Oil & Food Journal July 2014 by Advance Info Media & Events

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Vol. 09 Issue 09 July 2014

Contents

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12 14

Spice Crop to be affected by less Rain

Indian Enhanced-Water Sector geared up for Brand-building

20 Rs 7500 cr Schemes for India’s Agriculture growth

24 Amcor Continues to Lead Europe’s Plastics Packaging Industry

53 Skill development in the Area of Food Processing by CSIR-CIFTRI

India’s Olive Oil Imports depleted by 10 percent in 2013-14

CFTRI Organises skill development program for Food Processing Sector

Bonn Biscuits sets up Manufacturing Plant in J&K

India’s Vennami Shrimp changes the game in global Seafood Market

RP-Sanjeev Goenka Group to invest Rs 20-30 cr in Cafe Bakery Chain

A looming Harvest shortfall will likely keep Peanuts prices firm

The Art of Belgian Chocolate – Innovation and Indulgence

Provision of subsidy for to address post Harvest Losses

Maker of Nutella buys Turkish hazelnut supplier

Amrit Group of Kolkata to launch “HyLine” breed Chicken

“NE can become the Largest Producer of Organic Foods in the World,” Gen. V.K. Singh

52 Juices in India surpass the Sugar content of Colas

52 Colorless Coke can generates Internet buzz, again

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Jammu and Kashmir reviews the Food Processing Projects implemented by Govt of India

57 MEA suggestes free import of American Chicken Legs

57 China Food scandal investigation: 5 took in

58 Kashmiri Student develops Technique to increase Fruits’ shelf life

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Editorial

From the Desk of Editor

Vol. 09, Issue 09, July, 2014

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t’s time to derive some solace from the Indian legal system being fair and a possible respite from terrorist-like policies of the FSSAI that have held the whole industry to ransom with high-handedness as Delhi high court warned an FSSAI official about being sent to jail for misusing her powers with Justice Manmohan warning her off for this time. Justice Manmohan Sarin, a distinguished judge of the Delhi High Court dictated in a suit filed by a company and one Sandhya Kabra of FSSAI and said that “If a policeman becomes a terrorist and extortionist, then who will have faith in him? The FSSAI does not understand my polite way of dealing with the matter. I think one officer has to be sent to jail.” Justice Sarin was reacting to a policy by the FSSAI that required the food importers to deposit Rs. 25,000 to the customs officials before they released an NOC for such imports. He admonished the FSSAI officials for using an export law to extort money from the importers and hinted that further breaches would attract jail sentence for the officials. It is a part of the procedure for the FSSAI officials to sample a consignment within 24 hours and either reject it or give an acceptance report. The plaintiff in this case had imported chocolates from Belgium in January and alleged that the FSSAI failed to carry out the inspection within 24 hours as they were required to do. While delivering the hallmark judgment, Justice Sarin further added, “it is not good for my health. I just cannot understand why they are not testing the sample and releasing the same.” In a similar judgment by the Mumbai High Court, the Hon’ble Court declared the advisory of asking the importers to deposit Rs. 25,000 for each produce as not legally valid. The Indian Drug Manufacturers Association and a nutraceutical product importer had approached the Hon’ble High Court last year and challenged an Advisory by the FSSAI demanding prior product approvals of dietary food and health supplements already licensed and existing in the market under the previous Food Adulteration Act. The advisory by the FSSAI to get product approvals for all 80 nutraceutical products and pay RS 25,000 for each product was not justified and the court was pleased to cancel the Advisory, terming it illegal. The wine and spirit importers are similarly required to deposit the money vide a bank draft and the officials are expected to come for inspection within 24 hours for each label imported. several cases where the wine importers were made to wait for over 4 weeks have been discovered, even after they had deposited the required money with a simple explanation that the requisite staff was not available. There are several other issues like labeling, unreasonable demand on samples to be tasted even if the wines are very expensive and the lot size is very small (think 6 bottles of Chateau Margaux or 2 bottles each of 4 wines of Premier or Grand Cru burgundies from a single producer). One has been so far resigned to the odds that are in favour of the FSSAI with unbridled powers. In a very similar case The Bombay High Court had ordered FSSAI to release a consignment of syrups belonging to Tata Starbucks Limited, which had been lying at the port since February this year. The company had approached the court after the Food Safety and Standards Authority of India (FSSAI) refused to grant No Objection Certificate (NOC) to release the consignment. The court then also had observed that the Food Safety and Standards Authority had acted in an “arbitrary and capricious manner” by detaining the goods. FSSAI is an important food safety organization, I don’t have a single presumption that they do not have a difficult job, where they have to maintain food safety, control illegal food operation much other things. But I am sure harassing the importers is not there job. Hopefully these series of judgement wake up the FSSAI authorities from their slumber and the intoxication of power that needs to be reigned in and hopefully make them aware of the social, ethical and now established legal responsibilities.

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breakfast food

GOOD MORNING CEREALS!

s the alarm goes off – a line of daily chores just pops up from everywhere. The children have to be sent to school, there’s no selfie time as one has lists of pending errands simultaneously with office work that never ends. Is this what runs through your head in the morning? Yes! For many, as there is not enough time. Mornings are too frantic to warrant a ‘proper breakfast’. So these days, lots of people working or not have turned to the life saver item for breakfast called cereal. It’s nutritious and convenient and there is a lot of variety and above all time saver. In fact I am among the growing numbers of Indians, who are driving the fastexploding breakfast cereal market, valued by Euromonitor International at approximately Rs 870 crore and is lead by Kellogg with an anticipated retail value share of 39% in the Indian breakfast cereals category in 2013. It is followed by Bagrry’s with 17% and Frito-Lay with an anticipated 11%. All the leading players are focusing on launching India-specific products, which suit the tastes and preferences of local consumers.

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It is no longer necessary to explain the health benefits of breakfast cereals because consumers are already aware. Many younger people are willing to move away from heavier traditional breakfasts to cereals. It wasn’t always like this. Just ask Kellogg’s. The American giant got off to a decidedly soggy start when it launched in India in 1994. A nation that was used to starting its mornings with a hot, savoury meal didn’t warm up to the idea of a sweet breakfast with cold milk. It’s taken the company the better part of the past 20 years to lead a market that’s still minuscule compared with global markets. Still, there’s finally an expanding, sustainable market for breakfast cereals with several big players including PepsiCo, Marico, GlaxoSmithKline Consumer Healthcare (GSKCH), Britannia and Dr Oetker Fun Foods. How did these companies finally find a recipe for success in this market? Breakfast power First, a little background, the breakfast cereals market is divided into hot cerealsmostly oats, but also oat bran and wheat

bran, and ready-to-eat (RTE) cold cereals like corn and wheat flakes, and muesli. Oats (the fastest growing segment of the Indian market) and muesli (next in growth) are not new products but have grown in popularity only in the past sixseven years. To some extent, of course, the market is self-propelled, thanks to higher spending power and hectic lifestyles. The other big reason is the widespread communication on health, especially on the escalating incidence of cardiovascular diseases, diabetes and obesity in Indians. Not only are influencers such as doctors, nutritionists and the media passing on these messages, the companies diligently themselves play the health card in all their communication. New markets require companies to go to customers with powerful reasons to change, which is what these companies have done and the focus in the breakfast cereals market has been to highlight nutrition and create cultural familiarity with hot and spicy option Indian preference It seems to be working. A five-year

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study first published by Euromonitor International, charts the growth of the breakfast cereals market from about Rs 222.4 crore in 2006 to Rs 751.5 crore in 2011, an energetic CAGR of 27.6%. And if you are wondering why oats is the new wunderkind on the market’s menu, it’s because the ravenous hot cereals segment grew by a CAGR of 47% in the same period. Note, this was on a smaller base of Rs 38.5 crore compared with the Rs 183.9 crore held by RTE cereals in 2006, which make up the rest of the cereal market. The penetration of packaged breakfasts like ready-to-cook upma, poha, parantha etc is still negligible, even though brands like Britannia’s Healthy Start and Quaker’s Nutri-poha and Nutri-upma are attempting to pitch them alongside breakfast cereals. Instead, the real action is in oats and cold cereals. In fact, the Euromonitor report predicts that the breakfast cereals market will grow by a CAGR of 16% between 2011 and 2016, rising to Rs 1,565.20 crore, with hot cereals at about Rs 829.54 crore and RTE cereals at Rs 735.60 crore. Go with the grain If there’s ever been a clear case of supply-

led demand, it’s probably the breakfast oats market. For the longest time, Bagrry’s was the only “name” in the oats market. Then, PepsiCo rolled out Quaker Oats in 2006 and by 2011 companies such as Marico, GSKCH and Britannia had all launched their own versions. The oats category has been a bit commoditised, but Horlicks Oats has been building its consumer franchise profitably. Where Horlicks has stuck to plain oats,

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breakfast food

Marico has grown its Saffola Oats to become the No.2 player in breakfast oats (after Quaker) by offering variety. One hurdle in the acceptance of oats was the taste (or rather, the lack of it). Admit it, plain oats tastes like the horse’s food it was originally grown for. The consumer sees health and taste at the opposite ends of the spectrum. Growth can be unlocked only if this trade-off is minimised. What is important for the companies is make oats not just acceptable but one that can be relished. It wasn’t easy getting the flavour right for the spiced oats, though — incidentally, Marico was the first to launch flavoured oats in India as preferences change every 200 km and arriving at taste preferences that will be liked everywhere, without which the supply chain becomes inefficient, is a particularly interesting challenge. Marico’s success owes a lot to an insight on Indian consumers — the preference for savoury over sweet options at breakfast. Check the aisles of any supermarket in the US or Europe and you’ll find oatmeal variants such as maple sugar, cinnamon, honey and various fruit flavours. In India, even Quaker — which has no savoury flavours in the US, its biggest market — has launched “lemon-veggie” and “homestyle masala” options? And, while it hasn’t let go of its sweet tooth, the flavours have a distinctly Indian feel - strawberry-apple and kesar-kishmish. Flavours have to align with the habits and everyday life of consumers, so to get the flavours right, brands have to keep old habits in mind even as they try to create new ones. The potential of the oats segment has spared no one, not even the leader in the breakfast cereals market, Kellogg who

has Heart-to-Heart Oats to participate in the exploding oats category. India is the only market where the king of cold cereals has stepped into the ready-to-cook category. It’s not the first time Kellogg’s has tailored its offering to suit the local market here. On second try Kellogg’s entry into India was almost an exercise in how not to launch a brand. Not enough products, not enough stores,

exorbitant prices, alien tastes ignored… the list goes on. The products were not marketed for good taste as they are in the US, but instead for health reasons,” according to a food industry analyst and packaged food expert at Euromonitor International. They assumed there was a gap in the market for premium brand products, so introduced only three corn flakes brands, only in premium outlets. Many consumers either had no access to, or could not afford the Kellogg’s products. They did not do much due diligence and market research on the Indian market until several years after they entered it.” Once the research was done, Kellogg’s slowly started tweaking its India strategy. It expanded its offering to include locally popular flavours such as mango, banana and strawberry. In parallel it paid equal attention to children, virtually creating the children’s cereal market with products such as Chocos and Honey Loops. Pricing was an issue - at the time of launch, Kellogg’s basic corn flakes were considerably more expensive than then-market leader Mohun’s. In 2006, the company came up with single-serve packs priced at Rs 10; unit for unit, it was still costlier than Mohun’s but the packs were aggressively promoted as an after-

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school and early evening snack. It took two decades before the market took off. Any change of habit is a long-haul game and there are too many variables - consumer needs and investment by the organisation, among others — to arrive at a formulaic result. Still, once it realised it was on the wrong track, Kellogg’s followed a conventional blueprint, checking all the right boxes when it came down to product, price and promotion. Everyone wants a bite Indeed, one reason for the growth in the breakfast cereals market is the determined marketing efforts of the various players. Kellogg’s is perhaps the most visible, thanks to its celebrity endorsements but others are also ensuring their brands are

seen and remembered, especially at the point of sale. Saffola, for instance, has gone national with its oats variants only in the past year, while its muesli was launched in August 2012. Since it soft launched the masala oats in South India, the marketing efforts - including onground activations with local celebrity chefs, festival-themed cooking shows, trial packs, in-store promotions - were concentrated in that region. Similarly, with its early-mover advantage, Quaker Oats had close to four years to establish its presence before other big players stepped into the breakfast oats space. It did this with traditional TV and print ads, as well as online. Apart from the usual social media presence, the company also created Good Morning Heart, which offered health diagnostics, healthy cooking and fitness tips, and advice from nutrition specialists and dieticians. In 2009, it started the “mission to make India heart

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breakfast food

healthy” in collaboration with Apollo Hospitals, Chennai police and some corporate houses, where it offered an online health check-up and personalised diet counselling by nutritionists. Two years later, it followed up with the Smart Heart Challenge that invited employees with high risk of heart disease to change their eating habits, work out and de-stress daily, and have their cholesterol checked at Apollo Clinics, all for free. Oats is still a nascent category in India, but the fastest growing within the breakfast segment Over the years, Kellogg’s too has pumped in serious sums of money into marketing activities in India. It is a regular advertiser on television and in print and has signed on celebrity brand ambassadors for its various products. Not surprisingly, local players find it difficult to match the marketing muscle of the big multinationals. Bagrry’s, for instance, does virtually no advertising, instead it is focusing on improving its distribution network it’s already available in over 130 cities and towns across India, Nepal and Bhutan. But Bagri isn’t complaining about the advertising onslaught. The multinationals have opened up the category and built awareness, which is a plus, so the competition here is more a marketing opportunity than a negative. Certainly, another small player, the Mumbai-based Express Foods, is cashing in on the growing popularity of muesli by offering something more than just a box of cereal (even though the company does that with eight variants under the Harvest Crunch brand). In late 2012, it launched the Express Foods Cereal Bar at an upmarket department store in south Mumbai; there are now five such cereal bars across Mumbai, Bengaluru and Delhi. Here, customers can make their own muesli mixture, choosing from premium ingredients such as cranberries, blackcurrants, Belgian chocolate chips

and Californian almonds. Will all this frenetic activity ensure that the market continues to remain charged up? Analysts believe that while the overall market will certainly grow, there could be a shuffling of market share - Kellogg’s leads the pack currently but will have to work harder to remain on top. Most of the innovation in breakfast cereals within the last few years has been in hot cereals and muesli, and Kellogg’s mainly offers RTE flakes. Hot cereals trend more with the traditional tastes of Indian consumers. Internationally, the breakfast cereals market is mature, even ageing, with multiple formats, flavours and pack sizes. In India, penetration is low and so is the frequency at which breakfast cereals are consumed. This, then, is a market that is only just waking up. Conclusion Sustained economic growth in India has led to higher disposable incomes among consumers. Along with growing income levels, there has also been a rise in health and wellness awareness. Manufacturers of breakfast cereals have been carrying out campaigns highlighting the positive health benefits of their products. As a result, Indian consumers are gradually realising the importance and benefits of functional breakfast cereals, such as highfibre products aiding weight maintenance, and products high in wholegrain content being beneficial to the heart. As a result consumers who are health conscious are replacing their traditional Indian breakfast with a bowl of functional breakfast cereals in order to maintain good health. Breakfast cereals are expected to continue growing, by a CAGR of 22% in constant value terms over the forecast period. Growing awareness of the health benefits associated with breakfast cereals along with the rising health and wellness trend among Indian consumers in general, will drive sales of breakfast cereals. Leading players, such as Kellogg, Frito-Lay and Bagrry’s, are expected to continue carrying out consumer awareness programmes regarding the health benefits associated with breakfast cereals over the forecast period. Rapid urbanisation and growth of modern retail outlets will also help propel sales of breakfast cereals.

Case Study

The Preface of Food loss, dire storage and looming El Nino in India Inflation

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rony: Dire storage space Nearly 43 percent of Indian children under five are underweight and over 3,000 die every day from malnutritionrelated illnesses, and India stands out for its glaring lack of food storage facilities, leading to colossal wastage. Stories are rife of millions of tonnes of farmers’ grains stored in outdoor depots across the country, vulnerable to rodents, moisture, birds and pests. Added to that is the fact that the country’s distribution system is so deficient that widespread malnutrition can exist side by side with bulging grain depots. India is one of the world’s top producers of food grains and a formidable exporter of rice – the world’s biggest – but paradoxically it also leads the tally of nations with the maximum number of starvationrelated deaths. A new industry study states that 20-30 percent of India’s food grain harvest is wasted annually due to poor storage facilities. The Associated Chambers of Commerce and Industry of India points to inadequate storage capacity, regional imbalance in warehouses, lack of adequate scientific storage and inefficient logistical management as the leading causes. The warehousing capacity for major food grains available in India, in public, co-operative and private sector, say agriculture analysts, is more than 112 million tonnes. However, there is an extreme dearth of about 35 million tons of warehousing capacity and a massive food grain storage shortfall of about 8 million tons in the country to be filled by 2017. India needs to recalibrate its strategy to mitigate the challenges of high food grain wastage While recent advances in agricultural technology have facilitated higher grain yields, the lack of commensurate attention to storage facilities nixes farmers’ efforts, leading to a snowballing effect on food prices and starvation. Ironically, while the Indian government keeps buying food grains from the farmers, it doesn’t have space to store it. The

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state-owned food buying agency – the Food Corporation of India – is plagued by deficient modern grain storage facilities. In 2013, officials estimated that 6 million tonnes of India’s grain worth US $1.5 billion were rendered inedible due to spoilage. For the last 30 years, the storage capacity for grains has not been upgraded at all in India. Entrenched corruption only makes things worse. Stories of distributors mixing rotting grain with fresh grain and selling it on the market are legion. Hundreds of government officials are also known to redirect billions of dollars worth of grain away from the poor and into local and global markets. FCI itself admits India lost 79 million tonnes, or nine percent of total wheat produced over a four-year period from 2009 to 2013. Thirteen percent of the gross domestic product (GDP) is wasted every year due to wastage of food grains in the supply chain. Aside from food grains, India loses 12 million tonnes of fruits and 21 million tonnes of vegetables every year due to a lack of cold storage facility, according to a 2009 study by the United Nations Environment Programme (UNEP). To reduce the spoilage, the Food Corporation opted to export wheat. But India also needs to store grains for the starving, literally for a rainy day as it is a monsoondependent agrarian economy. Food grain wastage is also detrimental for environmental, ethical and economical reasons. According to the UNEP, global food production occupies 25 percent of all habitable land and is responsible for 70 percent of fresh water consumption, 80 percent of deforestation and 30 percent of greenhouse gas emissions. When food is wasted, so are the resources and the efforts in producing it. Hence, controlling food wastage will organically reduce food requirements and the inputs that go into its production. Agriculturists say food wastage can occur anywhere in the food supply chain—production, processing, storage, transportation and consumption. Bad post-harvest management and insufficient infrastruc-

food loss tural facilities further compound the problem. As opposed to China, which has a grain storage capacity of 150 million tonnes, India can boast of warehouses only a third that amount. The country is thus in dire need of upgraded food storage and transportation facilities as well as measures to plug its leak-prone food supply chain. However, some sporadic measures have been taken to curb food wastage and spoilage of grains. Under the Private Entrepreneurs Guarantee (PEG) Scheme, covered storage facilities will be provided to farmers store the grains. Help of the private sector is also being sought. Warehouses constructed under this scheme will be hired by the Food Corporation of India, which will provide return on investment to the private businesses. The World Bank’s International Finance Corporation (IFC) has also stepped in for help; a modern warehouse with storage capacity to store 50,000 tonnes has also been constructed and will be operated by a private company. Satire: El Nino on its way Amid all the food wastage and losses predicament in India one tends to forget that this year that 2014 we are hit by the El Nino effect - Every five to seven years or so, the temperature of the Pacific Ocean rises slightly off the coast of Peru, and the food industry is affected. That triggers a global shift in weather patterns known as El Nino. Some places suffer droughts during an El Nino event. Others experience floods. The wind also changes during the El Nino phenomenon. The “trade winds,” which blow east to west over the tropical Pacific, weaken. Even the fish in the sea are different in an El Nino year -- altering their swimming routes to adjust to the water temperature. One can say that El Nino is a natural calamity which is beyond the control of human beings and affect not only agriculture but overall economy of the country. But El Nino has some benefits also in terms of losing bumper crop lying with government in warehouses, particularly in case of India. Government can liquidate its piled tons of rice and wheat during El

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food loss

Nino season which will help in fighting food inflation.

South America will be the reason of poor Monsoon this year.

are not of high standards to support the production if there is no or less rainfall.

El Nino is Spanish for “the son.” And predicting just when he’ll return is the work of many meteorologists. Most of the folks in the weather-forecasting business think that 2014 is the year if the El Nino.

El Nino may cause droughts in India but not necessarily. Historical data shows that about 65 % of El Nino year have brought below normal rainfall in India which leads to draught as was faced in year 2009.

This can be either good or bad news for food companies, depending on where they’re located and what crops they produce, process, and sell.

It is expected that there will be 5% deficit in rainfall due to El Nino effect which in turn will have negative bearing up to 1.75% in fiscal year 2014-2015. Due to less rain food prices will rise and leads to inflation which will affect the GDP by 0.35% during fiscal year 2014-2015.

India is the second largest producer of rice and wheat in the world. El Nino will certainly affect the production of rice, wheat, oilseeds and maize in India. In southern parts of India, El Nino has negative impact on production of crops such as pearl millet, rice, food grains and crops like coaster, pigeon pea, Rabi crops remains unaffected by El Nino.

Like other parts of world, India also becomes victim of El Nino which affects overall production and growth of agricultural sector of India. 2014 an El Nino year, as per the atmospheric and meteorological institutions, will see less agricultural production in India which is largely depends on Monsoon rain. The diversion of moist winds from Indian Ocean towards the eastern coast of

India accounts the largest area under cultivation of sugarcane in the world and second largest producer of sugarcane in the world. Poor monsoon will surely effect the sugarcane productions because sugarcane can grow where plenty of water supplies are available and in some states like UP, Bihar irrigation facilities

In months to come, El Nino will certainly form a part of agenda for the new government of Mr. Narendra Modi and it will be a worthwhile to see how this new government who believes to work on policies will save our farmers and economy from EL NINO.

Spice Crop to be affected by less Rain

he major spices producing areas in India may drive the crops towards a crisis, due to a weak monsoon and dry spells across with prices of major spices hovering at higher ranges. Prices of pepper, jeera, turmeric, chilli and coriander traded at the higherlevel on concerns over drop in acreage in the current year due to weak monsoon. The price of cardamom is likely to stay firm if the monsoon weakens further as the production will be affected, Krishnan said, adding, deficient monsoon has influenced the production of pepper and cardamom

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in the Southern states of the country. The flowering and pollination of pepper, which takes place during the monsoon, has been affected due to the drought like

situation.Sowing of kharif (monsoon) crops has already been delayed due to scanty rains in the top producing states of Gujarat and Rajasthan. Thereby, concerns

over delay in sowing during the Rabi season are supporting the price uptrend in jeera and coriander.Weak monsoon rainfall in states like Tamil Nadu, Andhra Pradesh and Maharashtra discouraged the fresh sowing of the turmeric crop in the current season.Sowing of new crop in Telangana region has already been affected by deficient rainfall. Planting of chili, which normally starts in August, will depend on rain, he said.Meanwhile, adverse monsoon is unlikely to influence rubber in the immediate run, but, it severely impacts the yield in next season, Krishnan added.

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Vol. 09 Issue 09 July 2014

The Great

Indian

BUDGET AFTPAI gives mixed reaction on the duty cut on selected machinery

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Sanjeev Gupta “The government has given us a good beginning, which is definitely a positive step in the right direction.”

FTPAI gives mixed reaction on the duty cut on selected machinery The Budget 2014 definitely has something for everyone. The food processing industry lauded the budgetary provisions made by Finance Minister Arun Jaitley for the agriculture and food processing sector. The FM’s proposals to boost irrigation, agricultural research and food processing have been received well by all the industry members. The Indian food Industry knows that the agri infrastructure fund, public-private partnership in setting up warehouses and other infrastructure projects, setting up agriculture universities, horticulture universities, putting more money in rural electrification and power and water, in particular, would lead to growth in agriculture, which, in turn, would help food processing then. Food Processing Minister, Smt. Harsimrat Kaur Badal has welcomed the allocation of Rs. 2000 crore for Food Processing. She has been pitching for linking food processing industries to the credit given by NABARD and this is being seen as a quantum step in the right direction. Badal had exuded confidence that this allocation shall give a big boost to food processing industries in the country. Another landmark announcement done by the Finance Minster is the reduction of the excise duty from 10% to 6% on selected food processing and packaging machines. The finance minister, during the budget,

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had also proposed special measures to facilitate the MSME sector, along with a proposal to reduce the limit of investment allowance to Rs 25 crore and allocation of Rs 10,000 crore funds. These measures would actually act as a catalyst to attract private capital by providing equity, quasi-equity, soft loans and other risk capital for start-up companies. Agro & Food Processing Equipment & Technology Providers Association of India (AFTPAI) has majority of members from the food processing & packaging machinery, suppliers, manufacturers and technology providers. It also has members from packaging material, food ingredients, cold chain, automation and other related sectors. AFTPAI as a think tank of the food industry has contributed towards the enhancement of this industry immensely. AFTPAI has hailed the Budget and received it well, though many in the group think that the 4 per cent cut in the excise duty was less, it should have been zero, while some think that the government has given more to the agri and food processing industry, but take the stride positive and expect much more in subsequent budgets. Sanjeev Gupta, Director, Kanchan Metals and President of AFTPAI has applauded the budget stating that, “the government has given us a good beginning, which is definitely a positive step in the right direction.” The main focus of the Budget was to get industry’s confidence and it has been successful in achieving that. Gupta thinks that with this budget the industry will see more investments, both from within the country and abroad, if the capital cost become cheaper. Speaking in the same line, RJ Rayanade of Nichrome and member of AFTPAI said, “This is a welcome and long awaited step for food processing & packaging machinery Industry for its growth as well as uniform spread of the Industry.” It has been a long-pending demand of the food processing industry to be treated at par with the agri sector but the handling of this point is still being awaited by the food industry. All the same the food processing has whole heartedly welcomed the Budget for agri infrastructure sector is welcome.

cover story

Rahul Paharia “This good budget will increase the number of food processing industries coming up in the near future.” Rahul Paharia, Director, Jwala Engineering, who is also a member of AFTPAI, reveals that, “This good budget will increase the number of food processing industries coming up in the near future. Majority of people setting up food processing industries are first time entrepreneurs. Lack of sufficient capital is one of the major issues faced by them. High level of investment is required in food processing machinery and it forms a major chunk of the total project cost. A reduction in capital costs, and hence in the total project cost, will incentivize more entrepreneurs to set up food processing companies.” The Industry has been demanding cuts in the duty for a long time. Manoj Paul, Country Manager, Heat and Control (South Asia) Pvt. Ltd, said that, he was very happy with duty reduction on food processing and packaging machinery it was an issue which was being pushed by the our association for the last 3- 4 years. Though Paul also agreed that overall it’s a good start and is optimist and hoping that the total duty will be reduced to Zero in stages in the subsequent budgets. Overall, the Budget is forward-looking and growth-oriented, but having raised the bar of expectations, still more could have been done. “The 4% cut in tax is not sufficient the Finance Minister should have given us zero percent,” claimed Mr Sanjeev Gupta, and we would keep on aiming for that very target he boldly added.

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www.agronfoodprocessing.com can be use in buying higher capacity processing and packaging machinery. Industry has welcomed this move, Firoz H Naqvi, Secretary of Agro & Food Processing Technology and Equipment Providers Association (AFTPAI) informed media. He said we asked the

matter with Finance Minister and Minister of Food Processing Industries. He further added that, the Industry though happy with the Budget but still their demand continues for duty cut on all types of machinery, equipments, components used in food processing, packaging,

Budget 2014: Highlights for Agriculture Sector Firoz Naqvi “Food Processors can save the amount which can be use in buying higher capacity processing and packaging machinery.” With the allotment of Rs 2000 crore has boosted the food processing industry’s confidence. In regard to this, the Union Minister for food processing has taken on the task to make food processing an engine of growth for agriculture sector so that both farmers and consumer are benefited and processor flourishes. India is one of the largest importers of food processing and packaging machinery and components. Due to higher duty structure on the processing and packaging machinery food processing industry pays higher amount for the imported machinery and component. With the reduced excise duty they can save the amount which

R.J.Rayanade “This is a welcome and long awaited step for food processing & packaging machinery Industry for its growth as well as uniform spread of the Industry.”

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1. Farming as an activity contributes nearly 1/6th to our National GDP and a major portion of our population is dependent on it for livelihood. It has risen to the challenge of making India largely self-sufficient in providing food for a growing population. To make farming competitive and profitable, there is an urgent need to step up investment, both public and private, in agro-technology development and creation and modernization of existing agri-business infrastructure. Indian Agricultural Research Institute, Pusa has been at the forefront of research in this area. However, since independence only one such centre has been established. Government will establish two more such institutions of excellence on similar pattern in Assam and Jharkhand with an initial sum of `100 crore in the current financial year. In addition, an amount of `100 crores is being set aside for setting up an “AgriTech Infrastructure Fund”. 2. It is also proposed to establish Agriculture Universities in Andhra Pradesh and Rajasthan and Horticulture Universities in Telangana and Haryana. An initial sum of `200 croreshas been allocated for this purpose. 3. Deteriorating soil health has been a cause of concern and leads to sub optimal utilization of farming resources. Government will initiate a scheme to provide to every farmer a soil health card in a Mission mode. I propose to set aside a sum of `100 crore for this purpose and an additional

`56 crores to set up 100 Mobile Soil Testing Laboratories across the country. There have also been growing concerns about the imbalance in the utilization of different types of fertilizers resulting in deterioration of the soil. 4. Climate change is a reality which all of us have to face together. Agriculture as an activity is most prone to the vagaries of climate change. To meet this challenge, I propose to establish a “National Adaptation Fund” for climate change. As an initial sum an amount of `100 crore will be transferred to the Fund. 5. We are committed to sustaining a growth of 4% in Agriculture and for this we will bring technology driven second green revolution with focus on higher productivity and include “Protein revolution” as an area of major focus. 6. As a very large number of landless farmers are unable to provide land title as guarantee, institutional finance is denied to them and they become vulnerable to money lenders’ usurious lending. I propose to provide finance to 5 lakh joint farming groups of “BhoomiHeenKisan” through NABARD in the current financial year. 7. Price volatility in the agriculture produce creates uncertainties and hardship for the farmers. To mitigate this I am providing a sum of `500 crore for establishing a Price Stabilization Fund. 8. The farmers and consumers’ interest will be further served by increasing competition and integrating markets across the country. To accelerate setting up of a National Market, the Central

government to make this duty zero and flat for all type of machinery. Naqvi said, AFTPAI will take up this

conveying, pre and post harvest of produce and food safety systems. However, a specific focus on the Budget

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with regard to its proposals for food processing industry reveals that some of the important requirements of this sector, critical for its rapid growth, have not been addressed. The ministry of food processing industries (MoFPI) had also made deserving recommendations in this

zero excise duty is because food products are not charged with excise; the food processing companies are not able to claim CENVAT on the machinery. This leads to an additional financial burden on them. We hope that in the upcoming budgets the rates are reduced even further

Government will work closely with the State Governments to re-orient their respective APMC Acts., to provide for establishment of private market yards/ private markets. The state governments will also be encouraged to develop Farmers’ Markets in town areas to enable the farmers to sell their produce directly. 9. I also propose to set aside a sum of `50 crores for the development of indigenous cattle breeds and an equal amount for starting a blue revolution in inland fisheries. Agriculture Credit - Banks are providing strong credit support to the agriculture sector. A target of `8 lakh crore has been set for agriculture credit during 2014-15 which, I am confident, the banks will surpass this. Interest Subvention Scheme for Short Term Crop Loans - Under the Interest Subvention Scheme for short term crop loans, the banks are extending loans to farmers at a concessional rate of 7%. The farmers get a further incentive of 3% for timely repayment. I propose to continue the Scheme in 2014-15. Rural Infrastructure Development Fund - NABARD operates the Rural Infrastructure Development Fund (RIDF), out of the priority sector lending shortfall of the banks, which helps in creation of infrastructure in agriculture and rural sectors across the country. I propose to raise the corpus of RIDF by an additional `5,000 crores from the target given in the Interim Budget to `25,000 crores in the current financial year. Warehouse Infrastructure Fund - Increasing warehousing capacity for increasing the shelf life of agriculture produces and thereby the earning capacity of the farmers is of utmost importance.

Keeping in view the urgent need for availability of scientific warehousing infrastructure in the country, I propose an allocation of `5,000 crore for the fund for the year 2014-15. Creation of Long Term Rural Credit Fund - The share of long term investment credit in agriculture is going down as compared to short term crop loan. This is severely hampering the asset creation in agriculture and allied activities. In order to give a boost to long term investment credit in agriculture, I propose to set up “Long Term Rural Credit Fund” in NABARD for the purpose of providing refinance support to Cooperative Banks and Regional Rural Banks with an initial corpus of `5,000 crore. Allocation of STCRC (Refinance) Fund - The Short Term Cooperative Rural Credit (STCRC) – Refinance Fund was announced in Union Budget 2008-09 with initial corpus of `5,000 crore. In order to ensure increased and uninterrupted credit flow to farmers and to avoid high cost market borrowings by NABARD, I propose to allocate an amount of `50,000 crore for STCRC Fund during 2014-15. Producers Development and Upliftment Corpus (PRODUCE) The issue of profitability of small holding based - agriculture has assumed importance in view of increasing proportion of small and marginal farmers in the country. I propose to supplement NABARD’s Producers’ organization development fund for Producer’s development and upliftment called PRODUCE with a sum of `200 crore which will be utilized for building 2,000 producers organizations across the country over the next two years.

context but somehow, the same have not found favor in the Budget Rahul Paharia says that the demand for

and brought down to zero, as it should logically be. While R J Rayanade points out an

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Manoj Paul “Overall it’s a good start and we are optimist and hoping that the total duty will be reduced to Zero in stages in the subsequent budgets.” interesting fact that, “The need of the hour is employment both in the urban and rural area, and if the excise duty is put down to zero, the entrepreneur will have the ability to provide employment facilities in food processing. Takayasu Yamadu, Managing Director Ishida India and honorable member of AFTPAI thinks, the duty cut should have been 4 per cent not 6 percent and all green field projects should have been nil. Yamadu also added that, “according to him the response is not very encouraging as the items that come under this duty cut are very limited as it does not cover the entire range of processing and packaging equipment.” A 4 per cent cut is not sufficient according to Pradeep Kataria also, a senior member of AFTPAI and Managing Director, Saurabh Flexipack. He believes that it should be zero as food processing industry does not get any rebate on excise duty and it becomes an additional burden of investment on which they have to pay interest as well. Also food industry is for useful for all class of peoples where product cost should be affordable and due to excise duty the production cost get affected and shows effect on sales price (MRP). Food processing Industry indirectly supports development of Agriculture growth & farmers. Food processing industry acts as buffer while there is short

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are not happy with the budget announcements. They believe that the expectation that there would be a special thrust to the agriculture and food sectors in the Budget has been contradicted, as the FM had not given any short term solution to tackle the inflating food prices. Mr Yamada adds on that, the budget did not mention about the incentives for the upcoming food parks. And as the food processing is a very big segment which includes Snacks and confectionery, Ready to eat, Frozen Pradeep Kataria Food, Fruits and Vegetables, Poultry “The future budgets should reduce or and Meat, Grains and pulses, Food remove all taxes(except income tax) Ingredients, Food Supplements. from food industry” These should have been addressed separately as the equipments vary. & surplus in Agro production. And hence, Not all from the industry are satisfied encourage food processing, which is very with the budget but still the food low in India as compared to rest of the processing industry has welcomed it. In fact Mr Gupta said that one notary point world. Kataria, demands that the future budgets about the budget was the 15 per cent should reduce or remove all taxes(except allowance made for the industry. income tax) from food industry and its The Budget is good and a lot of impetus equipment industry as this industry is has been given to the agriculture becoming mature and required huge sector, which, in a way, would help the investment for modernization of plants. processing industry. The government has “If taxes are reduced or removed then laid importance to the scientific storage, it will help to make investment on laboratories for food and drug testing, soil modernization of food factories,” he testing and infrastructure creation in the added. agriculture sector. This would, ultimately, On the contrary, some industry leaders help the processing industry.

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Takayasu Yamada “The response is not very encouraging as the items that come under this duty cut are very limited as it does not cover the entire range of processing and packaging equipment.” AFTPAI has given a mixed reaction to this budget; some take it in a constructive way while others are being a bit critical. Anyway the industry looks forward to further initiatives by the government to adopt measures recommended by the MoFPI to provide a boost to processing capacity and value addition of agri produce. Definitely, a lot more needs to be done. “The industry, on its part, is committed to fulfill its responsibilities even under the most demanding economic environment.

Rs 7500 cr Schemes for India’s Agriculture growth

ndia already facing drought-like situation and food prices remaining high, government on July 10 announced various agri-programmes with an outlay of about Rs 7,500 crore to improve irrigation, soil health, research activities besides promising steps to revamp mandis. It said it will provide cheaper food grains through ration shops even if there is marginal decline in farm production due to inadequate rainfall this year, and also restructure Food Corporation of India (FCI) to improve efficiency of PDS.Minister of Finance Arun Jaitley committing to achieve 4 per cent farm growth, advocated use of new farm technologies to boost crop

Vol. 09 Issue 09 July 2014

yields to achieve the ‘second Green Revolution’ and ‘Protein Revolution’ amid challenges of climate change. On farm credit front, the government, however, continued interest subvention of 3 per cent for those making timely repayment, and total credit disbursement target of Rs 8,00,000 crore for this fiscal. It also proposed a long-term rural credit fund with an initial corpus of Rs 5,000 crore. Presenting the Budget for 201415, Finance Minister Arun Jaitley said: “To make farming competitive and profitable, there is an urgent need to step up investment, both public and private, in agro-technology development and creation and modernisation of existing

agri-business infrastructure.”Of Rs 7,500 crore funds announced for the farm sector, Rs 1,000 crore has been set aside to improve access to irrigation under a scheme ‘Pradhan Mantri Krishi Sinchayee Yojana’ because 60 per cent of the cultivable land is still rainfed. To promote balanced use of fertilisers, Rs 100 crore has been earmarked for a scheme to provide every farmer a soil health card, while Rs 56 crore to set up 100 mobile soil testing labs.

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packaging

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Retail packaging for Global Level efficient Public Distribution system

which started in 1965. The idea behind all this was that grains procured through FCI would be distributed through ration shops for the general public at subsidized rates, while buffer stocks would be maintained for ensuring enough availability at times of drought and floods for the affected populations. And thus, national food security would be ensured. Also, the food could be used for Mid-Day Meal Schemes and Integrated Child Development Scheme (ICDS).

he most efficient Public distribution system can be evolved thru use of retail packaging set ups for food products being distributed thru PDS. The advancement in both packaging machinery and latest packing materials will provide way out to put efficient/effective packaging chains in place throughout the country. Evolution of public distribution of grains in India had its origin in the â&#x20AC;&#x2DC;rationingâ&#x20AC;&#x2122; system introduced by the British during the World War II. In view of the fact that the rationing system and its successor, the public distribution system (PDS) has played an important role in attaining higher levels of the household food security and completely eliminating the threats of famines from the face of the country, it will be in the fitness of things that its evolution, working and efficacy are examined in some details. The main objective of PDS, at least when it started and was universal, was to ensure that the poor in our country, who lack purchasing power to buy enough food to quench their hunger, are able to purchase at least rice and wheat through ration shops at cheap prices. It was also meant to protect the public at large from higher prices of rice, wheat and coarse cereals or pulses (in some states) by supplying these at lower-than-market prices

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R.J.Rayanade to any consumer having a ration card. The second objective was something which came up as the outcome of the Green Revolution: increased productivity of food crops (rice and wheat). Such increased productivity meant that while demand had not increased greatly, supply had increased sharply thanks to introduction of fertilizers, high-yielding varieties of seeds and other scientific practices within our rural hinterland, particularly in North and West India. Increase in production would have led to a fall in prices of crops with not much increase in demand, which would have been catastrophic for our farmers. Hence, the government had also introduced the policy of Minimum Support Price at which rice and wheat would be procured from our farmers by the Food Corporation of India (FCI),

State Government of West Bengal could implement such packaging set ups to cater to PDS needs thru contract packaging thru private partnerships. In West Bengal Atta is distributed in 750g pouch thru PDS system for below poverty line (BPL) consumers at subsidized rate thru Ration shops. The retail packaging activity is being carried by private millers as per quota allocation by respective district authorities. This system is in place for last 4 years period thru participation by over 70 millers using more than 200 packaging machine to make it efficient. The monthly quota is allocated to millers after their capacity assessment.This system has scope for further expansion for above poverty line category also.

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This system is proven to be advantages & effective to get spread across the country to cater malnutrition issues also of BPL consumers. The food parks getting established across the country can be used to set up such facilities for packing of commodities of PDS system. The major grains /commodities which can be retail packed and offered thru PDS are Rice, Pulses, Sugar etc. The advantages offered by such system are • Creation of ultramodern facilities / infrastructure for PDS

Amcor Continues to Lead Europe’s Plastics Packaging Industry

nterestingly the top five plastics packaging companies in Europe cover nearly the whole range of plastics packaging products and it is worth noting that that they have nearly all been involved in some form of major corporate change or restructuring.As in the previous edition, the Amcor group remains the largest plastics packaging producer in Europe in value terms, following its acquisition of Alcan’s flexible packaging business.This acquisition followed earlier divestments of its rigid packaging operations which were involved in the commodity PET

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• Hygienic packaging aiming to meet food safety standards • Logistic and distribution friendly solution • Control on wastages/Pilfering • Traceability • Efficient Public distribution system These centers can be set for every district across the country. Even it is possible to set such units at Taluka places keeping creation of rural employment opportunities in mind. These systems can also be set up linked to stocks of Food corporation of India.. The Integrated packaging facilities shall comprise of • Silos

container business. As a result the group has focused on the higher value flexible packaging markets which have taken its 2013 turnover to an estimated EUR 3 billion in Europe.In volume terms the largest company is the Austro-German group Alpla-Werke estimated to have consumed around 680,000 tonnes of polymer in 2013 and is ranked second in value terms at EUR 1.8 billion of sales in Europe. Alpla originally built its position as a leading supplier of HDPE containers for the household chemicals market, but it has now expanded into PET bottles and preforms. It has further reinforced its position over the years both by acquisition (it took over the European PET preform business of Tetra Pak) and

packaging

• Grain cleaning system • Retail packaging machinery • Economical secondary packaging system The Indian packaging machinery sector is geared up to take challenges to set up such facilities to help modernize the PDS system to take it to global level. R.J.Rayanade AVP Sales & Marketing Nichrome India Ltd Pune . rayanade@nichrome.com www.nichrome.com

by organic growth. Since 2010 it has added 10 new sites, many of them being in-plant operations for customers, but has also withdrawn from production at eight sites.The recently created group Coveris is now the third largest in Europe with estimated sales of EUR 1.5 billion and annual polymer usage of over 400,000 tonnes. Created by Sun Capital Partners the company brings together leading flexible and rigid packaging companies. The report covers all the leading rigid and flexible plastics packaging producers in Europe. AMI estimates that these 50 groups accounted for sales of more than EUR25 billion in 2013 and used some 6.8 million tonnes of polymer materials at over 750 plants.

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packaging

Bosch helps Endangered Species Chocolate create packaging solution chocolates. That agent Keith Goodhart of RPMI Packaging combination Inc. and subsequently decided to upgrade has fueled to Bosch’s Pack 401 horizontal flow ESC’s growth. wrapper integrated with a Pack Feeder Recently, more 4 six-belt feeder, a system capable of and more automated product transfer and simplified consumers were cleaning and maintenance. craving its 0. 35-oz. Organic While the previous solution required Chocolate that the chocolate squares be manually Squares, known transferred from their moulds to the as Chimp Mints primary packaging machine, the Pack and Bug Bites, Feeder 4 directs the chocolates from to the point the moulding line to the horizontal flow where demand wrapper without human intervention. The popularity of Endangered Species Chocolate’s 0.35-oz. began outpacing This speeds up production and decreases operator requirements from six to one, Organic Chocolate Squares, known as Chimp Mints and Bug production. which allows the company to redirect Bites, reached a point where demand began outpacing production. Consequently, ESC reached labor to higher skilled positions. Hence, the need to ramp up packaging speeds. out to its partner Bosch The Pack 401 runs at film speeds up to aving the planet, making chocolate. One would think those two Packaging Technology for an automated 80 meters per minute and features selfmissions would be diametrically solution that more than tripled output. centering film reel holders that enable easy opposed. OK. Perhaps not diametrically and quick film changeover. The machine opposed, but certainly divergent. And Partners in packaging automatically tracks and aligns the film yet, Indianapolis-based Endangered Since its humble beginnings in 1993, ESC to create consistent package quality and Species Chocolate (ESC) was founded has relied on Bosch’s Doboy Stratus, an seals for the chocolates. Additionally, two specifically on combining both those entry-level and compact horizontal flow spindles automatically splice film rolls premises together. As such, the company wrapper, to package its beloved Chimp with integrated cutting knives, allowing has held true to its promise ever since, Mints and Bug Bites. The partnership has ESC to run a full eight-hour shift with donating 10 percent of net profits to allowed the species and habitat conservation efforts. company to rapidly extend Moreover, its ethical trade criteria its distribution ensures that the premium cacao it uses reach, which only comes from farm cooperatives now covers the that foster community development and United States provide humane working conditions and Canada. and fair wages for all cacao farmers. In addition, the company carefully sources Since going only the highest quality organic and all- national in natural ingredients from farmers that 2005, the practice sustainable farming. As a result, company has ESC prides itself on being a successful more than business that puts fewer chemicals tripled in into the earth, protects rainforests and size. To meet provides solid jobs. increasing In upgrading to Bosch’s Pack 401 horizontal flow wrapper demand, But in addition to its ethical emphasis, ESC worked integrated with a Pack Feeder 4 six-belt feeder, the company the company also takes great pride in closely with introduced a system capable of automated product transfer and producing excellent tasting, premium its local Bosch simplified cleaning and maintenance.

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little to no downtime.

producing different products on the same machine.

As a result, the automated solution accelerated production from 120 pieces per minute to 400 pieces per minute, with the potential for output levels up to 550 products per minute. “The Pack 401 wraps our products faster than we can currently produce them,” says Bryan Fuller, ESC’s director of operations. “This positions us for our anticipated growth over the next few years.” The Bosch flow wrapper ensures that the tiles are correctly oriented before being wrapped, which decreases inadequately packaged products. The previous solution necessitated that defective packaging be manually sorted and discarded. The Pack 401 features sensors that automatically detect and reject inadequate products and packaging, such as empty packages, uncut packages, or packages with film splices, which increases efficiency and saves labor costs.

packaging

“The Pack 401 is an expertly planned machine — every section is easy to access and clean,” explains Fuller. Crumb trays on the feeder can be removed and emptied during production and all belts and deck plates can quickly be removed without tools, making cleaning fast and easy.

The Pack Feeder 4 directs the chocolates from the moulding line to the horizontal flow wrapper without human intervention.

“Our conservation mission is the core of our organization and we fully trust that Bosch’s technology will produce results,” Fuller adds. “Higher profits and reduced waste mean more donations to our notfor-profit partners.”

Keeping it clean ESC also sought a machine with simplified cleaning and maintenance to ensure product safety and remove all traces of allergy-causing ingredients, which is especially important when

The Pack 401 also helped reduce operating costs by eliminating FDAmandated materials that were part of the hand-packing operation. When the products were manually transferred to the wrapper, the tiles had to be placed on FDA-approved cardboard sheets and then topped with FDA-approved foam to be stacked without damaging the chocolates. The machines automated feeder eliminates the need for these materials, which cuts down on waste and fuel needed to ship them to landfills. ESC also uses packaging materials that are Forest Stewardship Council (FSC) approved, with paper wrappers composed of recycled content and printed with environmentally friendly, water-based inks. Clearly, sustainability is ingrained in the entire company, from resourcing raw materials to incorporating the most environmentally friendly processing and packaging practices available. “We always enjoy helping our customers reach their production goals and it’s even sweeter when this also benefits important causes,” says Paul Garms, product manager, Bosch Packaging Technology. “I’ve wanted this machine for a very long time because Bosch understands our organization and packaging like none other,” says Fuller. “When demand grew to the point of needing increased efficiency, it was an easy decision to make and we’ll likely acquire a second Pack 401 soon.”

The Bosch flow wrapper ensures that the tiles are correctly oriented before being wrapped, which decreases inadequately packaged products.

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Snack Foodtec

Effects of Antioxidants on the Oxidative Stability of Vegetable Oil at Elevated Temperature

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Abstract Unstable nature of vegetable oil posed serious health risk to humans. The oxidative stability of vegetable oils (Palm Olein, Soyabean Oil and Linseed Oil) with direct incorporation of antioxidants (tertiary butyl hydroxoquinone (TBHQ), butylated hydroxyl toluene (BHT) and mixed (TBHQ and BHT) at room temperature and 700C for 168 hours was aimed to be investigated. Peroxide value was determined and the oxidative stability was evaluated. TBHQ had significant effect on the oxidative stability of palm olein at 700C while (TBHQ and BHT) had synergetic effect on stability of Soya bean oil at room temperature and Linseed oil at 700C. Key words: Vegetable oil, peroxide value, oxidative Stability, antioxidants) 1.0 Introduction Production of vegetable oils that meet the global standard of consumption of the cosmetics and specialty food industries is a multi-step process which involves procurement of raw materials, extraction, refining and packaging. The inability of the oil to remain stable due to the presence of acyl-lipids such as monomeric, dimeric and oligomeric triacyl glecerols, and sterols like holesterols (animal sterols) and phytosterols (plant sterols) which can oxidize through the exposure to air or presence of moisture at high temperature to form lipid oxidation products with initial reaction products known as hydroperoxide and later form compounds such as aldehydes, ketones, alcohols carboxylic acids which has great consequences (Rossell, 2001a; 2001b; Tabee, 2008; Dobarganes and MarquezRuiz, 2003; 2005). Lipid oxidation causes food spoilage, deterioration of important qualities in vegetable oil, rancidity of the vegetable oil and reduces the organleptic characteristics of the fried food which have negative effects on the taste, colour and odour of vegetable oil (Rossell, 2001a; Tabee, 2008; Ellen, 2008; Dutta, 2002). Cholesterols oxidation products (COPs) have received much attention due to their biological effects such as cytotoxicity, atherogenicity, sterol

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oil technology

metabolism interference, mutagenicity, carcinogenicity and absorption of compounds which poses health risk to human if consumed in large quantities (Dobarganes and Marquez-Ruiz, 2003; Dutta et al, 2002; Hovenkamp et al, 2008; Osada, 2002; Garcia-Cruset et al, 2002; Ryan et al, 2005; Abramsson-Zetterberg et al, 2007; Zembron-Lacny et al, 2009; Said et al, 2007; Amaral et al, 2003). Though, phytosterols oxidation products have not show any evidence of genotoxic effect (Dutta et al, 2006; Ryan et al, 2005; Abramsson-Zetterberg et al, 2007) but unstable due to the presence of unsaturated fatty acid content which may combine with oxygen on exposure to air (Abramsson-Zetterberg et al, 2007; Dunn, 2005; Gertz et al, 2000; Aluyor and Ori-Jesu, 2008; Rudnik et al, 2001; Dostálová et al, 2005) and it reduces cancers (colon, breast and prostate cancers) if properly treated (Amaral et al, 2003; Awad and Fink, 2000; Awad et al, 2001). Methods of improving stability of vegetable oils against oxidation include hydrolysis (Rossell, 2001a; 2001b; Erickson, 2006; Aluyor and Ori-Jesu, 2008), hydrogenation process in the presence of nickel catalyst(Rossell, 2001a; Aluyor and Ori-Jesu, 2008; Orthoefer and G. R. List, 2006), genetic modification (Aluyor and Ori-Jesu, 2008) and indirect addition of antioxidant (Rossell, 2001a; 2001b; Aluyor and Ori-Jesu, 2008; Zembron-Lacny et al, 2009) reduces the degree of unsaturation and promote the quality of vegetable oil with storage period (Dostálová et al, 2005; Ullah et al, 2003; Yoshida et al, 2002). The choice of antioxidants used based on the solubility and ability to combine with other antioxidants (ECC, 2006; Amaral et al, 2003). Antioxidants are substances that when introduced into substrate at low concentration significantly inhibit oxidation of the substrate (Aluyor and Ori-Jesu, 2008; Zubr and Matthäus, 2002). Antioxidants are of two types: Primary or chain breaking type involves the addition of trace amount to inhibit oxidation of the substrate. This is further classified into natural antioxidants such as panda leaf, tocophenol, carotene, flavonols, rosemary

from labiates family etc (Abramovic and Abram, 2006; Ullah 2003; Robards et al, 2002) and synthetic antioxidants such as TBHQ, BHT,TBH, BHA, BNB, TBA, propyl gallates, Irgafos 168, Irganox 1010 and 1330, Chimassorb 944, tocophenol etc (Azizkhani and Zandi, 2009; Müller et al, 2009; Zubr and Matthäus, 2002; Yoshida et al, 2002). The Secondary type or preventive antioxidant retards the rate of oxidation through the removal of the substrate or singlet oxygen quenching (Müller et al, 2009). Though, several methods are available to promote the quality of vegetable oil which may not be satisfactory or economically feasible in many instances (Tabee, 2008). Researchers have established that antioxidant retards the development of rancidity due to oxidation in vegetable oils and thereby, used to control the quality of vegetable oils as well as assessment of the suitability of the products with respect to oxidation resistance (Müller et al, 2009; Zembron-Lacny et al, 2009). The initiative of this study was based on direct supplementation of antioxidants used on vegetable oil before refining and storage at elevated temperature so as to reduce the negative effect posed by vegetable oil. Moreover, whether phytosterols has any biological effect as cholesterols do or not, it undergoes oxidation which causes deterioration of the vegetable oils. The objective of this work is to establish the effectiveness of synthetic antioxidant supplementation: Butylated hydroxyl toluene (BHT), tertiary butylhydroquinone (TBHQ) and mixed antioxidants with equivalent proportion of the antioxidants at elevated temperature on the oxidative stability of the palm olein, soybean oil and linseed oil. 2.0 Materials and Methods 2.1 Preparation of the Vegetable Oil Palm olein (non-drying oil), soya bean oil (semi-drying oil) and linseed oil (drying oil) were extracted by Ellen (2008) method from their respective seeds using solvent extraction after being crushed and steam cooked. Hexane was used as a solvent and later separated from the oils by evaporation. The crude oils were purified through degumming, neutralization and

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www.agronfoodprocessing.com Table 1: Composition of Experimental Oil Samples

SAMPLE

COMPOSITION

450g of refined Palm Olein + 0.45g TBHQ

450g of refined Soyabean Oil + 0.45g TBHQ

150g of refined linseed Oil + 0.15g TBHQ

450g of refined Palm Olein + 0.45g BHT

450g of refined Soyabean Oil + 0.45g BHT

150g of refined Linseed Oil + 0.15g BHT

oil technology by few drops of starch solution. The vegetable oil samples were titrated with 0.01M Sodium thiosulphate solution for every storage period of 24hours in 168 hours at room temperature and at 700C with vigorous shaking until the blue colour disappeared, a blank test was also performed and the titre values were recorded. Table 1: Composition of Experimental Oil Samples

2.2 Models Peroxide Values (PV) were calculated for all vegetable oil samples using equation given by Maisuthisakul and G 450g of refined Palm Olein + 0.45g of equal amount of TBHQ + BHT Charuchongkolwongs (2007): H 450g of refined Soyabean Oil + 0.45g of equal amount of TBHQ + BHT (Vs-Vb)NF PV= x 100 W (1) I 150g of refined Linseed Oil + 0.15g of equal amount of TBHQ + BHT PV is peroxide value of vegetable oil sample measured in milliequivalent J 450g of refined Palm Olein + no additive of peroxide per kg of oil sample, Vs is Volume of sodium thiosulphate solution K 450 of refined Soyabean Oil + no additive (ml) used for neutralization, Vb is Volume of sodium thiosulphate solution used for L 150g of refined Linseed Oil + no additive neutralization for blank test determined as 2.8ml, W is weight of vegetable oil deodorization processes. Degumming water and salt, and then drained off was done to precipitate the phosphatides, soap stock after settling in the separating sample measured (g), F is the factor from gums, impurities and other water soluble funnel. This was repeated until all soap standardization with Potassium Iodide and N is normality of sodium thiosulphate impurities by heating the mixture of stocks were completely removed. solution (0.01 M). Oxidative stability (S) one litre of the crude oil sample and 100 millilitre of phosphoric acid to a Adequate proportion of activated charcoal was evaluated from peroxide values as temperature of 700C in a three litre was added to the neutralized oil, stirred thus: PV - PVj beaker. One litre of deionized water was thoroughly for removal of S= i x 100 PVj added and stirred for about 10minutes pigment and oxidized component, and (2) to obtain an even distribution of the then filtered. The drained oil was dried in S is the oxidative stability measured colloids; oil mixture was separated by the the oven to removed volatile use of separating funnel and washed with materials. The twelve samples (A to L) in percent, PVi is the peroxide value of deionized water. Neutralization process were formulated as stated in the table vegetable oil with antioxidant, PVj is was carried out by addition of 25ml of 1 and composed of refined vegetable the peroxide value of sample without benzene to 5ml of degummed vegetable oil blended with adequate proportion antioxidants. oil followed by 25ml of ethanol and a few of antioxidants by direct method and drops of phenolphthalein indicator were even distribution and homogeneity was 2.3 Statistical Analysis The data were analyzed by SPSS software added. ensured. The method of Maisuthisakul and program (Version 17.0) with bivariate The mixture was shaken and titrated Charuchongkolwongs (2007) was correlations. The Pearsonâ&#x20AC;&#x2122;s correlation simultaneously against aqueous solution employed to determined peroxide value coefficient test was conducted for determination of significance with one of 0.1N NaOH. The titre value for of neutralization was recorded. The vegetable oil in which 5g each of samples tail of p-value less than 0.01 considered degummed vegetable oils and 0.1N A to L were weighed in a conical flask and statistically significant between vegetable oils at room temperature and at 700C NaOH were set at a temperature of 700C. 30ml of acetic acidchloroform The required amount of sodium hydroxide solution was added and then stirred until in the presence of the antioxidants, and solution used for titration was added to the sample dissolved. 0.5ml of saturated vegetable oil samples with different the degummed oil sample and potassium iodide solution was added, antioxidant. stirred continuously on the heater for swirled for one minute and 30ml of 5minutes. The mixture was washed with distilled water was then added followed 3.0 Results and Discussion

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oil technology

Subscript n means at room temperature, w means at elevated temperature of 700C. Table 2 shows the evaluated peroxide value of vegetable oils in the presence of the antioxidants at room temperature and at elevated temperature of 700C using equation 1. It was be observed that the peroxide value for palm olein (An) remains unchanged throughout storage period of 168 hours at room temperature using TBHQ antioxidants but peroxide value increased by 10 percent at elevated temperature of 700C throughout of storage period of 168 hours of sample AW. It can also be deduced from the Table 2 that the peroxide value of all samples of vegetable oil decreased with increasing storage time in the presence of antioxidants irrespective of temperature effect but with significant variation at elevated temperature. Table1: Evaluated Peroxide Value of Vegetable Oils in the Presence of Antioxidants The peroxide value for 168 hour of storage period for Bn, Bw, Cn, Cw, Dn,

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Dw, En, Ew, Fn, Fw, Gn, Gw, Hn, Hw, In, Iw, Jn, Jw, Kn, Kw, Ln and Lw increased by 250%, 375%, 17.21%, 20.49%, 4.76%, 14.29%, 233.33%, 344.44%, 22.76%, 30.08%, 11.11%, 22.22%, 187.5%, 275.00%, 9.92%, 20.33%, 22.73%, 40.91%, 320.0%, 500.00%, 25.70% and 42.57% respectively. It was observed that the peroxide value for 168 hour of storage period for all the vegetable oils reduced with and without temperature effect in the presence of antioxidants (TBHQ, BHT and mixed TBHQ and BHT) compared with the absence of antioxidants at increased percentage of peroxide values of vegetable oils. This indicates that without addition of antioxidants to vegetable oil, there may be rapid deterioration during storage period.

the storage period. In contrast, mixed antioxidants (TBHQ and BHT) in the soyabean oil gave the lowest peroxide value during the storage period of 168 hours, followed by BHT and TBHQ antioxidant gave lower peroxide value during the storage period of soyabean oil with and without temperature effect. Also, mixed antioxidants (TBHQ and BHT) gave lowest peroxide value with linseed oil during the storage period followed by TBHQ and BHT antioxidant gave lower peroxide value with and without temperature effect. Increased temperature in the presence of antioxidants, increases peroxide value of all samples of vegetable oil as shown in the Table 2. This may be attributed to the reaction kinetics and rheological properties of vegetable oils.

The presence of TBHQ antioxidant gave the lowest percentage change in peroxide value of the palm olein, followed by BHT antioxidant while mixed antioxidants (TBHQ and BHT) gave lower peroxide value when compared with palm olein in the absence of the antioxidant during

Figure 1 shows the rate of oxidative stability of palm olein in the presence of antioxidants at room temperature. It was observed that palm olein with TBHQ antioxidants (0.099) had the highest rate of oxidative stability, followed by BHT antioxidant (0.074) while BHT

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antioxidant (0.059) had the lowest rate of oxidative stability. This indicates that TBHQ antioxidant was significantly favourable for oxidative resistant of the palm olein oil compared with other antioxidants at room temperature. Conversely, it was observed that the soyabean oil with mixed (TBHQ

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oil technology

and BHT) antioxidants (0.148) had the highest rate of oxidative stability, followed by BHT antioxidant (0.134) while TBHQ antioxidant (0.095) had the lowest rate of oxidative stability as shown in the Figure 2. Also, the linseed oill with mixed (TBHQ and BHT) antioxidants (0.148) had the highest rate of oxidative stability, followed by BHT antioxidant

(0.134) while TBHQ antioxidant (0.095) had the lowest rate of oxidative stability as shown in the Figure 3. The highest rate of oxidative stability of soyabean and linseed oils in the presence of mixed (TBHQ and BHT) antioxidants may be attributed to the positive synergistic effect of BHT antioxidant with TBHQ antioxidant in the linseed oil at room

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Solus Jain Heights, #. 2, 1st Cross #. E-10, 10th Floor, J. C. Road, Bangalore-560 027. Tel: +91 080 22224223 Web: mtsfoods.com E mail: menonkk@vsnl.net

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oil technology

temperature. Though, the results obtained for all vegetable oil samples in the presence of antioxidants have high

obtained as shown in the Figure 1, 2 and3. Figure 4 shows the rate of oxidative

of 700C. Remarkably, highest rate of oxidative stability was observed for samples of palm olein in the presence of

regression correlation coefficients (R2) which indicates good fitness of the data

stability of palm olein in the presence of antioxidants at elevated temperature

TBHQ antioxidant (0.117) with good correlation coefficient of 0.989 compared

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with BHT antioxidant (0.099) with correlation coefficient of 0.962. The addition of mixed (TBHQ and BHT) antioxidant (-0.069) with correlation coefficient of 0.645 indicates the negative synergistic effect in the palm olein. The higher value of rate of oxidative stability of palm olein at elevated temperature of 700C compared with that at room temperature in the presence of antioxidants with significant value of 0.000 (p < 0.01) in the presence of all antioxidants indicated significant effect of heat on palm olein. The higher rate of oxidative stability was observed for samples of soyabean oil in the presence of mixed (TBHQ and BHT) antioxidants (0.099) with good correlation coefficient of 0.673 compared with BHT antioxidant (0.084) with correlation coefficient of 0.512 as shown in the Figure 5. However, the presence of TBHQ antioxidants in soyabean oil with low rate of oxidative stability (0.035) and correlation coefficient of 0.064 as shown in the Figure 5 indicates the poor effect of TBHQ antioxidant in the soyabean oil. The higher value of rate of oxidative stability of soyabean oil at 700C and at room temperature compared with that of elevated temperature in the presence antioxidants with significant value of 0.000 (p < 0.01) indicated significant effect of heat on the oxidative stability of soyabean oil. More so, the highest rate of oxidative stability was observed for samples of linseed oil in the presence of mixed (TBHQ and BHT) antioxidants (0.089) with good correlation coefficient of 0.991, followed by the presence of TBHQ antioxidant (0.088) with correlation coefficient of 0.990 as shown in the Figure 6. Though, low value of rate oxidative stability of linseed oil in the presence of BHT antioxidants (0.051) with correlation coefficient of 0.992 indicates the poor effect of BHT antioxidant in linseed oil as shown in the Figure 6. The higher value of rate of oxidative stability of linseed oil at elevated temperature of 700C compared with that at room temperature in the presence antioxidants with significant value of 0.000 (p < 0.01) for both mixed antioxidants and BHT antioxidant, and 0.001 (p < 0.01) for TBHQ indicates significant effect of elevated temperature

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oil technology

on linseed oil. This indicated that oxidative stability of vegetable oil in the presence of antioxidants influenced at elevated temperature of 700C. 4.0 Conclusions Based on the result obtained, all vegetable oils (Palm olein, Soyabeen Oil and Linseed Oil) are prone to oxidative deterioration during storage period. Addition of antioxidants is effective in ensuring oxidative stability of refined vegetable oil. It can be deduced that TBHQ was superior to BHT and mixed (TBHQ and BHT) antioxidants for ensuring oxidative stability of palm olein while mixed antioxidant was significantly superior for the oxidative stability of soyabean at room temperature and linseed oil at elevated temperature. This

may be attributed to the synergy effect of BHT antioxidant with TBHQ antioxidant in the linseed oil at elevated temperature during the storage period. Temperature at 700C significantly influenced the oxidative stability of vegetable oils used except soyabean oil in the presence of antioxidants which may be attributed to the reaction kinetics and rheological properties of the vegetable oils. More so, introduction of commercial antioxidants (TBHQ, BHT or equal blend of both) to vegetable oil increased oxidative stability. This may be used to improve the oxidative stability of crude vegetable oil during refining.

India’s Olive Oil Imports depleted by 10 percent in 2013-14

ndia’s olive oil imports declined by 10 percent to 10,718 tonnes in the financial year 2013-14 due to a sharp jump in prices in the global markets, according to data released by the industry association.President of Indian Olive Association V.N. Dalmia said the imports of olive oil in India declined in the financial year ended March 31, 2014, after registering 66 percent jump in the previous two fiscals.The decline is mainly due to rise in olive oil prices. It has increased by almost 40 percent in the past two years. Prices have jumped due to a severe crop shortfall in Spain,” Dalmia said in a statement.He said a

steep depreciation in the value of rupee also led to the decline in imports of olive oil.Spain continued to be the biggest supplier of olive oil to India. Almost 63 percent of olive oil supply to India came from Spain in fiscal 2013-14, Italy is at the number two with 32 percent of total supply. Greece is the third biggest supplier but with just three percent of the total India’s imports.On imports trends in the current fiscal, Dalmia said it is expected to rise as normal crops in Spain and Italy would help ease the prices.

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Bonn Biscuits sets up Manufacturing Plant in J&K of our products. In the bread segment the company has large range of breads like brown bread, sandwich bread, garlic and multigrain breads, that will be offered to the customers.The company based in

Bakery News Ludhiana Punjab, was founded in 1985. Bonn Group focuses on selling its products to both national and global markets. Bonn sells its product widely in Northern India. Internationally, Bonn Biscuits are sold to the US, Canada, Europe, the Caribbean, Africa, and Australia.

RP-Sanjeev Goenka Group to invest Rs 20-30 cr in Cafe Bakery Chain

orth India’s one of the major biscuit manufacturing company Bonn group of Industries has set up a manufacturing facility at Pulwama to keep up with demand of its products in the market.This company that sells its products both in Indian and international markets produces a variety of food products including breads, biscuits, cakes and cookies. The company that carried marketing campaign under ‘Salam Kashmir’ is offering free samples of its products to the customers.Marketing Manager of the company Rajesh Prashar in statement issued said that Bonn biscuits are already serving the Kashmir market and we are now launching more

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n high growth segment of cafe bakery chain RP-Sanjiv Goenka Group will invest 20-30 crore for expansion, Au Bon Pain over the next 12 to 18 months. Twenty-one new outlets are expected to be added this fiscal to take the total count to 50 by March. According to Avarna Jain, Founder and In-charge, Au Bon Pain, these new outlets will be

added across Kolkata – around 10; Delhi – seven or eight; and, the remaining in Bangalore.At present, Au Bon Pain has 29 outlets of which 26 are in Bangalore, two in Kolkata and one in Delhi NCR. Of these, a majority of the stores have achieved break-even. “At the store level, we are breaking even,” she added. Au Bon Pain is a US-based café bakery chain, and the Goenka Group has 80 per cent stake in Au Bon Pain Café India, which runs the eponymous café chain. Au Bon Pain is keen to explore larger format stores with an average size of around 1,500 sq ft. Earlier, cafés had an average size of around 700 sq ft.

Chocolate

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The Art of Belgian Chocolate – Innovation and Indulgence VISITFLANDERS has teamed up with Flanders Investment and Trade to host unique Belgian Chocolate speciality event during Speciality Chocolate Fair on Monday 8th September 2014. The “Art of Belgian Chocolate” event will take place at Olympia in the Pillar Hall, which adjoins Olympia Grand and features fourteen exclusive Belgian chocolate producers, who will be showcasing their products for one day only.Also during the day’s event, Belgian chocolatier Peter Messely will be performing a special demonstration using some innovative and indulgent chocolate combinations with Belgian products including Kriek, Gueze and Trappist beers as well as Speculoos biscuits (Belgian caramel biscuits) to show off the versatility of Belgian chocolate. Two demonstrations will take place at 12.30 and 14.30 respectively.With National Chocolate Week due to take place from 13th-19th October 2014, it is the perfect opportunity to find out more about what makes Belgian chocolate one of the best in the world.

Maker of Nutella buys Turkish hazelnut supplier

his is good news for Nutella super fans as the company has operations in place in Turkey, and the move will most likely strengthen its operations and position in the global chocolate sector. Ferrero has purchased Oltan Gıda, Turkey’s largest exporter of hazelnuts. Terms of the deal were not disclosed. Ferrero, maker of Nutella hazelnut spread and Kinder chocolates, was already the largest customer of Oltan Gıda, accounting for some 70% of the 68,000 tons exported in the 2012-2013 season. Turkey dominates the world’s hazelnut trade. The nation accounts for 75% of world production.Whatever it takes Ferrero to ensure that there’s enough Nutella to go around is a wise move.

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Use of cold chains for reducing food losses in developing countries

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Introduction Global food losses have been documented to be on the order of 25% to 50% of production volumes, caloric content and/or market values depending on the commodity (Lipinski et al, 2013; Gustavsson et al 2011; IIR 2009). The use of “cold” handling and storage systems as an investment to prevent perishable food losses is widely used in developed countries and can be highly cost effective compared to continually increasing production to meet increasing demands for these foods. The use of

education and food sectors must work together to promote the use of cold chain technology, improve logistics, maintenance, services, infrastructure, education and management skills, and create sustainable markets for the design, use and funding of cold chains for reducing perishable food losses. Fresh foods continue to metabolize and consume their nutrients throughout their shelf life, from harvest or slaughter through packing, distribution, marketing and sale. Carbohydrates, proteins and

COLD CHAIN perishables are susceptible to chilling injury below about 10°C (most of the tropical and sub-tropical crops) and all fresh horticultural perishables will freeze below about -1°C. In addition to physiological deterioration, foods may host micro-organisms such as bacteria and fungi which can cause molds, rots or decays, and are subject to water loss which results in wilting, shriveling or darkening. Both the rate of microbial growth and the rate of water loss occur more rapidly as temperature increases. Few other interventions can so

Table 1: The Cold Chain, Food Security and Economic Development

Source: IIR. 2009. The role of refrigeration in worldwide nutrition (www.iifiir.org) cold technologies in the development of agricultural supply chains for meat, dairy, fish and horticultural products in the USA and EU countries began the early 1950s along with the growth of the mechanical refrigeration industry, but cold chains are still limited in most developing countries. There are many technical, logistical and investment challenges as well as economic opportunities related to the use of the cold chain. The primary segments of an integrated cold chain include 1) packing and cooling fresh food products, 2) food processing (i.e. freezing of certain processed foods, 3) cold storage (short or long term warehousing of chilled or frozen foods), 4) distribution (cold transport and temporary warehousing under temperature controlled conditions) and 5) marketing (refrigerated or freezer storage and displays at wholesale markets, retail markets and foodservice operations). Policy makers in the agriculture, energy,

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other nutrients are broken down into simpler compounds often resulting in reduced quality or quantity of the foods, through respiration, enzymatic breakdown and microbial degradation. All of these processes are highly dependent upon temperature. As is the case for all biological processes, the higher the temperature the faster these natural degradation processes will occur, leading to loss of color, flavor, nutrients and texture changes. In fact, as a general rule, most of these degradation processes double their rate for each increase of 10°C (known as the Q10 quotient, which is illustrated in more detail below). For example, maintaining a food’s temperature at 10°C colder than the temperature commonly experienced when handled during ambient conditions can double the shelf life of that food. Lowering temperature does have some exceptions, since some fresh horticultural

dramatically maintain the visual quality and nutritional value, and increase shelf life and ultimate market value of fresh foods as much as simply holding the foods at a lower temperature. Cooling provides the following benefits for perishable horticultural foods: • Reduces respiration: lessens perishability • Reduces transpiration: lessens water loss, less shriveling • Reduces ethylene production: slows ripening • Increases resistance to ethylene action • Decreases activity of micro-organisms • Reduces browning and loss of texture, flavor and nutrients • Delays ripening and natural senescence

COLD CHAIN

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Table 2: Predicted loss of storage potential increases as handling temperatures increase for fresh foods commonly handled at ambient temperatures in developing countries (rough calculations based upon Q10 coefficients)

In general, the Q10 coefficient (an indication of the relative rate of respiration at 10Â°C intervals) can be used for fresh foods to estimate the shelf life under different temperature conditions.

an integrated cold chain, which include 1) perishable foods using a cold supply packing and cooling fresh food products, chain (Kohli 2010). 2) food processing (i.e. freezing of certain processed foods, 3) cold storage (short or The cold chain is a well-known method for long term warehousing of chilled or frozen reducing food losses and food waste, and foods), 4) distribution (cold transport has long been promoted by established Table 3: Theoretical relationship between temperature, respiration rate and deterioration rate of a non-chilling sensitive fresh commodity

Developed from data available in USDA Handbook 66 (2004) Use of cold chains A cold chain for perishable foods is the uninterrupted handling of the product within a low temperature environment during the postharvest steps of the value chain including harvest, collection, packing, processing, storage, transport and marketing until it reaches the final consumer. An integrated cold chain encompasses the management of the movement of perishable food products from the field, ranch or body of water through the entire postharvest chain to the final consumer. The primary segments of

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and temporary warehousing under temperature controlled conditions) and 5) marketing (refrigerated or freezer storage and displays at wholesale markets, retail markets and foodservice operations) can be simple or complex, low tech or high tech. Cold chain logistics is the planning and management of the interactions and transitions between these five segments, in order to keep foods at their optimum temperature for maintenance of quality, food safety and prevention of waste and economic losses. Speed is often the key to success when handling and marketing

industry focused organizations such as The International Institute of Refrigeration (www.iifiir.org), The World Food Logistics Organization (www. wflo.org) and the Global Cold Chain Alliance (www.gcca.org). The required infrastructure and investments in needed facilities, equipment and management skills, however, are generally lacking in developing countries. Policy studies on food make very little mention of â&#x20AC;&#x153;postharvestâ&#x20AC;? aspects of agriculture in major new reports on farming or small and medium scale enterprise (SME)

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COLD CHAIN

Table 4: Examples of mechanical technologies available for refrigeration/freezing

policy coming from international donors and grant-makers. Recent examples include the FAO’s State of Food and Agriculture 2010-11 and IFPRI’s Food Security, Farming, and Climate Change to 2050: Scenarios, results and policy options, which when searched provide no references to postharvest problems, cold chain issues, opportunities or policy options. The UNFAO/UNIDO manual on Agro-Industries for Development (da Silva et al 2009) mentions the term “cold chain” only once in a comprehensive work of 270 pages. The UN FAO recently launched the SAVE FOOD Initiative which includes many partner organizations working on various means for reducing food losses and waste. One of the top priorities cited by the Global Harvest Initiative report on measuring global agricultural productivity was “Improving food system infrastructure and processing to benefit agricultural products distribution and minimize waste” (GHI 2010; p. 8). The report concludes that significant public and private investments in capital and infrastructure will be required along the entire food chain. Reports on the postharvest sector and its contributions to economic development (Mrema & Rolle 2002; Kader 2006; Winrock 2009)

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leave no doubt as to its importance and cost effectiveness, yet introducing a cold chain in a developing country requires the integration of a great many different elements and the continuing management of those elements. Unfortunately, most aid donors and grant programs have tended to focus on establishment of standalone cold storage or food processing facilities or projects rather than focusing on the longer term management of those investments and the maintenance of an integrated cold chain. Selecting appropriate cooling technologies for use in the cold chain There is a wide range of options and technologies for producing cold conditions for food handling, processing, storage and transport. Some are relatively simple and inexpensive, while other technologies intended to achieve the same results are more sophisticated and complex to manage. For precooling, operators can choose from simple farmbased methods such as using ice, to more complex systems for forced air, hydrocooling or vacuum cooling. For storage, there are options for food handlers that range from small walk-in cold rooms to large scale commercial refrigerated warehouses. Small-scale cold rooms can be designed using traditional mechanical

refrigeration systems, low cost CoolBot™ equipped air-conditioner based systems (see detail below), or as evaporative cool chambers. Food processors can choose from chillers, blast freezing, IQF, freeze drying and many other technologies. During transport, cold can be provided via the use of ice, trailer mounted refrigeration systems, evaporative coolers or via passive cooling technologies (insulated packages or pallets covers during transport). The suitability of these options will depend upon the food products being handled and the level of sophistication of the value chain. Kitinoja and Thompson (2010) and Winrock International (2009) have reviewed the cooling practices utilized during pre-cooling and cold storage for horticultural crops. These documents provide basic recommendations on cooling options and information regarding capital costs and energy use for small-scale, medium scale and larger scale operations. In general, the highest cost will be for mechanical refrigeration systems using electricity or diesel fuel where temperatures are the hottest, but the benefits of using cold chain technologies can still outweigh costs, since it is in these regions where food losses due to lack of temperature management

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are the highest. Evaporative cooling systems work well only in dry regions or during the dry seasons when the relative humidity is low. Total construction and operating costs for refrigerated systems will vary widely depending on the costs of local materials, labor and electricity. Postharvest losses can be greatly reduced with the use of cold storage, but the ROI for any specific operation will always depend largely upon the market value of the food commodities being cooled and stored and the use efficiency of the facility (i.e. whether or not it is operated at full capacity). A recent development on the small-scale mechanical cooling technology front is a CoolBot ™ equipped cold room for storage of chilled food products and fresh horticultural produce. A small cold room with a commercially installed refrigeration system costs about $7000 for 3.5 kW (1 ton) of refrigeration capacity (Winrock, 2009). A small-scale option is to use a modified room air conditioner, a method originally developed by Boyette and Rohrbach in 1993, to prevent ice build-up which restricts airflow and stops cooling. The control system of the window style air conditioner unit is

COLD CHAIN

Figure 1: The CoolBot™ controller (Photo source: http://storeitcold.com)

system of the air conditioner (Cool-bot ™, Store It Cold, LLC, http://storeitcold. com). A room air conditioner and Cool-bot tm control system currently costs about 90% less than a commercial refrigeration system. The control system is designed so that any moisture condensed on the refrigeration coils is returned to the cold room air and the system will therefore cause less product moisture loss than the commercial refrigeration system. For refrigerated transport, small-scale producers and marketers can use the USDA Porta-cooler. Two types of portable pre-coolers currently exist and both have been tested extensively (Boyette, no date; USDA 1993). They can

www.attra.ncat.org). The USDA Portacooler can be carried on traditional small scale transport vehicles, either pulled as a trailer or set into a pick-up truck bed. The Porta-cooler consists of a small insulated box (3.5 m3), holding approximately 700 kg of produce, fitted with a room sized air conditioner (2.9 to 3.5 kW) and diesel-powered generator (2 kW). These units can be operated successfully at temperatures of 10°C or above with good results, making them most useful for transporting tropical and sub-tropical horticultural crops. At temperatures below 10°C, however, ice will build up on the coils, and the air conditioner will not work as designed. The CoolBot™ control system described above could

Table 5: Examples of Non-mechanical technologies available for cooling

modified to allow it to produce low air temperatures without building up ice on the evaporator coil. Recently a company has developed an easily installed digital controller that prevents ice build-up but does not require modifying the control

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be self-constructed at relatively low cost, and complete plans are available on the internet on the NCSU website http://www.bae.ncsu.edu/programs/ extension/publicat/postharv/ag-414-7/ index.html and the ATTRA website (http://

be utilized to overcome this limitation. A full set of plans for construction of an insulated trailer equipped with the CoolBot™ has recently been developed by scientists at North Carolina State University and is available online for free

COLD CHAIN

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large amount of materials are required to construct these cold storage chambers, they may be most practical when handling high value products.

Figure 2: Large scale evaporatively cooled storage facility for cured sweet potatoes. (Photo credit: Robert Kasmire) download (http://plantsforhumanhealth. ncsu.edu/2012/08/20/pack-n-cool/ ). Non-mechanical cooling practices: For horticultural crops, the cold chain can sometimes be a “cool chain” depending upon the commodity. For example, tropical fruit crops and tomatoes require handling temperatures of 12-18°C for longer shelf life. Colder temperatures during handling, storage or transport will result in chilling injury, reduced storage potential and reduced market value. Symptoms often appear only after the commodity is returned to warmer temperatures during marketing or home use. Non-mechanical cooling practices can often achieve these moderately cool temperatures at very low cost.

is constructed from locally made clay bricks. The cavity between the walls is filled with clean sand and the bricks and sand are kept saturated with water. Fruits and vegetables are loaded inside, and the entire chamber is covered with a rush mat, which is also kept moist. During the hot summer months, this chamber can maintain an inside temperature of 15 and 18 °C lower than the ambient temperature

Evaporative cooling: Lowering temperature of fresh horticultural produce via systems utilizing the evaporation of water to 2-3°C above the ambient dew point temperature. Evaporative cool storage rooms are commonly used for bulk storage of tropical and sub-tropical crops (such as sweet potatoes) or as small-scale cool chambers for temporary storage of fruits and vegetables in tropical climates, and work best in dry climates or during the dry season. Evaporative coolers can be passive (zero energy) or assisted (using a solar powered or electric fan to move air through the storage chamber).

and a relative humidity of about 95%.

A variety of designs for small-scale evaporatively cooled storage chambers have been developed for fresh tropical and sub-tropical produce. Kitinoja and Thompson (2009) provide a review of the many designs currently available in Southeast Asia, India and Africa, and most can be constructed locally using low cost materials. The low cost passive cooling chamber illustrated in figure 3

The original developers of this technology at IARI in India called it a “Zero-Energy Cool Chamber” (ZECC) because it uses no external energy. A larger version of this chamber was constructed in the design of a small cold room (6 to 8MT capacity), and needs only the addition of a small water pump and a ventilation fan at the roof line (similar to the vent fans used in greenhouses). Since a relatively

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The cost for construction of the small unit in India was $200 (200 kg capacity), the cost for the large walk-along unit was $1000 (1 MT capacity) and the cost of the commercial sized 6MT unit is estimated to be $8,000 (Kitinoja 2010). Results are best when the relative humidity conditions outside the ZECC are low, as during the dry season or in semi-arid regions. In addition to these simple evaporative systems, other cooling systems are available for use when electricity is not available. Harvesting fresh produce early in the morning (with the exception of citrus crops because of fruit susceptibility to physical damage when turgid) will

Figure 3: Design for a 1MT capacity ZECC (Kitinoja, 2010) Digital illustration credit: Amity University, Uttar Pradesh, India ensure produce is being handled at a lower temperature when compared to daytime ambient temperatures. The use of shade after harvesting will keep produce from warming in the sun while waiting for transport. Crushed or slurry ice can be used for rapid chilling or pre-cooling of fish or vegetables that can tolerate water. Slurry ice is a solution of about 40% water, 60% ice and 1% salt. Ice in large pieces or blocks can be used to cool water which can then be used in shower or

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immersion type hydro-cooling systems. The cost of ice production can be very high compared to its cooling capacity (Kitinoja and Thompson, 2010), and ice melt can cause safety and sanitation problems during handling, storage, transport and marketing. Night air ventilation is the opening of vents in the basement of an insulated storage structure during the cooler night hours, then closing the facility during the daytime to keep the cool air inside. As a rule night ventilation effectively maintains a given product temperature when the outside air temperature is below the given product temperature for 5 to 7 hours per night (Kitinoja and Thompson 2010). Natural underground cooling can be used in caves or root cellars and high altitude cooling can be used where ambient air temperatures are lower than average. Radiant cooling can be used in dry climates with clear night skies to lower the temperature of ambient air. By using a solar collector at night, air will cool as the collector surfaces radiate heat to the cold night sky. Temperatures inside the structure of 4°C less than night air temperature can be achieved (Thompson et al 2002). Passive cooling (insulated packages or pallets covers) can be used during transport to keep pre-cooled or chilled foods cold. The insulation will act to prevent rapid rewarming, but has a limited range, and the distance or time that foods can be kept cool will depend on the outside air temperature and desired product temperature upon delivery. RefrigiWear is one of the companies that has developed and markets this kind of products, and claims they can maintain product temperatures for up to 12 hours when properly used with temperature changes of less than 1°C per hour. (http:// www.refrigiwear.com/WeatherGuard/ index.htm) Solar powered cooling systems that function via ice bank or ice battery are in the development stage (www.solarchill. org), but currently available solar chilling systems are very expensive and too small for commercial food handling or storage. Prototypes of this ice-based cool box are available via a United Nations

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program for storage of pharmaceuticals and vaccines. They use a solar powered 3 x 60 W PV array and ice as the energy storage medium (rather than acid batteries which tend to have a short life in hot climates and create environmental hazards if not recycled properly). Cost is estimated at $1,500 for a unit that has a storage capacity of 50–100 L. These units would be best used for temporary storage of highly perishable high value foods such as fresh cut fruits or vegetables, strawberries, cheeses, milk, bean sprouts or mushrooms. Freezing: A common method of freezing is simply indirect contact with a refrigerant that flows through shelves or belts that may touch the bottom or both top and bottom of the packages, commonly called convection freezing. Blast freezing rapidly passes cold air over packages as they move through a tunnel or when they are stacked in rooms. This method is in most common use by refrigerated warehouses for freezing foods—either from the unfrozen state for a processor with limited freezer capacity or for bringing the temperature of stillfrozen foods back to -18°C after they have been exposed to higher than optimal temperatures. The freezing process can be sped up even further by using a free flow freezing process to achieve individually quick frozen (IQF) product pieces. The unpackaged food is frozen either on belt freezers where air at -40°C blows up through a mesh belt and through a thin layer of small food product pieces or in fluidized-bed freezers where the blast of upcoming air is of sufficient velocity to partially suspend the food. The frozen food pieces are then packaged and moved into cold storage. Very rapid freezing methods, such as using liquid nitrogen for commercial freezing are available but the technologies are extremely expensive. Shrimp, for example, can be frozen by passing them under a liquid-nitrogen spray. The shrimp are conveyed first through a cooling area where nitrogen gas from the freezing part of the process is used to cool the product. The shrimp then come into direct contact

COLD CHAIN with liquid nitrogen sprays at -195°C, for less than 2 minutes. The product then equilibrates to -29°C and is ready for cold storage. This technique, commonly called conduction freezing, can be used for high value vegetables, fruits, shellfish and other food products. Methods that produce quick freezing (IQF, liquid nitrogen) result in better quality food products than do methods that provide slow freezing (traditional freezer room racking). Rapid freezing prevents undesirable large ice crystals from forming in the frozen food product because the molecules don’t have time to form. Slow freezing creates large, disruptive ice crystals. During thawing, they damage the cells and break cell walls and membranes. This causes vegetables to have a mushy texture and meats to weep and lose juiciness. Quicker freezing methods, however, also can be more expensive. Temperature fluctuations during storage and distribution are common in developing countries, allowing product to melt slightly and new, larger ice crystals to form when temperatures drop. Figure 4 is a photo taken during a cold chain assessment in Indonesia where frozen foods on pallets awaiting customs inspection were left out on an open loading dock in a seaport. Traditional blast freezing requires the use of a separate cold room with a door that can be sealed to prevent human entry while very low temperature air is blasted into the room. A recent innovation is the use of forced air blast freezing for packaged foods on individually shrouded pallet loads inside a racked cold room. Industry professionals claim that the slightly higher temperature of forced air blast freezing can be targeted to speed freezing, therefore saving time and energy while reducing labor costs (www. tippmanngroup.com). Energy use efficiency: The energy use efficiency of any cold chain technologies will affect both feasibility and economic sustainability. Approximately 35% to 40% of the energy use for cold storage is used to keep product cool, while the remainder is used to remove the heat coming into the facility from solar radiation, warm air

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COLD CHAIN appropriate agricultural research and development, lack of training programs for capacity building, and the absence of national organizations focusing on the cold chain.

Figure 4: Melting symptoms in frozen chicken shipments in Indonesia during a break in the cold chain (Photo credit: Lisa Kitinoja) infiltration, fans, lights, people, and other equipment, so any measures to reduce heat load will help reduce energy use. A recent study done in the UK looked at chilled, frozen and mixed (chilled and frozen) stores and it was clear from the data that a large range in efficiencies exists. The worst cold store consumed over 8 times as much energy per storage unit when compared to the most efficient cold store (Evans, no date).

will incur more solar heat load than will square, tall, white structures of the same internal capacity. IACSC publishes a wide range of specifications for designs for cold storages and freezers (www. iacsc.org). The British Frozen Food Federation estimates that improved cold storage management would allow the raising of evaporator temperatures from -32°C to -28°C and would reduce energy use by 11% (BFFF 2009).

There are many excellent publications available on the selection of components of refrigeration systems, fans, doors, controls, defrost systems and other equipment (Thompson et al 2002; Winrock 2009). With assistance from the US Department of Energy’s Inventions and Innovation Program, Advanced Refrigeration Technologies (ART) has commercialized an innovative control for walk-in cooler refrigeration systems. The ART Evaporator Fan Controller is inexpensive ($100 to $300), easy to install and reduces evaporator and compressor energy consumption by 30% to 50%.

Impediments for adoption and use of cold chains The use of the cold chain for reducing perishable food losses can be impeded by a wide variety of issues and challenges. Among these are difficult agro-climatic conditions, such as high temperatures in the humid tropics, or extreme heat in dry regions that increase the costs of cold storage construction and power. Social norms may decrease demand for chilled or frozen foods, as in some parts of India where “fresh” means food harvested the same day as it is consumed. If costs and benefit assessments lead people to want to use the cold chain, its adoption can be limited by a lack of access to reliable power, equipment, resources for public and private sector investments, and a lack of qualified human resources. Currently the need for the use of the cold chain in developing countries may be known and even accepted as cost effective, but adoption is low due to a lack of

The choice of construction materials and type and amount of insulation will influence the heat load on the cold storage structure. The design features of the facility, including its color, size, shape and internal layout, can influence heat load and refrigeration efficiency. For example, long, short, dark structures

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Equally important is that there are mechanisms in place so that the increased value created by cold chain investments will accrue to those making the investments. Farmers can be very conservative and often limited in their ability to make investments. In order to invest in even the simplest and lowest cost cold chain elements the farmer, handler or trader must be confident that the market will reward the investment. This may not be the case if, for example, a farmer builds an evaporative cooler but then finds that refrigerated transport is not available. Any added value from using the precooler on farm will be lost during open transport to market. Such breaks in the cold chain are often a major impediment to individual investments in needed cold chain elements. A comprehensive systems assessment is necessary to understand where investment is necessary in any given country to best facilitate the investments made elsewhere in the cold chain. Training and capacity building for cold chain development A recent review of cold chain development points out that “Even in many regions or sites where adequate infrastructure is available, overall knowledge of proper cold chain practices, maintenance (including availability of spare parts), and applications are weak in most of the developing world, and it is generally worst in facilities owned or operated by government than in facilities owned or operated privately” (Yahia, 2010). Yahia (2010) also reports, “There has been reasonable growth in cold chain infrastructure in Morocco, Egypt, and lately in Libya, but in all [developing countries] there is still major room for growth and much great efforts to improve capacity training to form better technicians and to improve applications.” Extension efforts and training needs differ by target group, and there are often difficulties in reaching smallholder farmers, women, youth, middlemen/

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traders and processors. Traders and middlemen have been generally ignored although they have a large impact on temperature management during handling and transport, and therefore upon the final quality of foods and their potential market value. Future extension efforts should seek to include this group of men and women in efforts aimed at adopting the use of the cold chain (Kitinoja et al 2011). Training topics should include: l Commodity systems assessment s (identifying the causes and sources of losses) l Basic practices for reducing losses for perishable foods intended for cold storage l Technical subjects along the cold chain (postharvest handling, refrigeration, cold storage, cold transport, food processing, etc.) l Value chain development (processes and practices) l Management topics (managing labor, equipment, finances, risk, marketing, etc.) l Logistics (interactive complexities of managing a cold chain system) l Engineering (including design, modifications, repairs, maintenance of cold technologies) l Food safety issues (including the potential impact of poor food safety) l Environmental issues l Energy efficiency Capacity-building efforts undertaken in cold chain technology must be made more comprehensive, and include technical knowledge on handling practices, research skills, access to tools and supplies, cost/benefit information, extension skill development (training needs assessment, teaching methods, advocacy), internet/web access, use of IT and cell phones for information sharing and provision of follow-up mentoring for young scientists and extension workers after formal training programs have been completed (Kitinoja et al 2011). And since training and capacity building needs will shift over time as changes occur in agricultural value chains and cold chains, continual formative evaluation to improve programs is needed to ensure capacity building efforts continue to meet the needs of target audiences. Conclusions and Recommendations

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The use of cold is not a cure-all or a one-size-fits-all proposition, but is an important component of an agricultural handling system or value chain in its entirety. Each type of fresh produce and/or food product has a specific and limited storage potential related to its physiological nature and lowest safe storage temperature, and the use of the cold chain can help reach this potential and reduce perishable food losses. Misuse of cold will lead to higher food losses along with added financial losses associated with the costs of cooling, cold storage, cold transport and refrigerated retail market displays. At present, the term “cold chain” is used interchangeably when referring to a value chain for fresh tropical produce (at 12 to 18°C), chilled fresh produce and food products (at 0 to 4°C), or frozen food products (at -18°C). Costs are much lower, however, when investing in and utilizing a cool chain for fresh tropical and subtropical produce, this difference needs to be better understood by public sector planners and private sector investors. The term “cool chain” should be used when describing the agricultural value chain for handling and distribution of fresh tropical fruits and vegetables. Cool chain investments in simple, low cost technologies such as evaporative pre-cooling, zero energy cool chambers and night-time ventilated cool storage structures are cost effective and easy to manage, leading to increased profits. At present, the use of the cold chain is often avoided by food producers, handlers and marketers due to its perceived high cost. Yet when 25 to 50% of foods are wasted after the harvest, the real cost of production is much higher than it should be. Using “cold” as an investment to prevent food losses can be highly cost effective in comparison to continually increasing production to meet increasing demands for foods. Information on the costs of using the cold chain and on the expected benefits in terms of increased volumes of food available for sale, increased market value and improved nutritional value should be gathered and made readily available to potential users and investors.

COLD CHAIN Most developing countries currently lack the basic infrastructure and educational program needed to support the development of an integrated cold chain for distribution of perishable foods. The public sector should provide funding for investments in basic infrastructure to support cold chain development (i.e. electricity, roads), and for educational programs at the primary, secondary and higher educational levels in order to promote the value of production, handling and consumption of high quality, safe and nutritious foods. Governments should limit disincentives (for example high taxes on imported refrigeration equipment) and invest in those components of infrastructure and education that are currently missing in their development efforts involving cold chains. The use of the cold chain is often avoided by food producers, handlers and marketers due to its perceived complexity and logistical challenges. There is a need to promote awareness and local, national, regional and international capacity building and training of trainers in the proper use of the cold chain. Once the cold chain is in operation, regular access to technical training on cold chain management and cold supply chain logistics will be needed by both the public and private sector. Currently the lack of the use of the cold chain in developing countries leads to high food losses and loss of market value, leaving little profit for farmers, handlers, processors or marketers, while promoting the development of cold chains, could be a good source of new jobs. Producers would benefit as the agricultural value chains for their food products are fully developed, and new jobs would be formed all along the cold chain for those perishable foods for which pre-cooling, cold handling, freezing, cold storage and refrigerated distribution and marketing have been demonstrated to be cost effective. Historically cold chains are often developed and utilized first for exports of higher value commodities and food products, but once in place are also used for domestic handling and marketing. Where cold chains exist for exported food products, they can be used as models for

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education, capacity building and skill development, and expanded to include cold storage and refrigerated distribution of perishable foods for domestic markets. Using the cold chain for improving domestic food supply chains will lead to improved nutrition and food safety while reducing food losses and lowering market prices for the local population. Finally, we need to promote the use of cold chains as a means to prevent the waste of limited natural resources. The resources required for agricultural production (i.e. land, water, fertilizers, fuels, other inputs) are becoming more scarce and costly, and 25% to 50% of the resources used to grow these foods

are being wasted when perishable foods are lost before consumption. Investments in the cold chain prevent the loss of foods after they have been produced, harvested, processed, packaged, stored and transported to markets, which greatly reduces the need for increased production to meet the predicted growth in future demand. Reducing food waste also saves the water, seeds, chemical inputs and labor needed to produce the food that is currently being lost. As local and global resources become scarcer and more expensive, preventing food losses will become even more cost effective than it is at today’s resource prices. Public and private sector investors need to take into consideration how investing in the use of

COLD CHAIN the cold chain can generate savings due to the reduced need for constantly increasing food production to meet rising consumer demand for perishable foods. Acknowledgements The author thanks Drs. Hala ChahineTsouvalakis, Kerstin Hell, Devon Zagory, Deirdre Holcroft and James F. Thompson for their reviews of the early drafts of the manuscript. Dr. Adel A. Kader, who provided technical input and general guidance for developing this White Paper and related publications, passed away in December 2012 -- he will be greatly missed by those of us who worked with him during the 40 years of his inspiring career in postharvest horticulture.

“NE can become the Largest Producer of Organic Foods in the World,” Gen. V.K. Singh “NE can become the largest producer of organic foods in the world,” Gen. V.K. Singh told the National Cold Chain Summit at Guwahati.“Food processing and cold chain storage are of utmost importance to NE,” Singh said, adding that 40 per cent of food in the country was wasted due to lack of storage facilities. He emphasised on the need to establish cold chain, which would work as market links and be beneficial to both farmers and consumers. Gen. Singh is the recently appointed Minister of State for Development of North Eastern Region (DONER) holding independant charge. Speaking on the occasion, Secretary to the Ministry of Food Processing Siraj Hussain spoke about giving government support in creating cold storage units in North East. “Return in this business is very low. Power availability in NE is a problem. So at least for next five years, government support is needed,” he said. According to a study in 2010, the gap

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of such facilities stood at 30 million tonne, while the country could add only 10 million tonne in 10 years, Hussain said. He urged Singh to increase the current limit of Rs 10 crore grant given

to an individual creating such a facility. Hussain also requested that the grant given for building non-horticulture cold storage given by state governments, be raised from the existing Rs 4-5 crore.The summit was also addressed by the CEO and Chief Advisor of National Centre for Cold-chain Development, Pawanexh Kohli, who riveted the audience with his

explanations and he offered a grand vision for the North Eastern region. In creating a cold chain network, he stated very clear bottlenecks specific to the region. He continued to envision a network comprising of 500 pack house interconnected with a few hubs by almost 200 small refrigerated vehicles and very few hubs in the large cities. He spoke of railway connectivity as a necessity and congratulated the North East for receiving attention on this aspect in the Union Budget of 201415. Mr. Kohli alleviated many misconceptions about the cold chain at this summit. he explained the wide spread economic impact that cold chains can have for this region.This summit was organised by ICC (Indian Chamber of Commerce) on behalf of Ministry of Food Processing Industries (MFPI) and National Centre for Cold chain Development (NCCD). The summit was attended by an audience that came from all the States in this region.

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www.foodbevtech.com

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• Process Techhnology Automation • Packaging Technlogy • Automation • Processing Control & Regulation Technology • Food Retailling • Food Safety & Quality Mangement • Environment Technology, Biotechnology • Conveying Transport & Storage Installations • Dispensing & Vending Machines • Food Service

• Manufacturers/Importers and wholesalers of Food & Beverages • Dairy Products • Bread and Bakery • Oil & Fats • Frozen Food / Chilled Food • Fine Food / Gourmet • Fish & Sea Food / Meat & Poultry • Trade Agencies • Nutraceuticals Products / Organic Foods • Functional Food • Ingredients, Colours & Additives

Visitor Profile • CEO’s & Top Executives from Food & Beverage Industry • Sr. Executives from Production, Quality Control, Maintenance • Purchase Departments • Professionals from R & D Institution, Supply Chain Distributors • F & B Managers etc. • Top officials from Regulatory Agencies of Central & State Governments • Food & Beverage Consultants • Hypermarkets / Supermarkets • Grocery Stores / Convenience • Stores / Retailers • Departmental Stores • Food and Drink Importers / Distributors / Wholesalers • Foodservices and Hospitality Counsulting • Hotels / Resorts Management • Foodservice Government, Military, School, Hospital • Foodservice - Industrial • Bakeries / Confectionaries

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Confederation of Indian Industry (WR) 105 Kakad Chambers, 132 Dr Annie Besant Road, Worli, Mumbai 400 018. Phone : +91 22 24931790 • Fax : +91 22 24939463 / 24945831 • Web: www.cii.in

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Beverages news

Juices in India surpass the Sugar content of Colas

recent report by Euromonitor said the beverage industry in India “continued to record further growth in 2013 in India mainly due to growth in juices, and bottled water.” Retail sales of juice grew by around 23% in 2013 over last year, albeit from already low market penetration. Carbonates, on the other hand, registered only 11% growth in 2013.While juices have vitamins and minerals that are healthy, they aren’t as healthy as they are perceived by many Indians. They are just “lesser of the two devils.In absolute numbers, carbonated beverages are still the next most preferred drink after bottled water. In fact, India became Coca Cola’s sixth largest

market in the world earlier this month. In fact, many of the packaged juices—a booming market in India—contain more sugar than carbonated drinks. That’s a departure from developed economies like the US where labels on beverages frequently boast “100% juice” or “no sugar added.”According to Euromonitor, regular juice brands, or nectars (having 25-99% juice content) is the fastest growing segment in juices as they are cheaper compared to juices with 100% fruit content? Also, they offer a range of flavors some which are not available in 100% juice.In recent years, scientists have come to view sugar as the main villain in the obesity epidemic. There are calls in many parts of the world to add health warnings to sugary drinks such as juices and colas, and some legislation is already being passed. Packaged juices, in addition to high sugar content, lack fibre and, at times, contain chemical preservatives.India is the third most obese country in the world after U.S. and China, according to a recent study by Lancet.

Indian Enhanced-Water Sector geared up for Brand-building

s Danone India, is making up brand-building plans to promote its fortified water brand B’lue, Bisleri International is all set to enter in the enhanced-water segment within six months. Meanwhile, Coca-Cola India is exploring the possibilities of launching its global enhanced-water brands in India. In 2007, Coca-Cola acquired New York-based Energy Brands with brands such as Vitamin water, Fruitwater and Smartwater.Tata Global Beverages (TGBL), with its joint venture partner PepsiCo India, is now getting ready to roll out Tata Water Plus across the country,

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after its tenure in nutrient water brands Tata Water Plus and Tata Gluco Plus in South.In essence, the R300-crore value-added water sector in India would witness a lot of action in the coming months. Recognizing the growth potential of this sector, FMCG companies are sharpening their focus on this niche segment to woo health-conscious consumers. At present, major players in this sector include, Danone’s B’lue, Tata Water Plus and Tata Gluco Plus.After test marketing for over a year, Danone Narang Beverages, a joint venture between French foods major Danone and Mumbai-based Narang Group, launched B’lue in 2013.Across the road, Parle Bisleri is putting in place its strategic plans to foray into this niche sector within a few months. Like Danone, Bisleri is extending its distribution by

Colorless Coke can generates Internet buzz, again

he Internet is abuzz over a colorless Coca-Cola can created by designer Harc Lee of the Ryan Harc design studio back in 2009. Images of the can circulated on social media this week -as they do from time to time - after the can was mentioned in the press.The can is stripped of the red and white paint that appears on the typical Coke can, but features convex versions of the logo and branding messages, thus remaining instantly recognizable.Lee designed the can on spec as an experiment. The intention is to reduce harm to the environment by eliminating the need for paints on billions of Coke cans produced around the globe.There’s something about Coke containers that speaks to artists and designers. Lee’s can joins Warhol’s masterpiece, the bottle made of ice, and the bottle designed to help you make friends in the annals of design history.There’s also something about Lee’s work that causes it to resurface every once in a while, allowing a new group of people to see it for the first time. The result is always the same - people really love the can. And it’s actually quite surprising that at this point Coke hasn’t actually produced any soda using Lee’s idea. 30% to promote its new launches.A Coca-Cola India spokesperson said the company is evaluating opportunities to enter this niche segment in India. ‘When the time is right, we can rely on our global portfolio of brands and products to choose a suitable option,” he added.Nourish Co, the 50:50 JV between TGBL and PepsiCo India, has built a pipeline of innovations that will be used to fuel growth.

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food processing news

Skill development in the Area of Food Processing by CSIR-CIFTRI

ood processing being a sunrise sector has a large potential for growth and employment generation in the country. However, lack of adequate skilled manpower is felt in this sector, especially with SMEs. CFTRI, a premier research institution in the area of food technology has large knowledgebase, state-of-art infrastructure and experts associated with different areas.Though, the Institute has been catering to industries in terms of

post-graduate/certificate and short-term programmes, there was no programme targeted to matriculate/unemployed youths and new entrepreneurs. It is proposed to conduct 2-3 such programmes annually to enhance the skill sets which are valued by SMEs. The areas identified are fruit and vegetable processing and bakery products. Specific skills it is proposed to impart include; Preparation of select fruit products such as osmodried fruits, jam, sauces, ketchup and preparation of select bakery products such as bread, bun, cookies, cakes, rolls and puffs.This course is suitable for unemployed youth who wish to venture into bakery and fruit processing area and also people working in tiny and small industries and would like to enhance their skill in the area of processing.Though the institute has been catering to industries in terms of

CFTRI Organises skill development program for Food Processing Sector

FTRI to address the shortage of skilled manpower in the food processing sector. It will organise a survey on the skills needed to be developed among people through its skill development programmes (SDP).Although considered a sunrise industry, the food processing sector in India is plagued by a shortage of skilled manpower. With a view to address this specific problem through its SDP, the CFTRI is organising the survey.To begin with, the programme

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intends to impart specific skills required by fruit and vegetable as well as bakery industries. The survey is in preparation for an SDP that is being planned by the premier research Institute, CFTRI Head of Information & Publicity P K Gupta said today.Specifically, the programme will help gain skills in preparation of select fruit products such as osmodried fruits, jam, sauces, ketchup and, in bakery, preparation of products such as bread, bun, cookies, cakes, rolls and puffs.In an inclusive planning action, the CFTRI invites food processing industry personnel and the public to participate in the survey on SDP required by the food processing industry. Interested persons can take part in the survey and provide their inputs.

post-graduate, certificate and short-term programmes, there was no programme targeting matriculates, unemployed youth and new entrepreneurs. The survey is in preparation for an SDP which is being planned by the institute. Although considered a sunrise industry, the food processing sector in India is plagued by shortage of skilled manpower.The three day course is proposed to be conducted at CSIR-CFTRI, with a nominal fee of Rs. 2000-2500. Prior to initiating the course, a survey was uploaded on the instituteâ&#x20AC;&#x2122;s website, and the sector and public were invited to share their inputs.

Jammu and Kashmir reviews the Food Processing Projects implemented by Govt of India

hurshid Ahmad Ganai, Financial Commissioner, Industries and Commerce reviewed the implementation of government of India schemes for food processing in Jammu and Kashmir.The meeting reviewed the projects relating to setting up of abattoirs, up gradation of meat shops, fruit collection centres and food processing units.The meeting noted the status regarding the abattoir at Srinagar. Secretary Housing & Urban Development and Director Horticulture informed the meeting that they had received several applications for Modernization of Meat Shops in response to the advertisement through print media by Mission Directorate.The meat shops are eligible for financial assistance up to Rs 5 lakh for modernization according SIDCO. The Financial Commissioner directed that the applications received should be forwarded to the Mission Directorate (J&K SIDCO) so that they could be examined and placed in the next meeting of SLEC for approval.He directed the Mission Directorate to utilize all the funds at the earliest so that further funds could be received from GOI.

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Sea food news

India’s Vennami Shrimp changes the game in global Seafood Market

ndian seafood exports are seen robust and estimated to increase substantially due to higher demand for vannamei shrimps as other countries in South East Asia battle the early mortality syndrome (EMS). During financial year 2013-14, exports of marine products reached an all-time high of $5007.70 million. Litopenaeus vannamei – have been developed for the first time in India by the Rajiv Gandhi Centre for Aquaculture (RGCA) in Tamil Nadu. Though L.vannamei is native to the Pacific coast of central and south America, it is popular among shrimp farmers worldwide due to the availability

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of selectively bred fast growing improved quality specific pathogen free (SPF) and specific pathogen resistant

(SPR)Total seafood exports in FY13 aggregated to 9,28,215 tonne valued at R18,856.26 crore or $ 3511.67 million.

Marine product exports crossed all previous records in volume, rupee value and $ terms largely due to impressive performance by aquaculture exports, Anwar Hashim, MD of Abad Fisheries and former president of the Seafood Exporters Association of India, told. “Production of vannamei has helped Indian exports in remaining competitive. EMS in other countries helped India capture a larger share and hopefully we would see better performance this fiscal,” he added.The overall export of shrimp in 2013-14 was to the tune of 3, 01,435 tonne worth $3210.94 million. The contribution of cultured shrimp to the total shrimp export is 73.31% in dollar terms. The export of cultured shrimp has shown growth of 36.71 % in quantity and 92.29 % in dollar terms.The export of vannamei has shown growth to 1,75,071 tonne from 91,171 tonne and $1,994.27 million from $731.01 million compared to 2012-13. The export of vannamei recorded a growth of 92.03% in quantity and 172.81% in dollar terms. More than 44% of vannamei shrimp was exported to the US followed by 17.07% to EU, 16.54% to South East Asian countries and 4.01% to Japan in dollar terms. Export of black tiger shrimp reduced from $521.33 million to $435.79 million and 61,177 tonne to 34,133 tonne compared to last year.

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agro processing News

A looming Harvest shortfall will likely keep Peanuts prices firm

espite being high in oil and protein content, groundnut (peanut) has lost out to other oilseeds in the complex, such as soyabean and canola in the global oilseed market in recent years.Support in terms of policy, investment and research for this oilseed has declined. No wonder, global peanut production has been languishing at around 39-40 million tonnes in recent years, a mere 8 per cent of aggregate world oilseeds production versus, say, soyabean that accounts for a whopping 60 per cent. Foreign trade in meal is 6.5-7.0 million tonnes while that in oil is about 5.5 million tonnes.

Trade in kernels is negligible at about 2.5 million tonnes.The food use of the oilseed is expanding rapidly. Bold varieties (usually hand-picked selected kernels) are now being increasingly diverted for food use or as table nut in the company of almond, cashew nut and pistachio; or consumed as roasted, salted or coated nuts. It is estimated that out of the kernel production of 50-55 lakh tonnes, food use currently stands at an estimated 12-13 lakh tonnes or about a quarter.Fluctuating

Provision of subsidy for to address post Harvest Losses

overnment has taken several measures to address the issue of post harvest losses which include.Incentivization of post-harvest infrastructures including construction/renovation of cold storages through credit linked back ended subsidy scheme of Mission on integrated Development of Horticulture (MIDH).It is providing subsidy for construction of cold storages as part of Integrated Value Chain (IVC) under Agriculture Marketing Infrastructure (AMI) subscheme of Integrated Scheme of Agricultural Marketing (ISAM),The Ministry of Food Processing Industries (MoFPI) is also implementing a scheme of cold chain, value addition and preservation

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infrastructure to provide integrated cold chain and processing facilities from farm gate to consumers,Also Ministry of Commerce through APEDA provides

assistance to private companies for setting up infrastructure including specialized cold stores,CIPHET has

production from year to year has also meant volatile market conditions.India exports 2-3 lakh tonnes of groundnut kernels every year not to the traditional premium markets in Europe, but to the less fastidious markets in SouthEast Asia.The minimum support price for groundnut in-shell stood at 4,000 a quintal in 2013-14, having been raised successively from 2,300 a quintal in 2010-11. However, the increase has not triggered any productivity gains as yields still languish at about one tonne per hectare while the world average is higher at about 1.6 t/ha.For 2014-15, groundnut in-shell production target is 90 lakh tonnes comprising 72 lakh tonnes for kharif and the rest for rabi season.MSP for kharif season has been kept unchanged at 4,000 quintal. Dry conditions in the principal growing States of Gujarat and Andhra Pradesh the whole of June means there is risk the kharif target may not be achieved. In view of a looming harvest shortfall, industry and trade (oil mills, exporters, local traders) dealing in groundnuts and its derivative products have to exercise caution. Prices are likely to remain firm and potentially move well above the MSP.

established tomato pilot plant facility for providing hands on training to farmers/ entrepreneurs/youth to take up value addition at rural catchment area as food processing venture and also provides trainees with incubation facility to start their own ventures. CIPHET has also been instrumental in design and development of ventilated train wagons for transportation, safe handling and storage of potatoes and in development of evaporative cooled chambers which can be established at production catchment for short duration storage of these commodities.Government has established the National Centre for Cold Chain Development (NCCD) which provides coldchain technical guidance, conducts knowledge dissemination activities and addresses industry concerns on development matters.

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meat & chicken News

Amrit Group of Kolkata to launch “Hy-Line” breed Chicken

mrit Group, Kolkatta-based vertically integrated poultry firm and one of the major broiler chicken producers in the country, will foray into layer breeding segment by launching “Hyline” breed chicken in traditional markets of Tamil Nadu and Andhra Pradesh. K Ravindran, Chief Operating Officer of Amrit Group, said that the Rs 3,000 crore group, partnering with Hy-Line International USA, will introduce the Hy-line breed that were designed to have excellent livability, superior feed efficiency and the highest egg quality,

increasing the potential profit of the growers. India is the third largest producer of table eggs, after China and the US. Layer birds are bred and adapted to Indian climate, and International brands like Bovans, Lohmann and Hyline are present in the market. Around 70 per cent of the layer farming is in southern states, Ravindran said in a release here. The group would focus on three southern states of Andhra Pradesh, Karnataka and Tamil Nadu during this financial year and gradually expand to North and Eastern parts of the country in the coming years. India currently has a layer population of 220 million, with layer chick placement of 12.8 million per month, he said, adding the company aimed to capture 30 per cent market share by 2017-18. The breed is best known for its strongshelled eggs, the best interior egg quality with minimum feed consumption, making Hy-line the industry’s lowest cost producer of eggs.

China Food scandal investigation: 5 took in

n China five employees of Husi Food – the company accused of selling expired beef and chicken to McDonald’s, KFC and other restaurants were detained by police. The scam has expanded now to Starbucks and Burger King.Meat processor Shanghai Husi Food operations at on the outskirts of the commercial metropolis had been closed down by Chinese regulator after local television ran footage of meat being handled by gloveless hands. The media claimed the unit was reprocessing expired meat.

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Sources say that this malpractice had involvement of the senior management of the company. The scandal spread to Japan as it was revealed that MacDonald’s outlets in the island nation sourced 20% of its chicken nuggets from the Shanghai processor.A Japanese convenience store, Family Mart, said ‘garlic nuggets’ supplied by the company were being sold in 10,000 outlets. Nearly 500 outlets of MacDonald’s have removed chicken nuggets from their menu. Both companies said they have stopped using meat purchased from the Shanghai supplier. Starbucks, the coffee chain, and Burger King also said they had sourced meats from the Shanghai-based processor in the past but were not doing so now. The meat supplier is part of a giant Chicago based corporation, OSI Group, which

MEA suggestes free import of American Chicken Legs

ood news for Indian consumers crazy from chicken drum stick or most popularly known as leg piece. Drumstick may soon become inexpensive in India as the ministry of external affairs (MEA) has suggested allowing free import of American chicken legs to start a dialogue on a bilateral investment treaty with the US.Chicken legs have no viable market in the US, where consumers prefer white meat like chicken breast and consider legs as ‘harmful’ red meat.On the other hand domestic poultry industry fears that allowing free import of chicken legs would be detrimental to their interest as it will eventually wipe out our small farmers and nascent industry, India currently has a 100 percent import tariff on cut chicken (chicken legs) and 30 percent tariff on non-cut chicken. Reports, however, have hinted that the US is eyeing the growing market for chicken legs in India once the dispute over import restrictions imposed by India on poultry products from countries reporting outbreak of lowintensity bird flu, is settled by the World Trade Organization.The National Chicken Council estimates that U.S. poultry exports to India could exceed $300 million annually if appropriate, fair market access was provided in accordance with India’s obligations as a member of the WTO. is 62nd in the Forbes list of major US companies.China is MacDonald’s third biggest market in terms of the number of outlets.Yum Brands, owner of KFC and Pizza Hut, is expected to be hit because it is recovering from a 2012 scandal about supplying chicken with excessive quantities of antibiotics, which had drastically reduced sales in China.

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Fruit & Vegetable News

Kashmiri Student develops Technique to increase Fruits’ shelf life

student of food technology has developed a unique ‘low pressure system’ which can increase the shelf life of the fruits.Ashraf Dar, a post graduate in food technology from Islamic University Of Science And Technology Kashmir and his professor came up with this creative thought for Ashraf’s MSc research thesis. He says his innovation can be helpful to fruit growers of valley to keep their fruits fresh for a long duration. According to Ashraf, the main aim of his innovation is to help farmers who cannot afford to send their fruit to the cold stores as a result of which their fruit

Vol. 09 Issue 09 July 2014

is rotten. He has developed the low pressure system using a container and few other things.“In the horticulture sector of J&K many problems of post harvest like handling of fruits, transportation and marketing have cropped up. My innovation if implemented on a large scale, might benefit the apple growers, marketers, consumers of valley and elsewhere,” Ashraf revealed.“I took an air tight container and attached a humidifier to it. And then I attached it to a vacuum pump and oxygen meter. What I do is I expel the respire rate of the fruit and then keep it in the container and then with the help of humidifier I constantly supply oxygen to the fruit. This is how the shelf life of the fruit is increased,” he added.The change in the climatic conditions like prolonged winters, rains etc have been badly affecting the fruits. Therefore, Ashraf’s invention can certainly provide a helping hand to the fruit growers of the valley.“I

am working on a project and through this I can go and tell the farmers how we can increase the shelf life of the fruit and save them from going rotten. Not every fruit grower can afford to send fruits to cold storage which is indeed very expensive,” Ashraf said.Ashraf presented his low pressure system at 9th JK Science Congress held at Kashmir University in October 2013. His invention has been much appreciated by experts of food technology at Kashmir University and other states.“I need help from government so that I can establish a large project at farmer level. I have already submitted my project to innovation cell of Kashmir University. My aim is to give the respiring time to a fruit grower so that he is able to hold his produce for 10 to 15 days without loss of quality and thereby maintaining the harvest freshness. By doing so the fruit grower of the valley will not fall as easy prey to the middle men involved in the marketing of his produce,” Ashraf revealed.

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