Oil & Food Journal February - 2016

1

Vol 11 Issue 04 February 2016

Rs. 100/-

11th

TREND IN

Volume

BEVERAGE PACKAGING INDUSTRY

BUBBLING UP

Smell the coffee

Palm Oil:

FDI ?

Effects on Health

Discussing in Multibrand Retail

2 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

3 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

4 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

5 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

6 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

Production fall in Malaysia pushes up rates for edible oil Edible oil firms increase share of branded & packed oil to fetch premiums

AdaniWilmar launches diabetes care oil Fortune VIVO; targets health conscious consumers

48 50

49

IBM and Mars introduce a new consortium to ensure global food safety

Supreme Court asks Mysore lab to clarify on food safety tests on Maggi Noodles

TREND IN BEVERAGE PACKAGING INDUSTRY BUBBLING UP IN RELATION OF ENVIROMENT AND COMPETITION

13

31

20

High definition cameras improve safety and quality for processors of Frozen Fruits and Vegetables

51

India going for large-scale food imports

51

Indian groundnut exports get a nod from Vietnam govt

52

Gujarat FDCA winds up ‘Street food safety model’ in Three Districts

52

IARI avails high-yielding agri-produce

Food industry welcomes new norms for food product imports by FSSAI

53

51

Smell the coffee

EmamiAgrotech to expand edible oil production

FSSAI suggests Ingredient-based approval for proprietary foods

DairyUK's new export strategy to unleash international markets

53

26

9

Biotech, the answer to edible oil shortage

Nutraceuticals, food supplements no longer proprietary foods by FSSAI

Does the Indian Economy

Need Deregulation Discussing

FDI in Multibrand Retail

Verka to launch premium brand of indigenous Cows' Milk

54 55

Mobile Kitchen upgrades street food in Kerala Corn is fast moving from snacking to full meals in India

56

FMCG’s to tame on calorie count; serves health-conscious buyers

Bagrry's aiming Rs 400 crore turnover in 5 years; to launch more brands

57

To lease out ailing Delhi Milk Scheme centre invites bids next month

55

Coca Cola enters dairy drinks segment in India

56

54

CONTENTS

Stop import of edible oil, plead farmers, TN

49

48

47

47

45

44

44

42

7 www.agronfoodprocessing.com

Sunfeast ‘Yippie’ noodles to reach Rs 1,000 cr mark post Maggi-ban

Vol.11 Issue 04 February 2016

17

JUNK FOOD ARCHENEMY

Biological and Nutritional Properties of Palm Oil and Palmitic Acid: Effects on Health 40

‘Need to bring Extrusion machinery, film and packing manufacturers on common platform:’ R.J.Rayanade

8 www.agronfoodprocessing.com

I

Vol 11 Issue 03 January 2016

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

The views expressed in this issue are those of the contibutors are not necessarilly those of the magzine. though every care has been taken to ensure the accuaracy and authenticty in infomation, "Oil & Food Journal" is however not responsible fordamages caused by ministerpretation of infomation expressed and implied with in the pages of this issue.

All disputes are not to be referred to Mumbai Jurisdiction

EDITORIAL

ndia hosted heads of state from Sweden, Finland, Lithuania and Poland along with 25 ministers of trade and industry from countries including Japan and Germany for its mega 'Make in India' week that started from February 13. The six-day long pitch for greater manufacturing in India was held in Mumbai and had an approximate participation from 1,500 foreign companies and business delegations from 65 countries.

Prime Minister Narendra Modi wooed global investors at this event by highlighting India’s growth story and promising policy reforms to make business easier, including a transparent tax regime.

‘Come, make India your workplace. This is the best time ever to be in India and it’s even better to Make in India, ’chanted the Prime Minister India has emerged the most favoured global destination. Investment growth has shown 27 per cent increase through new proposals. Foreign direct investment grew by 48 per cent in 2015, the highest ever, at a time when it was falling across the world due to recession.

With a GDP growth of 7 per cent, India is emerging as the fastest growing economy with investments in sectors ranging from infrastructure to textile and agro-industries to manufacturing, he said. The government has set up a new Investment Infrastructure Forum.

Modi promised huge growth in the manufacturing sector which, he said, should contribute 25 per cent to the GDP. This is not the time for incremental changes but quantum jumps, he said.

He also highlighted the Startup India, Stand up India initiative, promising to reduce patent fees by 80 per cent to promote young and promising entrepreneurship.

Food processing had a special place on this occasion and as sunrise sector, it ignited the interest of many international companies. The Made in India event was the week for investment for the food industry. With the governmental interest in opening 100 per cent FDI in Multibrand food retail, the sea of opportunity seems to flow open.

The Food Processing Minister Harsimrat Kaur Badal has called for fully opening up foreign direct investment (FDI) in multi-brand retail of the food products produced and processed in India so as to benefit farmers and reduce inflation.

FDI will help benefit the consumer by reducing inflation, reduce wastage, increase availability of fresh and processed variety of food at a stable price, and improve farming technology. As food processing sector grows, it will lead to increase in demand for farmer's produce, besides, things like technology transfer, imparting technical know-how and promoting usage of better seeds can further help in uplifting the standard of farmers in the country.

Ramesh Chauhan beverages Zar will compete with MNCs such as Coca-Cola and PepsiCo in the Rs 14,000-crore domestic beverage industry. According to Chauhan, they are test marketing four new flavours - Pina Colada, Fonzo (a fruity flavour), Spicy Cola and Limmonata (a lemony drink. "These are being manufactured at five locations around the country."

Well talking of cold drink, Coca-Cola India has stopped production at three plants ahead of the peak summer season, citing inadequate demand, including one in Jaipur where activists have alleged water depletion.

The other plants that were shut are in Andhra Pradesh and Meghalaya. Activist body India Resource Center (IRC) had said that one of the primary reasons for the closure of the Kaladera plant in Jaipur was the increased difficulty in accessing groundwater from a depleted aquifer, in addition to incurring financial losses.

Consumer goods major Hindustan Unilever may sell its commoditised businesses such as Atta, rice and salt brands as it looks to realign its food portfolio. The multinational, in its recent internal review, has decided to sell its 'non-core' food brands and focus on its core strength instead — Kissan, Knorr and ice cream brands Mother dairy is setting up Rs 75 crore processing plant in Ranchi and now there will be add on spice in our chocolates and beauty products, while ITC forays into frozen food and fish, India tops milk output in 2014-15, but lags behind in productivity according to NDRI data, Britannia upgrades their dairy profile and we are going to get 4 more Mega Food park by the end of 2016.

Much news many views I choose some important ones but that does not make others less important, rather I lack the particular space.

See you next time dear readers!

Vol.11 Issue 04 February 2016

9 www.agronfoodprocessing.com

TRENDING

Smell the coffee With global exposure and changing Indian preferences, the ever increasing cafe houses in India are also transforming and providing varied offerings to their clientele, but above all India is also racing ahead as a coffee producer enticing the world with its economically effective and good coffee bean

I

n India, coffee is grown in regions that receive 2,500–4,000mm rainfall across more than 100 days, followed by a continuous dry period of a similar duration. Coffee growing areas in the country have diverse climatic conditions, which are suitable for the cultivation of different varieties of coffee. India is one of the 25 biodiversity hotspots of the world.

India’s coffee industry can trace its roots back to the 18th century, when British entrepreneurs turned forests in south India into commercial coffee plantations.

The southern states, such as Karnataka and Kerala, have subsequently grown to become both the most dominant coffee producers in India and its most

popular consumer base, accounting for approximately 75% of coffee consumed in the country. However, the North East and other parts of the country are also increasingly beginning to produce their own coffee beans.

Robusta and Arabica are by far the most commonly produced varieties of coffee in India, with the former making up 60 percent of the country’s total production output and the latter 40 percent. India is widely reputed to be one of the best places in the world to grow coffee in the shade, and the majority of Arabica – a mild blend of coffee – is grown this way in high altitude areas. Robusta, a stronger blend of coffee, is better suited to warmer climates and is grown at temperatures of

Vol.11 Issue 04 February 2016

between 200°C and 300°C. 100% FDI is currently allowed in India’s coffee industry through the automatic route. Combined with India’s low-labor costs, the constant expansion of the industry’s production base, and the rising market value of what it produces, the country’s export sector is undoubtedly an attractive one for foreign investment.

Investors have far more reason to be dubious about India’s coffee retail industry.

Whilst the sector does undoubtedly have market growth potential, profits will be limited and retailers are still likely to initially run at a loss. The retail industry is therefore better suited for firms that are able to enter the market with a long-term

10 www.agronfoodprocessing.com

business strategy in mind, at least for the time being.

The coffee mania in India itself With increased income levels, favourable demographics, development of Tier II and III cities and the advent of many international chains, the cafe culture in India has been witnessing a phenomenal growth. According to ‘India Coffee Shops & Café Market Forecast & Opportunities, 2017’, the coffee shops and café market in India is expected to grow threefold and become a US$ one billion market by 2017. Café Coffee Day is the biggest player in the coffee shops and café market in India, followed by many international chains that have also opened up.

Coffee consumption in India is becoming largely commercial and cafe culture, a lifestyle for the young. It has taken India by storm and it will continue to do so because of higher incomes and greater urbanisation. It has become a hub for corporates, teenagers, couples, artists, expats and many others.

Expanding opportunities With increasing global exposure, people expect a distinguished or a gourmet coffee experience, which many of the international brands are able to provide.

However, even the Indian coffee house chains aren’t far behind. The rising per capita income, increased literacy and rapid urbanisation has caused tremendous growth and change in demand patterns for Indian café chains as well.

In 2016, the Indian youth segment is expected to increase to 55 per cent, a major contributor to the growth observed

TRENDING in the cafe houses in India.

Coffee shops served as social hubs for the youth segment, particularly those with steady, disposable incomes.

And now, coffee chains offer a basic emotional need – refuge, with brands acting as a place between home and office, complementing urban development, not just for the premium segment but becoming a necessity for all.

Also with the Indian middle class consumer ready to spend more and be a part of global lifestyle and culture, coffee parlours in the country are on an expansion spree. India is predominately a tea drinking country; however, tea consumption in India is more domestic than commercial. Amongst hot beverages cappuccino and latte are most popular with customers appreciating their signature taste and aroma. The signature ice blended drinks are exclusive to the brand as the most popular beverage.

Market development The coffee retail business in the starting had struggled to make its mark in India.

A number of big coffee chains have maintained a presence in the country since the turn of the century, but many had also failed to make a profit and been operating at a loss. The added factor was that India is not a coffee drinker nation and many still have the perception of coffee as a luxury item.

That being said, the future of India’s coffee retail market is real good. Coffee is far more popular with India’s younger generations. Perhaps for this reason, foreign investment in India’s coffee retail sector has increased in recent years. Industry giant Starbucks has been prolific in the country, opening new stores in Delhi, Bangalore and Pune in a joint venture with Indian firm Tata Global Beverages in the last couple of years. John Culver, president of Starbucks in Asia, has

Vol.11 Issue 04 February 2016

explained that it was the potential for market growth that had persuaded the chain to expand in India and the company is going to move as fast as we possibly can to take advantage of the opportunity that exists in India, as it is an economy that is moving very quickly, and the consumer is evolving very quickly.

Coffee consumption in India has rapidly increased over the years, with out-of-home coffee consumption in India fast growing, thereby contributing immensely to the growth of in-home consumption of coffee in the non-traditional markets. India has cafes strategically located close to offices, colleges, high streets and shopping malls.

The current generation is not looking at having plain cappuccino, their choices have evolved and they prefer having new innovative flavours like hazelnut, mocha, caramel etc. The tremendous success of our flavour of the month programme is a testimony to this evolving palate.

There is a lot of potentiality for street cafes for India and the café story has just begun in India. Café culture is more about creating a meeting place for people and providing suitable ambience for people to hang out and spend quality time. The corporates or entrepreneurs typically hold business meetings and use the coffee shop as meetings place given the ambience and thereby frequenting a café more than a casual customer for whom coffee is an ‘impulse’ category.

Many other international brands have also realised the potential of the Indian market, but are facing challenges while expanding further. Italian Coffee brand Lavazza sold

11 www.agronfoodprocessing.com

TRENDING September.The post blossom crop forecast for the year 2015-16 is placed at 3, 55,600 tonnes. This is an increase of 28,600 tonnes over the final crop estimate of 2014-15.

its share of Barista Coffee Company, which it bought in 2007, to Carnation Hospitality, a subsidiary of containers and packaging firm Rollatainers, exiting the coffee shop business in India. Barista has over 170 outlets across India and now Carnation hospitality has announced to open over 500 outlets by 2020.

Other chains like British coffee retail chain, Costa Coffee entered the India market in 2005, with Devyani International, and now operate over 100 outlets across India. In 2012, the American Coffee company, Starbucks Coffee Company entered a 50:50 joint venture with Tata Global Beverages and has around 58 outlets across Mumbai, Delhi NCR, Pune, Bengaluru, Chennai and Hyderabad so far.

Coffee production in India Coffee is a versatile beverage.

Internationally, coffee has transcended beyond levels in the last few years. India for the last decade has recorded a robust consumption rate of 5-6 per cent; it is yet to catch up with the refined consumption habits of the sophisticated coffee markets.

Coffee production in India is expected to touch a new peak of 3,55,600 tonnes this marketing year starting October, as the crop prospects are encouraging due to adequate rains in most growing states.

The country's total coffee output has reached a record 3, 27,000 tonnes in the ongoing 2014-15 coffee year, though slightly lower than the earlier estimate of 3, 31,000 tonnes made for the same period, it said in a statement.

The coffee year runs from October to

Of the total, Arabica production is estimated at 1, 10,300 tonnes in 2016 as against 98,000 tonnes this year, while that of Robusta production is pegged at 2, 45,300 tonnes as against 2, 29,000 tonnes.

Arabica and Robusta are the varieties of coffee and overall, the crop prospects of 2015-16 at post-blossom stage are quite encouraging with a promise of highest record crop thanks mainly to the timely and adequate blossom and backing showers in traditional areas and nontraditional areas.

According to the Board, much of the production gain is expected to come from Karnataka, where total coffee output is pegged at 2, and 56,500 tonnes in 201516, as against 2, and 33,230 tonnes in the current year.

The main reason for increased crop forecast in the state is that all coffee growing areas have received timely and adequate blossom and backing showers during this year and prevalence of good prices encouraged the growers to adopt better husbandry practices which have helped to invigorate production.

The output in three coffee growing districts Kodagu, Chikmagalur and Hassan is estimated higher at 1, 38,075 tonnes, 85,250 tonnes and 33,175 tonnes, respectively, for 2016.

Coffee production in Kerala is estimated to increase to 69,800 tonnes in 2016 from 67,700 tonnes this year,

Vol.11 Issue 04 February 2016

while the output in Tamil Nadu is likely to improve marginally to 18,800 tonnes from 17,875 tonnes.

In non-traditional areas, coffee production in Andhra Pradesh is estimated to increase to 9,700 tonnes from 7,425 tonnes, while the output in Odisha is expected to rise to 600 tonnes from 550 tonnes in the said period.

Coffee output in north eastern region is, however, expected to decline marginally to 200 tonnes in 2015-16 from 220 tonnes in 2014-15.

A Strong Export Sector Production of coffee has been growing at an exponential rate in India, with export volumes averaging between 200,000 and 340,000 tonnes. As of the 2009-2010 fiscal year, over five million Indians derived their income from the industry, and from October 2013 to September 2014 India exported US $776.69 million worth of coffee.

Coffee is primarily an export-driven commodity in India, with around 70 percent of what it produces exported to various parts of the world. The country is currently the world’s sixth biggest exporter of coffee after Brazil, Vietnam, Colombia, Indonesia and Ethiopia. Italy, Russia and Germany make up the bulk of India’s export markets, with mostly European countries accounting for the remainder.

Here, we break down the main importers of India’s Robusta and

12 www.agronfoodprocessing.com

TRENDING Enjoying almost a monopoly status in the Indian coffee market, Nescafe accounts for 55% of the market share in the Indian coffee industry.

Arabica coffee: India is the third-largest producer and exporter of coffee in Asia, and the sixthlargest producer and fifth-largest exporter of coffee in the world.

The country accounts for 3.9 per cent of the global coffee production. The Arabica and Robusta varieties accounted for 30 per cent (98,000 MT) and 70 per cent (229,000 MT) of India’s overall coffee production, respectively, in 2015.

Of the total coffee produced in India, ~70 per cent is exported and ~30 per cent is consumed domestically. In 2014, coffee consumption in India was 115.02 million kg.

In 2015, India's coffee export volume was 286,545 metric tonnes and value was US$ 810.1 million.

Top coffee brands in India According to a study conducted by the International Coffee Organization, India is the fifth largest coffee producer in the world. Karnataka alone is responsible for producing 70% of the total coffee output of the country. India is responsible for producing only a meager 4% of world coffee output and the industry directly provides employment to about 6 lakh people.

Here is the list of top coffee brands Nescafe by Nestle India clearly dominates the Indian coffee market. Apart from establishing numerous manufacturing units the company has also gone a step ahead and installed numerous coffee machines in various public places. The company has a record of selling almost 700m cups of hot and cold coffee per day.

TATA Coffee is among the top coffee brands in India Tata Coffee is one of the largest integrated coffees producing companies in the world. Tata Coffee is involved in every aspect of coffee production right from growing and curing of coffee to the marketing and sales of the product. Tata Coffee owns 19 coffee estates where they grow coffee, located in South India which serve as ideal destinations for the growing and processing of coffee beans.

BRU is another significant coffee brand in India Bru is one of the most sought after brands produced by HUL. Introduced in the year 1969 the brand became the pioneer of instant coffee in India. Positioned as a family coffee brand Bru even managed to push Nescafe to the second position in 2008. Currently among the top coffee brands in India Bru accounts for 49.6% market share of the coffee industry in India.

Cafe Coffee Day (CCD) is for the young at heart. It is India's favourite coffee shop, lovingly called - CCD. It is part of India's largest coffee conglomerate (yes, there is one), the Amalgamated Bean Coffee Trading Company. The first CCD opened in 1996 on Brigade Road in Bangalore.

Since then, they have become the largest organized retail cafe chain in the country.

With the red purple combination on its ambience, CCD has its presence in every nook and corner of a city. At low prices, it offers a wide range of eatable and drinks.

CCD is undoubtedly India's favourite coffee shop where the young at heart unwind.

Indian Coffee House (ICH) is a restaurant chain in India, run by a series of worker co-operative societies. It has a really strong presence across India and is completely owned and managed by its employees. The society is governed by

Vol.11 Issue 04 February 2016

an eleven member managing committee elected from the employees. From using disposable plastic glass to serve coffee they have slowly but steadily expanded.

There are more than 400 coffee houses all over India. ICH is the oldest coffee shop chain in India, which came into being in the 1950s.

Barista Cafe and Restaurant was established in February 2000, Barista is a pioneer of Indian cafe culture. It was ahead of its time when it entered the Indian market. Barista is present in over 30 cities across India and aims to provide a comfortable ambience to unwind.

People appreciate the international touch, especially the Barista Lavazza, the most preferred coffee because of its Italian touch.

Costa Coffee was first poured on our shores in 1971 at by Sergio and Bruno Costa. Today, the Costa Roastery produces the same unique Mocha Italia blend which the Costa brothers experimented and blended. Costa Coffee have a lot of outlets across India and they are planning to bring in a couple of 100 more by 2015.

Brewberrys Café started in 2008 by Hotel Management graduates Ankur Gupta and Ronak Kapatel. The first Brewberrys café opened in Vadodara, Gujarat. A selffunded startup, Brewberrys Café is now one of the leading and fastest growing chains in India. The company focused on attaining expertise in café operations.

They brought in containers for eatables, different types of cups and packaging materials for better services. They also focused on business sense from its first few ventures in Gujarat. They went ahead with national expansion and have a PAN India presence with above 45 stores in 15 states.

13 www.agronfoodprocessing.com

REVITALISE RETAIL

Does the Indian Economy Need Deregulation Discussing FDI in Multibrand Retail

E

conomics of FDI in Multibrand retail in India It can be useful, in an economic sense, to observe what it is that people are discussing rather than the details of how they are discussing it. But that detail isn’t the interesting observation from afar: that people both assumed the existence of angels and that it was important to discuss aspects of them, not their existence, tells us something about that society.

So does the current debate about foreign direct investment in India tell us something interesting about that society, that economy? The arguments are about

which sectors, in great detail, should be opened or not be opened to that foreign direct investment. That is, which sectors of the economy should foreigners be allowed to operate unfettered in? And the very fact that the debate is about which sectors, rather than about the important question, why are there any limits, is instructive.

FICCI also sought clarity on FDI norms in e-commerce by pointing out that though 51 per cent FDI is permitted in multi-brand foodretail, FDI is prohibited in business-to-consumer (B2C or retail) e-commerce. It added that FDI should be

Vol.11 Issue 04 February 2016

allowed in B2C e-commerce in a phased manner and there could be a requirement to source significantly from within India to promote ‘Make in India’ and focus on preferable sourcing of certain percentage from SMEs and MSMEs. This is, at the fundamental level, the wrong discussion to be having. Because an economy is supposed to be run for the benefit of consumers. That’s the entire and whole point. The only point of production is consumption. We must always look at economic questions from the point of consumption. So, the question is, will foreign direct investment increase the

14 www.agronfoodprocessing.com

REVITALISE RETAIL not yet scrapped the policy approved by the previous UPA regime.

consumption possibilities of the Indian public in general? If so then there should be no laws against it.

The net effect of an efficient retail sector is hugely beneficial to consumers. Thus rather than preventing the emergence of an efficient retail sector encouraging such emergence is the correct policy. And, of course, FDI into the sector, just allowing those foreign companies which know how to do this to come in with their capital, their knowledge, to do this will increase the efficiency of the sector.

And we actually know that this is true in a wider sense too. One of the major ways in which trade (including both goods and services trade and the more local form of it that comes from FDI) makes a country richer is that the competition from the best in the world forces the local producers to become more efficient in order to compete. This is actually how the effect works.

So, that the Indian discussion is about which sectors in detail shows us that the discussion is taking place on the wrong points. Instead of that the discussion should be, well, why the heck do we have any limits on FDI at all? FDI will make consumers richer: that’s the purpose of having an economy so why aren’t we doing it? The answer to that of course is politics: India permits 51 per cent FDI in the multi-brand retail sector. The BJP-led NDA government is opposed to allowing FDI in multi-brand retailing, but it has

Those who run the current retail system feel that their interests are best served by not allowing more efficient foreign retailers into the country. And they’re a decent sized voting bloc and thus politics prevents good economics. The very insistence that the kiranas must be protected from the competition is exactly why they should not be, because that is a produceQ interest trying to maintain its position at the expense of the consumer.

The very fact that producers demand protection from the foreigners is the very proof we need that consumers would benefit from said competition.

India should simply open up the entire economy, all sectors with no (other than possibly national security concerns) limitations, to foreign direct investment.

It is possible to have concerns about portfolio investment, which can run and cause liquidity problems when times are hard. But FDI is, by definition, there to stay: and as it benefits consumers therefore it should be allowed without restriction.

The Food Processing Ministry plans Food Processing Minister Harsimrat Kaur Badal is contending for fully opening up foreign direct investment (FDI) in multibrand retail of the food products produced and processed in India so as to benefit farmers and reduce inflation.

She has requested the prime minister that 100 percent FDI in multi-brand retail of those food products which are produced and processed in India should be allowed.

So that those big companies can create infrastructure

Vol.11 Issue 04 February 2016

especially for the agriculture sector and bring the latest technology for the farm sector.

100 per cent FDI is seen as an interest of both consumers and farmers as it will bring down food inflation, create more jobs and lead to rapid infrastructure development.FDI in multi-brand retail has come in the food sector in India, like in Punjab that has benefitted everybody, there is no trader in the middle who has lost out, there is no farmer who has lost, no industry has lost out, so it has been a win-win situation and it has been a tried and tested formula.

India allows foreign investment up to 51 percent in the multi-brand retail sector.

Though The Indian food processing industry is a "sunrise sector", it only processes two percent of the perishable produce; she said it is imperative to focus on it towards improving condition of farmers across India. It will help benefit the consumer by reducing inflation, reduce wastage, increase availability of fresh and processed variety of food at a stable price, and improve farming technology. As food processing sector grows, it will lead to increase in demand for farmer's produce, besides, things like technology transfer, imparting technical know-how and promoting usage of better seeds can further help in uplifting the standard of farmers in the country.

Effect of FDI in multi-brand retail of food Many may not agree but a research done

by Delhi-based think tank Indian Council of Research on International Economic

15 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

16 www.agronfoodprocessing.com

Relations (ICRIER) severely support that the Centre must consider allowing FDI in multi-brand retail of food and grocery to boost food processing as it is unlikely to pose any threat to local stores because a majority of Indian consumers still buy fruits and veggies from the local markets.

The current policy already has a provision for allowing 51 per cent foreign direct investment (FDI) in multi-brand retail and the BJP-led NDA government has not yet rolled back the policy decision taken by the previous UPA regime.

This reports show a survey that a majority of Indian consumers prefer to buy fruits and vegetables from the local markets (53.3 per cent) and push carts (18.8 per cent) despite presence of organised retail stores in select metros.

movements of fruits and vegetables.

The FDI scuffle The government is learnt to be examining a proposal to allow foreign direct investment (FDI) in multi-brand food retail as part of its signature Make in India initiative.

The local traders are opposed to this move, .as it would affect their market. But farmers associations and industry bodies have backed a plan to allow foreign investment in the food processing sector.

Foreign investors will invest millions to create logistics, warehouses, supply chains and many other bank-end functions, which will provide safe, fresh and variety of food to consumers. This can regulate food inflation as the system will remove middlemen; pricing of goods

So, allowing FDI multi-brand retail of food and grocery sector will not have any impact on local vendors and the government must explore the possibility of liberalizing FDI in multi-brand retail and ease conditions on foreign investors to improve access to variety of products.

At present, the food and grocery sector is largely non-corporate and there are restrictions on FDI in multi-brand retail.

Further, some states do not allow direct sourcing. As a result, global multinationals have not shown interest in investing in the food supply chain. Also the high taxes on processed fruits and vegetables and variations in taxes across states also hinder the processing.

Besides this, the 'Indian Phytonutrient report' made several recommendations to address the supply chain barrier of fruits and vegetables in a bid to increase India's daily intake of these fresh farm items to the level of WHO recommended quantity of 400 grams per person.

To raise the consumption level, there is an urgent need to identify gaps in food supply chain infrastructure and focus policy on the creation of the right infrastructure.

Fruits and vegetables should be delisted from APMC so that there is no cess and remove restrictions on inter-state

will become transparent.

For farmers, the proposal could result in more profits and better technology and will bring better know-how in terms of technology and marketing support.�

The Confederation of All India Traders (CAIT) has expressed dissatisfaction over 100 per cent FDI issuer. According to, CAIT, Mrs. Badal has no cognizance of report of Indian Council of Agricultural Research released in year 2010, which stated that food wastage in India is 0.8% to 10% which is not that much alarming

Vol.11 Issue 04 February 2016

REVITALISE RETAIL thatMNCs are needed. The government is committed for not allowing FDI in retail and any move to allow MNCs into Indian retail trade will amount betrayal of confidence of the small businesses in India.

India currently allows up to 51% FDI in multi-brand retail as part of a policy notified by the previous UPA government.

Political combat Prime minister had redirected the FDI issue towards the Finance MinisterMr Arun Jaitley, but the Rashtriya Swayamsevak Sangh (RSS) is quite opposed to it. They think, the margins in food-only multi-brand retail stores are low, despite having high revenues, in the international arena. And after entering the Indian market these companies would want a foothold to eventually open up the conventional multi-brand retail and it would also mean opening up contract farming and giving the ownership of the warehouses and other logistic and delivery supplies to one player to ensure bigger margins and Indian farmer is not ready for all this.

In her arguments, the minister thinks thatinternationally established brands and multi-national companies will promote technology transfer, something which has been missing in India due to lack of infrastructure. RSS leaders counter her by adding that it is the job of the government of the day to make enabling infrastructure and regulatory environment to develop domestic players rather than look for FDI. However, the minister argues, opening up of this segment will be in the interest of both consumers and farmers: "It will bring down food inflation, create more jobs and lead to rapid infrastructure development."

Interestingly, three years ago, while giving her party's stand on the floor of the house to oppose the UPA move, she had said exactly the opposite. The only difference in the proposal is: now she wants opening up of doors for Indian food processors.

It appears difficult for both ends to meet, but for sure the power tussle will continue.

17 www.agronfoodprocessing.com

JUNK FOOD?

JUNK FOOD ARCHENEMY T Are Junk food really bad,

are their adverts hollow, are Pictorials going to

help, are we doing the right thing. Basma Hussain has tried to explore the Junk food factor in the Indian context

he Reality When I thought of writing about Junk food, the first thing that crossed my mind was, “Wait till I tell my daughter”. I pictured breaking the news and her grudgingly admiring reaction. It didn’t go exactly as planned. My Tenyear-old looked at me long and hard, and asked, her brows furrowed, “Does that mean we can tell you what to write?”

That was 7 years ago, and the decade has been an unfruitful exercise in trying to weigh the salts against the sugars, the trans-fats against the fats, the calories against the carbs, the cheese against the chips, and, most importantly, defining what exactly or how much exactly is junk food, with a few court judgments and many, many health studies along the way barely tilting the scales.

Not a great beginning. But perhaps what I am writing today will thrill their hearts. It’s on “junk food”, that much-maligned word I thought was so funny — till it acquired horrific images of parental neglect at my first interaction with my kids’ teachers when she first entered school.

Food Safety and Standards Authority of India’s stand to curb sale of most common “High Fat, Sugar and Salt (HFSS) foods” — chips, burgers and aerated drinks — in schools and areas within 50 metres of schools.

My child is allowed “junk food” once a

Vol.11 Issue 04 February 2016

18 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

19 www.agronfoodprocessing.com

Equipments for Dairy Industry

+ Vacuum Filling & Clipping Machine

Fine Emulsifier, Cheese Dicr & Slicer (Taflon Executed)

Dr. Froeb (India) Pvt. Ltd. 2nd Floor, C-22, Sec-2, Noida 201301, UP, INDIA. Tel: +91 120 4283840,1,2 Email: info@drfroebindia.com/atul@drfroebindia.com * Website: www.drfroebindia.com Regd. Off: 205, Akash Darshan Apartment, Mayur Vihar, Phase 1, Delhi 110 091 Vol.11 Issue 04 February 2016

20 www.agronfoodprocessing.com

JUNK FOOD? premature as the Food Processing Industries Minister Harsimrat Kaur Badal had suggested Pepsito develop “such food products that can be supplied as part of the mid-day meals in rural India and expand their operations in the country.

week. But that inexhaustible list actually just means burgers and pizzas, ordered from outside. I do know they get away with a lot in the middle. The depleting stock in the pantry tells a story every day, about a son who craves cookies and a daughter who thrives on soya sticks (no, they don’t have much soya). You can run the length of an argument with them, but almost each starts with my saying “no”, and each ending with her, especially her, saying “Please, one more”.

As I sneak out some chips, wafers, nutcrackers or bhujia for myself, I look around to catch her, especially her, eyes always upon me. When I give in and offer the same to her too… well, let’s just say she squeals in surprised delight. You can be sad that a bowl of dal isn’t greeted with as much joy, or you can just accept it as one of life’s universal truths.

The Fact This is what actually happens but we can’t change the fact, Junk food is not a very good option for our kids, and serious need should be taken to actually balance the consumption and health. Junk food (rich in sugar, salt and fat), together with physical inactivity, are key risk factors for heart disease, diabetes and other chronic diseases.

When the government hiked taxes on these unhealthy foods it was welcomed by health experts. It was seen as an indicator of the new government’s resolve to fight the rise of lifestyle diseases.

The expectation that the tax hike would be followed by more steps to reduce the impact of various risk factors was

Not just this, she was also keen that the cola-and-chips company becomes a partner of the government in its endeavor to provide nutrition and health to the poor.

Specifically, Kaur has asked, a junk food company being asked to be a nutrition provider may sound weird, but this is exactly what the cabinet minister has said.

To the nutrition and health community, such a statement was blasphemous.

It undermined the spirit of several resolutions of the World Health Organisation (WHO) - to which India is a party - that had specifically called for reducing the impact of junk food marketing on children.

The world body has stated that risks presented by unhealthy diets start in childhood and build up throughout life.

"In order to reduce the future risk of noncommunicable diseases, children should maintain a healthy weight and consume foods that are low in saturated fat, transfatty acids, free sugars, and salt.”

Allowing food companies to provide mid-day meals is also against WHO recommendation which exhorts membercountries to “keep settings where children gather free from all forms of marketing of foods high in saturated fats, trans-fatty acids, free sugars, or salt.”

Tougher measures are on the cards with the WHO recently setting up a highlevel “Commission on Ending Childhood Obesity.

Ads that sell junk food The junk food industry has done it again and again by trying to mislead the public

Vol.11 Issue 04 February 2016

through advertisements which link its food with physical exercise and healthy.

Here are some samples: Coca Cola Advertisement that shows how your guest can only be happy if you serve them this cold drink, as Alia Bhattserves Coca Cola for her in laws to get rid of their tiredness. Well Alia Bhatt is a teenage idol…I think and can convince the young generation on how good cold drinks are.

Pepsi claims to quench the thirst of people, a boy drinks Pepsi while his group are swearing on hunger strike till they die.

So the claim is that Pepsi is better than water or rather the young generation can’t resist Pepsi no matter what the issue is MacDonald’s giving attractive gifts to children plus claiming that the food they give are energetic as they are carbs and proteins in it, while Dominos is on happy hours plus One Pizza free on Purchase of one…who won’t like to go for such deal.

KFC has the sole claim that they provide finger licking protein diet for kids and all.

Maggi Once upon a time used to claim that its Atta noodle was equivalent to 3 homemade roti and made kids so energetic that they go out to play football instead of playing on mobile sitting down at home. But now after being banned for 5 months, Maggi has not made any such claim, rather, showing people celebrating its come back, is a better option.

Lays showing they are made of best potatoes that are good for kids, while Kurkure claim on being made of corn

JUNK FOOD?

21 www.agronfoodprocessing.com

than the worst, like white flour products.

Junk food has other harmful ingredients too.

For instance, Maggi noodles are high in not just sodium, but carbohydrates and food additives as well, and low on essential elements like fibre, vitamins and minerals.

Atta noodles, despite claims, are no exception.

and rice starch depict to show they are healthy.

Empty claim and calorie The industry’s linking of physical exercise with junk food can hardly be construed as a responsible response to criticism of selling unhealthy food for decades. The question being asked is whether these ads or foods even inspire a culture of physical exercise. Such advertisements are like surrogacy. They are just trying to sell the pack in the name of health. Promoting physical exercise when children are addicted to in-house games is just a mask.

Like until Maggi entered the controversy, its advertisement targeted mothers of young children. Many Mothers thought that giving noodles like Maggi is healthy enough. Even Patanjali noodle is brought out with the message that their Atta Noodles are healthier and better.But while Atta noodles might be healthier than white flour noodles, they are not a healthy diet. A study by Consumer Education Research Centre (cerc), a non-profit working on consumer rights, showed that Atta noodles are among the highest sodium-containing instant noodles, as the devil lies in the tastemaker. Most of the salt content is in the seasoning and flavour enhancers are unhealthy too.

The cerc study also found that fat in Atta noodles was actually 17 per cent against 13.4 per cent claimed on the packet.

These people are shifting focus from healthy to something marginally better

The commercials create the impression that fat and calories are the only problems with junk food and exercising can solve the issue. But junk food contains harmful contents.

Linking health and nutrition with junk food has, however, become a necessity for the industry if it has to survive. In the US, sales in the soda industry are already on the decline in the last few years. They fell by 3 per cent in 2014, compared to a decline of 1.2 per cent the year before, according to Beverage Digest, a trade publication in the US. Junk food Companies like Nestle and Coca-Cola are desperate to distract attention away from their unhealthy products by pretending that exercise is the solution to a poor diet. Science shows that exercise cannot counteract eating junk food. Such ads only serve to confuse the issue and make the junk food companies look good.

Shocking test Another category of products misleading consumers with claims of healthy food is digestive biscuits. A test was conducted on four types of such biscuits—Anmol Tejus Digestive, Britannia NutriChoice, Horlicks Nutribic and McVitie’s Digestive. The products were tested for total fat, saturated fat, sugar and salt content against the standards set by Food Standards Agency of the UK. All biscuits were found undesirable for saturated fat and sugar; three were neutral for total fat while one was undesirable.

Only Horlicks fell in the category of

Vol.11 Issue 04 February 2016

desirable for salt, which means it had a salt content of less than 0.3 Gms per 100 gm.

Need for stricter laws In India, the Advertising Standards Council of India, a self-regulatory voluntary organisation of the advertising industry, receives maximum complaints under the personal and healthcare category. Currently there is no mechanism to prevent misleading advertisements in India. The manufacturers have to only abide by the provisions made in Sections 24, 52, 53 of the Food Safety and Standards Act. The provisions are broad and generic, so advertisers/manufacturers are getting away with all types of false claims.

It is becoming immensely important that a law should be made that if an ad is objectionable and makes misleading claims, then the celebrities endorsing it should also be held responsible. Activists also suggest that if a commercial is found misleading, then the company should be asked to run a corrected ad for as much time and space as it ran the previous one.

But right now, companies are only asked to withdraw the objectionable ad.

Pictorial and Health Warnings on Junk Food After tobacco products, even junk food products may have pictorial warnings, if a proposal by health experts is accepted by the government of India.

Health experts have demanded pictorial

22 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

23 www.agronfoodprocessing.com

and health warnings on junk food and detailed information for consumers about what goes into the food they buy and the effect it can have on their health.

non-starchy vegetables and thus end up consuming high calories. Junk food is also linked to depression, obesity, the early onset of diabetes and heart disease.

A panel of experts, formed by the Food Safety and Standards Authority of India (FSSAI), comprising doctors from AIIMS, experts from Public Health Foundation of India (PHFI) and dieticians from National Institute of Nutrition, Hyderabad have proposed pictorial warnings on fast and junk food.

Oils and food journal Insight: will pictorial be enough!

The panel was constituted six months ago to look at the prevalence and data on consumption of high fat, sugar and salt and make recommendations. The final report will be out this month.

The promotion of the use of graphic warnings labels, on Junk foods is very debatable. But a recent Research Group survey found that past warning labels on cigarette packages persuaded only a minority of smokers to try to quit or reduce their consumption of cigarettes.

So would it be enough to scare off kids with a pictorial label.

World Health Organization (WHO) study

The Panelist have recommended pictorial warnings on junk foods like chips, colas, pizzas, burgers or health warnings saying that this product contain fat and salt in excess of what is recommended or even a picture of liver may be on pack indicating that consuming them may led to fatty liver in children and adults.

According to World Health Organization (WHO), effective population-based childhood obesity prevention strategies include restrictions on marketing of unhealthy food (biscuits and potato chips, for instance) and nonalcoholic beverages (soft/carbonated drinks) to children.

Children having fatty liver are at risk of liver cirrhosis and end stage liver disease and may require liver transplantation later in their life. Obese children also experience breathing difficulties, increased risk of fractures, hypertension, insulin resistance and low self-esteem.

AIIMS in collaboration with Indian Council of Medical Research (ICMR) have also conducted a study to look at the prevalence of fatty liver in overweight adolescents aged 10 to 15 years.

According to experts, those who eat fast food consume more fats, sugars and carbohydrates and fewer fruits and

also concluded that mandated labels have had no significant impact on reducing the irresponsible use of alcoholic beverages in jurisdictions around the world, including the United States. The WHO study found that labels affected awareness and knowledge, but had no direct impact on consumption or alcohol-related problems.

Among youth, the study found that the warnings did not increase perceptions of alcohol risk, and may even have made the products more attractive to both drinkers and non-drinkers.

The issue of graphic warning labels on food packaging and their impact on public health must be put into proper perspective.

A requirement mandating the use of these warning labels would epitomize a “can’thurt, might-help, why-not?” public policy approach that would be both irresponsible and illogical. Good laws are driven by objectivity, hard facts and realism — not

Vol.11 Issue 04 February 2016

JUNK FOOD? by political expediency and emotion.

Labelling of this kind is a classic case of “feel-good legislation” that makes people feels better without achieving any tangible public health benefits.

Supporters selectively point to “evidence” but ignore the big picture. The simple truth is that there is no compelling evidence, nor has there ever been, to show that warning labels will have any effect in preventing or stopping people, and especially young adults, from smoking, eating junk food or abusing alcohol.

A quick-fix mentality pervades in our society. It affects personal expectations, business practices and public policy.

Unfortunately, quick fixes — like warning labels — often sacrifice longterm progress for short-term actions, without doing anything to address the underlying causes.

Too often they may also have unforeseen consequences. When it comes to public health, quickfix solutions — taken without proper consideration — usually creates new problems. Junk food warning labels will divert resources and attention away from proven measures and personal interventions that actually can make a difference.

If we are to reduce the consumption of junk food in India, what we need are smart solutions that aim for longterm improvements. Based on credible research and analysis of the problem as a whole, they must take into account human psychology, cost effectiveness and potential benefits.

Let’s start by learning what motivates people, and especially young people, to eat junk food. Programs that address behavior are far more likely to work.

Psychological messaging should take precedence over health warnings.

To continue to perpetuate the myth that warning labels, whether for junk food, alcohol or cigarettes, are effective as a public health measure is simply dishonest, counterproductive and a waste of money.

24 www.agronfoodprocessing.com

ultraplast Come to us for a complete range of conveyor components • Plastic Modular belts •Plastic & Stainless Steel Slat Chains •Conveyor Components • Polymer Sprockets, Idlers and Gears •UHMWPE Wearstrips & Guides

UltraPlast Chainbelts Private limited

81,New DLF Industrial Area, Faridabad 121 003, Haryana, India.

Tel: +91 1294113186/87 Fax: +91 1294113188.

Email: info@ultraplast.in or ultraplastindia@gmail.com www.ultraplastindia.com www.ultraplast.in

Vol.11 Issue 04 February 2016

25 www.agronfoodprocessing.com

For Updated News Everyday logon to

www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

26 www.agronfoodprocessing.com

BEVERAGE PACKAGING

TREND IN

BEVERAGE PACKAGING INDUSTRY BUBBLING UP IN RELATION OF ENVIROMENT AND COMPETITION

E

nvironmentalfacts With the 2-degree Celsius threshold looming and the world’s population continuing to climb, both government and corporate sectors are grappling with the possibility of more frequent natural disasters and increased food, water and resource shortages. It’s not a rosy picture, and we can expect all sectors to work against the clock to help

bring the climate back into balance in the years ahead.

Food and beverage companies are no exception. They are a large contributor to climate change, and this poses great risks to their operations. They realize changes are needed across the value chain in order to meet the challenges of a changing climate coupled with growing consumer

Vol.11 Issue 04 February 2016

demand and resource scarcity.

In 2016, food and beverage leaders will continue to invest in solutions that not only maximize the value of resources but simultaneously reduce their carbon footprint.

How will this influence the packaging industry? Here are four major trends driving packaging solutions.

27 www.agronfoodprocessing.com

plant-based, FSC-certified, recyclable, etc.).

Basic functions Package light-weighting remains a major trend in the industry and a key driver for reducing the use of raw materials and the carbon footprint of a package. Several large brand owners have made ambitious commitments in this area and have set specific goals to reduce packaging at the input stage. We can expect smaller and medium brands to follow this trend in the future. Consequently, phasing out heavier materials and substituting it with lighter alternatives will be the focus.

Value-add Whether it is the results of COP21 calling to reduce our dependency on fossil fuelbased resources or an increased market pressure forcing brand-owners to further differentiate from one another, we see a gradual shift and growth of bio-based/ plant-based plastic on the marketplace (see new plant-based alternatives). The environmental profile of packaging is increasingly being used as a competitive tool to drive preference and sales. The shift from petrochemical to renewable feedstock is part of the overall effort to bring new innovative and environmentally friendly solutions to give brands that competitive edge.

Communicate value of sustainability Sustainability is a key product attribute and a competitive sales asset increasingly influencing consumer decisions, so in 2016 we will see more labels and campaigns promoting products’ environmental benefits (e.g. GMO-free,

Transparency within a supply chain and chain of custody Similar to last year, transparency within supply chains continues to play a major role from resource extraction to pointof-sale as sustainability is pushed to the forefront of business agendas. In addition to transparency within the supply chain, the chain of custody must have traceability systems in place like thirdparty management and chain-of-custody certification. These systems are meant to track the materials flow from one supplier to another.

Their vision is clear and their ambition is strong.

Brand owners are looking for quality packaging that can rise to their sustainability profile.

Together as an industry, we must be prepared to innovate and provide solutions that can live up to a new and much higher bar of corporate responsibility because building a strong supply chain today means conserving our natural habitat and resources for years to come.

Trendy competition packaging Standing out in an increasingly saturated industry is a concern for beverage manufacturers of all sizes, but simultaneously keeping up with rapidly changing consumer demands intensifies that challenge. Major manufacturers regularly introduce new products while new categories and products from smaller companies disrupt the status quo. The solution for many companies is taking the form of packaging innovations that are changing the way consumers look at soda, beer, juice, and other beverage categories.

With smaller packaging sizes, multipacks, and situational package types, packaging innovations have become the norm for beverage companies looking for new ways to meet consumers' changing demands and entice them to buy, and that will continue to be a major trend for the

Vol.11 Issue 04 February 2016

BEVERAGE PACKAGING

industry in 2016.

Reducing size, not profits One packaging innovation gaining traction is mini-cans and mini-bottles.

Coca-Cola and PepsiCo recently reported sales declines for soda volumes in larger packaging but sales boosts for smaller packaging, like 7.5-ounce mini-cans and 8-ounce mini-bottles. This type of packaging will be the way companies “reinvent” the soda business in the coming year.

Soda companies have multiple reasons for downsizing their packaging. Increased profitability in exchange for convenience is a given, but soda companies are also contending with nationwide soda tax

proposals and recommendations from the WHO, FDA, and 2015 Dietary Guidelines that consumers limit their sugar intake, which soda is notorious for containing.

As packaging is downsized, it is being realised, especially on the sugar side of things, people want to limit their intake of (sugar), but they still want a Coke, but they don’t want a lot of Coke. So asmall sized can is a perfect way to keep Coke in people’s hands but at the level that they want so they don’t substitute an energy drink or small bottle of juice or something else for that.

Smaller packaging will be more common among larger manufacturers rather than smaller soda makers because larger companies tend to be more flexible in their ability to change up their packaging in terms of capital and production capabilities.

28 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

29 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

30 www.agronfoodprocessing.com

The larger manufacturers are really good at matching up who needs what, when, and they will develop packaging to fit that needs state.

Getting the right count Major Beer manufacturers are experimenting with the quantity of individual products in multi-packs of various sizes. In this case, manufacturers tend to match up packaging more to the type and availability of shelf space in different configurations offered by varying retailer types, such as grocery stores versus drug or convenience stores.

A package for every situation Instead of offering a variety of flavors,

major beer manufacturers are more likely to introduce a variety of packaging types. Bottles and cans can come in a range of sizes, and bottles themselves may be long or short necks, like Miller Lite’ssteinie bottles briefly reintroduced last year, or they can be made of glass versus aluminum—it all depends on the situation in which consumers want to drink it. Cans and bottles, for example, can differ significantly from a situational perspective, according to Reed.

It's clear to see See-through packaging runs alongside manufacturers’ desire to be more transparent about their products, so more beverages will appear in see-through plastic, glass, and other clear packaging, according to a 2015 Packaged Facts report. Along with any messaging printed on the label, a physically transparent package enables consumers to actually see what the product looks like before they buy.

Manufacturers that produce beverages that are visually appealing or feature whole, natural ingredients, another fastgrowing consumer trend, can especially benefit from clear packaging.

The bottle, marketers say, gave consumers the feeling of drinking something fresh but one drawback with this type of packaging is that some products can degrade when exposed to sunlight— consideration manufacturers keep in mind when testing out this packaging innovation.

Eco-innovations Recyclable PET bottles and aluminum cans have been beverage producers’ packaging types of choice for decades. Studies show that such packaging can impact consumers’ purchasing decisions.

But creating packaging that is sensitive to its impact on the environment will begin taking new forms, particularly using plantbased, recycled, and renewable materials.

Coca-Cola unveiled what it called the world’s first 100% plant-based PET bottle last June as part of its PlantBottle initiative launched in 2009. It’s likely other companies will follow this beverage giant’s lead, especially since the USDA proposed a new rule to promote plantbased materials. The agency would offer plant-based packaging manufacturers access to loans with cheaper interest rates for when they decide to build a new plant.

Other recent eco-friendly packaging innovations have included an edible water

Vol.11 Issue 04 February 2016

BEVERAGE PACKAGING

bubble for drinking water and Tetra Pak’s recyclable bottle made from renewable paper. Nestle Waters debuted a new bottle for its Resource Natural Spring Water brand made from 100% recycled material, except the label and cap. Earlier this year, DuPont and ADM introduced bio-based renewable packaging materials made with polymers derived from fructose, including one that is especially suitable for beverage producers as it improves gas-barrier properties to improve shelf life.

Beverage manufacturers have always innovated packaging to suit the needs of consumers, but as consumer demands change ever more rapidly, so too must those packaging designs. Taking a step back and determining the best packaging type and design can address consumer needs and balancing the company's needs for profitability, sustainability, and operational efficiency.

31 www.agronfoodprocessing.com

HEALTHY OIL

Biological

and Nutritional Properties

of Palm Oil and Palmitic Acid: Effects

on Health

O

ver the last few decades there has been growing public concern about the significant interplay between health and nutrition. Fat is an essential macronutrient of the human diet and vegetable oils represent a more highly consumed fat. The effects of highfat diet, mainly in saturated fatty acids (SFA), have been the focus of several dietary guidelines targeting the reduction of cardiovascular diseases (CVD) [1, 2], obesity-related diseases and, recently, cancer prevention [3].

The increasing demand for vegetable oils is a worldwide phenomenon and palm oil (PO) contributes significantly to the global supply of edible oils. PO is entirely GMO-free and produces up to 10 times more oil per unit area than other oilseed crops. In 2012 PO accounted for 32% of global fats and oils production and it has overtaken soybean oil as the most

important vegetable oil in the world [4].

The palm tree (Elaisguineensis) is an ancient tropical plant native to many West African countries, where local populations traditionally use its oil for cooking and other purposes. Large scale palm crops are found across the tropical regions, and Malaysia and Indonesia are the leading producers of PO, accounting for the 86% of global production; other PO producing countries are Nigeria, Thailand, Colombia, Papa Guinea, Cote d’Ivoire, India and Brazil.

Two different types of oil are extracted from palm fruit: palm kernel oil (PKO), from the seeds and PO, from the mesocarp. The edible

Vol.11 Issue 04 February 2016

oil contained in the mesocarp of palm fruit can be extracted using different methods, with the most common known as wet or dry processes [4].

Crude palm oil (CPO, known also as red palm oil, RPO), extracted either by wet or dry processes, contains both healthy beneficial compounds, such as triacylglycerols (TAGs), vitamin

32 www.agronfoodprocessing.com

E, carotenoids, phytosterols, as well as impurities, such as phospholipids, free fatty acids (FFAs), gums, and lipid oxidation products; the latter can be removed by means of refining processes [5]. Hence, the CPO is purified by centrifugation and drying; the dried oil is then cooled and stored in appropriate containers [6].

in neutral TAGs and it is a more expensive process with a high impact on the environment. For these reasons, physical refining protocols, based on different volatility of FFAs and TAGs, high-temperature and low-pressure methods, are currently used [13, 14], even if these procedures lead to an evident loss of tocopherols and tocotrienols and also produce oxidative damages [13]. Moreover, PO refined by physical treatments shows lower storage stability and requires an accurate procedure in order to eliminate phosphorus duringthe degumming procedure, to avoid the presence of phosphoric acid in the final product that would affect the heat bleaching process [13].

CPO represents the richest natural source of carotenoids (500–700 ppm), tocopherolsand tocotrienols (600–1200 ppm), all contributing to its stability and nutritional properties [4,5,7–9]. Their antioxidant properties, exerted mainly against reactive oxygen species (ROS), play a role in aging, in CVD and in cancer prevention [7,10,11].

Furthermore, tocotrienols have been reported to be natural inhibitors of cholesterol synthesis [7].

PO with low amounts of free fatty acids (FFAs), low impurity content and good bleaching is considered of high quality and used in the edible oil industry; conversely, low-quality oils are used in non-edible industr y such as biofuel, candles, cosmetics and soap production [15]. Socalled high-quality PO is constituted of more than 95% neutral triacylglycerols (TAGs, or triglycerides) and less than 0.5% FFAs [13,14].

Despite the good quality of CPO, food manufacturing industries require PO with a bland and light color, making refinery a mandatory step. These steps can be carried out via chemical (alkaline or acid treatment) [12,13] or physical methods (steam refining, inert gas stripping, molecular distillation, membrane refining, etc.) [13,14]. Afterwards, bleaching and deodorizing steps follow, along with other specific treatments depending on the first refining process applied. For example, after alkali treatment, the impurities are removed by centrifugation as gums; volatile products are then removed through stream distillation at higher temperature and reduced pressure. The oil obtained after the refining processes is colorless, bland and stable. On the other hand the alkali treatment produces losses

PO and PKO have different physical and chemical properties depending on their intendedapplications [4,10]. As shown in Table 1, PKO contains 85% SFAs, mainly lauric and myristic acids, while PO contains 50% SFAs, mostly palmitic acid (PA, 44%) and lower amounts of stearic acid (5%),40% monounsaturated fatty acids (MUFAs), mostly oleic acid, and 10% polyunsaturated fatty acids(PUFAs), mostly linoleic acids [5,7,16]. PA is the main SFA naturally occurring in animal fats

Vol.11 Issue 04 February 2016

HEALTHY OIL andvegetable oil, as well as the main component of human milk fat [17].

In the last few decades, PO’s application in food industries has exponentially grown for the texture, the fragrance and the neutral taste it guarantees in the finished products. Its two major fractions are the low-melting liquid fraction (known as palm olein, 65%–75%) and the highmelting solid fraction (known as palm stearin, 30%–35%). The different palm oil fractions are then differently used in food industry: palm olein is used in cooking oil for frying (because of its high smoke point, 230 °C) and margarines; palm stearine in food applications such as hortenings and hydrogenated oils used as butter substitutes in India; double-fractioned palm olein is then used in mayonnaise preparation [4].

PO is generally found in: baked goods, candies, cakes, cheese analogs, chips, chocolate, confectionary fats, cookies, cooking oil, crackers, doughnuts, frozen meals (pancakes, pies, pizza, potatoes), ice cream, industrial frying fats, instant noodles and oatmeals, margarines, microwave popcorn, non-dairy creamers, peanut butter, salad dressings, snacks, soups, supplements/vitamins, vegetable

33 www.agronfoodprocessing.com

HEALTHY OIL related metabolic diseases [26]. Adipose tissue from obese mice contains elevated SFA depots that activate Toll-like receptor 4 (TLR4)-mediated inflammatory signaling [27–29].

SFAs also stimulate pro-inflammatory mechanisms through reactive oxygen species (ROS) in aTLR-independent manner. ROS regulate the activation of mature interleukin-1β (IL-1β) from its inactive precursor pro-IL-1β [30,31]. As a consequence, IL-1β down-regulates the insulin-signaling in insulin target cells, providing a possible SFA-mediated inflammatory response resulting in insulin resistance [32,33].

ghee.

Despite some authors suggesting that palm olein, containing oleic acid at 48%, could be a substitute for olive oil in healthy normo-cholesterolaemic human diet [5], debates related to PO’s potential unhealthy effects (mainly due to the high PA content) are ongoing [18–21].

However, PO, like all vegetable oils, is cholesterol-free and FAs are mainly structured as TAGs. TAGs contained in PO are mainly constituted of oleic acid, predominantly located at the SN-2 position, and of PA, mainly located at the SN-1 and SN-3 positions (Figure 1).

TAGs contained in animal fat are different in that PA or stearic acid are often found at the SN-2 position [5,22].

Figure 1.A schematic representation showing the hydrolysis of typical PO triglyceride.Palmitic acid, the main SFA in PO, is situated at SN-1 and SN-3 positions of TAGs. The other main FA in PO, oleic acid, is situated at SN-2 position.

After digestion, FFAs are involved in the

re-synthesis of new triglycerides and/or formation of Ca2+ or Mg2+ soaps. Free fatty acids, FFAs; palm oil, PO; saturated fatty acid, SFA; triglycerides, TAGs. Palm Oil and Palmitic Acid: Role in Obesity and T2DM Obesity is a metabolic disease characterized by an excess of white adipose tissue (WAT) resulting from an excess of energy stored in adipocytes as TAGs, responsible for adipocyte hypertrophy and hyperplasia [23].

In recent years, obesity has assumed epidemic proportions: about 1.9 billion adults worldwide and 42 million children below 5 years are obese [24]; morbidity and mortality associated with obesityrelated diseases, such as type 2 diabetes mellitus (T2DM), CVD, hyperlipidemia and hypertension, have increased exponentially [25].

WAT produces adipokines that are responsible of chronic inflammation processes and are associated with obesity-

Vol.11 Issue 04 February 2016

More recently, a link was suggested among high-fat diet, inflammation and pro-inflammatoryproducts in plasma originated in the gut by the death of Gram-negative intestinal microbiota, namelylipopolysaccharides (LPSs) or endotoxins [34,35]. LPSs, bound to LPSbinding proteins, triggerinflammation via the TLR4 pathway and induce secretion in the plasma of pro-inflammatory cytokines,such as IL-6 [36]. Moreover, several studies showed that metabolic endotoxemia could be generated bygut LPS absorption during digestion of a highlipid load [37,38]. A direct effect of PA on increasedsecretion of IL-6 in 3T3-L1 adipocytes, compared to myristic, linoleic or α-linolenic acids, was reportedby Laugerette and co-authors [39]; they also demonstrated the cooperative effect of PA and LPSco-treatment in these cells, confirming the role of LPS in modulating inflammation through differentdietary fat contents. Similarly, the same authors found that PO-enriched diet induced higher amountsof inflammatory markers in plasma (IL-6) and in WAT (IL-1β, TLR4 and CD14) compared to otherfatbased diets in mice [39].

There is growing evidence linking obesity to changes in gut microbiota [40,41]. PO-rich diet determines weightgain and hepatic lipid accumulation compared to unsaturated fat diet (olive or safflower oil) in C57BL/6J mice, together with a reduced microbial diversity in the intestine [42]; these observations support the hypothesis that an excessive

34 www.agronfoodprocessing.com

consumption of PO in the diet triggers changes in gut microbiota components and determines lipid accumulation.

Triglyceride-droplet accumulation mediated by high doses of PA (500 μM and 1 mM) has been also described in human HEK293 cells (Figure 2) [43]; interestingly, the authors highlighted the role of uncoupling protein-3 (UCP3) in the metabolism of long-chain fatty acids, such as PA, in these cells.

In obesity, an altered production of proinflammatory cytokines, such as TNF-α, IL-6, leptin andadiponectin, affects both secretion and efficiency of insulin action, hallmarks of T2DM, along with progressive failure of β cells [49–51].

In fact, obesity and T2DM are strongly interconnected and their overlap leads to predisposition to a large number of metabolic diseases, including metabolic syndrome [52,53].

Figure 2.Triglyceride storage in HEK293 cells.Oil Red O staining of untreated (a) and treated (b) HEK293 cells with PA 1 mM. Red points indicate triglyceride depots; ×40 magnification.

Oxidative stress and ROS overproduction are significantly increased in T2DM, promoting endothelial dysfunction, a condition more prone to the pathogenesis of hypertension and CVD in diabetic patients. Recently, T2DM was also linked to immune system activation and inflammation [54].

The effects of PO, and of its main constituent PA, have also been investigated on other organs and tissues, such as the central nervous system (CNS).

The effects of intracerebroventricular (icv) injection of PA on hypothalamic leptin signaling,inflammatory marker secretion and hepatic energy metabolism were recently analysed in C57BL/6J male mice [44]. The authors reported that high-doses of PA induce proinflammatory responses and leptin resistance, similarly to obesogenicdiets; however, the key role of PA in the hypothalamus in response to high-fat diets has not been fully characterized yet.

Another interesting aspect is the relation between diet, with different content in lipids consumed during pregnancy and lactation, and development of obesity in adult life. The fetal nutritional environment is involved in obesity and/or obesityrelated diseases in later life [45,46].

Several studies carried out on animal models indicated that, during lactation, the consumption of normolipidemic diets, rich in SFAs derived from PO and/or in partially hydrogenated fats (PHF) induces fat retention in the young offspring [47].

In fact, maternal intake of PO and interesterified fat (IF) present in processed foods predisposes the offspring to the development of obesity in adult life [48].

The role of PO consumption in T2DM is controversial in that, it is difficult to exactly distinguishbetween the effects of PO and/or other fat components of the diet in T2DM risk. Some evidence indicates that diet supplemented with PO impairs glucose tolerance in mice [55]; this finding may be ascribed to the reduction in insulin-sensitivity induced by PO-enriched diets and to the corresponding increase of serum TAGs; in fact, elevated serum TAGs are associated with insulin-resistance [56].

Furthermore, several studies, involving animals and humans, have shown that fatty acid composition of diet affects muscle membrane phospholipid dynamics (such as fluidity) and the ligand/receptor recognition process (such as insulin/ insulin receptor) [57]. On rat epididymal fat cells, PO treatment resulted in a lower rate of insulin-stimulated glucose uptake

Vol.11 Issue 04 February 2016

HEALTHY OIL due to reduced insulin binding to the cells compared to sunflower oil treatment [58].

Studies conducted on humans yielded conflicting results: four weeks of PO treatment in 30 patients affected by T2DM had no significant effects on plasma glucose concentration [59]; on the contrary, Rosqvist and co-authors demonstrated in 39 T2DM patients that an excessive consumption of SFAs (among which PA) favors both liver and visceral fat accumulation with detrimental role in T2DM development and progression [60]. Also the largest study on T2DM patients, the EPIC-InterAct case-cohort study, was not indicative. In fact, the study, including 12.403 Caucasian people with incident T2DM, reported that different SFAs (myristic, palmitic, and stearic acid) have different effects on T2DM incidence.

Interestingly, the authors underlined that PA can also be synthesized endogenously through de-novo lipogenesis, a metabolic pathway stimulated by increased intake of carbohydrates and alcohol; these evidences introduce a further complexity level in this puzzle making very difficult to distinguish between endogeneous and exogeneous PA effects on T2DM onset risk [61].

Furthermore, in vitro studies demonstrated that PA directly impairs insulin signaling in cultured rat hepatocytes and myotubes as well as pancreatic cells vitality and insulin secretion [62]. Three main mechanisms have been suggested: (1) reduction of viability and induction of apoptosis through ER stress. In rat insulinoma cells, PA provokes toxicity through lipotoxic stress in ER; this mechanism, exerted by different SFAs, has been described in various cell types [50,63–65]. In addition, SFAs can directly interact with ER membrane bilayer disturbing ER morphology and function [57]; (2) inhibition of insulin-stimulated phosphorylation event. PA markedly impairs phosphorylation and, therefore, activation of insulin receptor, insulin receptor substrate-1, and Akt in several cell types, contributing to the onset of

35 www.agronfoodprocessing.com

insulin-resistance [66]; (3) ubiquitination of the key insulin-signaling molecules. PA facilitates the ubiquitination and, hence, elicits proteasome degradation of insulin receptor, insulin receptor substrate-1, and Akt [67].

Palm Oil and Palmitic Acid: Role in CVD CVD represent the principal cause of death worldwide. Main serum/plasma CVD-related biomarkers are TC, LDL-C, high-density lipoprotein cholesterol (HDL-C), TAGs and very low-density lipoprotein cholesterol (VLDL-C).

Also apolipoprotein A-I (apo A-I) and B (apo B) reflect variations in HDL-C and LDL-C, respectively [68,69]. In particular, low apo A-I and high apo B levels are associated with increased CVD risk and the apoB/apo A-I ratio is considered a good CVD predictor factor [70].

The link between PO consumption and CVD risk refers to PA content in PO, which accountsfor 44% of total fat (Table 1). Since 1950 Toshima’s group demonstrated that high contents of SFAs in diets are powerful predictors of heart diseases, the authors provided a specific equation to predict serum cholesterol levels starting from SFA intake [71–74].

Successively, the “lipid theory” stated that an excessive SFA consumption is responsible for hypercholesterolemia, a condition that causes predisposition to a higher CVD risk: an increase of 20 mg/ mL in total serum cholesterol determines a 12% higher CVD risk [75]. At the same time, Mensink and co-authors [76,77] demonstrated that the most favorable lipid profile is obtained when MUFAs or PUFAs replace SFAs. In a multi-country analysis Chen and coauthors [78] evaluated the effects of PO consumption onCVD mortality-risk due to ischemic heart disease (IHD) and stroke.

Twenty-three countries wereanalyzed and divided into historically highincome countries (HICs) and developing countries (DCs). The authors reported that every additional kg of PO consumed percapita annually determined higher IHD mortality rate in DCs respect to HICs.

HEALTHY OIL

The same trend was also observed in stroke deaths, but in this case, data were not statistically significant, suggesting that serum LDL-C is not strictly linked to hypertension.

Nevertheless, it is now emerging that both favorable and unfavorable changes in CVD biomarkers are observed when PO constitutes the main dietary SFA intake [19,20]. In studies where PO was comparedto soybean oil (a vegetable oil with more PUFAs and less SFAs) [19,79], to olive oil (rich in oleic acid, a MUFA) [19,80], to sunflower oil (rich in oleic acid and PUFA) [19,80] and to canola oil (rich in MUFAs) [19,81], no substantial differences in the lipid serum profile were observed. In some cases, changes in cholesterol fractions, not affecting TC/HDL-C or LDL-C/HDL-C ratios, were registered. Furthermore, other studies failed to unequivocally demonstrate the association of PA consumption and CVD risk increase, particularly in normocholesterolemic subjects assuming the recommended PUFA intake [82,83]. Finally, SFA intake, associated with PO consumption, did not significantly affect the apoB/apoA-I ratio [84–86].

In addition, it is well known that the number of carbons in the FA chain, the degree of saturation and the stereospecific positioning of FAs in TAG structures highly influence FA absorption, thus affecting their metabolism and their role in CVD [10,87,88]. In fact, CVD biomarkers (TC, LDL-C, HDL-C and VLDL-C) worsen when main dietary SFAs are characterized by shorter carbon chains: lauric (C12:0) and myristic acids (C14:0) increase all the cholesterol fractions (favorable and unfavorable) more than PA (C16:0); this latter increases all the cholesterol fractions (favorable and unfavorable) more than stearic acid (C18:0) [89,90]. Furthermore, the atherogenicity of a specific TAG is associated to the degree of saturation of FA located at SN-2 position [91–95]:

Vol.11 Issue 04 February 2016

in fact, it has been shown that higher percentages of PA at SN-2 position are related to the most atherogenic profiles.

Accordingly, Kritchevsky and co-authors reported that lard is highly atherogenic because almost all PA (21.4%) is at SN-2 position in the TAGs. Interestingly, when a randomization process is applied to modify the TAG structure, thepresence of PA at SN-2 position is reduced by about 67% and, consequently, the atherogenic potential decreases to the half [93].

Likely, tallow has a similar content in PA (24.8%) with a smaller fraction (3.8%) being at SN-2 position; following randomization, the amount of PA at SN-2 position increases by about 124%, and the atherogenic potential raises [93].

Comparing different animal fats and vegetable oils, the percentage of PA in SN-2 position of corresponding TAGs is 66% in animal butter, 58% in human milk, 34% in bovine milk, 4.4% in PO and 0.3% in olive oil [88]. In fact, as shown in Figure 1, the typical TAGs of PO are symmetrical with PA bearing the SN-1 and the SN-3 positions and oleic acid the SN-2 position. Long chain SFAs impair absorption rates from the intestinal lumen when they occupy SN-1/SN-3 position of glycerol backbone; following lipase action, they are converted in FFAs and tend to form insoluble soaps, excreted in faeces [96], instead of being transformed into bile salt micelles orvesicles [87].

These evidences are associated with a reduced atherogenicity and support the concept that PO carries a low CVD risk within balanced diets [10].

The atherogenic effects of PO were also compared to CPO and to reconstituted

36 www.agronfoodprocessing.com

from data collected up to nowadays [100–102]. Retrospective case-control investigations also report a relationship between increased fat intake and higher cancer risk with conflicting results.

CPO (PO added with carotenoids, tocotrienols and tocopherols) [95] in rabbits fed with semipurified diets containing 0.1% cholesterol and 13% test oil (PO, CPO, reconstituted CPO) for 90 days. At the end of thetreatments, serum cholesterol levels were comparable among rabbit groups, whereas reconstituted CPOdetermined a higher increase of TAGs. Authors hypothesized that the fine structure of native CPO isdifferent from the reconstituted CPO, and that the absorption of carotenoids and vitamin E in nativeCPO could be different, leading to the idea that natural products cannot be easily reproduced by simplyadding and mixing specific components.

Palm Oil and Palmitic Acid: Role in Cancer There is now considerable evidence that, in addition to the known risk factors, dietary fat intake plays an important role in determining cancer risk [97–99].

For decades, epidemiological studies indicated a positive association between total fat intake and risk of breast, colorectal and prostate cancers. Starting from this evidence, it has been postulated that a high-fat diet (>25% FAT) induces a major risk of cancerdevelopment compared to low-fat diet (<20% FAT).

The dietary fat hypothesis is supported by several meta-analysis studies obtained

In a recent prospective study in postmenopausal women, the authors found positive associationsbetween total MUFA intake or PA and stearic acid intake and breast cancer incidence [97]. In agreement with these data, a previous meta-analysis on prospective studies revealed that high levels of PA were associated with an 89% increased risk of postmenopausal breast cancer [100]. Although this study supports the hypothesis of breast cancer risk associated with fat consumption, most of the prospective studies failed to confirm this hypothesis, reporting inverse associations [103,104] or no associations [105]. To our knowledge, only a few studies reported significant increased risks of breast cancer associated with MUFA consumption [106].

Interestingly, a national prospective case-control in Scotland showed that PA, together with totalMUFAs and others SFAs, were positively associated with colorectal cancer risk in a dose-dependent manner; on the other hand, these effects were abolished after adjusting for potential confounding factors such as family history of cancer, total energy and/or fiber intake, drugs, smoking, body mass index, and physical activity [107].

As for prostatic cancer, epidemiological studies lack to find a consistent association between FAintake and cancer risk. However, a case control analysis conducted on plasma FAs revealed a positive association between PA consumption and risk of localized and low-grade prostate cancer [108].

Furthermore, a prospective cohort study in Japan showed that PA increased the risk of prostate cancer in a dose-dependent manner [109], whereas higher intakes of dietary MUFA as well as moderate concentrations of plasma PA were inversely related to prostate cancer [99].

The conflicting results of these studies may be due to (i) sample size that, in same case, was notlarge enough to observe statistical significant positive associations; (ii) use

Vol.11 Issue 04 February 2016

HEALTHY OIL of different biomarkers of FA intake (blood or adipose tissue) with different time-frame exposure: in fact, FA profile of adipose tissue reflects the relative intake over 2 years, whereas FA composition of blood indicates recent intake; (iii) the heterogeneity of study populations that display different characteristics (i.e., age, hormonal status, body mass index, physical activity), additional cancer risk factors (obesity, weight loss, smoking, drugs and alcohol) and other pathological conditions (presence or not of cancer) affecting lipid metabolism and, as a consequence, FA composition.

Different effects of SFAs, such as PA, and MUFAs, have been reported on cell proliferation andtumor development also in in vitro and animal studies [110,111].

The conflicting results may be due to a combined administration in animals of different FAs. However, such results raised new questions about the key role played by the type of FAs (saturated, monounsaturated, and polyunsaturated) besides to their amounts.

It has been reported that PUFAs of the linoleic group (n-6 PUFAs) stimulate breast, colorectal and prostate cancer development and progression [112,113], while the PUFAs of the linolenic group (n-3 PUFAs), especially those from marine origin (eicosapentaenoic acid and docosahexaenoic acid), inhibited tumor growth [114].

Interestingly, Rossini et al. demonstrated in mice that a FA-free diet reduces mammary tumorincidence but not tumor growth rate [111]. Because humans are not able to comply with a FA-free diet, Rossiniâ&#x20AC;&#x2122;s study suggests that a lowfat diet might play a protective role in tumorigenesis but no effects should be expected on already established tumor masses.

Similarly to breast cancer, positive associations with dietary PA, MUFA and n-6 PUFA contentshave been reported for rectal, but not for colon cancer; n-3 PUFAs were, instead, inversely associated with cancer risk [98].

37 www.agronfoodprocessing.com

All the reported studies carried out on animal models or humans support the hypothesis that,in addition to the total amount and the type of FAs, also their ratios in the diet may influencecarcinogenesis.

Kuriki and co-authors reported that the colorectal cancer risk was positively associated not only with erythrocyte membrane content of PA but also with ratio SFAs/PUFAs [115].

On the contrary, Shannon and co-authors reported a significant direct association among both PAand palmitoleic acid and breast cancer risk when the two SFAs were analyzed independently; instead, when their ratio (PA vs. palmitoleic acid) was considered, a significant inverse association with breast cancer risk was observed [116]. This latter finding may be due to a lower concentration of palmitoleic acid that is produced through desaturation of PA by δ-9 desaturase; PA is, in turn, the primary end product of fatty acid synthase (FAS) reaction.

Although there is now evidence that individual FAs, such as PA, and their ratios are more reflective of lipid metabolism in comparison to the total fat dietary intake, little is known about the potential mechanisms by which these SFAs may trigger carcinogenesis.

At molecular level, FA intake could affect cancer development and progression through themodifications and/or alterations of: (i) hormonal status; (ii) composition of cell membrane and (iii) cell signaling transduction pathways.

functions.

HEALTHY OIL As previously reviewed, adiposity associate to FA intake can stimulate de novo synthesis of hormones, such as estrogens, whose production induces cell proliferation, thus determining a higher cancer risk [117].

Moreover, the FA intake could affect the SFAs/ MUFAs ratio in the membrane phospholipid, thus altering many membrane-associated

It has also been proposed that FA intake could have an immunosuppressor effect and determine acancer risk by altering cell membranes of the immune system [118]. Also protein composition of the cell membrane could be affected by dietary intake of specific FAs with consequences on cell to cell interactions and cell’s response to growth factors [119]. We cannot exclude possible membrane protein modifications by palmitoylation and myristoylation leading to alterations of localization and function of key proteins for tumor suppression.

In vitro and in vivo studies suggested that specific FAs could promote cell invasiveness ormetastasis [120,121].

However, only confusing results have been obtained on the action of selected FAs in cell signaling transduction pathways, in particular in cell proliferation and apoptosis.In this context, Hardy and co-authors reported the opposite effects on breast cancer cell proliferation of the two most abundant circulating FAs, PA (saturated) and oleic acid (unsaturated).

In particular, the authors reported that PA induces apoptosis and oleic acid promotes cell proliferation and prevents the proapoptotic effect induced by PA [110]. The action of both saturated and unsaturated FAs seems to be mediated

by PI3-K, but the potential mechanism remains uncharacterized, as well as the pro-apoptotic mechanism of PA. Moreover, the inhibition of FAS activity

Vol.11 Issue 04 February 2016

and its gene expression, mediated by PA, could be further investigated as a potential mechanism of PA involvement in cancer.

Interestingly, FAS, a key enzyme of FA metabolism, is overexpressed in many human cancers [122] including not only breast and colorectal cancer, but also the non-small-cell lung cancer, representing a leading cause of cancer mortality in the world [123]. Therefore, the emerging evidence that FAS is a potential prognostic tumor marker and a target for anticancer drug development [124] strengthens the hypothesis that specific FAs, such as PA, may strictly be involved in the regulation of tumor growth.

PA and Cell Toxicity Intracellular FAs are essential components of cells and serve mainly as an energy source. Besides their well-known cellular functions, there is now emerging evidence on FA’s roles in cells that could trigger adverse unhealthy effects when FA homeostasis is compromised [125].

Cellular lipid droplets and long-chain (LC) FAs cannot penetrate the lipid bilayer of mitochondria, so the cells digest and use lipid droplets through an autophagicdegradative pathway [126,127]. Moreover, an excessive accumulation of cellular FFAs may cause lipotoxicity in non-adipose tissues and such a phenomenon is considered a hallmark for metabolic diseases.

Until now the mechanisms leading to cell-toxicity have not been completely understood. In general, LC SFAs, such as PA, are directed to the mitochondria for oxidationand/or to endoplasmic reticulum (ER) for complex lipid synthesis; on the contrary, SFA excess mayprovide modification in phospholipid composition of ER membrane, compromising its structure and integrity [128]. LCFA treatment induces apoptosis in different established or primary cell types: in fact, PA overload induce apoptotic cell death by ER stress [129,130]; moreover elevated concentrations of PA determine apoptosis and autophagy through mitochondrial dysfunction and ER stress, mediated by oxidative stress increase, in hepatocytes [131], pancreatic beta cells [132] and muscle cells [133–135]. FFAs are oxidized by the β-oxidation process in

38 www.agronfoodprocessing.com

mitochondria, the most important source of reactive oxygen species (ROS) [136].

As quoted above, mitochondrial ROS generation induced by PA, in subjects with a high-fat/sucrose diet or obese, desensitizes the insulin signaling pathway via JNK (through TLR4)and impairs IRS2 phosphorylation in hepatic cell lines; conversely, treatment with anti-oxidants prevent the insulin-resistance and reduce the ROS generation [137].

The development of lipotoxicity has been also related to oxidative stress in human cells and inanimal models [138].

Moreover, DNA and protein oxidation products, pro-oxidant, are elevated in serum and in the β-cells derived from T2DM subjects with hyperlipidemia [139,140].

Among the different mechanisms responsible for lipotoxicity and oxidative stress in different cells, there is the increased production of ceramide after FFA overload in β-cells. Ceramide is a second messenger involved in the apoptosis and the inhibition of de novo ceramide synthesis prevents apoptosis and lipotoxicity in β-cells, but not in other cells, suggesting that lipotoxicity mechanisms are tissue-specific. Ceramide can in turn activate NADPH oxidase, and disrupt mitochondrial respiration chain promoting the release of cytochrome c [141].

The effects of SFAs on mitochondrial dysfunction have been widely investigated in human hepatoma cell lines, demonstrating that SFA treatments decrease the activity of protein enzymatic complexes of oxidative phosphorylation (OXPHOS) with reduction of ATP/ADP ratio; this effect is rescued by anti-oxidants suggesting that this phenomenon is due to the increase of ROS production in treated cells. It seems that PA induces both a reduced synthesis and an accelerated degradation of OXPHOS complexes: both processes are ascribed to nitrosative stress due to 3-tyrosine nitration of mitochondrial proteins [142]. Furthermore, PA, can

exert its oxidative stress effects on CYP2E1 cytochrome and the treatment with CYP2E1 inhibitors prevents the effects of PA on OXPHOS complexes [143]. Finally, endothelial cells exposed to chronic, elevated concentration of PA trigger a lipotoxic response leading to necrotic cell death. In fact, PA induces programmed necrotic death (necroptosis) in endothelial cellsthrough Ca-dependent autophagy activation [144]. Hence, autophagic clearance represents a novel molecular mechanism of PA-induced lipotoxicity.

Conclusions Palm oil represents the most widely used vegetable oil in the world. PO is found in supermarketproducts ranging from margarine, cereals, sweets and backed goods. In the last decades many studies focused on the potential unhealthy effects of PO in the diet, due to its high

PA content, with controversial results. In animal models diet supplemented with PO induces impaired glucose tolerance that can be ascribed to the reduction in insulin-sensitivity. Studies conducted on humans showed that different SFAs present in the diet have different effects on T2DM incidence.

Regarding the effects mediated by POrich diets on CVD risk increase in human, conflicting results have been reported.

The main criticisms can be summarized as follow: (a) the extreme qualitative and quantitative heterogeneity of FA contents in the diets; (b) the differences

Vol.11 Issue 04 February 2016

HEALTHY OIL in selection criteria used for intervention and control groups enrollments; (c) the wide-range of investigated ages and (d) the poor attention paid towards other dietary components that can confound the direct FA effects on blood lipid markers. Recently, an increasing amount of evidence has highlighted the negative effects of PA excess on mitochondrial function mediated by oxidative stress, an effect known as lipotoxicity. However, until now no clear evidence has been provided to unequivocally demonstrate the association of PA consumption and CVD risk-increase, particularly in normocholesterolemic subjects assuming the recommended PUFA intake; in addition, the percentage of PA at SN-2 position in TAGs is reduced in PO compared to animal fat, supporting the hypothesis of the low atherogenic power of PO when assumed in balanced diets and that adverse effects could be due to a dose-response relationship.

Such considerations suggest that more rigorous investigations are needed to define the net advantages and disadvantages induced

by PO consumption on CVD. Also the association between PA consumption and cancer gives rise controversial results. This may be ascribed to the heterogeneity of study population, to the difficulty of taking into consideration additional risk factors, and other pathological conditions affecting lipid metabolism. However, some studies found that low-fat diet plays a protective role only in the tumorigenesis process with no effect on established tumor mass.

Furthermore, the type of FAs (n-6 MUFA vs. n-3 PUFA) present in the diet also influences the carcinogenesis process. In conclusion, specific FAs as PA may be strictly involved in regulation of tumor growth.

A schematic diagram representative of PO and PA effects on health, discussed in this review, issummarized in Figure 3.

39 www.agronfoodprocessing.com

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

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

Vol.11 Issue 04 February 2016

40 www.agronfoodprocessing.com

INTEGRATION

â&#x20AC;&#x2DC;Need to bring Extrusion machinery,

By R J Rayande

film and packing manufacturers on common platform:â&#x20AC;&#x2122; R.J.Rayanade

T

he Soft pouch packaging machinery manufacturers are now offering High speed solutions to edible Oil Industry in recent years. The advanced Technology solutions offered by Vertical form fill seal machines & developments in packaging film together could jointly boost the packaging capacities at manufacturers or re-packers of Edible oils.

The latest models of Vertical form fill seal machine offers output at 6 tonnes/hour using 5 layer co-ex films. The seven or nine layer co-ex films if used will offer increased productivity as well minimise

the transit/ handling leakages/losses for edible oil Industry.

The increment in per pouch cost will be major challenge for Oil Industry to switch over to advanced film structures which may offer indirect benefits to the Industry. The reduction in film thickness by approx.20 per cent compared to currently used thickness of five layer film may address the per pouch cost issue to certain extent, This will be possible only if majority of the Industry decides to switch over to 7 or 9 layer films making feasible for converters to upgrade their facilities . The reduction in film thickness will pave way for increased output per hour thru certain up-gradation in pouch packing machines.

There is continuous challenge to climb

Vol.11 Issue 04 February 2016

the technology ladder for Manufacturer of Vertical form fill seal machinery to surpass expectations of Edible oil Industry.

There is need to bring Extrusion machinery manufacturers, film manufacturers and packing machine manufacturers on common platform to address interdependent issues.

There is a need for advanced research for making available film structures offering uniform performance. The joint efforts by extrusion machinery manufacturers, polymer scientists and packing film convertors will help oil Industry to curtail excess giveaways due to operational & transit losses.

This will help oil industry in big way to

41 www.agronfoodprocessing.com

FOOD PARKS not possible then use of current impulse seal technology is to be continued. This will call for ensuring local manufacturing of suitable insulating material to take care of quick heat dissipation issue which is major challenge for high output offering

by VFFS machinery manufacturers.

Further to above the New bench marks created in packaging technologies of High Viscous products:

'Opt for retail display friendly pack formats to enhance brand visibility'

address ongoing debate on reasons for leakages relating to either VFFS/HFFS machinery manufacturers or on the film structure offered by its converter.

It is necessary to reach to root cause of problem & addressal thru joint efforts from all stake holders for the benefit of all involved industries in the process.

structure compromises if any should not be ignored landing the Oil industry in big trouble by producing leaky pouches irrespective of using high end packaging machines.

It is expected that interdependent issues within extrusion machinery manufacturers, converters and VFFS machinery manufactures shall be addressed thru transparency to offer optimum end results anticipated by Edible Oil Industry on following lines.

'A continuous challenge to climb the technology ladder for Manufacturer of Vertical form-fill seal machinery to surpass expectations of Edible oil Industry'

•Extrusion machinery manufacturers ---To provide solution to produce uniform film structures offering uniform thickness & Ingredients as well best suited for VFFS / HFFS and Multilane machines.

'There is increasing trend to offer edible oil in small sachets of 50 ml to 200 ml to cater to rural marketing as well as urban BPL families' • Packaging film Manufacturer –----The use of recommended polymer structure to get desired consistent results to offer leak proof packs. While offering competitive price the indirect effect on sealing issues surfaced thru use of film

Pouch filling machine manufacturer-----New technology upgrades are available

from house of Nichrome through their advanced VFFS solutions. The new features offered by their machines include Digital impulse sealing system, Quantity setting thru HMI of PLC controllers increasing operation friendliness.

The VFFS machines can be synchronised with Dynamic check weigher with tendency control facility to constantly monitor excess product giveaways.

The forthcoming challenge for VFFS machinery manufacturers is nonavailability of locally manufactured competitively priced Ultra sonic sealing system to meet expectation of offer zero leak pouches.

If above solution at competitive level is

Vol.11 Issue 04 February 2016

• There is sharp rise in visibility of products like Mayonnaise, Bakery Shortening, Ghee etc; at Modern retail for which Nichrome India Ltd offers VFFS solutions equipped with high end customized fillers suitable for high pressure on line filling.

There is increasing trend to offer edible oil in small sachets of 50 ml to 200 ml to cater to rural marketing as well as urban BPL families. New VFFS /Multilane machine solutions are available to ride on changing trends.

The serious limitation of pillow packs of display at shelf of Modern Retails for edible oil has been addressed by Nichrome thru its range of Horizontal form fill seal machines. The stand –up pouch ( Doypack ) with spout will offer alternate to rigid jars as well provide better brand visibility compared to pillow packs. The flexibility to offer 3 side seal pack format or 4 side seal pack format is also offered by Horizontal form fill seal solutions for small portion packs.

The pick fill seal route shall be attempted in case of preformed profile / shaped packs for premium oils. It is high time now to opt for retail display friendly pack formats to enhance brand visibility.

(The writer is Associate Vice President – Sales & Marketing at Nichrome India Ltd Pune. He can be contacted at rayanade@ nichrome.com)

42 www.agronfoodprocessing.com

I

nvestors are looking at taking positions in edible oils as prices are moving northward with palm oil leading the pack. As Holi approaches and demand rises, the

trend is likely to persist, analysts said.

Palm oil prices have moved up 15.09% to a 21-month high while sunflower oil price has inched up by 4% and soya oil by 3% in the last three weeks. A production shortage in Malaysia is pushing up palm oil prices, which is affecting the edible oil complex.

"Going ahead, edible oil prices can move up," said AdaniWilmar COO AngshuMallick.

"Palm oil prices have already gone up due to the El Nino effect. Rupee depreciation will further make palm oil, the most common oil used in India, costlier." AdaniWilmar sells edible oil under the brand name Fortune. It increased prices of its packaged oil by 2% in January.

Another upside movement could be seen in next one-two months due to lower production of palm oil, said TusharRathod, analyst at ADMISI Commodities. "We know the production is hit. But we also have yet to see how El Nino will impact palm production in 2015. There could be an increase in pressure on output," he said. The rupee has been weakening alongside other global currencies.

"Since January, the rupee depreciated by more than 3%, as a result of which the import cost will go higher impacting import of the much needed edible oil," said SubhranilDey, analyst at SMC Comtrade. With demand slated to rise as the festival of Holi approaches, "we see a trend of firming edible oil prices next 15 days to one month."

Meanwhile, refined soya oil prices rose 0.55% to Rs 616.45 per 10 kg in the futures market, supported by a pickup in domestic demand and restricted supplies from growing regions as traders built up fresh positions. At the National Commodity and Derivatives Exchange ( NCDEX), refined soya oil for delivery in far-month March rose Rs 3.40 or 0.55% to Rs 616.45 per 10 kg with an open interest of 65,120 lots. On similar lines, oil for delivery in February contract traded higher by Rs 2.45 or 0.40% to Rs 610.70 per 10 kg in 11,650 lots.

Analysts said that farmers in Argentina, the top soya oil exporter in the world, has not been releasing soybeans as quickly as investors had expected, which has pushed up prices of the oil.

Sunflower oil production in Ukraine has declined, which has pushed up prices of the oil in global markets. According to media reports, in 2015-16, large and medium-sized enterprises of the Russian Federation produced 1.47 million tonnes of sunflower oil.

Vol.11 Issue 04 February 2016

GROUP

Innovation is life

MOISTURE is the hidden enemy of Confectionery Industry

You need

DRY AIR

to retain lustre, hardness and flavour

Remove moisture most efficiently • No blooming • Prevent sticky or grainy surface • Avoid loss of colour and maintain aroma Backed by

Service

ECODRY Desiccant Wheel At the heart of it all

Call today ISO 9001:2008 & 14001:2004 CERTIFIED

Phone: +91 11 23906777 • E-Mail: bryairmarketing@pahwa.com

www.bryair.com

Leaders in Dehumidification ... Worldwide

RB/BA/1508HVCA4

Production fall in Malaysia pushes up rates for edible oil

43 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

44 www.agronfoodprocessing.com

NEWS

Edible oil firms increase share of branded & packed oil to fetch premiums

F

aced with tremendous margins pressure, oil producers in India have shifted their strategies from selling loose oil in container form to value-added branded products.

The switch has helped large players like Ruchi Soya Industries, AdaniWilmar and Cargill to fetch premiums of up to 30% over loose oil in bulk containers.

They also hope of an uptick in edible oil business with promotion of value-added products that offer health benefits.

As a consequence, the share of branded and packed segment in the entire edible oil demand has jumped up to 65-70% now from 30-35% five years ago, with a compounded annual growth rate (CAGR) of 15%.

“This is a natural transition with change in consumer preferences. There has been a rapid shift towards packed oil from loose oil in the last few years,” said SirajChaudhry, Chairman, Cargill India, the producer of NatureFresh, Gemini, and Sweekar brand edible oils.

While the government continued to raise the minimum support price (MSP) of oilseeds resulting into sustained rise in input cost, falling edible oil prices globally have made survival difficult for Indian oilseed crushers.

The government had continued raising minimum procurement price oilseeds by up to 100% in the last five years. The MSP of groundnut in shell was raised to Rs 4,030 a quintal for 2015-16 from Rs 2,300 a quintal for 2010-11, thus witnessing an increase of over 75%. Similarly, MSP of soybean (yellow) was raised to Rs 2,600 a quintal for 2015-16 from Rs 1,440 a quintal five years ago.

Surprisingly, prices of edible oil have slumped during the last five years due to global supply glut and reduced demand from bio-fuel sector. After setting the highest record of 3982 ringgit a tonne, crude palm oil (CPO) on the benchmark Bursa Malaysia slumped to 1800 ringgit a tonne in August last year. But, CPO price recovered thereafter to trade currently at 2454 ringgit a tonne.

“We were selling 65% of loose oil and the remaining 35% of packed oil five years ago, which has just reversed now.

Within packed oil segment, we have focused more on branding. So, despite doubling of oil volume in the last five years, contribution of branded and packed segment has surged within our Group,” said SatendraAggarwal, Chief Operating Officer, Ruchi Soya Industries Ltd, the producer of Mahakosh, Sunrich and a host of other edible oil brands. With branded segment in focus, the group has grown to

Rs 18,000 crore now from Rs 8,000 crore five years ago.

Margin pressure, however, has resulted into shutting down of small and regional players which opened an opportunity for national brands to grab their market share. With 30% duty, import of oilseeds remains un-remunerative.

“Since oilseed availability has been either constant or declined in India, the government should reduce import duty on oilseeds to enable crushers to procure oilseeds from overseas markets. This will not only help India produce more oil and therefore reduce import dependence, but also produce more meals for bird and animal feeds,” said AtulChaturvedi, Chief Executive Officer of AdaniWilmar Ltd, the producer of Fortune brand edible oil. Adani launched anti-diabetic ‘Vivo’ brand edible oil on.

Data compiled by the Ministry of Agriculture showed India’s oilseed output at 26.68 million tonnes for 2014-15 as against 32.48 million tonnes in 2010-11.

India produces around 8 million tonnes of edible oils against its annual consumption of around 23 million tonnes.

The difference is met through imports from Malaysia, Indonesia, Brazil and Argentina.

Stop import of edible oil, plead farmers, TN

F

ederation of Tamil Nadu Agriculturists’ Associations has appealed to both the Union and State Governments to stop the import of cooking/edible oil and instead promote the oils extracted from indigenously grown crops.

C. Nallasamy, secretary of the federation, told reporters the country had been importing 1.44 crore tonnes of cooking/ edible oil per annum and the same was

disbursed at subsidised rates.

According to him, the projections indicate that the cooking oil imports will be increasing by around 11 per cent

Vol.11 Issue 04 February 2016

this annum. “Instead of subsidising an imported product, the government should take steps to promote distribution of oils made from coconut, groundnut and gingelly, through public distribution system and other sales avenues”, he said.

This was essential to sustain the acreage under various crops. The federation also called for increasing support prices already fixed for various crops.

45 www.agronfoodprocessing.com

NEWS

Biotech, the answer to edible oil shortage

N ChandrasekharaRao

P

lant biotechnology has boosted yields in 29 countries. It can usher self sufficiency and improve nutritional outcomes.

The Indian edible oil industry is the world’s fourth-largest after the US, China and Brazil, accounting for close to 9 per cent of global oilseeds production. India’s consumption of edible oils has seen a steady rise due to increasing household incomes, growing population and health awareness.

Unfortunately, this increase in demand has not been matched by an increase in production of oilseeds in the country.

As a result of low productivity of 1,153 kg per hectare, production from 28.53 million hectares is just 33 million tonnes. This provides poor returns to farming communities in the dry lands of Gujarat, Madhya Pradesh, Rajasthan and Maharashtra.

Import dependency According to an estimate by the Solvent Extractors Association (SEA) of India, per capita consumption in India is expected to be closer to the global average of 26 kg per annum in about another ten years.

The current per capita consumption of oilseeds in India is 15 kg per annum and is projected to reach 18 kg per annum by 2019 and 22.8 kg per annum by 2025.

Recent government reports indicate that despite being a large producer of edible oils, India depends largely on imports.

Sixty per cent of the annual edible oil demand of 18-19 million tonnes is met through imports. As a result, India has an import bill exceeding $10 billion a year.

Edible oil imports have increased by 24 per cent since 2014 to reach 14.42 million tonnes.

Faced with declining arable land and challenges such as climate change, India must look at ways to increase productivity of oilseeds to bridge the demand-supply gap. While the government has proposed a hike in import duty to help farmers, the solution is not long-term and durable.

The new foreign trade policy awards exporters of certain oils and oilmeals and has suggested plans to increase the acreage of palm oil cultivation. Such efforts, however, are inadequate as well.

Biotechnology option A viable way to bridge this gap is to pursue plant biotechnology. Plant biotechnology has successfully increased yield in 29 agriculturally important countries including China, the US, Brazil, Argentina and South Africa for close to two decades.

In most cases, yields have gone up by an average of 24-35 per cent. Fortunately for India, our agri-scientists are engaged in groundbreaking work, applying biotechnology in the development of mustard, groundnut and soyabean.

There has also been a demonstrable rise in yield of cottonseed in India through this innovation. For a country like India, biotechnology can prove to be revolutionary, expediting the journey to

Vol.11 Issue 04 February 2016

edible oil security.

Yield can also be improved through the judicious and simultaneous application of several other methods, such as improving the planting material of oilseeds and adopting better agronomic practices.

Research and commercialisation of biotech oilseeds can address the pressing need for higher oilseed productivity.

Rather than focusing on short term solutions, India needs a far-sighted approach.

Protein boost Improved oilseed yield also has other collateral benefits. It results in the increased production of oilmeals that are used to feed dairy animals and poultry.

This translates into improvement in both the quality and quantity of protein rich foods such as milk, eggs, and poultry meat. For a country that is poised for further growth and progress, this collateral benefit of national health and wellbeing is critical.

Edible oils are a key determinant of a nation’s nutritional security. As one of the world’s fastest growing economies with rising prosperity levels, it is imperative that India takes urgent steps to become sustainable in edible oil production.

The writer is a professor at the Indian Council for Research on International Economic Relations (ICRIER)

46 www.agronfoodprocessing.com

Vol.11 Issue 04 February 2016

47 www.agronfoodprocessing.com

NEWS

Emami Agrotech to expand edible oil production EmamiAgrotech, which recorded Rs 4,500 crore in revenues for FY2014-15, plans to expand its edible oil production capacity with the setting up of a processing unit in coastal Karnataka.

W

hile the company is still “looking for a good patch of land”, it plans an investment to the tune of Rs 250 crore in the unit, over the following 12 months, said AdityaAgarwal, Director, Emami.

The company plans to undertake the processing of its palm, sunflower and rice bran oils at the new unit, he said, adding, “While palm and sunflower oils will be imported and processed in the unit, rice bran oil will be locally procured and processed.”

EmamiAgrotech, which currently has markets in West Bengal and Karnataka, has announed the launch of its rice bran oil in the latter, a market that contributes to 30 per cent of its turnover.

“A market for rice bran oil is nearly absent

in Karnataka, however, with this launch, we plan to educate the consumer of the benefits of rice bran oil. It is a relatively new oil and we want to create this new category for consumers,” he said .

Emami’s rice bran oil is priced at Rs 90 per litre, which is Rs 2-3 higher than the average price of sunflower oils in the market.

“Our challenge lies in converting sunflower oil consumers, which is the biggest market segment here, to rice bran oil consumers. We plan sampling sessions across the state and hope to cover at least 20 per cent market share of the households in Karnataka by the end of this year,” he said.

The company has allocated a marketing budget of Rs 15 crore in Karnataka for

this year. “We believe that a market share of 20 per cent of the sunflower oil market here, by this year-end, will be good enough momentum for us,” he added.

Within six months of launch, Emami has been able to capture 50 per cent of the rice bran oil market in West Bengal, claims Agarwal. “The success of Karnataka will determine further expansion for the company,” he posits.

AdaniWilmar launches diabetes care oil Fortune VIVO; targets health conscious consumers

I

n a bid to tap into the "healthconscious" consumers' market, AdaniWilmar launched India’s first diabetes care oil by the name Fortune VIVO. Fortune VIVO, as clinically proven, is a cooking oil which helps in controlling type II diabetes and reduces and maintains blood sugar levels.

However, the company's CEO AtulChaturvedi said during the product launch that the edible oil, although wellintentioned, is not made for consumption in a mass market. He is hoping that VIVO gets a healthy consumer base, and becomes the preferred choice for the people in the "higher earnings" bracket.

The price of 1 L of the brand is yet undecided, but will be in the range of Rs. 125-150.

“With the launch of Fortune VIVO, India’s first diabetes care oil, we have made a significant addition to our wide range of products. Diabetes is a disease fast growing in the country and VIVO is our contribution towards controlling it .The Company has a clear vision to spread goodness and health thus nourishing the dreams of our fellow Indians.” said Chaturvedi.

With the central themes of the event as #MakeIndiaDiabetesFree and 'Gharkakhana', AdaniWilmar tried to highlight the serious issue of rising population of Diabetics in the country.

According to an estimate, nearly 6.2 million people in India suffer from diabetes. A vast majority of them believe that their blood sugar levels are under

Vol.11 Issue 04 February 2016

optimal limits, a myth that needs to be busted.

Speaking on the occasion, AngushMallick (COO), AdaniWilmar Ltd. said “Fortune VIVO Diabetes care Oil is a pathbreaking product in India, as our country is the world capital for diabetes. This oil is going to be helpful not only for Diabetics but will also benefit the entire family. It will be a perfect solution for health conscious people as it controls glucose level in the body as well”

48 www.agronfoodprocessing.com

NEWS

IBM and Mars introduce a new consortium to ensure global food safety Our Bureau, New Delhi BM Research and Mars have collaborated to establish a food safety platform called Consortium for Sequencing the Food Supply Chain to make advancements in genomics and to investigate food microbiome to boost safety and productivity.

I

Experts from IBM Research aim to sequence the food supply chain to develop means to prevent bacteria that contaminates food and leads to several deaths.

The consortium plans to conduct a study on metagenomics to categorise and understand characteristics of microorganisms and factors that influence

their activity in a normal, safe factory environment.

IBM Research, Almaden vice-president Jeff Welser said: "Genome sequencing serves as a new kind of microscope, one that uses data to peer deeply into our natural environment to uncover insights that were previously unknowable.Data will be sorted in a systematic way so these testing techniques can be used widely at an affordable price.

The scientists will probe into the genetic fingerprints of living organisms such as bacteria, fungi or viruses and also on their growth in different environments.

Data collected will be used to study how bacteria interact.

The first data samples will be collected at production facilities owned by Mars.

IBM's genomics, healthcare and analytics experts will carry out their investigation at IBM's Accelerated Discovery THINKLab. Data will be sorted in a systematic way so these testing techniques can be used widely at an affordable price.

Mars Corporate Research and Development Vice-president Dave Crean said: "We are excited to be working with IBM Research on this, and look forward to welcoming additional partners in the future to help drive global innovation in genomics, food, and agriculture."

Nutraceuticals, food supplements no longer proprietary foods by FSSAI

N

utraceuticals and health and dietary supplements such as fortified foods and energy drinks will no longer be considered proprietary food by India's regulator, according to revised rules, and they will likely have to be approved as a separate category.

The Food Safety and Standards Authority of India (FSSAI) has amended regulations to fix loopholes in the definition of proprietary food, under which approval had been sought for several nutraceutical and health supplements as proprietary food.

According to the FSSAI's new regulations uploaded on its website on January 25, proprietary food is now defined as "... an article of food that has not been standardised under these (Food Safety and Standards) regulations, but does not include any novel food, food for special dietary use, functional food, nutraceutical, health supplement and such other articles of food which the Central Government

may notify in this behalf."

The regulations specify that "the Food Business Operator shall be fully responsible for the safety of the proprietary food."

Proprietary food shall use only such additives as specified for the category to which the food belongs and such category shall be clearly mentioned on the label along with its name, nature and composition," according to the regulations known as the Food Safety and Standards (Food Products Standards and Food Additives) Amendment Regulations, 2016.

"Nutraceuticals and food supplements will now have to be approved under the regulations for nutraceuticals," an FSSAI official said.

India's nutraceuticals market is estimated to cross $6.1 billion by 2020 from $2.8 billion, according to a study by the Associated Chambers of Commerce &

Vol.11 Issue 04 February 2016

Industry of India and market research firm RNCOS in August. Nutraceuticals can be classified as dietary supplements, including vitamins and minerals, and functional food and beverages such as those fortified with omega fatty acids and probiotics and energy and sports drinks.

Following the controversy over the regulator's ban of NestlĂŠâ&#x20AC;&#x2122;s Maggi instant noodles, which the Bombay High Court lifted in August, and the product approval process, which was quashed by the Supreme Court in the same month, the Ministry of Health and Family Welfare had said that the government plans to review and amend the Food Safety and Standards Rules, 2011.

The food regulator recently uploaded a list of 8,000 approved additives after setting new standards for them, the food categories in which they can be used and their permissible limits. It is also preparing new standards for product approval.

49 www.agronfoodprocessing.com

NEWS

FSSAI suggests Ingredient-based approval for proprietary foods of ingredient-based product approval, which is in place in countries such as USA, UK and Singapore among others.

I

n a bid to clear the confusion over definition of proprietary food items, the Food Safety and Standards Authority of India (FSSAI) have come up with a new description. According to it, proprietary food items, prepared using standardised ingredients, are permitted for consumption. The new regulation is a step towards the global practice

FSSAI said in the notification, that "Proprietary food shall contain only those ingredients other than additives which are either standardised in these regulations or permitted for use in the preparation of other standardised food under these regulations. It, however, has retained the existing list of food additives to be used in proprietary foods.

According to Ashish Prasad, partner,

Economy Law Practice, the definition of non-standardised foods in the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 had much scope for clarification. "The recent definition is a balanced one which got rid of ambiguity. While, it clarifies the ingredients and additives to be used in proprietary foods, it also excludes novel and functional foods, nutraceutical and health supplements from its purview," he said.

Experts say the lack of a list of approved ingredients has led to confusion. FSSAI is currently preparing a separate guideline for nutraceutical and novel food items which has now been separated from proprietary foods.

Supreme Court asks Mysore lab to clarify on food safety tests on Maggi Noodles

Our Bureau, New Delhi he Supreme Court has asked a government laboratory in Mysore to clarify whether its tests on Maggi noodles show lead and monosodium glutamate or MSG within safe limits.

T

It also asked food regulator Food Safety and Standards Authority of India or FSSAI to send more samples of Maggi noodles to the Mysore lab, observing that the lab has in two communications to the court said it needs more samples to carry out checks on parameters other than lead and MSG.

"We have perused the test reports. We would like Central Food Technological Research Institute, Mysore to appraise this court on two aspects, whether the test report relating to lead and glutamic acid are within the permissible parameters and to clarify that those are within parameters prescribed under the Food Safety Act," Justice Dipak Misra said.

"Maggi noodles are bought by the younger generation. We have more concern for their safety," the court said today, giving the Mysore lab eight weeks to submit its report. The court will now take up the case on April 4.

Nestle India, the makers of the popular snack, initially opposed sending more samples, arguing that the court had in December asked the lab only to test for lead and MSG, It later said it had no objection as long as the lab first tested for lead and MSG.

Maggi was banned in June 2015 by the FSSAI, which alleged that the instant noodles were "unsafe and hazardous" with lead beyond safe limits. Nestle had then pulled the product off shelves.

The Centre has argued that there is a need for comprehensive findings on Maggi noodles.

Vol.11 Issue 04 February 2016

The Supreme Court is hearing a petition

by FSSAI against a Bombay High Court order lifting a ban on Maggi noodles. It is also hearing NestlĂŠâ&#x20AC;&#x2122;s plea against an order of the National Consumer Disputes Redressal Commission for more tests on Maggi in Chennai.

The instant noodle made a comeback in November after passing tests at three government labs, after which the Bombay High Court removed the ban.

50 www.agronfoodprocessing.com

NEWS

High definition cameras improve safety and quality for processors of Frozen Fruits and Vegetables

W

ith double the resolution, Bühler’s newly developed InGaAsHD cameras for the SORTEX E range of optical sorters can detect foreign objects smaller than ever before.

With consumers increasingly demanding convenient and fast-to-prepare foods, frozen fruits and vegetables, such as green peas, beans or berries, are a growing market segment in the food industry. At the same time, food safety regulations are tightening and consumers have come to expect an impeccable product. A major concern is the potential presence of foreign materials, such as small stones or pieces of glass, wood or plastic in the packaged product. Optical sorters with InGaAs cameras are highly effective in detecting and removing these objects. Bühler pioneered the use of this sensor technology in optical sorting in 2007.

Now, the market leader is introducing InGaAsHD. With double the resolution, these high definition cameras are able to detect foreign materials down to half the size previously possible, resulting in substantially better detection and removal. InGaAsHD will be available in the SORTEX E product range and will enable processors of frozen fruits and vegetables to meet the highest safety requirements, while ensuring maximum quality of their product.

Frozen fruits and vegetables, such as strawberries, green peas, sweet corn or baby carrots, are a fast growing market segment in the food industry. Not only do they meet the demand for food that is quick and easy to prepare, in or out of season, but they can even be nutritionally superior to retailed fresh produce, as they are harvested at their peak ripeness - when most nutritious - and frozen soon after, preserving their vitamins and

antioxidants. “While increasing amounts of frozen fruits and vegetables are being processed, food safety regulations are tightening in most countries and processors have to guarantee the safety and quality of their products”, is how Stephen Jacobs, Global Product Manager at Bühler, sums up the challenge.

Among the biggest safety concerns are foreign materials, such as small stones, pieces of wood and glass, or slivers of plastic. If contained within packaged

frozen food products, they will pose health risks - including lacerations, choking or broken teeth. For food processors, they may result in expensive product recalls and damage to reputation.

visible spectrum.

Bühler pioneered the use of this technology for use in the packing line, as a final check, to ensure that difficult–todetect packaging materials such as light coloured wood in potatoes, cardboard in carrots and coloured plastic in vegetable mixes, were quickly identified and accurately removed from the product stream.

Bühler has continued to advance this technology and the development of the new high definition InGaAsHD cameras now mark the latest step in this process: “By combining a new hardware, software and lens package, we were able to engineer a new camera with double the resolution.

As a result of this in-house development, our sorter will be able to identify foreign material objects down to half the previous size”, as Benedict Deefholts, Head of Sensor Development at Bühler, describes the key advantage of the new HD cameras.

With its vast range of optical sorting solutions, Bühler has worked for decades to enable food processors to efficiently identify and remove foreign materials.

This is achieved by using a variety of sophisticated detection technologies.

Thanks to this development, Bühler’s sorting solutions for processors of frozen fruits and vegetables now offer even better detection and removal capabilities for a wide range of foreign materials in several different stages of the processing and packing line and is particularly beneficial for processors with stringent safety specifications such as for the baby food market.

InGaAs cameras, for instance, are very effective for separating foreign materials from good product of the same colour.

They are based on semiconductor sensors made from indium gallium arsenide alloy and operate in the short wave infra-red range (SWIR). As a conseqence, they are able to detect even the subtlest of colour differences that cannot be seen in the

The new InGaAsHD cameras are now available for Bühler’s SORTEX E product line. Processors that are already operating SORTEX E optical sorters with Enhanced InGaAs cameras will be offered an upgrade option, enabling them to benefit from the improved detection performance of the new HD cameras with their current solution.

Vol.11 Issue 04 February 2016

51 www.agronfoodprocessing.com

NEWS

IARI avails high-yielding agri-produce Our Bureau, Mumbai ndian Agricultural Research Institute (IARI) has recently released seven new varieties of field crops including wheat, rice, chickpea, pigeon pea and mustard and identified 11 varieties of highyielding agricultural and horticultural produce during 2015.

According to media reports, these varieties include the newly-developed pigeon pea (arhar dal) and mustard which have early maturity and high-yielding properties.

Both are considered quite important as they can help in reducing India's import

I

bills of pulses and edible oils in the long run. As India's current annual import bills on pulses and edible oils are Rs. 10,000 crore and Rs. 56,000 crore respectively.

The focus of public research institutions has been on developing varieties which can fill the huge demandsupply gap.Mustard-30) developed by IARI scientists will not only increase productivity but will also be beneficial for health as it has low erucic acid.

All these varieties are not just resilient to several biotic (living organism like pests and insects) and abiotic (nonliving factors like light, temperature and

water) stresses but also have enhanced nutritional quality.

India going for large-scale food imports

Our Bureau, New Delhi wo consecutive droughts and untimely rains last year have cut India's farm output, pushing many farmers to destitution. Lower prices in local markets and a rout in global commodities have aggravated their woes.

As a result, India has resumed importing

T

corn after a gap of 16 years. New Delhi now looks likely to import more food in the months to come, traders say.

Here are some facts about imports and exports of key farm products: CORN: India exported 2.8 million tonnes in the fiscal year to March 2015 and now New Delhi is likely to import 2 million tonnes of corn in 2015/16 and again in 2016/17. Domestic corn prices have shot up by about a quarter in the past six months, raising the cost of production of chickens by 44 percent.

OILMEALS: After exporting 4.5 million tonnes of oilmeals to countries such as Iran, Japan, Korea and Taiwan in 2014/15, traders have clinched deals for less than a million tonnes in April-December.

Oilmeal exports are not expected to cross a million tonnes in 2016/17.

SUGAR: India might also be forced to buy sugar in the next season beginning Oct. 1, 2016 due to lower output of sugarcane. The world's No.2 sugar producer last imported in 2009/10,buying 4 million tonnes.

LENTILS: Imports of protein-rich lentils are expected at a record 5 million tonnes this fiscal year, with similar volumes expected next year.

WHEAT: Wheat stocks are enough for now, but expectations of lower output this year after a poor crop in 2015 has meant a 25 percent drawdown from state warehouses.

Indian groundnut exports get a nod from Vietnam govt Our Bureau, Mumbai n the wake of the visit of delegation from Vietnam to India last year, Vietnam has formally lifted the ban on import of Indian groundnut.

The Vietnam Ministry of Agriculture & Rural Development (MARD) was quoted as saying, “We have formally communicated the decision to the Indian Government stating that Plant Protection Department of Vietnam (PPD) will issue import permits for groundnuts for January

I

18, 2016.”

The country had temporarily suspended import of groundnuts from India from April 6, 2015, due to interception of quarantine pests – Caryedon serratus and Trogodrma granarium – in consignments exported since January 2015, the statement said.

However, in December 2015, it decided to lift the ban after the visit of delegates who recognised the export procedures and export certification system for export

Vol.11 Issue 04 February 2016

of groundnuts export from India.

52 www.agronfoodprocessing.com

NEWS

Gujarat FDCA winds up ‘Street food safety model’ in Three Districts food- perhaps it is the unsafest in the country in the absence of proper vigil and regulations.

This is an initiative taken by the food authority of the state, since its inception and norms were in place when Prevention of Food Adulteration (PFA) Act 1954 was in force.

Archana Aroor, Mumbai he state of Gujarat continues to be an exception following a ‘street food safety model’ for street food vendors and small hotels at highways, with its completion of the first phase in the year 2012-13—now enters the second phase of its model ensuring the street food safety regulations in around 26 different districts of the state. Three districts have already been covered and awaiting its results.

When it comes to food safety of street

T

Speaking to Beverages and Food Processing Times, H G Koshia, commissioner, FDCA, Gujarat informs, “We need to ensure street food safety and educate the hygiene aspects for street food vendors for a quality food.”

In such an awareness programme, Koshia said that already three districts namely Junagad, Porbander and Godhra had been dealt under the aforesaid programme and other districts are expected to be completed by the end of February, this year.

He mentioned that it was impossible to achieve such a target with around 260 food safety officers, 33 designated officers as there more than 2 lakh food business operators (FBO’s) and 60 million population in the state. However, it is noteworthy, that in one-half years of this programme, the authorities had been able to conduct about 50 awareness programmes for street food vendors including the hotels at highways to corroborate food safety.

According to the industry, nearly 80 per cent of the consumers in India accessed street food. “We have explained to those street food vendors on the importance of the food safety in terms of the location of the spots and hygiene food preparation practices,” concludes Koshia.

Other states such as Bhubaneswar, Hyderabad, Delhi, Lucknow and Kolkata, under the purview of Food Safety and Standards Authority of India (FSSAI) are also keen to replicate the Gujarat model.

Food industry welcomes new norms for food product imports by FSSAI

F

ood items which have at least 60 per cent shelf life or more will only be allowed to import, the food safety watchdog The Food Safety Standards Authority of India (FSSAI) said in its new guidelines, a move aimed at checking dumping of products. Shelf life means the period between the date of manufacture and the best before or expiry date whichever is earlier as printed on the label.

The apex body said that no one could import any food product without having an import licence from the central licencing authority and the importer should also be registered with the Director-General of Foreign Trade (DGFT).

"We welcome this move now there is more clarity for importing the packaged food products. Besides, this move will also stop bringing expired products to the country and try to make it a dumping ground," Dhanuka says.

It also asserted that if any food importer attempts to import unsafe and prohibited food or food from prohibited sources, directly or indirectly, including rechannelling, re- packing etc, his or her licence could be cancelled.

In addition to respective directions, the regulator also eased the import clearance process by introducing risk-based criteria for clearance rather than sampling of consignments.

All India Food Processors Association President (AIFPA) Amit Dhanuka said that this would bring more clarity and transparency in the regulations.

Vol.11 Issue 04 February 2016

Further, FSSAI clarified that under the labelling norms, the permitted importers had to affix logos as prescribed by the food safety norms on arrival of the food products at the customs bonded.

53 www.agronfoodprocessing.com

NEWS

DairyUK's new export strategy to unleash international markets Our Bureau, Mumbai K - Dairy UK has published a new export strategy to help the country's dairy industry unlock a 'new world of opportunity' on international markets.

The strategy, entitled 'United Kingdom: Exporting Dairy to the World', identifies a raft of actions and recommendations that will enhance the UK dairy industry's export performance. According to Dr David Dobbin, Chairman of Dairy UK said that the country had an outstanding industry producing worldclass products and the pepople in our industry had the ambition and determination to succeed.

The export strategy sets out a variety of actions and recommendations including ensuring a skilled workforce, improving the export certification regime, and removing barriers to dairy trade. Farming Minister George Eustice was quoted as saying,"UK food has an excellent reputation the world over and with

U

a growing global demand for dairy, British producers should take the opportunity to promote their high quality produce at home and abroad."Exports are a crucial part of growing and strengthening the dairy industry and a key part of our plan is to see new markets opened, so that the sector can become more resilient, competitive and profitable."

Dr Judith Bryans, Chief Executive, Dairy UK, reportedly mentioned that other dairy exporting countries had followed successful paths and had set interesting examples in terms of industry-government cooperation to foster "Other dairy exporting countries have followed successful paths and set interesting examples in terms of industry-government cooperation to foster growth and develop exports. Also, he added that there was a scope to do more such as how well the UK industry was doing in terms of innovatins and promotions, skilling the industry for

the future,food safety and environmental credentials and getting all of those elements correct was essential in a highly-competitive export market.

Meanwhile, Sian Davies, Chief Dairy Adviser, The National Farmers Union (NFU) reportedly highlighted that the dairy sector had been under severe financial pressure unprecedented low prices and therefore to add value through selling more UK produce abroad and to growing markets had never been so important.

NFU is fully supportiveof Dairy UK's strategy to unlock new opportunities for high quality british dairy products.

However, the whole supply chain will need to work together to achieve this through all necessary routes; producing for market demand, improved skills and training and more processing capacity. After Ireland, it would mainly export dairy products to The Netherlands, France, Belgium and Germany.

Verka to launch premium brand of indigenous Cows' Milk Our Bureau, Mumbai n a bid to promote the sale of indigenous (Desi) cow's milk, the Punjab chief minister Parkash Singh Badal today has asked the MILKFED to introduce a premium brand of this healthy milk under its popular brand name of Verka.

A decision to this effect was taken by the chief minister while presiding over a high level meeting to encourage rearing of indigenous cow breed in the state.

Taking part in deliberations, the chief minister said that there was huge demand of this milk amongst the health conscious residents of the state, which could help in turning the fortunes of Dairy farmers of the state. Mr. Badal said that this would fulfill twin objective of supplying nutritious milk to the consumers besides increasing the earnings of the dairy farmers.

He further asked the MILKFED to start a vigorous marketing campaign

I

for popularising this brand of milk. The chief minister asked the MILKFED to introduce a price support mechanism for purchasing this milk from the farmers and then market it under its brand name Verka to popularise it amongst the people.

He said that MILKFED must procure this milk from dairy farmer at no profit basis adding that the loss incurred by it would be compensated by the state government.

Mr. Badal also asked MILKFED to set up separate processing unit in the state for processing and marketing of this milk and its products.

In another significant decision, the chief minister also announced to set up special milk booths for sale of this milk in big cities across the state. He said that the state government would provide these booths to the dairy farmers who would sell their produce through these booths.

Vol.11 Issue 04 February 2016

Mr. Badal also announced that state government would provide 75% subsidy to farmers for constructing sheds to set up cluster of minimum 200 indigenous cows. He also announced that the state government would give 50% subsidy to private dairy farmers having indigenous cow breeds for setting up milk dispensers or purchasing any other equipment.

The chief minister also said that the state Cooperative bank would provide prompt loans to these dairy farmers for dairying activities.

54 www.agronfoodprocessing.com

NEWS

Coca Cola enters dairy drinks segment in India Our Bureau, Mumbai oca-Cola India has reportedly entered the value-added dairy segment with its flavoured milk product Vio. It believes this will be the next growth pillar for the company after sparkling drinks, water and juices.

Venkatesh Kini, President, CocaCola India and South West Asia, was quoted as saying, “this was a strategic move as the dairy segment offers a huge opportunity considering that India’s average per capita consumption of milk is high and comparable to global averages.”

He said the company’s move was focussed on tapping into the demand for value-added dairy products in the country, which is still a small segment of the overall dairy category adding that the Vio flavoured milk had been developed specifically for the Indian palette at CocaCola India’s R&D centre in Gurgaon with inputs from the R&D centres in Atlanta and Shanghai.

The company hopes to bring excitement to the flavoured milk category by positioning it as ‘cool and youthful’ instead of it being a kids’ drink.

Vio flavoured milk is available in two — Kesar Treat and Almond Delight —

C

priced at Rs. 25 for a 200 ml pack. The company had earlier tried its hand with Maaza Milky Delite, launched as part of

a pilot project to get consumer insights in Kolkata.

According to T Krishnakumar, chief executive officer, Hindustan Coca-Cola Beverages (Coca-Cola’s India bottling arm), Vio was being manufactured by the company’s co-packer, Schreiber Dynamix Dairies Pvt. Ltd, and would be distributed through Coca-Cola’s distribution network.

Coca-Cola India would also continue to look at partnerships with well-entrenched dairy companies for sourcing and

collection of milk, as the company wants to focus on leveraging its strength in branding, packaging and distribution.

Talking about the communication strategy for the new brand, Debabrata Mukherjee, Vice-President, Marketing and Commercial, Coca-Cola India and South West Asia reportedly mentioned that the brand was targeted at the youth and meant for on-the-go consumption.

Further he added that as the current distribution strategy was focussed on modern retail outlets, the brand’s communications strategy would be largely focussed on digital marketing as well as in-store promotions.

For instance, Reliance Retail would build awareness through special promotions, sampling opportunities as well as set up ‘VIO Dairy Zones’ across 9 stores to facilitate stronger consumer-product engagement.

The company is putting together its capabilities to be able to offer consumers great tasting products at competitive prices points leveraging on company’s wide distribution network.

To lease out ailing Delhi Milk Scheme centre invites bids next month Our Bureau, New Delhi he Centre will next month invite bids from milk companies to turnaround loss-making Delhi Milk Scheme (DMS) by taking over its operations and maintenance on a longterm lease basis.

Last year, the Cabinet had given the goahead for corporatization of state-owned DMS and its progress was reviewed by Prime Minister Narendra Modi.

"The concession agreement is being

T

finalised. Once that is ready, we will issue next month the Request for Proposal (RFP) seeking bids for operation and maintenance of DMS," a senior Agriculture Ministry official.

The DMS will be leased out for at least 30 years to ensure the company makes profit using the existing infrastructure and resources. Milk companies like Amul, Nandini (Karnataka), Sudha (Bihar), Mother Dairy (Delhi) and Saras (Rajasthan) have evinced interest in

Vol.11 Issue 04 February 2016

running DMS, which has 800 employees.

DMS has milk production and packaging capacity of 5 lakh litres per day, besides a network of 1,298 outlets in the NCR. It was set up in 1959 with the primary objective of supplying wholesome milk to Delhi citizens at reasonable prices as well as for providing remunerative prices to milk producers. DMS has been procuring raw/fresh milk from Punjab, Haryana, Uttar Pradesh, Rajasthan and Bihar.

55 www.agronfoodprocessing.com

NEWS

FMCGâ&#x20AC;&#x2122;s to tame on calorie count; serves health-conscious buyers

Our Bureau, Mumbai

F

ollowing a global policy by Unilever, its Indian unit Hindustan UnileverBSE -0.36 per cent has reduced the calories in ice-creams. It wants to ensure that at least 80 per cent of the packaged ice-creams it sells do not have more than 250 kilo calories per portion.

According to reports, PepsiCo would rollout its colas in 150ml cans - the smallest in the domestic market, in the next week.

Rival Coca-Cola will introduce 180ml cans across its beverages portfolio next month in addition to its 300ml.

Indians are becoming more vulnerable to diseases arising from sedentary lifestyles and unhealthy diets. One such disease, diabetes, is likely to affect 79.4 million people in India in 2030, more than double the number in 2000, according to data on the World Health Organization's website.

"Unilever shares the public concern about the issue of obesity and related chronic diseases and the tremendous longterm challenge society, is facing to deal with them," an HULBSE -0.36 per cent spokesperson says.

The spokesperson reportedly has informed that HUL had reformulated

some products and reduced the sizes of others to bring calories in them to below 250 kilo calories. HUL sells Magnum and Cornetto ice-creams in India in both mini portions as well as regular sizes now.

"As a food manufacturer, we are clear we have a responsibility to help address this challenge both in our product formulation and in our public position," the HUL spokesperson says.

Italian chocolate maker Ferrero is now selling its trademark premium gold round-shaped brand Ferrero Rocher in packs of three.

PepsiCo and Coca-Cola expect the availability of limited portions to spur consumption. Both companies have been reporting low single-digit volume sales growth, impacted by erratic summers and consumers curbing impulse buying.

"The new sizes in cans will be the smallest so far in the Indian market. The move is aimed at getting the calorie-conscious to consume the beverages with the pull factor that these are limited in calories," a top beverage industry official mentions.

"We plan to introduce 180ml cans and 300ml PET packs this year in some select markets only. For consumers, it means the flexibility to choose the serve size," a Coca-Cola spokesperson avers.

Some restaurant chains, too, are toeing a similar line. Dev Amritesh, chief operating officer at Dunkin' Donuts India, says, "We have various options at various price points and portion sizes.

For example, consumers can choose a big Tough Guy burger or a smaller Crunchy Joe. At the same time, they could go for an indulgent Death by Chocolate donut or a lighter Classic Glazed donut."

Top retailers said limited size packs are becoming popular. "Portion control and tempered indulgence are gaining momentum. Consumers are consciously choosing smaller portions and brands are following suit as portion control has moved from the diet regime to mainstream consumers now," Devendra Chawla, group president, food and FMCG, at retailer Future group, was quoted as saying.

Chawla reportedly said that the categories where nutritional profile is under scrutiny are the first to adopt this. "As a trend, consumers are settling for taste-led products over diet ones, though they are limiting the frequency and size of intake," he said. Sugar-free and diet beverages have posted higher sales than the previous year, but on a small base.

Mobile Kitchen upgrades street food in Kerala Our Bureau, New Delhi

F

or a while now, street food has been passĂŠ in most middle-class and upper-middle-class households in Kerala. But lately, it's making its way back on to their dining tables.

One reason is the way street food has undergone a transformation and the latest fad is the mobile kitchens that appear when dusk sets in on the main roads in cities across the state.

There are more than 150 such mobile kitchens which do business till 11 p m in the state with most concentrating in the 14 district headquarters of the state.

These mobile kitchens are modified vehicles, mostly Tempo Travellers, from

which all the seats are removed and it's just the driver's section that remains from the original.

While the concept has been around in other parts of the country, notably in north India, and now itâ&#x20AC;&#x2122;s pioneered the transformation in Kerala.

The mobile vans have an extended menu and it includes mostly the traditional dishes like the popular thattu dosha (the smaller version of the regular one), chapathies, parottas, idiappom, appom.

Some even offer fried rice, while omelettes and bull's-eye (fried eggs, sunny side up) are the most sought after ones.

The Food and Safety Commissioner is the watchdog for these mobile kitchens.

Its commissioner, T.V. Anupama said that

Vol.11 Issue 04 February 2016

the mobile kitchens are classified as street vendors.

"These vehicle kitchens have to pay an annual fee of Rs.2,000 ($30). Our officials conduct surprise checks at these eateries and any lapses connected to hygiene invite penalties. In December (2015), we realised a total fine of Rs.288,000 across the state," Anupama said.

With the watchdog doing a good job, good quality food at cheap rates, hygiene being of prime importance and ease of doing business with practically no taxes to be paid by the kitchen owners, more and more mobile kitchens are certain to hit the roads in the state in the days to come.

56 www.agronfoodprocessing.com

NEWS

Corn is fast moving from snacking to full meals in India

Our Bureau, New Delhi orn is fast moving beyond snacking to full meals in India as consumers are lapping up soups and nachos along with the ubiquitous popcorns.

Brands such as Pepsi Co's Kurkure, HUL's Knorr, Planet Pop India, GreenDot Health Food's Cornito and ConAgra Foods' Act II are seeking to make the most of this shift in food habits.

"Corn is moving beyond a munching option in multiplexes and is getting adopted as a conscious ingredient of meals across Indian households.

Riding high on its health benefits owing to high fibre content, it is embraced by families looking for healthy options from breakfast to supper," said Suresh Saraf, chairman of Saraf Foods.

The company has seen a 30 times growth in volumes over the past decade since when it has been freeze-drying corn for soup and pasta makers. It has engaged nearly 400 farmers in central Gujarat to sow corn over 2,000 acres for captive consumption.

At the India Maize Summit last year, agriculturists and planners deliberated on how the country's maize demand is

C

forecast to grow to about 44 million tonnes by 2022. About 30% of that demand will comes from Indian families, said H Subbaiah, then additional director

of agriculture, Karnataka. Is corn the new potato in terms of how Indians choose to munch? "Perhaps not," said Balaji Wafers' Chandu Virani.

The company recently launched cornbased munchies under its flagship potato wafer brand Balaji Wafers. "Corn cannot replace potato at this point, but surely it is a new category with good margins," said Virani, who is keen to double corn processing capacities at his plant by the end of 2016 and expects to take on DFM

Foods' Crax.

According to industry players, India ranks as the world's sixth largest producer and the fifth largest consumer of maize.

Apart from half of its demand from poultry, consistent growth in processed food industry has fuelled demand for corn among households in India.

Adoption of Chinese and Mexican cuisines and consumption of colas, candies and cookies that use corn syrup as an ingredient is pushing growth. Greendot Health Food, which launched Cornitos in 2009, has been bullish on corn ever since.

Corn consumption in India has gone up in the past five years versus that of potato especially because it comes under healthy snacking umbrella.

Corn snacks have less fat content and zero trans-fat, attracting high consumption level as compared to potato wafers," said Vikram Agarwal, director at Greendot.

Bharat Ramani, chief executive of Planet Pop Foods said, "Corns are a healthy alternative to the junk food we all are munching. High fibre content in popcorns surely stands a better chance to take corn as a category forward."

Bagrry's aiming Rs 400 crore turnover in 5 years; to launch more brands Our Bureau, New Delhi reakfast cereal maker Bagrry's is eyeing Rs 400 crore turnovers in five years as it plans to expand into a multi-product and multi brand company.

"We are looking at Rs 400 crore turnover in five years. We are focusing to become a multi-brand, multi Product Company in the food space, with health and wellness at the core of the products we offer," Bagrry's India Director Aditya Bagri said.

Going forward, we will launch more brands and enter new product categories.

B

At present we have two brands -- Bagrry's and Lawrence Mills," he said.

The company expects to clock Rs 100 crore turnover in the current fiscal year.

Elaborating on the plans, he said: "The Company is looking at adding more products under Lawrence Mills brand. We are also aiming at doubling at distribution network to 1 lakh outlets in two years as against 50,000 at present across the country."

On whether the privately held company is looking at raising funds through an initial public offer (IPO), Bagri said: "We

Vol.11 Issue 04 February 2016

are looking at sustainable growth... We are exploring different capital structures.

But there is no primary need for capitstructures. But there is no primary need for capital in the near future. We will only need it to grow faster. These things like listing (on stock exchanges) will be on cards as we scale up."

Bagrry's India, which currently, exports its products to countries such as US, Canada, Nepal and Bhutan, is also talks to enter more overseas market.

57 www.agronfoodprocessing.com

NEWS

Sunfeast ‘Yippie’ noodles to reach Rs 1,000 cr mark post Maggi-ban Our Bureau, New Delhi TC’s instant noodles brand Yippie foresees to reach Rs 1,000 crore brand, ensuing the Nestle-Maggi’s controversy.

old sales levels," says Rajesh.

V L Rajesh, divisional chief-executivefoods division, ITC, reportedly said that the brand Sunfeast ‘Yippie’ was in its fifth year post the national roll-out, however, it was now poised to enter Rs 1,000 crore club in the ITCBSE -0.44 per cent foods stable.

According to media reports published earlier, Nestle had re-launched Maggi in November following a Bombay High Court order, in August, had lifted ban on the instant noodles brand imposed by food safety regulators.

I

Explaining Yippee's growth pre- and post-Maggi ban, Rajesh was quoted as saying that the brand was growing at more than 40 per cent before the controversy broke out... (in June 2015), with all the competitors in the market.

"The controversy and confusion that prevailed adversely affected the whole industry. However, with our proactive inputs and innovative campaigns, we were the fastest to recover and then exceed our

He then said that the company’s campaigns had focussed on world-class product and manufacturing processes.

In June the company had withdrawn the instant noodle brand from the market. It had suffered a damage of 70-85 million Swiss Francs (nearly Rs 530 crore) due to the ban that lasted five months.

Recently, the reports stated that ITC had revenue of Rs 36,507.40 crore in 2015.

For the first half of the fiscal 2015-16 ITC's net sales was Rs 17,310.23 crore, in which non-cigarette FMCG segment including branded packaged food business had contributed Rs 4,522.63 crore.

Not only this, the company is reportedly planning to set-up new manufacturing units for ‘Yippie’s considering growth rate. It had launched Yippie noodles manufacturing plant in Pune and would continue to facilitate in other states such as Kolkatta, Haridwar and Bengaluru.

Singapore inks pact with Madhya Pradesh 7,000 crore.

Our Bureau, New Delhi ingapore has inked four pacts with the Government of Madhya Pradesh (MP) in various sectors.

This also includes the production of nearly 1,000 MV non-conventional energy in two-phases with corpus of Rs

S

Madhya Pradesh state chief minister, Shivraj Singh Chouhan said the pact agreed to extend cooperation with the state government in five sectors such as food processing, renewable energy, urban planning and smart city, skill development and information technology.

Chouhan stated that the government had also inked a pact to produce 540 MV in first phase and 407 MV in second with an investment of Rs 7,000 crore wind energy

Vol.11 Issue 04 February 2016

with Sembcorp Green Infra Ltd. He then informed that the state had also signed MoUs with Singapore in other sectors such as urban planning, skill development, clean energy and food processing industry. For urban planning and ‘Smart City’, an agreement was inked between Directorate of Town and Country Planning and Singapore Corporation Enterprises.

The second agreement was signed between MP's Technical Education and Skill Development Department and Singapore ITE Education Services and the third MOU was signed in the renewable energy sector, while the fourth was in the area of food processing sector between LT Foods Limited India and DMM Nutrition Products, Singapore.

58 www.agronfoodprocessing.com

Event Calender-2016 Months

March 2016

Events

1st–3rd Russia Tea & Coffe Industry Event Russia 2nd–5th Packplus South 3rd–6th Food Pack Asia Thailand 6th–8th Food Expo Denmark 15th–17th Print Pack Pakistan 15th–19th Aahar –Delhi, 23rd– 26th CNR SeaFood Istanbul

April 2016

5th–7th Print Pack Expo Algeria 10th– 11th IMEAT Italy 13th–14th Oil & Fats International India, Hyderabad 13th-15th SIAL Cannada 14th-17th IBATECH Istanbul 22nd-24th Dairy Expo China 26th-28th Sea Food Processing Global Belgium

May 2016

Food Processing Industry In India 5th-7th Packtech & Foodtech China 7th-12th IFFA Germany 11th-14th AFRO Packaging & Food Ehibition Germany 29th-1st IRAN Food & Bev Tech Iran 19th-21st World Food Azerbaijan

June 2016

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

July2016

8th-10th Compack Mynmar Burma 13th-15th Propak China 13th-15th Bevtek Sanghai China 27th– 30th Packplus, Delhi 24th– 26th Food South, Chennai

August 2016

22nd– 24th FI INDIA & HI, New Delhi

September 2016

7th–9th FoodPro, Chennai 22nd–24th International Foodtech ,mumbai 22nd–24th Annapoorna, Mumbai 28th– 29th IICE 29th-1st Food Hospitality World, Goa

October 2016

4th-7th Tokyo Pack Japan 4th-6th Innopak Spain 5th-6th Easyfairs Sweden 10th-14th Agroprodmash Moscow Russia 11th-14th China Brew & Beverage Sanghai 15th-16th Evenord Germany 21st-23rd Cake Fest Poland 22nd-25th Sudback Germany 22nd–24th Dairy Feast, Lucknow 25th-28th Cibus Tec Italy

November 2016

1st-3rd Foodtech Denmark 2nd-4th Worldfood Kazakastan 2nd-6th Indagra Food Romania 2nd-5th Eurasia Packaging Turkey 9th-12th Interfood & Drink Bulgaria 14th-17th Emballage France 19th–22nd Agro Tech,chandigarh 23rd-24th Packaging Innovations Netherlands 25th-26th Empack Belgium 27th-30th Intervitis Germany

December 2016

15th–17th Drink Technology , Mumbai 30TH-1st palmex Latin America Columbia

Vol.11 Issue 04 February 2016

59 www.agronfoodprocessing.com �rganisedr��

�nrE�entr��

im

EVENTS

Indian

Ice cream Congress & Expo 2016

28th-29th September 2016 Expo Center, Sector-62, Noida,(Delhi NCR)

Meetings Discussions Knowledge Entertainment

Galar�Nigh

Exhibition Supported By

Ofcial Media

Online Media Partners

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

A Supplement of Beverages & Food Processing Times

Times

www.agronfoodprocessing.com

www.agronfoodprocessing.com

Media Partners Dairy Times, A bi-monthly Newspaper from Advance Info Media & Events

dairy

A Bi-Monthly Newspaper Devoted to Milk, Milk Products & Allied Sectors

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

Times

Group Publication of Advance Info Media & Evnets

www.agronfoodprocessing.com

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

Contactr�for�tStallsr�&rtPartners Indian Ice Cream Congress & Expo

Firoz H. Naqvi : +91-9867992299

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

121, 1st Floor, Rassaz Multiplex, Mira Road (E), Thane - 401107. India. Tel: +91-22-28555069 / 28115068.Email: info@indianicecreamcongress.in Web: www.indianicecreamcongress.in INDIAN ICE CREAM MANUFACTURERS ASSOCIATION Sudhir Shah-+91-9849025027 (Secretary IICMA) Samrat A. Upadhyay- +91-76988 69800 (Secretary General – IICMA) Regd. Ofce : A/801, 8th Floor, “Time Square” Building,C. G. Road, Nr. Lal Bunglow Char Rasta, Navrangpura, Ahmedabad - 380 009, Email: info@iicma.in Web: www.iicma.in

Vol.11 Issue 04 February 2016

60 www.agronfoodprocessing.com

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

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

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

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

Innovations for a better world.