researcher said. “Also China and Iran boosted imports of sun oil so far this season, thus reducing supplies available for the rest of the world.” Tallow exports are seen falling to 1.61 million tons from 1.69 million tons, falling to the lowest in at least four years on a “substantial decline” of shipments from the U.S., the largest exporter of the animal fat, Oil World said. “This development has been largely caused by a dramatic increase in domestic tallow consumption in the U.S., where a growing portion of domestic production has been absorbed by the expanding biodiesel industry,” Oil World wrote.

NEWS

Delay in Transport Subsidy Ruining Mango Export Opportunities

elayed approval on transport subsidy scheme for Mango is spoiling international trade opportunity of exporters from Malda in West Bengal to Bangladesh, the largest buyer of Indian mango. “Smooth export to Bangladesh was a major hope for acceptable return for the whole mango trade community here. With average annual intake of over 1 lakh metric ton from India, Bangladesh used to be the largest importer of Malda Mango. Being perishable item, mango enjoys appreciable subsidy in freight and packaging cost if transported through air or water. But, we cannot avail them as surface transport is the only option for Malda mango to reach Bangladesh,” said Mr. U.Saha, a leading mango exporter and Gen Secretary, West Bengal Exporters Coordination Committee. Malda and Murshidabad were declared as Agri-Export Zone in 2003 for Mango with a Government investment proposition of Rs. 31 Crore. But, “That could hardly help mango export from here,” added Mr. Saha.

“The export could have a quantum jump if the subsidy can be extended to the surface transport of the fruit too,” he added. Talking to ET on this, Mr. U. Tamrekar, Regional In-Charge(East) of Agricultural and Processed Food products Export Development Authority ( APEDA) under Union Ministry of Commerce & Industries, said, “The old transport subsidy scheme was valid till 2012. Though it is expected to be extended for the XIIth five

year plan period too, we are yet to receive any approval from the Union Commerce Ministry.” “Against the old scheme of subsidy for the stocks handled through air or water route only, we have proposed to extend that to surface transport too. But it depends on whether the Ministry approves it or not,” he added. Interestingly, the benefit is existing for North Eastern sates but not for adjoining West Bengal. According to Malda Mango Merchants Association members, average annual yield from around 70 thousand Ha land under mango cultivation in Malda is around 5 lakh metric ton, near 5% of India’s national yield.The trend indicates the yield to go much higher than the average this year increasing the need of a smooth export environment. Malda and Murshidabad were declared as Agri-Export Zone in 2003 for Mango with a Government investment proposition of Rs. 31 Crore. But, “That could hardly help mango export from here,” said Mr. Saha.

Parag Milk Foods enters beverages Mumbai-based Parag Milk Foods has entered the beverage segment with the launch of ‘Topp-Up’. The milk beverage category is estimated at Rs 3,500 crore with Amul as the leading player in the segment. Topp-Up is the fourth consumer brand from the company which already has brands such as Go (cheese, yoghurt, UHT milk ), and Gowardhan (milk, ghee, paneer, dahi ).

Addressing a press conference, Devendra Shah, Chairman, Parag Milk Foods, said, “We are planning to invest Rs 20 crore for a new plant while another Rs 15 crore will be the marketing budget for the brand. Topp-Up is priced at Rs 20 for 200 ml and available in four flavours - Elaichi, Strawberry, Rose and Mango”.

Oil & Food Journal Vol. 08, Issue 07, May 2013

etravali could be Goa’s answer to Gujarat’s Anand. It’s MLA and the government are drawing up plans to make this village, located in a remote part of South Goa, as a model self-sufficient village with a focus on community participation. To ensure this, local MLA Subhash Phal Dessai is on a visit to Anand where he is studying the Amul dairy functioning. “It was my long time dream to make Netravali a model village. I am happy that my dream is on the way towards turning into a reality,” the Sanguem MLA told from Anand, Gujarat. “We have plans to set up a milk dairy in Netravali which will be run on the lines of the Amul dairy. The idea is still raw and the plans are still in the conceptual stage. I am on a visit to this Amul dairy for the sole purpose of studying its functioning, operations and management,” Phal Dessai said. Amul, the d a i r y cooperative, has proved to be a movement that has helped improve the economic situation of the farmers of Gujarat. Phal Dessai said that the Oil & Food Journal Vol. 08, Issue 07, May 2013

Netravali project is driven by the desire that the living standards of the villagers should register a rise through t h e i r participation in the activities of cooperative societies. “We have fixed certain

DAIRY NEWS NEWS

Goa will Have Its Anand for Milk two years, I am hopeful that milk production will increase four-fold a n d

targets f o r ourselves. In the

DAIRY NEWS 54

the agricultural produce will be doubled. We have also started honey bee-keeping activities, and we plan to produce 10 tonnes of honey this year itself. All these products will be marketed under the brand name Netravali-Netravali milk, Netravali honey, etc,” Phal Dessai said. Netravali has been identified by the government for developing it into a model self-sufficient village with a focus on community participation. Conceptualized on the lines of the cooperative model, the project is being handled by the state’s department of planning, statistics and evaluation. Preliminary work on the project “Adarsh Gram Netravali” is already underway. While the department of planning, statistics and evaluation has already set up a “planning” office in the village, apex monitoring committees tasked with supervising the progress of the project have also been constituted, sources closely associated with the project said. Explaining the project, planning, statistics and evaluation director Anand Sherkhane said that though it was a long drawn process, the project will begin to take shape within the next few months. “As the project will be a continuous process, there are no timeframes or deadlines. Of course, milestones will be set up and periodic assessment carried out by our

department. Results should be visible within the next six months,” Sherkhane told TOI. While the project envisages development of all sectors in the village, ranging from agriculture to animal husbandry and food processing to eco-tourism, the immediate focus will be on dairy farming. Sources said that the state government has sanctioned Rs 10cr for the first phase of the project. Netravali has a large number of milk producers and milk cooperative societies, a fact which perhaps prompted the government to focus its attention on dairy farming for starters. “In the immediate, we are working on plans to increase milk production, and then move on to other areas. It’s a farmeroriented project and our aim is to have the people invest in the project which will result in an increase in their income levels. With a view to increasing the milk production in the village, we are presently working at promoting cattle rearing, providing veterinary services and allied activities in Netravali,” Sherkhane said. A number of camps and study tours have also been planned for the dairy farmers in the village to enable them update their skills and knowledge about methods involving milk production, sources said. The “Adarsh Gram Netravali” also

envisages setting up of a cooperative tourism society which will undertake various eco-tourism activities in the village, Phal Dessai said. Elaborating on the plan, he said, “Villagers will be encouraged to become members of this society, and once they become members, they will be allowed to carry out various entrepreneurial activities to support eco-tourism activities, like setting up cottages besides their houses and renting it out to tourists, providing other amenities and facilities to tourists, etc. As the funds for investment will be pooled in by the members, profits too will be shared; in this manner the investment becomes secured. What’s significant about the whole idea is that the common man will be a valuable player in this potentially big ticket business.” Adarsh Gram Netravali Objective: To develop Netravali into a model village with a focus on community participation. Villagers to be provided with all assistance in availing schemes of various departments under a singlewindow system Activities covered: Agriculture, horticulture, bee-keeping, dairy farming, animal husbandry, eco-tourism.

Oil & Food Journal Vol. 08, Issue 07, May 2013

rla Foods Ingredients has developed a ground-breaking ‘toolbox’ of natural improvement solutions offering bakers optimised production processes, better quality endproducts, reduced waste and cleaner labels – all at the same time. The Nutrilac Natural Improvers range is an innovative portfolio of multi-functional ingredients offering targeted benefits for producers of bread, cakes, biscuits & cookies and bakery fillings. All are made from natural and functional proteins derived exclusively from milk and can be listed on-pack simply as ‘milk protein’. The new ingredients are designed to provide industrial bakers with smoother and more efficient processes, promising easier handling of dough, batters and fillings. They also provide excellent stability, with the ability to lock in the air whipped into batters and the water kneaded into dough, resulting in optimum freshness, texture and resilience throughout a product’s shelf life. Shelf life itself can also be extended using Nutrilac Natural Improvers, because they help a product maintain perfect sensory properties for longer, cutting down on waste and increasing profit margins. The new ingredients can also improve the nutritional profile of a baked product by reducing fat content. All of these substantial benefits are achieved using 100% natural ingredients, helping bakers maintain cleaner labels by avoiding the many synthetic improvement agents on the market. The wide range of benefits provided by the ingredients offers manufacturers an excellent multi-functional alternative to gums, enzymes and emulsifiers, which are usually limited in their scope to a single benefit or function. The new Nutrilac Natural Improvers are being launched now in Europe and China, with a global roll-out set for later this year. Søren Nørgaard, senior manager at Arla Foods Ingredients, said: “We have long Oil & Food Journal Vol. 08, Issue 07, May 2013

known that our existing protein-based egg replacement solutions provide a series of supplementary quality benefits. Our technologists have now taken those benefits and evolved them into a targeted toolbox which makes it easier for bakers to achieve great results every time, whatever their goal and whatever the product.” He continued: “Our new Nutrilac Natural Improvers offer bakers a huge variety of benefits that meet a comprehensive range of production needs, including optimised processes, better product quality and reduced wastage. They will appeal to consumers, too, because they will result in a healthier product with a cleaner label, free of the e-numbers and chemical names used for other improvement additives.” There are four launch products in Arla Foods Ingredients’ new Nutrilac Natural Improvers toolbox, each offering specific benefits designed to meet the majority of bakers’ needs:

emulsification. - Nutrilac IM-5566 – provides softness in bread without reducing crumb resilience or elasticity, offers increased strength in cakes for better slicing quality, and stabilises aerated batter systems for higher volume and stability. - Nutrilac IM-7042 – offers improved mixing tolerance, produces a more stable batter and provides superb emulsification properties in a whole range of wheat-based baked goods, including bread.

FOOD INGREDIENTS NEWS

Arla Food Ingredients Develops New Clean-Label Natural Improvers

Søren Nørgaard added: ”Our Nutrilac Natural Improvers are truly innovative and the first ingredients of their kind. As such, they offer bakers the opportunity to produce perfect products every time and gain a genuine edge over the competition.”

- Nutrilac CH-4650 – ensures a much more stable batter with better mixing tolerance, enhances cake surfaces by reducing stickiness, improves colour and appearance in cakes, and optimises creaminess by imitating fat in custard cream and other types of filling. - Nutrilac IM-8027 – a high-gelling protein designed to create excellent structure and strength in baked goods, providing optimum viscosity in most batter systems, greater water retention and excellent

FOOD INGREDIENTS NEWS

ADM Mitigates Rising Meat Costs With Soy Ingredients

rcher Daniels Midland Company (ADM) is showcasing its wide range of functional soya proteins at this year’s IFFA exhibition. Following steep price increases in the meat market, ADM Specialty Food Ingredients is addressing these challenges by offering high quality, natural alternatives to mechanically deboned meat (MDM). Suitable for a range of low-cost meat applications, ADM’s collection of soya protein systems can be used in frankfurters, kebabs, schwab and mortadella. With record raw material prices throughout the supply chain due to high margins and poor weather conditions affecting animal feed supplies, ADM’s functional soya concentrates offer manufacturers a cost-effective way to maintain the same taste and mouthfeel of meat products in a cost-effective way. Visitors to the stand can learn how ADM’s functional soya proteins can deliver a number of valuable properties to extend or optimise meat products. Arcon SL improves the texture of dried, fermented sausages without affecting the ripening or drying phases, while Arcon SM can be injected into whole birds or joints to make the meat more succulent and reduce the

cost per kilogram of cooked rotisserie chicken. ADM’s range of soya protein concentrates can be used as the sole source of dietary protein without supplementary amino acids. Their nutritional profile is comparable in quality to animal protein sources, such as beef and milk, providing a high level of nutrition. Roland Snel, technical support manager, ADM Specialty Food Ingredients, comments: “MDM is an integral ingredient in meat products, and the rising costs are presenting problems for manufacturers. We have developed the Arcon range of soya protein systems to provide manufacturers with an economical means of extending their product range, while delivering products with the texture that is desired by today’s consumers. The ingredients are natural products without e-numbers, which also fits the current trend for clean labels.”

Moody’s Rating Action One Notch Down for Barry Callebaut to Ba1

arry Callebaut, the world’s leading manufacturer of highquality cocoa and chocolate products, has announced that Moody’s Investors Service, assigned a Ba1 corporate rating to Barry Callebaut AG, down from Baa3. The rating outlook is stable. At the same time, the rating on the senior unsecured notes is Ba1 in line with the corporate credit rating. According to Moody’s, the downgrade reflects that the acquisition of Singapore-based Petra Foods Ltd.’s Cocoa Ingredients Division has a

negative impact on key metrics and financial flexibility of Barry Callebaut, given the acquisition is financed predominantly with debt. Barry Callebaut will finance the acquisition through a combination of new equity for an equivalent amount of USD 300 million and a USD 600 million Rule 144A/Reg S USD bond offering. Following the downgrade from Standard & Poor’son March 28 2013, Victor Balli, CFO of Barry Callebaut, said: “After achieving investment grade by Moody’s two years ago, we expected and communicated in December 2012

a potential downgrade based on the acquisition of Petra Foods’ Cocoa Ingredients Division and related rating metrics. We are convinced of the strategic long-term value of this important strategic acquisition and, based on our long-term strategy, we will continue to invest in future growth. Despite such investments might temporarily affect our profitability, balance sheet ratios and cash generation, we are fully committed to go back to investment grade within the next few years.”

Oil & Food Journal Vol. 08, Issue 07, May 2013

uPont Nutrition & Health invites visitors to IFFA 2013 to test their senses and experience how the company’s recently expanded portfolio is building new opportunities for the meat industry. The event marks the first demonstration of the combined functionalities of DuPont Danisco ingredients, Solae soya proteins and diagnostic systems for food safety and quality assurance. Innovative packaging technology for extending meat product shelf life will also be featured. With this strong product line-up, DuPont will put a keen focus on improved sensory quality, enhanced nutrition and reliable safety assurance right through the food chain – all showcased via a series of inspirational concepts. One of the core samples on the company booth will be a new Korean Bulgogi formulation. This will be subject to a blind taste test, where visitors will be asked to evaluate taste, texture and content. The actual content will be revealed during the event. “Korean Bulgogi was placed no. 23 on the world’s 50 most delicious foods list compiled by CNN in 2011, so we are particularly interested to hear people’s opinion of our new concept,” says Morten Hoffmann Kyed, Senior Group Manager for Meat Applications. Rolling many of the combined portfolio benefits into one, DuPont will also present a better-for-you salami concept – an appealing, reduced-fat snack that will please kids and their parents. The formulation contains texturizing SUPRO soya proteins, TEXEL Prism-1 maturation Oil & Food Journal Vol. 08, Issue 07, May 2013

starter culture and the natural antioxidant GUARDIAN Rosemary Extract. A GRINDSTED Meatline emulsifier & stabilizer system enables fat reduction without sensory compromise. The salami’s multi-layer packaging makes use of the premium sealant DuPont™ Surlyn, which maintains an appetizing fresh appearance and extends shelf life. Additionally, DuPont Food Diagnostics provide easy-to-use methods for molecular detection, identification and monitoring. In a new burger concept, DuPont highlights a nutritious alternative to traditional burgers, where soya supplements the protein provided by meat. “Several of our concepts are designed to give a good nutritional profile along with premium, indulgent quality,” says Kyed. “This demonstrates some of the significant synergistic benefits our science-driven portfolio can provide.” Collaboration unlocks the answers science provides and as part of what we call “the Global Collaboratory” DuPont is committed to finding new and better ways to feed the world’s growing population. Opportunities to supplement meat with highly nutritious vegetable proteins are in line with this goal. DuPont Danisco is the brand for a range of products that help provide enhanced bioprotection, an improved nutritional profile, and better taste and texture with greater cost efficiency and lower environmental impact, meeting the needs of manufacturers of food and beverages, dietary supplements and pet food.

FOOD INGREDIENTS NEWS

DuPont Puts Value into Meat Innovation at IFFA

FDA Is Keeping Many Ingredients in Our Foods Secret From US

he Food and Drug Administration has a special knack for making even the simplest tasks complicated and timeconsuming. NRDC has been forced to file a lawsuit to get information that should be public in the first place. The FDA maintains a database that contains an extensive list of chemicals that are approved for use as food additives. These food additives include things like dyes, flavorings, extracts, and other chemicals that can be in our food. But FDA’s oversight of these chemicals is rather sparse. To get a better idea of the scope of the issue, in early March, NRDC officially requested a copy of the FDA database, called the PAFA (Prioritybased Assessment of Food Additives) database. It includes both the names of the chemicals and the basis for the FDA’s approving them for use in food. The statutory deadline for providing this information to us passed on April 5. We are now a month past the deadline, with nothing from FDA. And so, NRDC has been left with the arduous task of suing FDA for this information. But this isn’t really about the lawsuit. It’s about the fact that this agency has not come clean about the thousands of potentially dangerous chemicals that are pouring into our food every day – that are there with the FDA’s seal of approval. There is so much we don’t know about these food additives, and FDA is refusing to help us find out. Eventually, we will get this information. And who knows what we are going to find out when we look through it. Is there something there that FDA doesn’t want us to see? This lawsuit is the first step to answering that question.

Oil & Food Journal Vol. 08, Issue 07, May 2013

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