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Vol 11 Issue 03 January 2016
Rs. 100/-
11th
Volume
Indian Food Processing Industry Is it geared up for 2016
Cheesy charm Is India the
next big cheese market?
Prominence of
FSSAI in India:
Justified or not
THIS IS NO WALK IN THE PARK MEGA FOOD PARK
STORY SO FAR
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McDonald's going for brand extension business in India Nestle India all ready to launch more variants of Maggi
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Godrej Agrovet buys 25 per cent stake for Rs 150 crore of Creamline Dairy's
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Organised Dairy market to perform better in next three years:CRISIL
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NestlĂŠ India restarts Maggi Noodles production at last of its five facilities Milk surplus puts pressure on prices, dairies want it part of midday meal
Akshay Kumar to be the brand ambassador for Kwality Government thinks over Rs 1750 cr proposal to strengthen FSSAI, state Food regulators
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Prominence of FSSAI in India: Justified or not
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THIS IS NO WALK IN THE PARK MEGA FOOD PARK STORY SO FAR 43
Cheesy charm Is India the next big cheese market 27
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Ramdev's Patanjali firms served FSSAI notice Up to 70 per cent of dietary supplements in India fake
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CONTENTS
Packaged Food market to touch $50 bn by 2017: Study
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FSSAI to set up nine new panels to expedite Food regulatory mechanism
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Indian food processing Industry Is it geared up for 2016
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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
he New Year is here, like a chapter in a book, waiting to be written. We can help write that story by setting goals.’’ My objective is obvious as I will try to be more dedicated and devoted towards my writing and readers. This year my plans are zealous because I am going to upsurge my analytical proficiency and enhance the content of this journal. In this New Year issue I have tried to analyse certain subjects that made prominent news throughout 2015. Like the Food Safety Standards Authority of India (FSSAI) which remained in news throughout last year, from Maggi ban to creating fear in the food industry to antagonizing to being stringent and blocking food imports and launches. But FSSAI’s latest policy has been welcomed by the food industry - FSSAI has recently brought out a new guidelines aimed at checking dumping of productsin its new guidelines. In this food items which have at least 60 per cent shelf life or more will only be allowed to import. The Food regulator also said that no one can import any food product without having an import licence from the central licensing authority and at the same the importer should also be registered with the Director-General of Foreign Trade (DGFT). FSSAI also said that if any food importer attempts to import unsafe and prohibited food or food from prohibited sources, directly or indirectly, including re-channeling, re- packing etc., his or her licence could be cancelled. The food industry thinks that this plan will bring more clarity and transparency in the regulations. They have welcomed this move as it will stop bringing expired products to the country and try to make it a dumping ground. This shocking, but true that many international food processing industry are being callous in Indian market. The global food and beverage biggies seem to be applying lower or no standards, and less responsible practices in unregulated markets, like India, and may not be following consistent standards across all markets of operation. This could explain the recent run-ins which food companies, particularly Nestle, had with regulatory agencies in the country with regard to labelling requirements last year with its best-selling brand, Maggi instant noodles. Certain companies, particularly those headquartered in the US (including General Mills, Kraft, Heinz, Kellogg's and ConAgra), seem systematically to apply lower or no-standards and less responsible practices in unregulated markets or those with low levels of regulation. This is a cause for concern. Companies should help to tackle global nutrition challenges not because they are forced to by regulators (or the threat of regulatory action) but because they can make a substantial contribution to public health. Given their global reach, food and beverage companies havefood and beverage companies have a powerful role to play alongside governments and international organizations in helping to tackle this crisis, and should forge innovative partnerships. 2016 brings a lot for from the food processing industry; Like Ministry of Food Processing Industries has urged Prime Minister Narendra Modi to consider 100 per cent foreign direct investment (FDI) in multi-brand retail of food products; MacDonald’s is planning on brand expansion and Pepsi Co brings its Criptz and Twistz to take on rival and Starbucks believes that India is one of the best market. Patanjali noodle fighting FSSAI but being optimistic enough to claim that ousted Maggi. While Kwality and Vadilal ice cream owners are affecting their market due to family vengeances; Bagrry is eyeing 400 crore turnover and mother recipes is going online. Nestle though made a triumph comeback but its woes don’t seem to end for the Swiss giant as FSSAI has taken the company to the Supreme Court. The apex court had on December 16; last year ordered testing of samples of Maggi noodles in the Mysore laboratory after NCDRC had directed that it be done in Chennai. The Supreme Court was hearing a plea filed by Nestle India Ltd against the order of apex consumer commission. Food and beverage industry is touching new heights and reaching out to international standard and making a niche for itself in the global arena. Where food safety needs to be implemented rigorously but the regulatory body need to take the industry’s trust to make the F&B sector prodigious.
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Prominence of FSSAI in India: Justified or not
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ood Safety and Standard Authority – FSSAI - which comes under ambit of Health Ministry, lays down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption. The fact is if FSSAI has indeed been the
metaphorical elephant in the room, this elephant has spent most of its time there snoozing. The normal pace of FSSAI’s working is such that an exercise it started a couple of years ago to frame standards for alcoholic drinks remains a work in progress. There is nothing extraordinary in what FSSAI has done in the year 2015 — and
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FSSAI
Food Safety and Standard Authority –Fssai- has been all over the news throughout the year 2015. The saga started with Maggi ban and Fssai suddenly becoming a ferocious watchdog that actually created an untamed fear in the Indian food processing industry. It went so far that the Food Processing Minister Harsimrat Kaur Badal accused the Food Safety and Standards Authority of India of being “the big elephant in the room” of the industry and “creating an environment of fear.
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FSSAI market,had also tied up with online portal Snapdeal where the sale set a record as the entire stock was sold in just 5 minutes of opening the sale.
it isn’t even equipped to do anything. It has very little presence in the field. It does not lift samples. The Maggi order was necessitated after state after state reported something wrong with it. The regulator spent most time doing what it has mostly always done — inviting comments from the industry for a host of draft regulations as part of the consultative process, and waiting for responses. These include regulations regarding limits of heavy metals in food, standards for dried/salted fishery products, limits of bio toxins in fish and fish products, and standards of melamine in milk and milk products. It also commissioned a study on consumption patterns of energy drinks. Oils and food journal in its New Year issue has decided to explore the reason behind Fssai’s prominence; The real story of Maggi controversy Nestlé restarted sales of its popular Maggi instant noodles in November after food safety fears left the company with $77m in direct losses, cost its country chief his job, led to the destruction of 37,000 tonnes of packaged noodles and impoverished thousands of fast-food stall owners and distributors. Maggi’s come back was a Diwali gift for its fan. Departmental stores across many places had a special display: “We are back”, “Maggi is back”. Maggi sale was so fast that even the shopkeepers admitted their entire stock had been sold out once the word spread in the locality. In a special rollout, Nestlé, apart from relaunching Maggi noodles back into the
The trouble began in June when the Food Safety and Standards Authority of India banned the production and sale of the Maggi instant noodles that made up nearly 30 per cent of Nestlé's business in the country, on the grounds that tests showed them to be "hazardous and unsafe for human consumption" because of excessive levels of lead. Nestlé denied there was anything wrong with the noodles, which are sold across India and cooked at roadside stalls dubbed "Maggi points". The company was vindicated by a Bombay High Court judgment lifting the ban and describing it as arbitrary and "a violation of natural justice". Tests in other countries, including the US, the UK, Singapore and Australia, and tests performed in India after the court ruling showed the noodles to be safe and suggested that the earlier tests were flawed. Meanwhile, however, the Indian authorities raised the stakes with a Ministry of Consumer Affairs lawsuit claiming $100m in damages over Nestlé's alleged misleading of customers with "hazardous, defective and misbranded products". The ministry said the phrase, "No added MSG [monosodium glutamate]" on the packets was false, even though Nestlé said that the glutamate occurred naturally in the product and that it
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had in any case already agreed to remove the phrase from the packets. Maggi back reclaiming tis position but nestles woes have not ended. In the latest development the country's food panel wants a ban on the product again and has vociferously argued for it in the Supreme Court. The Supreme Court has ordered Nestle India to respond to an appeal filed by Food Safety and Standards Authority of India (FSSAI) against the Bombay High Court order lifting ban on the popular noodle Maggi. The Bombay High Court had revoked the ban on Maggi on October 19. Nestle contends that Maggi was completely safe and all the 90 samples, covering six variants tested by laboratories, had lead well below the permissible limits. But FSSAI has challenged the High Court order as erroneous and questioned the sanctity of the samples provided to the government-approved labs.The FSSAI petition has stated that the High Court had 'erred' by asking Nestle, the Indian arm of the Swiss company to provide the fresh samples instead of asking a neutral authority to do so instead. The bench agreed to examine the FSSAI's arguments on January 13.The petition also sought expunging of adverse remarks made against FSSAI officials by the high court.
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FSSAI regulator FSSAI has said it will take a final call after studying the company's reply to its notice. The case is neither delayed nor expedited because it belongs to Patanjali stresses authorities at FSSAI.
It also maintained that the authority should be allowed to use labs under the relevant law without insistence being placed on using only the governmentaccredited labs, which were very few in number. The regulator, seeking a stay on the operation of the impugned final judgment of the High Court, raised the question of law, asking whether the main duty of the food authority (FSSAI) is to regulate and monitor the food products at any stage of production or is their primary concern the safety of the food products being consumed by the people in the country? FSSAI and Patanjali noodles case Plentiful conjecture had been associated with FSSAI and Patanjali Noodle. Patanjali was launched with the thought of capturing the market that had been vacuumed by the ban of Maggi noodles. But soon after its launch Patanjali Noodle attracted bundles of controversies, first that it was not registered with FSSAI and still displayed licence number on its packet. Secondly bugs and worms were found in the noodles packet. Also much speculation had been associated with the delay in taking up of Patanjali violation by FSSAI. But the regulatory body has directly refuted and ruled out any special consideration being given to the Patanjali noodles case, food
In November 2015, the Food Safety and Standards Authority of India (FSSAI) had issued a notice to Patanjali Ayurved and AkashYog Health Products for allegedly violating provisions of the Food Safety and Standards Act, and manufacturing, re-labeling and marketing Patanjali Atta noodles without valid approval. Patanjali Ayurved, the FMCG venture promoted by yoga guru Ramdev, has launched 70-gram pack Atta noodles priced at Rs 15, claiming it to be cheaper than other competitors, with an eye to take on market leader Nestlé’s Maggi, which is back in shelves five months after FSSAI had banned it. Patanjali had earlier strongly denied FSSAI's claims and insisted that it had licence for pasta, under which noodles fall as per the regulator's classification.The company further said FSSAI has already admitted that it's no longer possible for the regulator to continue with the process of product approvals, which was facilitated through an advisory in May 2013.
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Fssai’s affirmative resolution on Products with ‘safe’ ingredients At the completion of 2015, India's food regulator decided to do away with product approvals if the ingredients used have already been cleared or are deemed safe, bringing relief to the food processing industry by introducing a globally accepted norm. The Food Safety and Standards Authority of India has prepared new rules for product approvals after an earlier advisory, which put it at loggerheads with the industry, was quashed by the Supreme Court for not having legal standing. The food processing industry had alleged that the product approval system had paved the way for an "inspector raj" and it also drew flak from food processing minister Harsimrat Kaur Badal, who criticised the effects of regulatory overreach after. The FSSAI's proposed regulation may require product approval only if a new ingredient or additive is introduced, a practice followed in several developed nations. The regulator has uploaded a list of permitted food additives and food items in which they can be used and the recommended maximum level. The product approval process was brought in through a May 2013 advisory, which had been challenged by the Maharashtrabased Vital Nutraceuticals and the Indian
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FSSAI formula, 0.15 mg a kg in liquid infant formula and 2.5 mg a kg in other foods.
Drug Manufacturers' Association and deemed illegal by the Bombay High Court. The authority appealed in the Supreme Court, which questioned the legal standing of the process as it was an advisory rather than a regulation. While the FSSAI discontinued the process after the court's ruling, it uploaded a circular on its website which said the product approval process will be brought back as regulation. Every endeavor will be made to expedite the regulations governing section 22 products, the circular said. The food processing industry feared the procedure outlined in the May 2013 advisory would be enacted as regulations. The government recently appointed senior IAS officer Pawan Kumar Aggarwal as the chief executive officer of the FSSAI in place of Yudhvir Singh Malik, who was behind the ban on Maggi. Fssai on melamine in milk, dairy products 2016 is not stopping the food regulatory watchdog of India to lessen its prominence, and hence it has started this year with checking out the Indian Dairy Industry. To check adulteration in milk and milk products, the Food Safety and Standards Authority of India has notified the maximum permissible levels of the contaminant — melamine — in dairy products. The food safety authority had, proposed the maximum prescribed limits and had invited public comments, which have now been notified. According to the notification, FSSAI has imposed a permissible limit of 1 mg of melamine in every kg of powdered infant
This has been introduced in the Food Safety and Standards (Contaminants, Toxins & Residues) Amendments Regulations 2015. FSSAI and approval to market camel milk Though 2016 has started with dairy being its new mark, FSSAI has shown immense sluggishness where the camel milk regulation status is concerned. Three years after Sarhad Dairy in 2013 proposed to collect and market camel milk, the plan is still stuck with foodregulator FSSAI. The reason: unlike that for milk of cows and buffaloes, the food regulator is yet to set standards for camel milk and its products. Chief Minister Anandiben Patel, in December 2015, during a camel show in Kutch, had assured camel breeders and Sarhad Dairy or Kutch District Cooperative Milk Producers’ Union Limited of all help in marketing camel milk. The dairy in 2013 had set afoot the plan of marketing camel milk on the state government’s suggestions and it even received a Rs 79 lakh grant from the central government. It invested Rs 46 lakh to set up its own camel milk procuring chain, and processing and packaging plant at LahondChowkadi near Bhuj. The plan was to start collecting and marketing camel milk
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from the winter of that year, but it did turn into a reality. A new set of regulations came into force at that time when the central government notified the Food Safety and Standards Rules, 2011. Based on the new rules and also that of the Food Safety and Standards Act, 2006, the Centre set up FSSAI (Food Safety and Standards Authority of India). The change in regulations mandated registration of every retailer and processor of food items and seek a licence from FSSAI. However, FSSAI had no specified standards for camel milk and therefore, technically, did not recognize camel milk as a food item. Therefore, Sarhad Dairy was not “eligible” to seek licence for marketing camel milk. Sarhad Dairy have constructed the plant and installed machinery. But, cannot process and market camel milk without FSSAI licence. People in Kutch do sell camel milk even today, but as a responsible organisation, According to government officers, Kutch has a camel population of around 10,000. But the numbers of camels have been dwindling as breeding the animal, known as the ship of desert, makes for a less profitable proposition. Maldharis (herdsmen) rearing camels make mava (which is used as an ingredient in sweet dishes) from camel milk as
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there is no organized milk collection and marketing chain in place. They depend on sale of male camels as the main source of income. The effort of the Dairy and the government to introduce camel milk through wide marketing network of Gujarat Cooperative Milk Marketing Federation Limited (GCMMF) or Amul was aimed at providing supplementary income to these camel breeders. Camel milk is usually sold for around Rs 30 per litre, but the dairy plans to procure the milk from camel breeders at around Rs 40 per liter, and even give bonus if warranted.The dairy will highlight “medicinal properties in camel milk which help cure respiratory and kidney diseases Finally, in October last year, FSSAI issued a notice seeking public comments, suggestions and objections for setting up standards of milk and milk products in the country. The notification included camel milk as one of the four main classes of milk. The rest three are buffalo milk, cow milk and milk of goats and sheep. FSSAI is likely to call a meeting in endFebruary or early March. Approving standards for milk and milk products is likely to be on the agenda of this meeting. The FSSAI notice specifies 3 per cent milk fat in camel milk and 6.5 per cent solid-not-fat as standard. But Sarhad Dairy have submitted to FSSAI that mandatory fat content requirement should be brought down to 2.5 per cent. FSSAI first impose tougher regulation
for food importers In December 2015 FSSAI proposed tougher regulations for food importers, to address concerns about the entry of substandard food products into the country. However, the move once again pit the regulator — which faced criticism for its ban on Maggi noodles and for blocking imports of items such as chocolates — against the food industry. Now FSSAI has planned to clamp down on import of food products through its latest draft regulations.The draft norms require importers to indemnify consumers through third-party insurance cover for injuries or damages caused by imported food items. FSSAI will soon put the proposed regulation on its website seeking public comments. The new regulation was designed to prevent India from becoming a "dumping ground" for sub-standard food imports. The food regulator and the industry have often been at odds with each other and importers who have been chaffing at issues such as excessive taxation, ambiguity in food safety laws and labelling regulations are likely to oppose the additional rules. FSSAI has earlier blocked consignments of Starbucks and some chocolate brands such as Mars, Godiva, Guylian and Lindt, on the ground that they did not contain Indiaspecific labelling. According to the draft regulations, importers will
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FSSAI also be required to submit a certificate showing a history of safe consumption of the food product in the country of origin. If importers can furnish the safety track record, the Indian regulators willfasttrack approvals for those products. Earlier, importers were required to only produce a certificate of origin issued by an authorised person or agency at the place of manufacturing of the food consignment. Certificate of origin shall contain information on country of origin, etc., if the consignor is from a different country. The draft regulations also require videography of the process of taking samples for testing in order to document the procedure. The draft also requires all containers in which food items are imported to adhere to international standards with respect to temperature and the material of the container. India's labelling norms will apply to both imported items and food products manufactured in India. FSSAI on nutraceuticals, Ayurvedic products To check mislabeling of ‘health supplements’, Food Safety and Standards Authority of India (FSSAI) has come out with gazetted regulations proposing to ban the sale of such products as ‘medicines’. FSSAI has also framed regulations for products based on ayurveda, sidhha, unani and other traditional health systems. It has proposed to fix the permissible limits of
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FSSAI delayed. A launch required more than a product approval. It takes at least six to eight months after the approval for a product to hit the market. A delay there sets off a domino effect. During the festive season, the pace of launches goes up since the propensity to spend is high. But in 2015 there was an enormous backlog of approvals. Some other companies whose “files have been closed” for at least some products in 2015 by FSSAI include Merck, Britannia, Danone Foods, Amway, Dabur, Abbott, Hershey’s, Heinz, Cadbury, Venky's, GlaxoSmithKline Consumer Healthcare, Piramal Healthcare and Kellogg, data on the food safety regulator's website show.
various ingredients used in the products, which are based on traditional health systems. “Every package of food or health supplements shall carry the information on the label... the words Food or health supplement... the term ‘Not for medicinal use’ shall be prominently written on the label. Under the new norms proposed by the authority, companies cannot claim that their nutraceuticals and health supplement products are for therapeutic and curative purposes. FSSAI has also proposed the maximum usage levels for cow's milk, buffalo’s milk, camel's milk, ghee, curd, butter, honey, gold, gold foil, silver, pearl in ayurveda, siddha and unani ingredients based products. The limit has been fixed as maximum usage levels per day for use as a health or food supplements which are based on ayurveda, siddha and unani. FSSAI said that the benefits of specialty foods containing ingredients based on ayurveda, unani and siddha and other traditional health systems of India, should be shown by science based evidence. Meanwhile industry body Assocham had released a knowledge paper suggesting that FSSAI should come up with safety norms for nutraceuticals and
dietary supplements.In the paper, the industry body said about 60-70 per cent supplements in the nutraceuticals market, which has potential to grow to USD 12.2 billion in the next five years, are fake and such unregistered and unapproved products should be recalled.
According to the FSSAI website “Closed files” refer to applications for approvals closed because of "non-submission of satisfactory response to the clarifications sought. Companies claim repeated clarifications sought by the regulator were resulting in delays.
FSSAI starved market of food launches Diwali in 2015 went without any new imports of premium food. Food launches became a distant thing with the Fssai hovering over the industries neck. There were no new food and beverage products hitting the market. Pending product approvals to the tune of about 700 in the last year and a half by the Food Safety and Standards Authority of India (FSSAI), companies had left with no new products in the pipeline
Kellogg said on its Oats & Honey, the regulator had questioned the company's claim of the product being a weightmanagement cereal. A Kellogg India spokesperson had said, "As a routine part of the product approval process, we have received a query from FSSAI and have provided specific scientific explanation.” Tata Starbucks and Hindustan Unilever (HUL) have gone a step ahead and recalled ingredients and products, pending approval from the regulator.
Nothing was moving in the market, till the end of 2015. Consignments that wereimported were held up at ports. It was like, if you apply for product approvals, that process, too, was getting
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FSSAI The ministry has evaluated all the government's labs to find out the deficiencies. FSSAI only sets standards for different food products and the implementation is done by the state governments.The states give licenses and they enforce the Act and all the prosecutions.
HUL had said recently it had decided to stop production and sale of its Chinese range of instant noodles till such time its application was not approved by FSSAI. Tata Starbucks said it was suspending the use of ingredients not approved in certain products served at its Indian outlets. Government empowers FSSAI and state food regulators with Rs 1,750 crore Faced with criticism from industry over approval system for food products, the government is went to mulla Rs 1,750-crore proposal to strengthen central food regulator FSSAI as well as state bodies. The government has set a goal on strengthening the FSSAI and state FDAs through capacity building that includes setting up of new testing laboratories and upgrading the existing onesand the focus is also on increasing awareness about the importance of food safety. A scheme has been formulated for that (capacity building) and that scheme was for both food and drug. The drug part has been approved by the Cabinet and there is a similar proposal for the food which is likely to be approved by the competent authority soon enough. According to sources, the Health Ministry has moved a proposal for granting Rs 1,750 crore, which includes about over Rs 800 crore for the FSSAI and the remaining amount for the state food regulators.
FSSAI then tries to make it easier in start of 2016 So looks like FSSAI loves the U-turn attitude, because after showing severity in import of food products, after hindering food launches, after showing strictness on approval of food products, nutraceutical and Ayurvedic products- FSSAI then tries to soften and change its insolence too. Hence the New Year has herald good news for food lovers. For faster clearance of imported food products, including supplements and nutraceuticals, the government has decided to waive off sampling from consignments of general food products at ports, airports and other points of entry. Instead, only riskbased sampling will be done to ascertain compliance. The move is in line with international standards aimed at easing trade between countries by awarding speedier clearances to products that do not involve serious health concerns, while focusing on specific items which are identified on the basis of "predefined risk parameters", as specified by food and drug regulatory agencies. The customs
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department could then introduce these parameters into its own system to draw random samples at ports, while immediately clearing those that do not raise an alarm. "...after detailed consultations, it has been decided that amongst others, it is possible to reduce the time taken for clearance of imported consignments by adopting a risk-based criteria for clearance of such consignments in place of samples being drawn from each consignment," said a recent order of the health ministry. However, the order will come into effect from March 1 as the customs department will put in place specific software to identify products with potential risk. According to a senior official in the ministry, products which are imported regularly by importers of established reputation with a credible record are likely to get faster clearances under the new system. The health ministry's rule will be applicable for both export and import of food products and drugs that require clearance from Food Safety and Standards Authority of India and Drugs Controller General of India. Food importers and pharmaceutical companies, particularly those selling supplements and nutraceuticals, have been pushing for faster clearances for a long time. Premium chocolates, dairy products such as cheese and various fruits and dry fruits were often held back at
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ports by customs for days for sampling and checking. Companies allege that such delays in clearances lead to huge lose as shelf life of the products get exhausted and sometimes they are even spoiled. The latest move also assumes significance because consumption of imported premium products including chocolates and gourmet based products is increasing tremendously. Industry welcomes FSSAI new norms for food product imports FSSAI will now allow food items which have at least 60 per cent shelf life or more to import. This is 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.
news coverage in the whole of 2015. If we scrutinize decorously FSSAI came into limelight with its battle over banning the king of noodles- Maggi. After being seen as nothing FSSAI had woken up, food safety become talk of the nation. The regulatory body was now taken seriously and suddenly the industry felt harassed and cornered (quite true). Suddenly the sleeping tiger seemed to be highly adrenalized - Amidst all these controversies and confusion, the one thought that came to everyone's mind was whether the FSSAI really was the ultimate food standards authority in India.
In addition to respective directions, the regulator also eased the import clearance process by introducing riskbased criteria for clearance rather than sampling of consignments. FSSAI also further clarified the labelling norms and has permitted importers to affix logos as prescribed by the food safety norms on arrival of the food products at the custom bonded Conclusion Oils and food journals only vision was to analyse on why FSSAI had been prominently capturing the headlines and
company gets the FSSAI licence number. However, if the company uses ingredients which are unique and are not part of the regulator's list, then it will come under the proprietary products category and will require prior approval to launch the product." In the non-proprietary category (products for which the regulator has an approved list of ingredients), the regulator doesn't even verify the product prior to launch, adds the head of a leading food company. The regulator can verify the product months after launch and in case of any discrepancy; it can take the company to task. The regulator has standards for several categories of food. The standard for butter, for instance, is 82 per cent dairy fat, salt and water. Similarly, for a product like dairy whitener, only 18 per cent sugar content is allowed. However, there are several categories of milk and milk-based products, vegetables, fish and alcoholic beverages for which the regulator has come up with standards only this year. There are a host of other categories of food products for which the regulator is yet to come up with standards.
FSSAI also said that no one can import any food product without having an import licence from the central licensing authority and at the same the importer should also be registered with the DirectorGeneral of Foreign Trade (DGFT). The regulatory body also said that if any food importer attempts to import unsafe and prohibited food or food from prohibited sources, directly or indirectly, including re-channeling, re- packing etc., his or her licence could be cancelled. The Industry has welcomed this move as 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.
FSSAI
There is no doubt that the country's food regulator has to get its act in place on setting up sound food standard norms. Several of the existing norms, agree the honchos, are ambiguous and conflicting.
And the answer is yes: head honchos of food companies unanimously agree that FSSAI is indeed the ultimate food standards authority in India and no food product can be launched without its nod or the FSSAI licence number (which is found in the rear side of the packaging of all food products). So, what really is the procedure to obtain a FSSAI license? If a company is to launch a product like pasta, it needs to declare the ingredients that have gone into making the pasta. "If the ingredients are in accordance with the specified ingredient list of the regulator, then the
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But then, FSSAI as an organisation is also in its infancy. It was launched as recently as 2006, and more importantly, the FSSAI does not have the judicial powers to punish offenders. Perhaps it is time to empower the FSSAI for bringing in more transparency in the food sector and make out food safety more internationally compliant. But is that enough the Indian food regulator all need to see that the food industry is not irrelevantly harassed because of its meddling attitude. It needs to take both the industry as well as the government in it boundary and solve issues maturely and in the pace of international standards.
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CHEESE MARKET
Cheesy charm
Is India the next big cheese market
I
ntroduction India is the largest producer of milk, which is the most widely produced agricultural commodity worldwide. With the ease of availability of raw material, the milk processing industry is registering new levels of growth. Among the processed dairy products, the most promising segment both in terms of consumer demand and business profitability is the cheese segment. Traditionally, India is not
a cheese consuming nation as the Indian consumer's palate has been adapted to the softer Indian variant of cheese called paneer. But, in recent years, given the magnitude of the demand from Indian consumers, India is the next big market in terms of cheese consumption. India is second only to the EU-27 bloc that collectively produces over 156 million tons, as per the USDA. Further,
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India’s milk production is expected to total 170 million tons, by 2020, thus surpassing the global average growth rate of approximately 7 percent. With the ease of availability of raw material, the as-yet-nascent milk processing industry is registering new levels of growth. Milk processing in India accounts for approximately 3536 percent of the total production, with
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CHEESE MARKET
the average for urban India, however, is 700 gm. per person. Geographically, the top six cities consume approximately 60 percent of all the cheese sold in India.
a majority of the share being consumed in a farm-fresh, or non-pasteurized, state sold through unorganised channels, while the organised dairy segment constitutes merely around 15-20 percent of the total processing market. The main value-added products include milk powder, whitener, packaged milk, butter, ghee, yogurt, cheese, and ready-to-drink milk products, which are, thanks to high consumer demand, growing at anywhere between 15 and 25 percent. Among the processed dairy products, the most promising segment both in terms of consumer demand and business profitability is the cheese segment. Traditionally, India is not a cheese-consuming nation as the Indian consumer’s palate has been adapted to the softer Indian variant of cheese called paneer. But, in recent years, given the magnitude of the demand from Indian consumers, global industry experts predict that India is the next big market in terms of cheese consumption. This forecast also accounts for the fact that, although Europe and North America are the primary cheese markets today, a saturation therein is forcing suppliers to look elsewhere, to such currently major importers as Japan and Russia, and to developing markets like India.
The Indian cheese market is presently worth around USD 237 mn, but is expected to grow at roughly 15-20 percent annually. The Indian cheese market is expected to grow at a CAGR of nearly 18% during 2015-2020. Product-wise, the global market deals in almost 3,000 varieties of cheese, whereas in India only about 40-45 variants are being marketed, presenting much room for the market’s expansion. By industry estimates, the current household penetration in terms of cheese consumption is less than 7-8 percent. The per capita consumption of cheese in India is a mere 200 gm. per year in contrast to the global average of 7 kg per annum;
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The cheese arcade In India, the processed cheese market forms almost 45 percent of the total market that is likely to grow a higherthan-average CAGR of around 25 percent, which includes all spreads, cubes, slices, tins, slabs, etc. Within the processed cheese segment, around 60 percent of the market is dominated by un-spreadable processed cheese. The segment is well organised, comprises regional, Indian, and international players, and is registering high levels of entrepreneurial activity. On the other hand, the unprocessed cheese market is largely associated with the soft cheese category in India, usually associated with paneer. The traditional soft cheese constitutes over 55 percent of the total market, with only a small fraction thereof being contributed by the organised sector and is expected to continually form the major chunk, given the Indian consumer’s behavior, for years to come. The market has been dominated by the cooperatives and regional players, with only a few international players making any inroads. The Gujarat Cooperative Milk Marketing Federation (GCMMF) with its Amul brand of cheese has been the pioneer and is a formidable player enjoying a majority share in the market,
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CHEESE MARKET
cheese, Monterey Jack cheese, Colby cheese, Emmental cheese, Parmesan cheese, cheese wedges, and Nacho cheese. They cater to Mozzarella cheese in shredded and diced forms too. French cheese major, Fromageries Bel, has entered the Indian market with La Vache Kirit(popularly known as ‘The Laughing Cow’). The Bel product is being produced at Bel’s facility in Poland exclusively for the Indian market. Fromageries Bel has launched laughing Kirit (creamy cheese in cube form) and Babybel (semi-hard with a wax coating appropriate for sandwiches). Along with ‘Laughing Cow,’ Woerle’s Australian cheese brand, ‘Happy Cow,’ Nestle and Kraft’s brands have started marketing their products in the Indian market. followed by Britannia. The imported gourmet cheese market currently occupies a mere 5-7 percent of the total cheese market, but this niche segment is growing at over 30 percent. The rest of the market is split between other players such as Parag Milk Foods, Gowardhan Foods, Danone, Milky Mist, Heritage Foods, Mother Dairy, Vijaya Foods, Milkfed and Verka. Some of the global brands that have a long-standing presence in India include Dabon International, Bongrain SA, Kraft’s, Fromageries Bel, and Arla Cheese. GCMMF with the Amul brand continues to be the main operator in the branded cheese market in India. It pioneered the market for processed, branded cheese. Britannia Industries joined the fray in the cheese market in mid-1990s through an arrangement with Dynamix Dairy Industries (DDI). Britannia’s cheese is sold in tins in the form of cubes, and in individually wrapped slices. The network covers some 60,000 dairy outlets equipped with cold cabinets, refrigerators and insulated boxes. Amul covers some 500,000 retail outlets. Britannia has launched new variants of flavoured cheese. The cheese cubes are available in three flavours Masala Mania, Mirchi Poppers and Cream ’n Onion. Amul has a cheese spread in garlic and pepper flavours.
Pune-based Parag Milk Foods, a player in the cheese business, with the brand name Go (for Gowardhan), is selling Cheddar and Mozzarella, and planning to introduce Emmental cheese in the market. All the cheese products of Gowardhan are made in the world-class facility situated at Manchar (near Pune) in state-of-art advanced cheese plant, with staggering capacity of producing 40 MT cheese per day. The assorted cheese products catered to by Gowardhan includes processed cheese and cheese spreads, cheese slices, sandwich slices, pizza cheese, Mozzarella cheese, pizza topping, Cheddar cheese (including Orange Cheddar), Gouda
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Himalaya International Ltd, Himachal Pradesh, prepares Mozzarella cheese, exclusively for export. La Ferme Cheese was started to develop a line of handmade farm cheeses for the citizens of Auroville, Pondicherry. The firm adopts traditional methods for cheese making. The team includes professional Indian, Dutch and French cheese-makers who use natural whole cow milk, salts, vegetarian enzymes and seasoning cultures. From fresh cheese including Mozzarella, Feta, Ricotta, to seasoned cheeses like Lofabu, Auroblochon, Parmesan, and Jeera cheese, La Ferme produces about 100 kg of handmade cheese in over 10 varieties
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daily. Foreign brands in India include Provolone, Colby, Mozzarella and Parmesan from Italy, Cheddar from Dutch and Gruyère. The US-based Philip Morris, which brought in its Kraft cheese brand earlier, has gained a significant presence in the market. The rest of the market is spread among Verka, Nandini and Vijaya. Dabur claims a product range of 20 varieties of cheese under Le Bon brand. Dabon has a manufacturing facility at Noida with an installed capacity of 12,000 tonne per annum. Players such as Dabon have realised the importance of “Indianisation” and added paneer to their portfolio, while others are adding tins, cubes, slabs, sticks, etc. to their product offerings. In terms of prices, the average unit price has registered an increase over the past year as a result of consumers upgrading to more premium variants as well as an increase in milk prices and inflation in general. Premium imported cheese has takers too. Western-style processed cheese is sold by large companies under their brands. The processed cheese market including its variants like processed cheese, cheese spreads, Mozzarella, flavoured and spiced cheese, is estimated to be 10,000 tonne per annum (HS & SL estimates). The four metro cities alone account for > 60 % of the consumption. Mumbai is the largest market, accounting for 30% of cheese sold in the country, followed by Delhi (20%), Kolkata (7%) and Chennai (6%). Types of cheese in India The kinds of cheese that are available today in India vary and are classified as hard cheese, soft cheese and very hard cheese: Cheddar Cheddar is a kind of hard cheese that is relatively more famous than other hard cheese types. Cheddar can be mild or sharp flavoured and can be smooth or dry, depending on the age of the cheese. It can be anything from just a month old to even two years old. Cheddar cheese is normally used for cooking purposes
and as ingredients for soups and sauces. Cheese is also used for grating and melting. Mozzarella Cheese Mozzarella cheese is of two types (a) low-moisture (45-54% moisture) part skim Mozzarella (referred to as pizza cheese) and (b) full-fat Mozzarella cheese (high moisture – up to 60%). These are common in the marketplace. The high demand for Mozzarella cheese is owing to its emergence as an integral part of pizzas. Even though this cheese is often substituted with other cheese when making pizza, nothing can make a pizza look, feel and taste - like mozzarella cheese can. Pizza cheese creates a stringy (stretch) look when a hot pizza is pulled apart or cut. Mozzarella made from buffalo milk has a richer concentration of
proteins, minerals, nutrients as compared to cow milk cheese. Emmental Cheese Emmental is a type of Swiss cheese made from whole cow's milk. Emmental is a firm cheese with a pale yellow colour and possesses a buttery, mildly sharp, slightly nutty taste. Emmental features the characteristic holes or ‘eyes’ typical of Swiss cheese. The holes in such cheese are formed by gas bubbles (carbon dioxide) released by the bacteria (starter culture). Since the cheese melts very well, it is frequently used in sauces and grilled sandwiches. Emmental is one of the two main cheeses (along with Gruyère) in the traditional fondue recipe. Processed Cheese and Cheese Spreads Pasteurised processed cheese (maximum 47% moisture) is prepared by grinding,
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CHEESE MARKET
blending, and heating one or more natural cheeses (of different stage of ripening) together in presence of emulsifying salts (sodium salts of citrates or phosphates) to all achieve uniformity and prolonged keeping quality. Pasteurised processed cheese products usually have good melting properties. Cheese spread is similar to pasteurised processed cheese food except that an edible stabiliser is added and the moisture permitted is greater (i.e. maximum 60%) than for processed cheese. This allows for smooth spreading at refrigeration temperature. Future Cheese represents one of the fastest growing markets among dairy products. Traditionally, India has been a paneer consuming market which is dominated by the unorganized players. The rise in food service outlets (e.g. Pizza Hut, Domino’s etc.) across the country and changing food habits has triggered a robust increase in the demand for cheese in India. According to a new report from IMARC Group entitled “Dairy Industry in India: Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution”, the Indian cheese market in terms of sales values is expected to grow at a CAGR of around 31% during 2015-2020. The Indian fast food market represents a major driver of the cheese industry in the country. The Indian fast food market is currently worth over a billion dollars and growing at 25%-30% annually. Cheese is quite popularly taken with a number of fast foods such as pizzas, burgers, garlic breads, sandwiches, etc. Apart from Western dishes, the popularity of cheese is also increasing in traditional Indian dishes. Cheese is also being added as a taste enhancer in a number of traditional Indian recipes such as dosa, Parathas, uttapam, etc. Also rising disposable income and government initiatives are the major factors contributing to the growth of cheese in the country.
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FOOD PROCESSING INDUSTRY
Indian Food
processing
Industry
Is it geared up for 2016
T
he Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. Accounting for about 32 per cent of the country’s total food market, the food processing industry is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. The total food production in India is likely to double in the next 10 years with the country’s domestic food market estimated to reach US$ 258 billion by this year.
The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. It is projected to grow at the rate of 104 per cent, touching US$ 482 billion by 2020. The Indian food processing industry accounts for 32 per cent of the country’s total food market, 14 per cent of manufacturing Gross Domestic Product (GDP), 13 per cent of India’s exports and
The Government of India has been instrumental in the growth and development of the food processing industry. The government through the Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments in the business. It has approved proposals for joint ventures (JV), foreign collaborations; industrial licenses and 100 per cent export oriented units. Market Size
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six per cent of total industrial investment. Indian food service industry is expected to reach US$ 78 billion by 2018.The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent. It is expected to cross US$ 2.8 billion by 2015. The online food ordering business in India is in its nascent stage, but
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FOOD PROCESSING INDUSTRY During the current year, 16 Mega Food Park projects have been given inprinciple approval, 9 Mega Food Parks have accorded final approval and 1 project at Nalbari (Assam) has been made operational. 3 projects at Jangipur (West Bengal), Khargon (Madhya Pradesh) and Ranchi (Jharkhand) are likely to be operationalized by 31st March, 2016. It is expected that on an average, each project will have around 30-35 food processing units with a collective investment of Rs. 250 crores that would eventually lead to annual turnover of about Rs. 450-500 crores and creation of direct and indirect employment to the extent of about 30,000 persons.
witnessing exponential growth. The organized food business in India is worth US$ 48 billion, of which food delivery is valued at US$ 15 billion. With online food delivery players like FoodPanda, Zomato, TinyOwland Swiggy building scale through partnerships, the organized food business has a huge potential and a promising future. Oils and food in this feature tries to determine and analyse whether the Indian food industry has done enough to have a fruitful 2016. As last year was an year endeavors, there is a hope that that the work done and achieved in 2015 is going to be productive this year, thereby placing this trendy industry at its helm; The food processing sector has emerged as an important segment of the Indian economy in terms of its contribution to GDP, employment and investment. During 2015, the sector constituted as much as 9.0 per cent and 10.1 per cent of GDP in Manufacturing and Agriculture sector, respectively. Food Processing Industries sector has grown at 7.1 per cent during this period. The Ministry of Food Processing Industries is implementing various schemes for providing impetus to the development of food processing sector.
having components of Mega Food Parks; Cold Chain and Abattoirs. The milestones achieved in implementation of the schemes during 2015 are follows: The Mega Food Parks The Scheme of Mega Food Park was launched to provide modern infrastructure for food processing units in the country on pre-identified cluster basis. The scheme envisages financial assistance in the form of grant-in-aid @ 50% of the eligible project cost in general areas and @ 75% in difficult areas, subject to a maximum of Rs.50.00 crore per project. Presently, 39 Mega Food Parks have been granted approval. Out of these, 5 Mega Food Parks have become operational and remaining are under implementation.
The Ministry has been implementing schemes for infrastructure development
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Food Processing Fund at NABARD In the 2015 Budget, the Finance Minister had announced the setting up of a Rs.2000 crore fund in NABARD for providing loans to Entrepreneurs setting up food processing businesses in designated food parks. The operations guidelines for this fund have recently been announced by the NABARD. The Government of India accords top priority for the development of food processing industry in India to reduce food spoilage and control the rising food inflation. The Government has provided subsidies for setting up of food parks in India. The newly introduced food processing fund provides loans at nominal rates for setting up of food processing businesses in the food parks. NABARD loan for food processing
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FOOD PROCESSING INDUSTRY dairy, meat and poultry etc. A cold chain contains multiple facilities at various centers as under. To avail financial assistance under the scheme, any two of the following facility from the below will have to be setup by the unit. i) Production Facility: Minimal processing centre at the farm level and centres to have facility for weighing, sorting, grading waxing, packing, precooling, control atmosphere (CA) / modified atmosphere (MA) cold storage, normal storage and Individual Quick Freezing (IQF).
is available for a wide range of postharvest processes resulting in value addition and/or enhanced storage life to the food product. The following food processing activities such as cleaning, grading, waxing, controlled ripening, and labelling, packing and packaging, warehousing, canning, freezing, freeze drying and more are eligible under the scheme. The products of processing/ manufacturing undertaken by the units may include: • Fruits, vegetables, mushrooms, plantation crops and other horticulture crops. • Milk and milk products • Poultry and meat • Fish and other aquatic & marine products. • Cereals, pulses, oilseeds and oil crops • Herbs, medicinal and aromatic plants, forest produce, etc. • Consumer food products, such as bakery items, confectionery, snack, etc. • Any other ready-to-eat food/ convenience foods. • Beverages, non-alcoholic drinks, energy drinks, carbonated drinks, packaged drinking water, soft drinks, etc.
• Any other activity approved by the competent authority for establishment in the designated Food Park. Cold Chain Scheme Cold chain consists of cold storage, cold transport, and value addition and preservation infrastructure to provide an integrated cold chain without any break from the farm gate to the consumer. It covers pre-¬cooling facilities at production sites, reefer vans, mobile cooling units as well as value addition centres which includes infrastructural facilities like Processing/ Multi-line Processing/ Collection Centres, etc. for horticulture, organic produce, marine,
• Food flavours, food colours, spices, condiments, ingredients, preservatives and any other item which may be required in food processing. • Nutraceuticals, health foods, health drinks, etc.
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ii) Transport Facility: Transport level consists of mobile pre-cooling vans and reefer trucks required to transport goods and products in a temperature controlled atmosphere. iii) Distribution Facility: Distribution facility consists of distribution hubs with multi products and multi control atmosphere (CA)/ modified atmosphere(MA) chambers/ cold storage/ Variable Humidity Chambers, Packing facility, cleaning in process (CIP), fog treatment, individual quick freezing (IQF) and blast freezing. The Cold Chain Scheme was launched to provide integrated cold chain and preservation infrastructure facilities
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FOOD PROCESSING INDUSTRY cent. Within Asia, Vietnam is the largest recipient, at 45 per cent. Considering the increasing demand for buffalo meat, Government of India has commissioned three modernized abattoirs in Hyderabad, Kolkata and Shimla. The Government has plans to set up 25 more new abattoirs, including modernization of existing ones, in the on-going 12th Plan at a cost of Rs.240 crore.
without any break, from the farm gate to the consumer. The scheme envisages financial assistance in the form of grantin-aid @ 50% of the total cost of plant and machinery and technical civil works in general areas and 75% for difficult areas subject to a maximum of Rs.10.00 crore. Government has approved 138 cold chain projects during 2009-2015 which will create a capacity of 118 lakh LPD of milk processing, 4.76 lakh MT of cold storage, 119 MT/ hour of IQF and 810 number of reefer van. These include 30 new cold chain projects approved by this Ministry in May, 2015. Around 70 projects have become operational till December, 2015 and 68 projects are under implementation. The capacity created by 70 completed projects is 93.8395 lakh LPD of milk processing, 295933.1 MT of cold storage, 75.038 MT/ hour of IQF and 440 number of reefer vans.
over the next highest exporter, Brazil. It must be noted, however, that the U.S. government classifies even buffalo meat as beef. According to the data, India exported 2.4 million tonnes of beef and veal in FY2015, compared to 2 million tonnes by Brazil and 1.5 million by Australia. These three countries account for 58.7 per cent of all the beef exports in the world. India itself accounts for 23.5 per cent of global beef exports. This is up from a 20.8 per cent share last year. Data from the Centre for Monitoring Indian Economy (CMIE) shows that most of India’s buffalo meat exports go to Asian countries — Asia receives more than 80 per cent, while Africa takes around 15 per
Of this, 19 cold chain projects have been completed during 2015 creating capacity of 10 lakh LPD of milk processing, 55820 MT of cold storage, 9.25 MT/ hour of IQF and 80 number of reefer vans. Modernization/ Setting up of Abattoirs India retains its top spot as the world’s largest exporter of beef, according to data released by the U.S. Department of Agriculture, and has extended its lead
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Under the Scheme for Setting-up/ Modernization of Abattoirs, grant-in-aid is given to Local Bodies/Public Sector Undertakings etc. for establishment of modern abattoirs and modernization of existing abattoirs. The scheme envisaged grant-in-aid @50% of the project cost in general areas and 75% for North Eastern Region and difficult areas subject to a maximum of Rs.15.00 crore per abattoir. Out of 40 approved projects, 5 Abattoirs have become operational which includes 1 (one) Abattoir project in Hyderabad completed this year. 1 project at Vishakhapatnam is likely to be completed shortly. Food Testing Laboratories The Food Testing Laboratories are the backbone of the food safety standards that India aims at maintaining. Food Safety and Standards Authority of India (FSSAI), the regulator and supervisor of
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FOOD PROCESSING INDUSTRY scheme, FFSAI would be implementing the funds only after the MoUs are signed between states and FSSAI. The Ministry is implementing a Scheme for Quality Assurance for setting up of Food Testing Laboratories. The scheme envisages 100% grant-in-aid to Government agencies and 50% to Private Organisation / Universities for the cost of equipment and @25% of cost of Technical Civil Work and Furniture & Fixtures in general areas and higher grant @ 33% in difficult areas.
food safety is responsible for ensuring that the food items sold in the market are fit for consumption by the people. The working mechanism and quality analysis of labs under FSSAI are now put to question. With the recent Maggi controversy, food testing labs have come under scrutiny. Data from the FSSAI shows that almost 13% of the 2.4 lakh product samples of various food items had failed laboratory tests since 2011. Thus, India takes the number one position in terms of unsafe food. Consumers do not know much about ingredients and nutritional facts of a food product due to inappropriate labelling. Central food safety regulator FSSAI has notified 82 laboratories in India for testing food samples. This is a step taken to ensure products’ compliance with quality standards as set by the Food Safety and Standards Act, 2006. According to officials, the validity of these laboratories starts from the date of notification in the official gazette till further orders by the FSSAI.
facilities across states. The scheme was designed after conducting a detailed study of the deficiencies and gaps in labs across the country. The proposed scheme has the following two components: Central sector scheme: Investment of Rs 850 crore was to be used for strengthening of FSSAI at regional field offices and headquarters. This amount will be used in e-governance, food safety surveillance, and strengthening central-level laboratories. The scheme also proposed to create a National Food Science and Risk Assessment Centre (NFSRAC). A centrally-sponsored scheme with an investment of Rs 900 crore: This was to be used for strengthening of food safety infrastructure at state level, improving state-level laboratories, creating awareness, training and providing educational programmes. As per the
The Northern region has the highest number of NABL-accredited labs (28). While the western region has 25 labs, the southern region has 24.There are five labs in the eastern region. To check adulteration and ensure food safety, in the past 2 years, the government has come up with a two-component scheme to help strengthen the testing
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National Institute of Food Technology, Entrepreneurship and Management (NIFTEM) NIFTEM located at Kundli, Haryana is an autonomous organisation under the Ministry of Food Processing Industries. It has been accorded a deemed to be University under de-novo category on 08.05.2012. NIFTEM imparts B.Tech, M.Tech, Ph.D. courses and research work in food technology and engineering. It is also conducting Skill Development trainings and outreach programmes for the benefit of students, farmers and entrepreneurs. It has conducted 104 such programmes skilling 8469 persons. NIFTEM has trained 44 persons under the PMKVY scheme. Their M. Tech. students are getting 100% placements in leading food processing industries and also doing commendable research.
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FOOD PROCESSING INDUSTRY industry-based jobs (especially after the programme). The institute is affiliated to Food Industry Capacity and Skill Initiative (FICSI) as a Training Provider under PMKVY. IICPT has a FSSAI referral laboratory for food sample testing and analysis. Food testing services utilized and benefited by 921 beneficiaries. Mobile Food Testing Laboratory inaugurated by Hon’ble Minister of State, Sadhvi Niranjan Jyoti and has been taken to the field (across different parts of the state) for demonstrations and popularization.
NIFTEM has also initiated a unique initiative “Village adoption program” for linking rural entrepreneurs and farmers. In this programme students of B. Tech (Food Technology & Management) and M. Tech students are divided into groups of 10 to 12 students under the guidance of Faculty (Mentor) and adopt a village and nurse it during the entire programme of study. The groups go and stay in the village twice a year for about 10-12 days each time in each semester. This is a two way learning process where while villagers gain scientific and technical knowledge through students who promote future possibilities of food processing among them, students obtain firsthand experience of Indian rural scenario and understand traditional processing technologies adopted by the villagers. The Indian Institute of Crop Processing Technology (IICPT) The Indian Institute of Crop Processing Technology (IICPT) is a pioneer Research and Development and Educational Institution under the Ministry of Food Processing Industries, Government of India. The Institute was upgraded as a national institute and called as Indian Institute of Crop Processing Technology. IICPT has now state of art facilities including NABL accredited Food Safety and Quality Testing Laboratory; ISO 9000, 14000 and 22000 Certified Food Processing Business Incubation cum- Training Centre; AICTE approved
Teaching Laboratories and Research Laboratories. IICPT’s Academic programmes are affiliated to Tamil Nadu Agricultural University (TNAU). Current year intake: 46, 10, and 4 inB.Tech.M.Tech. and Ph.D. in Food Process Engineering, respectively and 10 in M.Tech.in Food Science and Technology. At present, IICPT has developed and commercialized 28 technologies (eg. idli dry mix to Supreme Power Food Products, SSR Products and others).25 gadgets and 6 technologies are ready for commercialization. The Institute has filed for 15 patents. IICPT has conducted over 293 skill development programmes during the past year, for over 4122 beneficiaries. Out of these, 17 have established their own industries and 51 have secured
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IICPT is doing consultancy services for nutritional labeling, shelf-life studies and food quality analysis for 2 industries, technical guidelines for establishment of Modern Rice Mills for 3 beneficiaries, guidelines for improvements in rice milling systems for > 10 beneficiaries, and has provided technical solutions to existing problems in various other food industries. A Regional Center of IICPT has been established at Guwahati, Assam. During the current year 2015, 36 skill training programmes for 482 beneficiaries were organized there. Skill Development The government has made skill development in the food processing sector as one of its top priority and the Union Ministry for Food Processing Industries (MoFPI) will soon provide incentives to industrial units that provide skills training.
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As per study conducted by National Skills Development Council (NSDC), the estimated annual requirement from the food processing industry is more than five lakh persons including one lakh in the organized sector. Ministry of Food Processing Industries is implementing a scheme for human resource development in the Indian food processing sector. The scheme focuses on developing technologists, managers, entrepreneurs and manpower for quality management in this segment. Under the scheme, assistance is provided for creation of infrastructure facilities. The Ministry is associating with the Sector Skill Council i.e., Food Industry Capacity & Skill Initiatives (FICSI) in taking forward skill development in Food Processing Sector. So far, FICSI has developed 52 draft Qualification Packs (QPs) for food processing industry out of which 27 QPs are approved by QRC (Qualification Review Committee).
FOOD PROCESSING INDUSTRY
investment over the next 10 years and also generate employment of nine million person-days.
owned investment company Temasek, along with existing investor Vy Capital, in order to explore new business verticals.
Investment in food start-ups, which mainly include food ordering apps, has increased by 93 per cent to US$ 130.3 million1 comprising 17 deals in 2015 till September 2015 as against only five deals in 2014.
• ITC Limited plans to invest Rs 800 crore (US$ 120 million) to set up a world-class food processing facility in Medak, a district located in Telangana. The company has also formulated plans to enter the dairy market.
Some of the major investments in this sector in the recent past are:
Food Maps Surplus and deficient areas of various agricultural and horticultural produce in the country have been identified. It will help in planning processing clusters by means of setting up suitable facilities in different parts of the country. The map is available on the website of the Ministry.
• Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly known as 'Amul', plans to invest Rs 5,000 crore (US$ 750 million) to establish ten new processing plants as well as expand the current capacity to touch 32 million litres per day (MLPD) capacity by 2020. • American doughnut chain Dunkin' Donuts has tied up with local online grocery delivery platform Grofers for home-delivery of its packaged and freshly made products.
Skill development programme has been launched in 30 Centres across 11 States of the country on 4th September, 2015. So far, 12182 persons have been enrolled for training and 124 training centres have been affiliated in 25 States. On Ministry’s initiative a module on entrepreneurship has been added in all trainings to make them more meaningful and result oriented. Course curriculum for these QPs is being developed by NIFTEM to ensure quality and standardized content which is also being shared with all States and Universities. Investments According to the data provided by the Department of Industrial Policies and Promotion (DIPP), the food processing sector in India has received around US$ 6.55 billion worth of Foreign Investments during the period April 2000—September 2015. The Confederation of Indian Industry (CII) estimates that the food processing sectors have the potential to attract as much as US$ 33 billion of
• Private Equity (PE) firm India Value Fund Advisors (IVFA) plans to invest around US$ 100-150 million in the food business in India over the next two years. • Mahindra & Mahindra's (M&M) agricommodities division has announced its entry into pulses retailing under the brand ‘NuPro’ with Tur dal being the first offering under the brand. • Zomato, a restaurant search and discovery platform, has raised US$ 60 million from Singapore government-
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Exemption from Service Tax At the behest of the Ministry the services of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits & vegetables have been exempted from Service Tax w.e.f. 01/04/2015. Priority Sector Lending At the behest of the Ministry Reserve Bank of India has issued guidelines dated 23.04.2015,for bank loans to food and agro processing units to form part of Agriculture for Priority Sector Lending (PSL) subject to aggregate sanction limit of Rs. 100 crore per borrower. It will ensure greater flow of credit to entrepreneurs for setting up of food processing units and attract investment in the sector. Future Going forward, the adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP) by the food processing industry offers several benefits. It would enable adherence to stringent quality and hygiene norms and thereby protect consumer health, prepare the industry to face global competition, enhance product acceptance by overseas buyers and keep the industry.
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FOOD PARKS
THIS IS NO WALK M IN THE PARK
ega Food Park story Food processing industry is coined as the next big reform to transform India; it holds great potential right from creating non-form jobs, to development of ruler infrastructure to reducing food inflation to increasing exports.
MEGA FOOD PARK STORY
SO FAR
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With the aim of utilizing the same, government had come up with Mega food park scheme under National food processing Mission.It creates an integrated manufacturing and logistic hub, with modern state of art technology providing economies of scale as well. Mega Food Parks (MFPs) is clusters of
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FOOD PARKS to promote value-addition and prolong the shelf life of perishable agricultural produce to minimise post-harvest losses at present, in excess of 20 per cent in fruits and vegetables. However, despite good intentions and the provision of liberal fiscal and other incentives - including the government grant to cover 50 per cent of the project cost (excluding land) - the mega food parks scheme has failed to evoke sufficient corporate interest. The reasons are many. For one, most parks would need 30 to 50 acres of land - difficult to acquire without the active support of state governments, which are often found wanting. Securing bank finance and getting other necessary approvals are also problematic in the absence of facilities for single-window clearance. Besides, it is not easy to get the right kind of tenants or co-partners, basically processors and ancillary players, for these projects.
food processing units with all facilities available at one place. MFPs were planned with the objective of promoting value addition, increasing the shelf-life of perishable agricultural produce, and minimise post-harvest losses. The MFP scheme has failed to take off as envisaged by the planners. Of the 42 approved MFPs, only four have become operational. Reasons like land acquisition, securing bank finance, multiple permits and approvals etc. have obstructed the growth of MFPs. Moreover, difficulties in getting the right kind of processors and ancillary players have been a challenge and have hampered the growth of MFPs.
an idea worth trying. Conceptually, the plan to put up mega food parks is a good one. It aims to create clusters of food processing units with all the necessary facilities available at one point. The underlying objective is
The availability of farm produce suitable for processing in mechanized units is another limiting factor. Contract farming needs to be promoted to address this need. Besides that absence of uninterrupted water and power supply is a major infrastructural constraint. Perhaps the idea of smaller food parks considering the infrastructural constraints would be
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Typically, a mega food park should have 30 to 35 units, including service providers, which are often difficult to put together. The availability of farm produce suitable for processing in mechanized units is another limiting factor, given that most of the traditionally grown fruits and vegetables are normally meant for direct consumption. This would require introduction of new seeds in the raw material catchment areas and adoption of contract farming which is often unsuccessful without government
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FOOD PARKS allotting projects to people who seem to have the intention to build these parks. The government's plan was to have 3035 food processing units in each park with a collective investment of Rs 250 crore, which would eventually lead to an annual turnover of Rs 450 crore to Rs 500 crore and provide direct and indirect employment to around 30,000 people. The revenue model was also simple: The external units would pay a rental to the MFP in addition to the charges for using the common infrastructure at the central processing centres.
endorsement. Since its inception, 42 mega parks were given in-principle approvals. However, only five projects have started operations, including the North East Mega Food Park in Assam, India Food Park in Tumkur, Karnataka, International Mega Food Park in Fazilka, Punjab, Srini Food Park in Chittoor, Andhra Pradesh, and Patanjali Food and Herbal Park in Uttarakhand. However, except for Patanjali and Srini food parks, which started operations in 2010 and 2012 and have generated revenues of Rs 39 crore and Rs 12.16 crore in 2015, respectively, things have barely taken off for the other MFPs. Interestingly, the Food Park in Haridwar was conceived even before the government had announced the mega scheme.
centres and basic infrastructure such as cold chains, packaging, quality control labs, bottling units and pulping lines. The money would be sanctioned in four installments. Harisimrat Kaur Badal, the Union Minister for Food Processing thinks that most developers were interested in the Rs 50 crore grants and in getting the change in land use from agricultural to industrial and wait for land prices to appreciate. They never seemed to have the intention to put up an MFP. The ministry identified 17 such developers and cancelled their approvals. The the ministry is now
Practically no work has started for 50 per cent of the projects and in fact, even MFPs that are operational have not yet received the final installment of Rs 5 crore. So, technically, none of the projects have so far been completed. Under MFPS, the government had announced a maximum grant of Rs 50 crore (excluding land cost) to food park developers to help them set up a cluster-based facility that would include collection centres, primary processing
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There have been delays, but the government’s goal is to create the infrastructure within the given time frame. The food processing sector can bring in a lot of investment and once the infrastructure is created, it will be a huge step in the direction of Make in India. Stumbling Blocks The Centre's ambitious scheme of Mega Food Parks (MFP) in India is stumbling with some missing deadlines while others not meeting the basic purpose of project, a recent report by Indian Council for Research on International Economic Relations (ICRIER) revealed. In most cases, before launching the scheme no study was done on global best practices or on similar successful
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FOOD PARKS Other stumbling block is promoters also are facing in selling the new concept to banks and, as a result, have failed to secure loans to build the parks. Also, acquiring the 50 acres of land, which is mandatory under MFPS, has been another challenge that most developers have failed to address. Three, convincing small enterprises to set up shop at these facilities has not been easy. And four, the overall economic slowdown, globally, and in India, did not help either.
international parks or clusters. All the schemes stress on enhancing domestic capabilities of the Indian (Small and Medium-sized Enterprises (SMEs)) and only some emphasize of increasing India's share in international trade. However, not much importance is given to linking India to the global value chain. The objective in schemes such as the MFP does not refer to increasing export or any form of global linkages. This is an area of concern especially since the Prime Minister has recently launched the 'Make in India' campaign, which focuses on attracting global investors to invest in India for domestic and global markets.
facilities is also expected to be high. In some cases small and medium food processors said that they will not be able to afford these facilities. In case of PPCs, their economic viability also depends on the rental that they charge. Even if the PPC has a state of the art infrastructure the users may not be willing or may not have the ability to pay a high rental. The survey found that farmers usually opt for the facilities with lower rental. This, in turn, leads to the low usability of the PPC.The scheme was rolled-out in 2008-09 with allocation of 42 food parks. Allotment of 17 was recently cancelled.
Financial issues were found to be one of major reasons for incomplete projects. Four of the studied operational MFPs were yet to achieve financial closure. None of the projects were completed at the time of survey. The most significant reason for delay is failure of MFPs in construction of Primary Processing Centres (PPCs). The surveyors found that none of the operational MFPs had completely received the grant amount and most of them mentioned that this was because the PPCs and collection centres are yet to be operational. The survey found that in order to create world class facilities, all the food parks have imported machineries from abroad which are expensive. Hence the rent or the lease amount for these
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For example for Srini Food Park, land was never a problem because they bought it from Andhra Pradesh Industrial Infrastructure Corporation (APIIC), a state government agency, but funding the project was a big asked. It was a constant struggle to convince banks about food parks, because it was a new business model. They were not flexible and charged high interest rates that are usually associated with infrastructure projects. Srini is spread across 142 acres. But only eight small enterprises have set up shop in the park so far, occupying just 22 acres. Clearly, attracting entrepreneurs and companies has not been easy. Entrepreneurs had apprehensions about relocating in food parks. Some felt that a lease agreement would impact their freedom of operations. Some wanted the developed land cheap and did not consider the cost of infrastructure. Also,
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FOOD PARKS other units and, instead, use it as a real estate proposition. However, experts feel that linking the grant to leases will be an impediment for smooth completion of projects. Also, some observers feel that by bringing in such clauses the government is trying to insulate and completely derisk itself. Food parks should not just be a facilitator of infrastructure. They should also be involved in production and marketing. A small entrepreneur will find it difficult to sell the product on his own, but the presence of an anchor brand will give impetus to the food processing industry and encourage smaller players to move into these parks.
they did not have any specific incentive for relocating in MFPs.
to boost the food processing industry and populate these parks faster.
MNCs, who were interested in starting operations in the food park, wanted very large tracts of land and Srini lost out to Sri City SEZ. According to sources, PepsiCo was one such company that was looking for a 50-acre plot in the MFP, but finally settled for the SEZ. Srini had started leasing at Rs 17 lakh per acre for a 99year lease in 2010. Currently, the lease amount has gone up from Rs 35 lakh to Rs 50 lakh.
The Divide Alarmed by the slow pace of external units moving to MFPs, the ministry in its revised guidelines of 2014 has made it mandatory for food parks to submit documentary proof of allotment of at least 25 per cent of the area for the release of the third installment of 20 per cent grant. According to Badal, this was done because once promoters had put up the core infrastructure; some of them did not seem interested in sub leasing to
Patanjali also experienced a similar problem with only seven of the 22 units operating in the Haridwar food park being external establishments. The MFP is spread over 83 acres and employs 7,000 people directly and indirectly. However, most of the seven units supply products and services to Patanjali, be it the packaging unit of corrugation box, PET packaging unit for jars and bottles, or the breakfast food unit. Experts says the government must increase the Rs 50 lakh grant to Rs 2 crore for small enterprises to encourage entrepreneurs to set up food processing units in MFPs. With manufacturing at a low, such incentives will go a long way
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Some are also trying to generate revenues by offering the existing facilities to thirdparty units to gain traction. For instance, Srini Food Park has tied up with Mother Dairy, and a couple of other exporters, who use the facilities at the MFP and pay on the basis of volumes. Srini charges Rs 6.50 per kg of finished product for pulping, Rs 0.50 per kg of products stored at the cold storage facility per month, Rs 2 per kg per month for freezer rooms, and Rs 1.75 per 200 ml of Tetrapak. Land woes Experts say the biggest issue in implementing the scheme has been the availability of land and the long-drawn process to change its use from agriculture to industrial land. Some states have
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FOOD PARKS during the NDA regime when the interministerial committee met on June 30, 2014, as Shaktiman failed to meet the conditions in spite of many extensions. In March 2015, fresh allocations were made for the 17 MFPs by the Ministry. While 10 private players, including Adani Ports and Special Economic Zone, Jain Agro Trading Company, and Ruchi Acroni Industries, were allocated rights to develop MFPs, the rest were allocated to state government agencies such as Andhra Pradesh Infrastructure Corporation, Haryana State Industrial and Infrastructure Development Corporation and Kerala State Industrial Development Corporation, among others.
also strict land ceiling and sub leasing laws, which makes the role of the state government critical for the project to get started. A food park promoter can either acquire industrial land from the state, or approach the state government to acquire land on its behalf, or buy land directly from land owners. For example, India Food Park promoted by the Future Group suffered a delay of 18 months on land acquisition issues. After the project received an in-principle sanction in March 2011, it had to seek extensions to meet the September 2014 deadline. In fact, the promoters were fortunate that a special high level cabinet committee, chaired by Karnataka Chief Minister Siddaramaiah, gave a single window clearance to allot land to India Food Park through the Karnataka Industrial Areas Development Board (KIADB). Even then, there were issues that the Future Group had to deal with.
contiguous land for the food park within the time. Subsequently, its in-principle approval was cancelled in June 2014. Forthcoming Out of the 42 parks allocated in the first four phases, work has started only on 25. The Centre cancelled allocations of 17 projects, including the much-talked about Shaktiman Mega Food Park at Jagdishpur, in Uttar Pradesh's Amethi district. Interestingly, the inter-ministerial approval committee meeting held on February 11, 2014, under the UPA regime, had granted an extension to the project till March 31, 2014, failing which the approval stood cancelled without any further notice. However, the final announcement of the cancellation came
If the intent of the promoter is right and land is acquired within the timelines, the project can easily take off. However, in most cases land acquisition remains the biggest hurdle. For instance, the Rs 1,150 crore, Kolkata-based Keventer Group, which is primarily into agro and food processing, got the final approval from MoFPI in November 2011 for the Keventer Food Park in Bhagalpur, Bihar, but could not ensure the 50 acres of
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The government's move to assign MFPs to state-run public sector companies is also being questioned by industry observers. They argue that most of the 56 food parks, commissioned along the lines of the initial scheme for food parks during the 8th to 10th Plan Periods to state industrial development agencies, fell far short of expectations. According to industry insiders, the ministry had commissioned external agencies, such as Entrepreneurship Development Institute of India (EDII), Ahmedabad, and Consulting Engineers, to assess the inherent errors in the scheme and its implementation. The reports submitted to the ministry said the food park projects were theorized in the traditional industrial estate mode with
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no forward and backward linkages and, therefore, resulted in valuable real estate being acquired but utilised at low levels of efficiency. The reports said there were delays in providing basic infrastructure facilities, such as power, water and road, and the state-run PSUs did not have capabilities to device the projects due to poor management. Based on wide-ranging consultations with stakeholders, the earlier food park scheme was done away with to come up with the MFPS during the 11th Five Year Plan. Since state-developed food parks were non-performers, it was decided to bring in private players. Most experts feel that since land acquisition and change in land use are central to setting up of mega food parks, state government agencies have been given approvals because they have the requisite land bank. But, insiders feel to run food parks successfully, vision and management will be more imperative in the long run, and state-run PSUs may be wanting on that front. Processing Industries was developed under the 11th Five Year Plan and was implemented in 2008 by the then UPA government. Since its commencement, 42 mega parks were given in-principle approvals. However, only five projects have started operations, including the North East Mega Food Park in Assam, India Food Park in Tumkur, Karnataka, International Mega Food Park in Fazilka, Punjab, and Srini Food Park in Chittoor, Andhra Pradesh, and Patanjali Food and Herbal Park in Uttarakhand. What is happening at present Union minister for food processing industries Harsimrat Kaur Badal has set a time limit of next 30 months for making the ongoing 42 mega food parks projects functional, questions are being raised about the sluggish pace of implementation of the projects in totality.
FOOD PARKS
The minister had recently said that three new mega food parks were inaugurated in the last one year and added that two would become operational in another few months. Further ministry of food processing industries (MoFPI) is intending to start 14 projects in financial year 2016-17.
at NABARD has arestriction that it should be utilized for units in mega food parks only and therefore not many were interested in it. Further, the infrastructure within the parks was not ready. There was suggestion sent to the ministry about cutting the size of mega food parks by half to make the scheme more feasible.
As a matter of fact, Badal, while taking part in a recently-held conference hosted by PHD Chambers, stated that her ministry was aiming at a fully industrialized food processing sector. It is because of this reason that the new government has focused on setting up of 42 mega food parks that will provide adequate remuneration to farmers for their produce and also facilitate faster industrialization of food processing industries in India and
However, the committee was of the opinion that the proactive steps taken by the ministry in consultation with state governments may decrease time lags caused such as problems related to statutory clearance, and land acquisition. The committee suggested the department to convince state governments to establish single-window clearance for Mega Food Parks scheme so as to enable statutory clearance by the departments/ agencies concerned. The committee also recommended the department to speed up the process of decisionmaking at the ministry level to accelerate clearance for submitted proposals.
reward its consumers with dietary food with well contained prices. Out of 40 projects approved by the ministry so far, 21 projects have been accorded final approval and 19 projects have been accorded in-principle approval. The brief status of 21 finally approved projects is that only 5 projects are partially operational; and in 2015-16 only 2 projects are likely to be operational and only 2016-17 the projects expected to be operational are 14. The whole idea of mega food parks is not working properly, according to sources in the industry. The Rs 2,000 crore fund
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Also, the delinking of the National Mission on Food Processing from the Centre sponsored scheme has affected the development of the Mega Food Parks scheme. Now since MoFPI has no direct role in its implementation, the whole programme is at the clemency of state governments. Sources in the ministry say that while few states like Andhra Pradesh and Uttar Pradesh have taken practical action on the subject by making separate department to deal with it, many states have to push hard to make it a success. And also there is no mechanism to monitor the mission. In fact MOFPI faces a humongouschallengefor reducing wastage of farm produce estimated at Rs 92,000 crore with the help of projects such as Mega Food Parks scheme and seems to be quite a dauntingtask.
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G
rowing Opportunities in Kids’ Health Children are a precious commodity and represent the future of every family and society. Clearly, the bility of a child to remain healthy and achieve optimal growth and development during childhood is strongly influenced by their past health and nutritional adequacy - beginning in the womb, as well as their current consumption of nutritious foods.
The focus of this paper is to highlight the nutritional needs and opportunities for primary school-aged children. This is a time of life in which physical growth is slower than during infancy, but nutritional needs are still high in the face of relatively small appetites. In other words, it is an important time for assuring that the nutrient density of children’s foods is high and dietary supplements are provided where indicated.
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KID'S HEALTH: A REPORT
The primary school age is also a difficult transitional time for many parents because their child is becoming progressively more influenced by
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KID'S HEALTH: A REPORT years. This age group represents an important fraction of the population in most areas of the developed and developing world (Figure 1). However, nearly 90% of children in the world live in developing countries, and eight in 10 of those children live in Africa and Asia.
the world around them, especially by the food likes and dislikes of their peer group and mass advertising, and less so by their parent’s influence. Yet, knowing that the food choices that their children make can influence their development during these crucial years, as well as their future health risks and food habits, parents must do their best to provide for their child’s nutritional needs in a way that will be accepted by their child. This is not an easy task, as any parent will tell you. The development and increased availability of functional, fortified food products, designed on the best available scientific and marketing evidence to meet both the special nutrient needs and product acceptability criteria of this age group, can be an important advancement in combating childhood malnutrition.
Market Drivers Parental concern for their child’s health is an important market driver, with a focus on immunity as a top health concern. The New Nutrition Business report concurs with this assessment and adds that all-natural ingredients and products that are “freefrom” ingredients that are perceived as
Demographics According to the U.S. Census Bureau, in 2009 there were 1.2 billion children worldwide between the ages of five to 14
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unhealthy are also important consumer issues. The second most important concern among parents is gut health, and with a growing awareness of the rise of overweight and obese children, parents are also becoming increasingly concerned about products containing “added sugars.” Another important market area catching on with parents’ desire to feed their children healthy foods is the growth of kids’ organic snacks that has encouraged the proliferation of many small, familyowned companies providing wholesome organic foods aimed at children. Sales of natural and organic foods in the U.S. directed to children were $1 billion in 2008. Developing nutritionally sound children’s products offers manufacturers numerous opportunities Of course, it is not always about what the parent wants for their child; there is also the issue of what foods are acceptable to a child. According to a report from Leatherhead Food Research on children’s food and drink in Europe, important triggers for children include flavors, texture, shapes, packaging, cartoon characters and play elements. The major European markets for child-specific foods are the UK, France, Spain, Germany and Italy, and are valued at about €428 million, according to the report. A potential growth area for child-oriented food is the rise in
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interest in healthy, “on-the-go” snacks for children or other similar convenience foods, particularly those that are lower in sugar and fat, given the fact that onethird of kids five to 13 years of age are overweight (greater than 85th percentile weight for age) or obese (greater than the 95th percentile weight for age).
on eating healthier foods and avoiding eating oversized portions of fast foods that are high in fat and calories. Growing children have high energy needs and will gain body weight as they mature, but they need to be careful that they don’t consume too many calories that can lead to inappropriate weight gain and obesity. Abnormal levels of serum cholesterol have been recently reported to occur in 14% of normal weight 12 to 19 yearold children, but in those classified as obese, those levels rise to 43%. Satiety-inducing ingredients, such as protein – in particular whey protein; fibers such as inulin and oligofructose; oils such as Korean pine nut, palm and oat; and hydroxycitrate
Some Important Health Conditions in Children Weight Management and Obesity Childhood obesity is on the rise in North America and Europe, as well as in many other places around the globe. According to recent statistics from the U.S. National Health and Nutrition Examination Survey (NHANES), 16% of children and adolescents are obese and many more are at risk of becoming obese. Many factors contribute to this rise in childhood obesity, including poor eating habits and general inactivity. From a nutritional standpoint, more effort needs to be placed
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KID'S HEALTH: A REPORT (HCA) may help to deliver a sense of fullness when used to fortify children’s food and beverage products. However, the best approach to weight management and obesity will continue to be increased physical activity, accompanied with a healthier diet that includes a multitude of fruits, vegetables and whole grains. Cognitive Function and Attention Another important area of parental concern is that their children’s nutritional intake is optimizing their cognitive function and reducing the risk of developing attention disorders. According to the Centers for Disease Control and Prevention (CDC), about 8% of children have been diagnosed with Attention Deficit Hyperactivity Disorder (ADHD) – with numerous opinions suggesting that this is one of the most ever, or misdiagnosed condition in children’s health today. There are different types of ADHD and not all have the hyperactivity component. However, they are all characterized by inattention and distractibility. The exact cause of ADHD is unknown, but this condition can have significant effects on behavior and school academic performance, and that it is best to focus on supporting a child’s brain so they can reach their maximum potential. Other important disorders of concern to parents of school age children include autistic behaviors, which affect one in 150 children, and are characterized by
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KID'S HEALTH: A REPORT deficiency in children with ADHD, as is zinc, which is an important co-factor in producing the brain’s neurotransmitters. Phosphatidylserine (PS) is a fat-soluble phospholipid and a key component of all cell membranes, but is found in particularly high concentrations in the brain. This nutrient is extracted from lecithin, and is found in foods such as soy and eggs. PS is gaining recognition as a focus and attention-supporting nutrient due to its role in benefiting a wide range of brain functions. It supports neurotransmitter production (namely dopamine) and maintains nerve connections. In a study where a group of 27 ADHD children took 200 to 300 mg of PS daily for four months, researchers found that 25 children exhibited improvement in learning capacity and behavior with no adverse affects.
poor social interactions, communication skills, repetitive and ritual behaviors and aversion to noise. Learning disorders associated with abnormal development in reading, mathematics and written communication is another important concern for parents since almost 3 million children in U.S. schools alone have specific learning disabilities. The role of nutrition in the pathogenesis of ADHD, autism and learning disabilities is unknown but there continues to be interest in this possibility.
a sustained attention task. Additionally, magnesium, which helps to calm the brain, has been shown to be a common
A growing body of research has implicated the omega-3 fatty acid docosahexaenoic acid (DHA) as important in the normal brain development of the fetus, infants, and young children. Alpha-linolenic acid (ALA), an essential fatty acid and member of the omega-3 fatty acid family, is believed to be important for normal brain development in children. Moreover, a recent study published in the American Journal of Clinical Nutrition by scientists from the University of Cincinnati found that supplementation of boys eight to 10 years old with DHA for 8 weeks had a significant effect on brain activity during
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Immunity It is not at all unusual for the average child to have five to seven episodes of the common cold during a typical year. Many single nutrient deficiencies are associated with impaired immunity, and overall good nutrition is important to optimize immune function. Asthma is an immune-
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KID'S HEALTH: A REPORT which was the focus of another technical paper entitled Good For Your Guts Foods (fortitech.com/guts), which was published in 2008, and its impact on immunity.
related disease that can be found in children, especially in obese children. It is estimated that 19% of persons 20 years old and younger suffer from asthma. Allergic rhinitis (hay fever) is quite common in children, with the prevalence reaching as high as 40%. The mean age of the onset of allergic rhinitis is eight to 10 years old. Eczema is the world’s most common skin disorder in children, and is characterized by itchy and inflamed skin, commonly seen in the skin creases of the elbow and behind the knees. A crosssectional study of children six to seven
years old, and 13 to 14 years old, from research centers in 56 different countries found that the prevalence of eczema ranged widely in different countries from less than 2% in Iran and China to 20% in Australia, England and Scandinavia. In a technical paper entitled ImmunityBoosting Nutrients (fortitech.com/ immunity), which was published by Fortitech in 2009, we had noted the immunity enhancing properties of the B vitamins, as well as vitamins D and E, and of course the role of gut health,
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In Demand Nutrients for Growing Children Meeting the high nutritional needs of school-aged children with small appetites is a challenge requiring high nutrient dense foods, including fortified food products that could be designed to be particularly appealing to this age group. Important nutrient categories for the growing child include: essential vitamins, minerals, and fatty acids; and bioactive phytonutrients. A brief review of the importance of these nutrient categories for children’s health is provided below. When you think of the school-aged child, the first thing that likely comes to mind is growth, both in length and girth. Good nutrition is required to maintain proper growth velocity in children. Consuming sufficient levels of all essential nutrients is important for optimal growth and development in children. However, some especially important nutrients to consider in the growing child are summarized in Table 1. Table 1. Some Important Product Ingredients for the Growing Child Poor nutrition results in growth stunting and arrested development, as unfortunately occurs in many malnourished children in less fortunate nutritional circumstances in some poorer regions of the globe, as well as in pockets of poverty in the more industrialized countries. Linear growth requires healthy bone development, which demands adequate protein intake, but also sufficient levels of bone-building minerals and vitamins, such as calcium, phosphorus, magnesium and vitamin D. Thirty-five percent of adult bone mass is formed during puberty, so childhood is an important time to bank bone minerals to help ward off osteoporosis in later years. Vitamin D-fortified milk is an important food source for all of these bone building nutrients; however, it should be appreciated that in the majority of populations worldwide, the span from early childhood to the primary school years results in the expression of lactose (milk sugar) maldigestion and can result
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KID'S HEALTH: A REPORT vitamins, which are needed for DNA replication and red blood cell formation, and iron, which bolster immunity and protects against developing anemia. The latter concern is especially important in older girls because they are at higher risk of developing iron-deficiency anemia with the onset of menstruation. Ironand folate-fortified breakfast cereals are important sources of these nutrients in the diet, and kids that skip breakfast miss out on an important opportunity for healthful micronutrients and could benefit from increased availability of micronutrientenriched “on-the-go� breakfast items. Beta-carotene is found in many fruits and vegetables and can be converted by the body into vitamin A. Vitamin A is important for many functions in the body, including immune function.
in the development of gastrointestinal symptoms associated with lactose intolerance. Thus, the availability of alternative low-lactose food choices that are rich in bone-building nutrients is important. Fermented milk products, including yogurts, are lower in lactose and are often used or tolerated to a greater extent in many cultures with a high prevalence of lactose maldigestion, such as in many Asian and African populations. However, these products are not routinely fortified with vitamin D, which, in recent years, has been found in less than optimal levels in many different populations, worldwide. Fortified beverages, such as calcium and vitamin D fortified orange juice, have been gaining in popularity in the U.S. market as an alternative lactosefree, nutrient-rich beverage to fluid milk. Adequate levels of other essential micronutrients, such as zinc, vitamin C and vitamin K, are also needed by the growing child to assure optimal skeletal health. Bone and joint health was the focus of another technical paper published by Fortitech, entitled Strategic Nutrition for Bone & Joint Health, which can be accessed by visiting Fortitechpremixes. com/freepaper. Substantial amounts of zinc are also sequestered in muscle and other tissues that expand during growth
in children to fill out an increasing skeletal frame. Deficits of zinc and poor zinc status also have important negative effects on immunity and have been shown in many studies in less industrialized countries to increase morbidity and mortality from diarrheal and respiratory diseases. Other especially important nutrients for growth include folate, vitamin B12, as well as other B
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There is also increasing concern that many populations and groups, including children, are not consuming adequate levels of important omega-3 fatty acids, such as DHA and EPA, found in high amounts of certain marine oils. These long-chain omega-3 polyunsaturated fatty acids have been shown to be important for visual and brain development in infants, but also play an important role in balancing the availability of anti-inflammatory signals produced by immune cells. Other important micronutrients for kids’ health
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include the antioxidant nutrients, which besides vitamin C include vitamin E, and the minerals selenium, iron, manganese and copper. Other concerns in children in certain parts of the world are the increasing propensity for them to become overweight and obese. This condition increases their risk of chronic conditions, such as abnormal blood lipid levels, glucose intolerance, and hypertension, which will increase their risk of developing cardiovascular disease and type 2 diabetes in adult life. Important opportunities exist for the development of new food products designed to help ameliorate these comorbidities associated with excess body weight.
incorporated to counter the decreased, or complete removal of sugar in many product applications. Low-salt, yet tasty, child-friendly products that utilize a salt substitute such as potassium chloride can help reduce sodium intake and may help to lower blood pressure in overweight individuals. And, added phytonutrients, such as plant sterols, could help to reduce dietary cholesterol absorption as part of the dietary effort to manage these obesity-associated conditions in a growing segment of the kids’ population in many countries. Fruits and vegetables are important sources of essential micronutrients, including vitamin A, but also phytochemicals that can have potentially important health benefits, including roles as antioxidants. It is often difficult to get children to “eat their veggies.” sources of essential micronutrients and dietary fiber, but also important bioactive food components found in plant foods. New food products supplying fruit or vegetable extracts to children in fun and delicious ways could be an important health benefit, especially for children who are picky eaters. Applications
For example, child-acceptable sweettasting products containing a decreased amount of added sugar will be important to help reduce calorie intake and the blood glucose load that needs to be managed by pancreatic insulin secretion. To appeal to their sweet tooth, a variety of sweeteners, among them stevia, xylitol and rebaudioside A (Reb-A), could be
Vol.11 Issue 03 January 2016
KID'S HEALTH: A REPORT
Manufacturers interested in exploring the market for children’s nutrition have a variety of applications from which to choose that can be supported through premix formulations. Potential products and their respective nutrients include: Toaster pastries or cereal bars with a nutrient-fortified filling (weight management/obesity) Fortification and Formulation Challenges Fortitech Premixes is your partner in product development. Contact us at fortitechpremixes.com to get started While all of the aforementioned nutrients can aid in children’s nutrition, they will need to be incorporated into products that already have an appeal to this group of young consumers. Toaster pastries or cereal bars that include fiber with a
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KID'S HEALTH: A REPORT • pH of the finished product • shelf life and other components of the finished product Adding multiple ingredients to food products and supplements can promote improved nutrition among kids, as well as help to manage other health concerns. Good practice calls for high quality nutritional blends that address these issues, which in turn will gain consumer their overall wellness.
nutrient-fortified filling, vitamin enriched chocolate milk powder mix, nutritionally improved cookies and fortified confectionery such as a lollipop are just a few of the many types of products that can be utilized to raise a child’s nutritional intake. The challenge for formulators is to select appropriate forms of each nutrient that delivers their individual desired levels without affecting flavor, solubility, bioavailability, sensory properties and the mouth feel of the finished product. Food manufacturers must work closely with their suppliers to address product development issues that could dramatically impact nutrient delivery or alter the end product. The supplier
can suggest appropriate market forms, interactions to avoid, and processing effects that will improve the chance of success. Questions to address prior to fortifying a product with ingredients aimed at improving kids’ health include: type of product to be fortified • amount of various nutrients to be added, particularly if a manufacturer is trying to meet a certain label claim • whether additional ingredients should be added to enhance performance • processing conditions, such as time and temperature
Vol.11 Issue 03 January 2016
This information is based on DSM’s current knowledge and only contains scientific and technical information for business to business use. DSM makes no representation or warranty of the accuracy, reliability, or completeness of the information and as to results to be obtained. Use of this information shall be at your discretion and risk. It does not relieve you of your obligation to comply with all applicable laws and regulations and to observe all third party rights. Nothing herein relieves you from carrying out your own suitability determinations and tests including the stability testing of the finished product. Country or regionspecific information should also be considered when labeling or advertising to final consumers. The content of this document is subject to change without further notice. All trademarks listed in this paper are either registered trademarks or trademarks of DSM in The Netherlands and/or other countries.
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NEWS
McDonald's going for brand extension business in India
M
cDonald's is doing its brand extension business in India. Although burgers continue to be the backbone of the US fast food chain, it now earns a fourth of its revenues from ice cream, smoothies and coffee. To speed up its brand extension business, the company has started a remodeling exercise to make its stores look fast-casual in South and West India. "We are trying to blur the line. This is what McDonald's will look like to millennial in the future," said Amit Jatia, vice-chairman of Westlife
Development and McDonald's partner in West and South India. The burger chain has four brand extensions: Delivery, breakfast, dessert kiosks and McCafe. Jatia said sales value of these may touch Rs 850 crore in four years. Along with selling burgers, that's roughly the sum Jatia makes from 216 McDonald's stores in the country. "However, I want to be clear about the fact that our brand extension lines don't cover all our restaurants. We are working on it. For instance, we have opened 52 McCafe. In three years, we expect our coffee business to earn around Rs 250 crore," he said. McCafe is a coffee-house-style food and drink chain owned by the burger chain. Interestingly, it has yielded more revenues for McDonald's than its regular stores in some markets. McCafe are housed inside regular McDonald's in India. Jatia said he has earmarked an investment of Rs 750 crore to open around 200
new restaurants in five years. His company Westlife Development operates McDonald's stores through its subsidiary, Hardcastle Restaurants. While Westlife reported a 21% increase in revenue for the September quarter led by its restaurant business, McDonald's has been juggling with the dual problem of a sluggish economy and a legal battle with its estranged partner in North India, Vikram Bakshi, the owner of Connaught Plaza Restaurants. One of the first international quick service restaurants (QSR) to enter the domestic market, McDonald's was ousted from the position of the country's largest QSR player by US pizza maker Domino's in 2013. Subsequently, it slipped behind its US rival KFC and now resides in the third position, according to a Euromonitor report from August. The organized QSR business in the country is poised to grow at a CAGR of 25% to reach around Rs 16,800 crore by 2018, Jatia said.
Nestle India all ready to launch more variants of Maggi
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month after Nestle India relaunched Maggi noodles in the Indian market, the company is getting ready to launch other variants of the brand such as oats noodles and cup noodles in 3-4 months. The company relaunched Maggi masala noodles on November 9, five months after
it was banned by the FSSAI following a Bombay High Court order. Last week Supreme Court had ordered retesting of Maggi noodles by an accredited laboratory at Mysore and not in Chennai as sought by the National Consumer Disputes Redressal Commission while staying the proceedings in connection with the government's Rs 640 crore law suit against the company that is pending with the apex consumer body. When asked about the apex court order, Nestle India CMD Suresh Narayanan said: "The matter is subjudice, samples are being sent to to CFTRI Mysore, so I don't want to comment on it but I would say that it is question of trust and credibility of Nestle organisation. "We have performed all due diligence before coming back into the market."
Vol.11 Issue 03 January 2016
On sales of Maggi after its re-launch, he said Nestle has sold 50-60 million packs of Maggi noodles so far after against 300400 million units it used to sell in in full year before crisis. When asked the company is expected reach pre-crisis level sales, Narayanan said: "Can't say when Maggi sales will reach pre-crisis level. We are ramping up productions at all our five plants and also ensure we each all-out distributors." Before the ban, Maggi noodles were distributed through 1,500 distributors across country. "Right now we are selling through 1,000 distributors...we are ramping up our distribution network and we plan to reach all 1,500 distributors soon," he added.
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NEWS
Packaged Food market to touch $50 bn by 2017: Study
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survey by industry body Assocham Country's packaged food market is set to witness a quantum jump to $50 billion by 2017 from $32 billion at present due to increasing popularity of ready-to-eat items. "There has been a major shift in food habits in the metropolitan cities. About 79 per cent of households prefer to have instant food due to steep rise in dual income level, standard of living and convenience," said the survey. The poll highlighted that 76 per cent parents, mostly both working, with children under five-years in the big cities, are serving easy-to-prepare meals at least 10-12 times per month in some form or the other. Assocham Secretary General D S Rawat said, “The consumption of packaged food is much higher in the urban areas, especially metros, where life is fast-
paced, attracting lot more companies to launch new types of products and variants," The paper also pointed out that there is a large divide between urban, semi-urban and rural consumers. Urban areas account for 80 per cent of the demand for all packaged food. The survey noted that about 76 per cent nuclear families feel they have less time to spend in the kitchen, while nearly 79 per cent bachelors prefer convenience food. It is in this background that home delivery business model for cooked food has grown multi-fold, it said. The main categories of packaged food are bakery products, canned/dried processed food, frozen processed food, ready-toeat meals, dairy products, diet snacks, processed meat, health products and
drinks. Food manufacturers have also started concentrating on manufacturing new innovative food products and ready-to-eat processed food to keep up with the ever changing tastes of consumers.
NestlĂŠ India restarts Maggi Noodles production at last of its five facilities
N
estle India has recommenced production of Maggi instant noodles at the last of its five facilities at Tahliwal, in the northern state of Himachal Pradesh. This move is expected to increase the supply of the product, especially as the
Tahliwal plant is one of the two major noodle manufacturing hubs. Last week, Nestle India recommenced production of Maggi noodles at its fourth facility, located at Pantnagar in the northern state of Uttarakhand. Nestle has been resuming noodle production in a phased manner since 26 October. Maggi noodles are now produced at its facilities in Nanjangud (Karnataka), Bicholim (Goa), Moga (Punjab), Pantnagar (Uttarakhand), and Tahliwal. The production resumption at the Talhiwal facility is considered to be a step towards bringing production volume back to the pre-ban level, though it may take a few months to achieve that, reported Business
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Standard, citing experts. Only one out of nine varieties is being currently manufactured. Before the controversy in May, the firm produced around 20,000t of Maggi noodles. Meanwhile, the company began a promotional campaign on social media channels and traditional media. "The seed of doubt that has been planted in the minds of consumers in India has to be eradicated, and we will be utilising traditional, digital and social media to connect with them," said Nestle India chairman and managing director Suresh Narayanan Within two weeks of the relaunch, the company sold 45 million packs.
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NEWS
Milk surplus puts pressure on prices, dairies want it part of mid-day meal
T
here is a milk glut in the country as all the extra milk produced in the winter season is flowing into dairy cooperatives because private firms exporting skimmed milk powder and casein have withdrawn from the market due to fall in global prices. Most cooperative dairies in north and central India are now procuring 20-30% more milk every day than their annualized daily average, and they are urging state governments to include milk in their midday meal and anganwadi schemes to deal with h excessive milk flow and prevent a price fall that would hurt farmers. RS Sodhi, MD at Gujarat Cooperative Milk Marketing Federation said, "We are trying to procure as much milk as we can, ensuring that farmers get remunerative prices. However, the scene is not same across most parts of north India where
farmer's prices have crashed." "To ensure that supplies are not affected next year states needs to get milk under mid-day and the anganwadi programmes," he said. Amul is currently procuring an average 200 lakh litre of milk from Gujarat and other states every day as against its annual average of 170 lakh litres daily. Mother Dairy, which markets about 37 lakh litre of milk a day, has also seen an increase of 30% in milk procurement over the past five months. "Farmer producer companies are bringing excess milk to us," said Ashok Kumar
Tripathi, general manager for milk procurement at Mother Dairy. He said after selling 30 lakh litre liquid milk in the market, the cooperative will use excess milk to make 13,000 tonnes of skimmed milk powder, which is used to make milk in the lean summer season, and 9,000 tonnes of white butter. With production on the rise, milk prices are under pressure.
Godrej Agrovet buys 25 per cent stake for Rs 150 crore of Creamline Dairy's deal. Yadav said, "As the company embarks on its ambitious future growth plan, we believe GAVL will be able to bring in significant value to the business by helping it develop successful brands and add more value-added products to its current portfolio."
T
he Godrej Group firm has bought a 25 per cent stake in Creamline at an enterprise value of about Rs 550 crore, taking its total holding in the dairy firm to 51 per cent. Godrej Agrovet (GAVL) had bought 26 per cent of Creamline in 2005. Balram Singh Yadav, managing director at Godrej Agrovet, said the company spends roughly Rs 150 crore on the latest
Creamline, with a capacity of nearly seven lakh litre of milk processing a day, posted revenues of Rs 858 crore for the year ended March 2015. It sells milk and other dairy products under 'Jersey' brand across southern states such as Andhra Pradesh, Tamil Nadu, Karnataka and parts of Maharashtra. The company has 29 milk chilling centres of its own and nine belonging to its associates. Godrej Agrovet clocked revenues of Rs
Vol.11 Issue 03 January 2016
3,843 crore for the year ended March 2015. India is both the largest producer and consumer of milk, but the market is highly fragmented with only 20 per cent market share for organized players. The largest player, Gujarat Cooperative Milk Marketing Federation that sells under Amul brand has only 5 per cent market share. Multinationals such as Unilever and Danone have largely been operating in segments like yoghurt, flavoured milk, cheese or ice creams. Last year, French diary major Le Groupe Lactalis had purchased Hyderabad-based Tirumala Milk Products, the secondlargest dairy company in South India, for Rs 1,750 crore.
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NEWS
Organised Dairy market to perform better in next three years:CRISIL
I
ndia’s Rs.75,000 crore organised dairy market may perform better over the next three years as rising disposable incomes lead to rapid conversion to branded dairy products, a report by ratings agency Crisil Ratings said. Revenue from the share of organised dairy segment could rise to 25% by 201718 from 19% in 2014-15, the report said. The organised dairy industry grew at a rate of 22% a year in the past five years, against 17% for the entire dairy industry. Urban households across India are switching to branded products at a much faster pace aiding the growth of categories that have traditionally been made at home. As the consumer shift accelerates, Crisil expects the organised channel to incur a capital expenditure (capex) of Rs.15,000 crore by 2017-18 to raise milk processing capacity to 1,050 lakh litre per day, a 40% increase from fiscal 2014. “Northern India, especially Uttar Pradesh, Punjab and Haryana -- which are big on milk production but have low organised dairy penetration -- will witness the highest capacity addition,” said Anuj Sethi, director, Crisil Ratings. A third of the overall capex is expected
to be undertaken by the largest domestic dairy player, Gujarat Co-operative Milk Marketing Federation (Amul), the report added. Valued-added products have grown faster than packaged milk as households buy more packaged curd, paneer, butter and cheese, according to the report. The share of value-added products in fiscal 2015 is estimated to be 43%, up from 35% in fiscal 2010. Over the medium term, demand for branded milk and value-added products is expected to grow 13-15% and 22-24%, respectively. To be sure, an average Indian household’s share of expenditure on milk and dairy products trails expenditure on cereals. Dairy consumption in most markets is linked to rising income levels, as households tend to consume more proteins. According to data attributed to Amul, as income levels have grown (especially in developing markets) consumption of fat and protein has increased with a reduction in dependence on cereals for carbohydrates. Most dairy companies and cooperatives have grew on the back of rising demand
both in urban and mid-tiered markets. Most large consumer companies have promised investments in packaged dairy products. Kolkata-based ITC Ltd recently launched packaged ghee, while biscuit maker Britannia Industries Ltd has pronounced its plans to invest heavily to scale up its dairy business. Mumbai-based Parag Milk Foods Ltd is expected to tap the public for Rs.325 crore in early 2016. Investments in the sector, which has seen Rs.900 crore investments since 2010, will continue over the next couple of years, the report added. Dairy is among the top 10 sectors monitored closely by private equity companies. PE activity in the sector jumped from 2% of total investment a decade ago to 6% now.
Akshay Kumar to be the brand ambassador for Kwality
D
airy firm Kwality has roped in Bollywood actor Akshay Kumar as brand ambassador for its entire range of products for a period of two years. Akshay Kumar is one of the fittest Bollywood actor and therefore fits perfectly as the brand ambassador of the company, Kwality said. Kwality Managing Director Sanjay
Vol.11 Issue 03 January 2016
Dhingra said that the company is on a high growth trajectory and undergoing a major strategic transformation. We have robust plans for the consumer market and this association will help us draw a lot of strength from his reputation and will bring a direct connect with our target audience. Kwality has six milk processing units in Uttar Pradesh, Haryana and Rajasthan.
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NEWS
Government thinks over Rs 1750 cr proposal to strengthen FSSAI, state Food regulators
F
aced with criticism from industry over approval system for food products, the government is mulling an Rs 1,750-crore proposal to strengthen central food regulator FSSAI as well as state bodies. The government is working on strengthening the FSSAI and state FDAs through capacity building that includes setting up of new testing laboratories and upgrading the existing ones, and it is focusing on increasing awareness about the importance of food safety. "We have formulated a scheme for that (capacity building) and that scheme was for both food and drug. The drug part
H
has been approved by the Cabinet recently in the month of August and there is a similar proposal for the food which is likely to be approved by the competent authority soon enough," Health Secretary Bhanu Pratap Sharma said. He said the proposal, once approved, would definitely give a strong boost to the capacity building of the laboratories and other food regulatory set-ups.
Sharma also mentioned that the FSSAI only sets standards for different food products and the implementation is done by the state governments.
According to sources, the Health Ministry has moved a proposal for granting Rs 1,750 crore, which includes about over Rs 800 crore for the FSSAI and the remaining amount for the state food regulators.
After Maggi ban, industry as well as Food Processing Minister Harsimrat Kaur Badal criticised the FSSAI. She had said that the FSSAI's decision created "fear psychosis" in the food processing industry.
The Secretary said there are about 160 labs for testing of food in the country, out of which 72 are in the government sector and 80 odds are private accredited labs. The ministry has evaluated all the government's labs to find out the deficiencies, Sharma said.
The FSSAI has come into limelight after it imposed the ban on Maggi in June this year, which was later lifted by the Bombay High Court. In August this year, the Supreme Court junked the FSSAI's advisory that asked manufacturers to get clearance for products even if the ingredients were already approved or deemed safe.
Food regulator FSSAI, which comes under ambit of Health Ministry, lays down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption.
Ramdev's Patanjali firms served FSSAI notice
ealth Ministry J P Nadda said, two Ayurvedic firms including yoga guru Ramdev's Patanjali Ayurved Ltd have been served notice by the government for violating food safety norms in manufacturing Atta noodles. The Food Safety and Standards Authority of India (FSSAI) has issued a notice to M/s Patanjali Ayurved Ltd and M/s Akash Yog Health Products Pvt Ltd on November 19 asking them to show cause as to why action should not be taken against them for violating the provisions
of the Food Safety and Standards Act...for manufacturing, relabeling and marketing Patanjali Atta noodles without obtaining valid approvals," Nadda said in a written reply to Lok Sabha. Ramdev had launched the product with the aim to capture the noodle market by branding his product as healthier as and more affordable than other instant noodles available to consumers. Instant noodle Maggi was banned earlier this year for five months after some
Vol.11 Issue 03 January 2016
samples were found to have dangerous levels of monosodium glutamate and lead. However, it returned to shops after a clean chit from labs.
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NEWS
Up to 70 per cent of dietary supplements in India fake with business consulting firm RNCOS.
A
bout 60-70 per cent of dietary supplements being sold across India are fake, counterfeit, unregistered and unapproved, notes a recent study released by AssochamRNCOS. “The dietary supplements market in India is currently estimated at about USD2 billion and is likely to almost double by 2020 thereby clocking a compounded annual growth rate (CAGR) of about 16 per cent during the course of next five years,” projected the study titled ‘Indian nutraceuticals, herbals and functional foods industry: Emerging on global map,’ conducted by Assocham jointly
According to a survey conducted by the Assocham Social Development Foundation across top Indian cities in 2012, about 78 per cent adolescents in urban India daily consumed dietary supplements in one or the other form to enhance their physical appearance, improve immunity and increase their energy levels undermining the various side-effects of such supplements. “Vitamin and mineral supplements will form major areas of opportunities for nutraceuticals players in the coming years driven by rising demand from an evolving customer base with middle class population being the major consumers in this regard,” highlighted the study. As per current market segmentation, vitamins and minerals account for lion’s share of about 40 per cent in Indian dietary supplements market followed by herbal supplements (30 per cent), probiotic (10
per cent), omega-3 fatty acids (five per cent) and proteins, amino acids and other essential elements together account for the remaining share of 15 per cent. “Small committees should be built at block levels to check the prevalence of counterfeit products in the market and immediately discard them as they bring bad name to the industry,” suggested the study. Dietary supplements (mainly vitamins and minerals) are primarily produced by pharmaceutical companies and are predominantly prescription-based, recommended by physicians, nutritionists, gym instructors and others who act as major influencers. Higher purchasing power has made people more health conscious and prompted them to adopt a healthy diet routine completed with consumption of nutritional supplements. Dietary supplements are sold in many forms like tablets, capsules, soft gels, gel caps, liquids and powders. These products are readily available to consumers through chemist shops and online channels.
FSSAI to set up nine new panels to expedite Food regulatory mechanism
R
egulator FSSAI has set up nine new panels for expediting work relating to strengthen the food regulatory mechanism in the country, the government said in Rajya Sabha. The Food Safety and Standards Authority of India (FSSAI) have also notified 12 referral laboratories and 82 National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited private laboratories, Minister of State of Health and Family Welfare Shripad Yesso Naik said. In addition, there are 72 State and Public
food laboratories to test food samples. "We are also planning the increase the number of laboratories. There should be at least laboratory in each district," he said while replying to questions. Observing that the FSSAI makes standards while their implementation is the responsibility of the state governments, Naik said in a written reply, citing information from states and UTs, that as many as 74,010 food samples were analysed in 2014- 15 and 14,599 samples were found adulterated or misbranded. On action taken against erring 'food
Vol.11 Issue 03 January 2016
business operators', it said 10,536 cases were launched in 2014-15 and there were 1,402 convictions. Also there were 2,795 cases involving penalties and about Rs 10.93 crore were raised.
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Event Calender-2016 Months
February 2016
March 2016
April 2016
May 2016
June 2016
July2016 August 2016 September 2016
October 2016
November 2016
December 2016
Vol.11 Issue 03 January 2016
Events
3rd–5th Fruit Logista Germany 18th–20th IDA Dairy Conference-karnal Haryana 21st–25th GULF Food-dubai 25th–27thAcrex, Mumbai 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 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 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 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 8th-10th Compack Mynmar Burma 13th-15th Propak China 13th-15th Bevtek Sanghai China 27th– 30th Packplus, Delhi 24th– 26th Food South, Chennai
22nd– 24th FI INDIA & HI, New Delhi
7th–9th FoodPro, Chennai 22nd–24th International Foodtech ,mumbai 22nd–24th Annapoorna, Mumbai 28th– 29th IICE 29th-1st Food Hospitality World, Goa 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 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
15th–17th Drink Technology , Mumbai 30TH-1st palmex Latin America Columbia
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South Asia’s
One & Only Ice Cream Industry Event
Meetings Knowledge Entertainment Discussions
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Ice cream Congress & Expo 2016
28th-29th September 2016, Expo Center, Sector-62, Noida, Delhi NCR
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Food Agrprocessing Indian’s 1st News Portal for Agro, Food Processing & Allied Segments
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Contactr�for�tStallsr�&rtPartners Indian Ice Cream Congress & Expo
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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. Ofce : 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
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