Oil & Food Journal March 2015

Page 1


www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


3 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


4 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


5 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


6 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


7 www.agronfoodprocesing.com

CONTENTS

CONTENTS 34

44

41

40

9

45

14

Dalmia Bharat Sugar obtains one more sugar mill in Maharashtra

Growing Indian Alphonso mangoes with hot water

56

54

53

52

51

24 26

50

49

48

47

31

Vol.10 Issue 05 MARCH 2015

20


8 www.agronfoodprocesing.com

EDITORIAL

W EDITOR Manzar Aftab Naqvi CONSULTING EDITOR Basma Hussain GROUP EDITOR Firoz H. Naqvi firoz@advanceinfomedia.com GRAPHICS DESIGNER Pawan K. Varma pkr_varma@yahoo.co.in CIRCULATION Seema Hayat Shaikh seema@advanceinfomedia.com Delhi Sayyed Shahnawaz +91-8375034558 Gujarat Brijesh Mathuria +91-9924546999 GENERAL MANAGER Gyanendra Trivedi PRODUCTION ADVISOR S.I.Haider Marketing & Circulation Office 121,1st floor, Rassaz Multiplex, Station Road, Mira Road (E), Dist. Thane - 401 107 Telefax : +91-22-28555069,Tell.: +91-22-28115068 Mob.: +91-9867992299 E-mail : info@agronfoodprocessing.com sub@advanceinfomedia.com Vol 10 Issue 5 March 2015 Annual Subscription Rs.950/By Normal Post Add Rs. 400 /- for Courier Charges Add Rs. 50/- for outstation Charge Overseas $80 By Air Mail E-mail: sub@advanceinfomedia.com Single Copy Cost Rs. 100/Printed, Published & Owned By Manzar Aftab Naqvi RNI No. MAHENG/2005/15987 Postal Regd. No. THW/50/2014-2016 Regd. Office Advance Info Media & Events 103, Amar Jyot Apartments, Pooja nagar, Mira Road (E) Dist. Thane -401 107 (Mumbai) Printed At Rolleract Press Services A-83,Ground Floor , Naraina Industrial Area Phase -1, New Delhi-110028 The Views expressed in this issue are those of the contibutors and not necessarily those of the magazine .Though every care has been taken to ensure the accuaracy and authenticty in information, “Oil & Food Journal” is however not responsible fordamages caused by misinterpretation of infomation expressed and implied within the pag-

ell I read in a social network post that “cows are safer in Maharashtra than women” after the ban on slaughtering the cows was imposed in Maharashtra. Now along the same line the Haryana Government has imposed a complete ban on the sale of beef in any form and proposed to provide for 10 years rigorous imprisonment for cow slaughter, but ruled out equating it with murder. The move comes days after another BJP-ruled state Maharashtra banned sale and consumption of beef and imposed a five-year jail term for cow slaughter. Even as it looks unlikely that beef traders in Maharashtra will get any relief soon after a new law banned the sale and purchase of bull meat in the State, they have gone on an indefinite strike and boycotted the slaughter of buffaloes, which is permitted under law. As a result of their strike, activities at the slaughterhouses across Maharashtra including the Deonar Abattoir — the largest slaughterhouse in Asia located in Chembur, a Mumbai suburb — have been severely hit. As an act of solidarity towards their associates who sell bull meat traders selling buffalo meat, which is permissible under law, have boycotted activities. The ban on bull slaughter and the dealers' boycott of buffalo slaughter has impacted activities and livelihood at the Deonar Abattoir, which is running a loss of Rs. 80,000 to Rs 1 lakh per day. Traditional butchers have been severely hit by the ban, the worse affected in the short-run are the workers engaged with the beef business. These workers, laborers and assistants who work on a hand-to-mouth basis earning wages of Rs 350-400 daily find themselves against the wall. It is a sad situation for the meat industry - which is doing so good internationally- with the people of industry bearing the brunt of politics and religious issue. We need to grow out from these disputes and look into the development of our country. Well while the meat industry of Haryana and Maharashtra is anguished, the central government plans to clear 17 mega food park projects in a month estimated to attract total investments of over Rs 4,000 crore. The government has sanctioned 42 mega food parks, of which 21 have already got the final approval and are in various stages of development, while four have been awarded and are in the process of meeting the conditions for final approval. The government received 72 proposals from various companies, including ITC and Future Group, for the remaining 17 food parks. The final allocation could take place by March-end, they said. It is expected that on an average, each project will have around 30-35 food processing units with a collective investment of Rs 250 crore that would eventually lead to an annual turnover of about Rs 450-Rs 500 crore and a creation of direct and indirect employment to about 30,000 persons. The scheme of food parks aims at providing a mechanism to link agricultural production to the market by bringing together farmers, processors and retailers so as to ensure maximizing value addition, minimizing wastages, increasing farmers' income and creating employment opportunities, particularly in the rural sector. Increasing land prices and delay in getting necessary clearances by state government have hampered the setting up of mega food park projects in the country, for example, the Kolkatabased Keventer Group, Pristine Logistics & Infraprojects and JVL Mega Food Park, which had the requisite approval to set up in Bihar by November 2011, is still in the process. The government provides financial assistance for mega food parks in the form of grant-in-aid at 50% of eligible project cost in general areas and at 75% of eligible project cost in the northeastern region, hilly states and integrated tribal development programme areas, subject to Rs 50 crore a project. In fact MoFPI has been implementing central sector schemes in the country including North-East for providing modern infrastructure for food processing industries. The schemes are Mega Food Parks, Cold Chain, Value Addition & Preservation Infrastructure, Modernization of Abattoirs and Quality Assurance, Codex, R&D and Other Promotional Activities during 12th Plan. This initiative is meant to augment the capacity of the food processors for up-scaling their operations by adoption of new technologies.

es of this issue. All disputes are not to be referred to Mumbai jurisdiction.

Vol.10 Issue 05 MARCH 2015

Some places where people are going for dharnas to save their bread and butter, the govt. is Ministry had also launched a Centrally Sponsored Scheme - National Mission on Food Processing (NMFP) in the country including in the 12th Five Year Plan for development of the food industry. Till next month!!!!!


9 www.agronfoodprocesing.com

PE for Food

Private Equity

in Indian food & agribusiness sector

By: Basma Hussain The air is full with optimism as we enter 2015. This is driven by change in government in 2014, which is working on pushing the economy to 8 per cent 10 per cent trajectory. But accelerating growth from 5 per cent - 10 per cent requires significant investments. I believe that venture capital and private equity has a very important role in the economy, not only as a source of capital, but also to drive the growth and governance among Indian SMEs. Among all emerging sectors – e-commerce, IT, healthcare, education and financial inclusion have been favorite sectors for investors in 2014. I believe that the next sector to watch out for is Food processing and Agribusiness. This article discusses the potential of investment in this sector and the opportunities and challenges it holds for the Private Equity (PE) investors. Private Equity undertaking in India India’s Private Equity industry is just over a decade old, but it has seen a full investment cycle, which includes infusion of capital, gestation (scaling up) and exit. Typically, the investment horizon is of

Vol.10 Issue 05 MARCH 2015

5-7 years, by the end of which a PE firm needs to give back returns to its Limited Partners or LPs (investors in funds created by VC and PE firms.) Exit routes usually take the form of a public offering, a secondary transaction when another PE firm buys from an existing investor, or when a promoter re-acquires the stake. In emerging markets, LPs usually expect returns that are 3-4 times the capital invested. This tried-and-tested formula, however, falls through in India. In the first cycle 2004 onward-we are currently in the second cycle—the PE industry failed to offer successful exits and returns despite the fact that the period from 2005 to 2007 was touted as the golden years of private equity in India. Global investors— attracted by the country’s 8 percent GDP growth—thronged the private investment sector. They bet on large-ticket deals assuming India’s growth (coupled with the aspirations of Indian promoters to crack new markets) would automatically generate returns of 15-20 percent. And with a little push from them, returns could go up to 25-30 percent. But investors have been proved wrong.

Yet, India remains a large and fast-growing market. And PE investors, now much wiser, are becoming more innovative in the way they invest. In the course, they are rewriting the rules of the game.


10 www.agronfoodprocesing.com India’s performance when compared to China’s adds insult to injury. PE investment in both countries started at the same time. India’s grew at a moderate pace reaching $2.6 billion by 2005. China’s started slow but, between 2004 and 2005, reached $9.6 billion. The Lehman bankruptcy in 2008 applied temporary brakes on investments in all emerging markets including Brazil. By 2010, however, China and Brazil regained momentum, leaving India behind. No one was prepared for the slowdown that hit the country from 2008. India’s relative slowdown can be attributed to a number of factors: Significant delays in infrastructure projects, attentiondiverting corruption scandals and the slump in domestic demand. The dearth of successful PE exits, exacerbated by the depreciation of the Indian rupee, may have also affected the market. In 2013, when the rupee dropped below 65 to the dollar, PE investors were sitting on losses ranging from 27-33 percent. They were operating in a market with a constricted pipeline of highquality investment opportunities. Factors that drive investment in agri and food processing sector The integration of the global food value chain has picked up pace with increasing cross border trade and with transfer of technologies, skills and talent from one region to another. Another key factor contributing to this increasing flow of capital is the gradual homogenization in consumption patterns. Internationally, most food brands are positioning themselves on one or more of the three core strategies: health/wellness, taste and convenience. Food processing companies have the opportunity not only to serve domestic market but also regional or overseas markets

Vol.10 Issue 05 MARCH 2015

with same or similar product mix. The improvement in infrastructure for storage and transportation is also facilitating companies to address overseas markets. In turn companies are increasingly able to build scale and develop supply chain and standards acceptable to world markets. India as well as other BRIC countries should continue to be the focus for the private equity investors due to huge domestic demand and scale, potential to export, opportunities to organize the retail end and many consolidation opportunities in the industry. Growing consolidation and strategic interest in the sector

Most multinationals have entered India through acquisitions or joint ventures with Indian companies. The key reasons are that most multinationals find Indian partners to be best positioned to look after farmer relationships and supply chain management, and in any case, after deciding to enter the market, are in too much of a hurry to seek green field growth in a very different economic and cultural environment. The foreign companies invariably bring expertise in research & development, branding, distribution and supply chain management, to the local partners. International players such as Wal-Mart, Metro, Tesco, Lavazza, Starbucks,

PE for Food Schreiber, Lactalis, Hershey’s, Total Produce (part of Fyffes Group), InBev, Heineken, Carlsberg, Anheuser Busch, Tyson Foods, Orkla Foods, Barry Callebaut, Olam International, John Keels, Chr Hansen, Kerry and Dr. Oetker have all entered India in last few years, in order to tap the huge and growing consumer base. The recent acquisitions of Indian companies by international players (Lactalis – Thirumala Dairy, Orkla Foods – MTR, Dr. Oetker –Fun Foods) and joint ventures (Bharti –Del Monte, Tesco-Tata, Godrej-Tyson Foods, Starbucks - Tata) in India are some of the benchmark transaction in the Indian food industry marking the entry of large food players in the Indian food market. I must qualify that it has not been easy for everyone as evident from break up of Bharti and Wal Mart JV; Godrej and Hershey’s and withdrawal of Carrefour from Indian market. Multinationals such as Nestle, Unilever, Danone and Cadbury’s (now Mondelez), who have been present in India for several decades, are reworking their strategy to gain a higher share of the consumer food basket. Most large Indian corporations have invested in some part of Indian supply chain. For example, Tata group is present in pesticides, implements, tea, salt, pulses, fresh produce and retail. ITC has set up e-choupals which not only sell products in the rural markets, but also aggregates farm produce for exports and domestic markets. ITC has also announced foray into dairy sector. Leading business houses in the country including Tata, Reliance, Aditya Birla, ITC and Bharti have announced substantial investment plans in this sector, given the significant growth opportunity.


11 www.agronfoodprocesing.com

PE for Food and private funds. Even if we assume that one third of the equity investment would be in the form of venture capital and private equity (VCPE), this translates into VCPE opportunity in range of $5 billion till 2020 and approximately $800 million per year. For the past few calendar years, the VCPE investment into the sector has been in the range of $150-200 million. Thus, there is a large gap between the existing and indicated level of investment to achieve the growth potential of the sector. To manage risks in the growth scenario, there is need to incubate and test new models for supply and production, and it is difficult to see how expansion of existing companies could occur without a focus on general business improvement and resource management.

The Government of India allows FDI into most agribusiness sectors through the automatic route except for the acquisition of agricultural land, retail and plantations. Food companies entering India can therefore own 100 per cent of India operations in most of the sectors. Given high degree of fragmentation, the sector has seen a number of deals including joint ventures, mergers and acquisitions. The drivers of consolidation have been market entry, expansion of market and product range and achieving efficiency in sourcing and distribution.

per cent of the country’s population and contributes approximately 18 per cent of India’s gross domestic product. With access to a large natural resource base of 161 million hectares of arable land, 15 million hectares of fresh water reservoirs, the largest livestock population in the globe and diverse agro-climatic conditions, India is a highly favorable locus for growth in the food industry.

The industry is ripe for further growth and consolidation. Most large food companies are open for growth by acquisition. Thus, the sale to strategic investors would remain a key exit route for private equity investors.

Speaking generically, the Food and Agribusiness chain comprises agricultural inputs, production, warehousing, logistics, trading, packaging, processing and food retail and services. The total size of the food and agribusiness market in India is currently estimated at $375 billion. Out of $375 billion, approx. $300 billion is food and rest includes agricultural inputs (seeds, fertilizers, and pesticides), animal feed and non-edible products such as cotton, jute, and equipment.

Investment Opportunity for Financial Investor India is one of the world’s largest producers as well as consumers of food products, with the sector playing a critical role in the Indian economy. India’s agriculture sector employs nearly 60

The size of this market is expected to increase in to more than $500 billion by 2020. The investment required to achieve this scale is estimated at $30-35 billion, out of which between 40 per cent-50 per cent will likely be financed through equity from entrepreneurs, government

Vol.10 Issue 05 MARCH 2015

In context of this growth scenario, typical capital requirements of businesses in this sector would be for capacity addition, regional expansion, strengthening of sourcing and distribution network and meeting incremental working capital requirement – and there is little availability of affordable capital left to invest in long term risk mitigation strategies. VCPE—especially at the SME level-is well-positioned to take advantage of many growth opportunities in the Indian processed food sector by providing expansion capital to companies in this sector. Further, by focusing on general business improvement at the same time, investments in this segment will gain substantial increases in their valuation multiples. Given the opportunity in Indian agribusiness, there is beginning to be significant interest for investment funds addressing specifically this sector. In spite of all the positives mentioned above, however, investors need to understand the key issues specific to investment success in this sector. PE in agri industry India’s agri-businesses are increasingly likely to attract more private equity (PE) and venture capital (VC) funds in the next few years. The agri-businesses are predicted to contribute in the region of 6.5


12 www.agronfoodprocesing.com

PE for Food

percent annually to India’s gross domestic product. In recent years the sheer size of the Indian agri-business market has precipitated a surge in PE placements and M&A activity. PE investments in the sector have rocketed from just 0.2 percent in 2008 to 3.8 percent in 2012. Furthermore, during the same period, VC investment has grown from 0.2 percent to 1.6 percent of total investments. PE placements in the Indian agri-business sector also increased from two in 2008 to 12 in 2012. The total PE investment in the sector rose from $38m to $53m during the same five year period. Agri-logistics is another area which has been attracting a great deal of investor attention of late; 2012 alone saw over $60m invested in the sector. The agri-product companies with a presence in edible oils and spices have also attracted particularly high levels of investor interest recently, with more than 40 transactions completed in the sector over the last five years. Overall, the agri-business sector in India attracted around $970m worth of foreign direct investment (FDI) between April 2000 and July 2013, and respondents to the joint survey feel that this trend will continue in the near future. Continuous financial and regulatory support from government, increasing participation of private and public corporates, and increasing exposure of foreign players is likely to spur investments in developing the infrastructure across the value chain right from farm inputs to the consumers. Clearly agri-business has already played a key role in helping to develop the Indian economy. However, the industry has still encountered a number of obstacles which have stymied its growth. Indian agribusinesses are currently characterized by high wastage, poor processing levels and a comparatively low global contribution. The hope amongst Indian businesses, however, is that the country’s food value chain will soon become much more streamlined and integrated, and will play a much more significant role in global markets. However, the industry will only achieve this goal through the “continuous financial and regulatory support from government, increasing participation

Vol.10 Issue 05 MARCH 2015

of private and public corporates and increasing exposure of foreign players is likely to spur investments in developing the infrastructure across the value chain right from farm inputs to the consumers. Historically, for Indian food producers wastage has been a particularly troublesome issue. It is estimated that the loss of primary produce before reaching the market due to lack of proper handling, cleaning, sorting, grading and packaging facilities at village level is around 30 to 40 percent for agricultural. Respondents note that problems of wastage still exist at every stage of the value chain. The fractured nature of the supply chain also results in a steep increase in total costs regarding procurement, transit and service charges levied at various layers of the chain. Consequently, the price received by the farmers is only around 25 to 60 percent of what the consumer pays. India’s share in the global food trade currently stands at around 1.5 percent. In order to improve upon this position and draw in additional investment, the availability of skilled human resources must be improved. The agriculture industry in India is still in desperate need of highly skilled and trained individuals across different levels to help handle and improve various operations. It is

estimated that the Indian food processing industry requires around 530,000 people in the unorganized sector and about 100,000 in the organized sector to handle various food resources at all levels of the supply chain. The public-private partnerships (PPPs) should be fully embraced as a tool to help accelerate development within agri-business. It is in these structures that PE and VC funding could prove to be particularly useful. Indeed, PPPs have already been successfully deployed in areas such as contract farming, drip irrigation and terminal markets, and it is these sorts of innovative measures which have helped to address the challenges associated with the sector and have begun the process of improving the state of the country’s agrarian market. With increased PE and VC investment, these improvements can continue for years to come. PE in food processing Private equity (PE) players are paying closer attention to food processing sector as it is estimated to grow to Rs 4,00,000 crore by the end of 2014-15.


13 www.agronfoodprocesing.com Thirteen deals together worth $184 million have been signed so far this calendar, according to Venture Intelligence, a research Organisation. In fact, PE investments in food processing have more than trebled over the past five years. In 2009, total investment stood at $94 million; by last year it was $352.5 million in 16 deals. The rising appetite for such companies among overseas investors; and the higher

prices that farm goods command could continue to sustain PE interest in the industry. Some segments like logistics and equipment and food products have received the lion’s share of the investments since 2009.Agri-product and food processing companies attract PE interest because “there are several companies and brands that have emerged and acquisitions have also been happening.” Some of the bigger investments include Temasek putting $104 million in Godrej

Vol.10 Issue 05 MARCH 2015

Agrovet in 2012, VKL Seasoning receiving $40 million from India value fund and K S Oils getting $47 million from multiple investors in 2009. Food-logistics and equipment companies, too, have been receiving attention of PE players. The requirement for cold chains, warehouses and refrigerated vehicles is huge. Supply is not enough, and that has opened up an ideal investment avenue for PE funds.

Besides, the segment is getting organized; the ones attracting investments are those with capacities of 10,000 to 15,000 tonnes.On its part, the government has been incentivizing private players to set up warehouses and cold chains to reduce farm-to-fork wastage. Conclusion The Indian food and agribusiness sector is at inflection point. While largely starved of growth capital, especially at the upstream levels, the sector is characterized by significant and accelerating demand, as well as the inevitable rise in Organisation

PE for Food at the retail end. The companies in the Indian food and agribusiness sector have an unprecedented opportunity to scale up and improve profitability. The fund managers with the ability to spot the right deals and capability to value add (market linkages, technology, productivity, supply chain efficiency, financial controls), will profit from this timely opportunity.

The forecast for 2015 and many more years to come is that we are going to witness at least $500 million per annum deal activity in the food and agribusiness sector. This will be in the form of early stage or growth capital. Buyouts in this space are not an immediate possibility. VCPE funds will drive the interest of strategic investors and will set the platform for many M&A’s in years to come. It will have far reaching impact on Indian food and agribusiness in terms of building world-class scale and global food supply chains.


14 www.agronfoodprocesing.com

DairyTech

Cloud based dairy solution to endow milk producers

India recorded a peak production of 132.43 million tonnes in 2012-13, making India the top milk producer globally. A government’s survey indicated that India accounted for 17 percent of the world production of milk. Dairying has been considered as one of the activities aimed at alleviating the poverty and unemployment, especially in the rural areas in the rain-fed and drought-prone regions. The progress in dairy sector will result in a more balanced development of the rural economy. A specific Indian phenomenon is the unorganized sector of milkmen, vendors who collect the milk from local producers

Vol.10 Issue 05 MARCH 2015

and sell the milk in both urban and nonurban areas, which handles ~ 65-70% of the national milk production. In the organized dairy industry, the cooperative milk processors have 60% market share. The cooperative dairies process 90% of the collected milk as liquid milk, whereas the private dairies process and sell only 20% of the milk collected as liquid milk and 80% for other dairy products. But a lot of challenges remain especially for a fast growing country like India. For example, the National Dairy Development Board said that India's annual increase in milk production should be stepped up from current 4.5 million tonnes per year tonne to 6 million tonnes, to meet the demand and solve the nutritional

challenges in the country. The dairy industry in India has its own unique challenges. First, the nature in which the companies collect milk. The milk is collected from remote villages and transported to chilling center and then to processing plants. Maintaining quality of milk throughout the supply chain is certainly a challenge. Second, the dairy companies touch with so many producer community, but has no means to stay connected with the producers. Sustaining the production quantity is important and since dairy companies don’t have insight to the producer, there is no way they can intervene in sustaining uniform production with producers. Thirdly, staying competitive is important


15 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


16 www.agronfoodprocesing.com

DairyTech

for the companies. Field quality issues are diagnosed as post mortem and not real time, producer payment cycle varies from 1 week to 15 days. Data collection is either using paper and involves lot of manual entry. If a few dairies have adopted last mile technology- it is PC based which is not secure allowing access to data to all with no real time details. PC based deployment allows data manipulation which would not be known to the operations manager. Besides

instant payment to farmers. . Technology implementation is what this company trying to address. The key feature of solution given by Thought Focus is that they offer a “CONNECTED” ecosystem for the dairy companies. The real time data exchange platform enables the remote collection centers of the dairy stay connected with the central office. Beyond Measurements solutions is allowing the Dairies to make quick and timely payments to

value for what they produce, because the quality can now be measured at farmer level and instantly delivered to central office. These hi-tech solutions avoid data manipulation and zero downtime in sharing the data and are virus free. Also the Beyond Measurements dairy solution is developed in such a way that all the data is encrypted taking away all manual interventions. As compared to having infrastructure issues as working on desktops, susceptible to virus attacks,

collection and data manipulation, other challenges that the dairy industry faces is that of operational productivity, managing the cooling center, use of utilities in the cooling center.

the producers enabling the Financial Inclusion bit – post the measuring of milk quality and quantity the farmers get an immediate sms alert from the bank. Not just the income for the farmers, this technology helps build trust, value, yield per cattle, it helps the entire ecosystem. Farmers are now getting true value for what they produce.

being dependent on the desktop and not being able to show productivity when it breaks down. Since the dairy companies now have better control on quality, they can now pass additional benefits to the farmers. Not only those, the dairy company can now reward the best performer and help others to perform better. The processor or the dairy owner with our solutions has real time insight on its operations from anywhere at any time which was not there earlier – from having a real time insight on the collection and cooling centres. The system also detects

But now technology is coming to come to the rescue the challenges of the dairy industry. To resolve the issues of dairy owners in India, American firm, Thought Focus has created a cloud-based dairy solution called ‘Beyond Measurements’, which allows farmers to automate the milk procurement process, and enable

Vol.10 Issue 05 MARCH 2015

Unlike the traditional way, where the farmers are paid on average quality ( FAT, CLR, SNF), Beyond Measurement dairy solution enables the farmer realize true


17 www.agronfoodprocesing.com

trends in data. So if there is a willful data tampering favoring one individual, such things can easily be traced. These features help dairy owners and help in addressing the key challenges. ‘’Beyond measurement ‘’ monitor the quality at every stage of the supply chain and this information is made available real time. The companies can now take required control measures to maintain quality in the supply chain very early. The historical data trending also helps them to take immediate actions on special variations. This company allows data collections from the remote centers, which will help to stay connected with the producers and launch many services at the remote locations. Farmers get the true value for what they produce. Also, they get the payment done in less than five minutes. As the data is shared on cloud with the dairy owners, it helps them in operational management and to plan their day ahead. These solutions are

Vol.10 Issue 05 MARCH 2015

helping the dairy owners to engage with producer closely. The personal attention which they can now provide will help loyalty. Say a producer is known to be supplying 250 liters of milk. On one particular day he supplies 220 liters. An immediate intervention is possible with beyond measurement’s solution. The companies can analyze real time on shift

DairyTech

to shift variations for centers, farmers. Immediate intervention is important for a good process.Implementing solution from ThoughtFocus is allowing the dairy owner to see immediate ROI in terms of both bottom and top line. Thought Focus has helped monitoring over 150 million liters of milk over last 30 months. The nature of technology needs is different for big and small dairies. It is different for cooperatives also. So they are addressed separately. Dairy market in India has been growing 3-4% per year, even during global dairy market slowdown. The ICT initiatives in National Dairy plan make it a valuable proposition for Thought Focus to invest in this vertical. Their rich experience in Payment Card Industry has helped to bring in Financial Inclusion for almost 10000 farmers (dairy only) and will include 1 million in next one year.


18 www.agronfoodprocesing.com GROUP

Innovation is life years of excellence

Ensure free flow of powders and concentrates during processing, conveying and packaging Health Foods and Concentrates

Removes moisture effectively. Extends shelf life. • No lumping of powder • No blockage of conveying system • Retain aroma and flavour • Consistent moisture content • No product spoilage ECODRY Desiccant Wheel

Backed by

Service

www.bryair.com

At the heart of it all

ISO 9001:2008 & 14001:2004 CERTIFIED

Phone: +91 11 23906777 • E-Mail: bryairmarketing@pahwa.com CIN: U74210DL1981PTC012456

Leaders in Dehumidification ... Worldwide Vol.10 Issue 05 MARCH 2015

RB/BA/1408FCA1

Call us today for cost effective solutions


19 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


20 www.agronfoodprocesing.com

Startup?

Setting up a Bakery This series will cover a various topics around setting up a Bakery, and in particular an industrial size factory making bakery products. As consultants who were in the industry as manufacturer in the recent past we know on almost all levels the challenges of running a business, and setting up a new or expanding business.

I

n 1999/2000 we expanded our family business to a factory of 14000 m2 and after selling the business in 2009 we have consulted in Germany, Zambia and Belgium in setting up completely new industrial bakeries. The three businesses out of our practice had 2 things in common: • the business was new to the industry • the technology was new to the business, its owners and its staff From our five experiences (including our 400 m2 test bakery/ lab) we will share our knowledge with regards to this topic.

Vol.10 Issue 05 MARCH 2015

The basics: Products and Business plan This might be too obvious, but you’d be surprised how many people start a business just out of a gut feeling. We have no problem with that, but next to getting paid our fees we like to see our customers prosper. Only recently we developed over 100 new products for a customer, where the brief was: “only the best quality and price is not important”. Within 3 months after scaling up they found out that the main competitor had reduced their prices to block the new entering business; making approximately 1/3 of all development, training and coaching efforts directly obsolete and a divestment;

in this case and estimated value of around € 100k. It helps if there are already 1 or 2 customers on board, who are willing to wait until you’re ready; but we know this can’t be always the case. When you’re expanding current business this will be more often the case. When being new to the business, it’s very important to do the homework on: • Who are the potential customers and consumers? • What are their needs? • Where are they based? • How do you get to them?


21 www.agronfoodprocesing.com

Startup? successful enough to agree on a start 6 months later. In these 6 months the factory and equipment layout needed to be made and built, tested and run. After three months we were invited again and had to redevelop to new briefings, train the staff and scale up the production; only 2 months delay for the 1st production line and 3 months delay for the 2nd production line forced the company to immediately start producing with very high cost for fail productions. It took them another 4 months to stabilise production and reduce fail cost to a minimum. The biggest advantage was that they exactly knew what to produce for their customers, this however increased also the pressure: their customers discontinued their current suppliers…. products had to be great and delivered. The stakes were very high for all parties involved. Be aware that this can be too much pressure for some.

• How is the pricing and volumes per country/ area? • Where is the biggest potential (Volume, Flexibility, Price, Area) • What stage of the Product Life Cycle are your future products? • Etc. In short: ask yourself and your peers a lot of question starting with: How, What, Where and Who… After having done this: find someone who is by nature sceptical and will point out to you Critical Success Factors; be open to their criticism and see it as an opportunity to improve your plans. This is a very simple and very difficult step in the process, as it might leave you disappointed and forces you to rethink or even stop your plans. Don’t throw them away, as you will have an opportunity to reflect and some business plans need maturing: The first business plan for Bakery Academy was 5 years old before starting the business… However when all lights are on green you will then find yourself on a crossroad for a fundamental business approach: will you try and sell yourself and your future business without products and/ or production or will you first develop the

Vol.10 Issue 05 MARCH 2015

products and then sell or even first realise production facilities before starting to sell? There is no right answer for this question, as we’ve seen all three variants and all have successfully started their business, but we can share some of the pro’s and con’s to them. Starting a business without products and production facilities: This implies a very well thought project, with tight schedules and a very high pressure (make or break) towards deadlines with customers and production start up. We were involved with a bakery at their start: developed their initial recipes for the 3rd meeting with their customer, which was

Starting a business with developing products before selling: The risks here a lot lower, but you might still be ending up with a product your customer doesn’t want (this happened initially to the inventor of the Dyson vacuum cleaner). You might end up spending (too) much time in a development phase; trying to perfect the product according to your own belief/ interpretations. This approach needs you to manage the development and commercial processes very well. Starting a business with a production facility and without products:


22 www.agronfoodprocesing.com

For Updated News Everyday logon to

www.agrofoodprocessing.com

Vol.10 Issue 05 MARCH 2015


Startup?

23 www.agronfoodprocesing.com

Ever too often nowadays equipment manufacturers sell a production line with a: “Yes, you can make this product on this line.” or you have bought it with a support to make 1 product. However this product is not optimised for your line and raw materials available. You then end up with very expensive black box solutions without a clue how to make a better product. On the other hand you might start developing (with or without consultants) products after you’ve ordered your factory to be built. When after scaling up you see that the time is ready to start selling you might conclude that you would need a certain quality standards to which your factory is currently not suited or that the product has switched to a different product life cycle. The most interesting part we came across is that a product we developed couldn’t be made: the promised functionality of the equipment was not ordered with the ‘full package’ and product design had to reviewed; leading to one of the most successful innovations of that company…. showing that you can’t control everything: which is a good thing! After having shared all this: you still need to decide on some more items. One of the first would be what would

Vol.10 Issue 05 MARCH 2015

your production capacity look like? You will need to decide if it will be 1000 kg product an hour, a shift, a day or a week and what kind of flexibility would you like to have to with it? We’ve seen 2000 kg/ hr were it should have been 5000 kg/ hr and we’ve seen 1000 kg/ hr where 250 kg/hr still would be too much. And sometimes it even might be interesting to not just invest in 1 production line, but be able to put several lines in the factory to easily scale up; this allows you to serve small and big customers/ volumes in the same time. By deciding for multiple lines, you could also order first 1 or 2; making the initial investment lower and more easy to start the business. In the end the flexibility will have a higher investment than 1 production line doing the volume of 4 or 5 lines, but with many uncertainties it could be a more attractive way. Another subject to concern are the Technical or Quality Requirements you would like to full fill or that potential customers demand. Demands for HACCP, BRC, IFS, ISO, GMP, Gluten free, Kosher and Halal have a core that is alike, but differ on other topics. This can imply dramatic costs afterwards, whilst taking them on board during factory and

equipment design. Large retailers have sometimes developed their own Quality Standard, which could be described as BRC+ or IFS+, in the case of a UK, German or French based retailer. The requirements can have major implications to warehousing, personnel facilities (toilets, changing areas, canteen, etc.), segregation of products and process flows, etc. This only implies that if you’re company has the ambition you sometimes need to prepare to be able to easily establish the requirements for those demands afterwards. Of own experience we know that after having realised a working relationship with a high profile UK retailer a lot of money went into rearranging building structure to meet their demands, while would those items been done at the factory design less than 5% of the total cost into rearranging would have gone into building work. By now a complete set of requirements, demands, growth directions and a preliminary product portfolio has been set. And by having done this difficult exercise of formulating this a grown awareness of Critical Success Factors, which will help you as a business owner to focus and plan your project well.


24 www.agronfoodprocesing.com

Company Profile

Scaling New Heights in Food Processing Machinery Business regard to technology. Our main focus is to partner with the best equipment manufacturers and come up with innovative products and offer the same to the customer in order to improve his product portfolio. We are quite ahead of our competitors in the Snacks, Confectionery and Bakery Sector.

Sanjay kumar Managing Director Standard Machinery Marketing Pvt Ltd

Standard Machinery Marketing is a 68 year old company, offering quality Food Processing Equipment from renowned machine manufacturers in Europe. The focus of the company is to provide quality service and meet the customer’s specific requirements by customization and not standardization. The company has customers in all parts of India including neighboring countries such as Sri Lanka and Bangladesh. The company has also spread its wings to the Middle-Eastern Countries for specific projects. The main aim of the company is to offer high quality individual equipment and turnkey solutions to its customers for processed food in various sectors ranging from Bakery, Chocolate, Confectionery, Snacks, Ready to Eat, Fruit and Vegetable. The company participates in National and International trade fairs to showcase the latest innovations in the food sector with

Vol.10 Issue 05 MARCH 2015

We have been extremely successful in the recent years and our latest achievement is the successful trials done at the Test Center of our Business Associates M/s. Rademaker- The Netherlands for the Indian Ethnic Snack ‘Bhakarwadi’. We are very happy that we came out with this successful product based on an Indian Recipe. The raw materials/ingredients were from India and hence we can say that we matched the taste and requirements of the Indian market in general. As per the Bakery Technologistof Onno Kuiper who is incharge of the Indian Market. And who actively participated in these trials, He highlights they key points to be noted in the technology used in making this product: • Work in the most hygienic way, • The use of a special strewer for the masala/spices • A special rolling device to ensure tight rolling • Offering experienced team of engineers and technologist during installation so line will be in use quickly and according to the requirements of our customers • Technological Adaptability to the Indian

ethnic product Rademaker and Standard Machinery have been Business Partners for many years and have captured the market slowly with technology for a diverse range of products ranging from traditional Indian products such as Papad, Chapathi, Khakra, Khari Puff and European products such as Croissants, Baguettes. The greatest strength of Standard Machinery is that we choose our Business Partners after a detailed evaluation on their company and a thorough SWOT Analysis. Since we have been in the Food Industry for so many years experience and knowledge plays an important role in short listing the best principal. Rademaker is the best in the Laminating Technology for Dough Processing in the world and we are proud to partner with them for this market. Below is a brief profile of Rademaker for a better understanding on their range of activities. • Rademaker is one of the front runners in the bakery industry, with global presence and a service that


25 www.agronfoodprocesing.com

Company Profile

requirements of their markets. Designed to produce a wide range of breads, the machine allows fast product changeovers and expansion with customized additions. This way the customer can easily adapt their product range. The Rademaker Flatbread production line is able to produce a wide variety of high quality flatbreads to lusciously topped pizzas. • Croissant production lines were among the very first Rademaker bakery production lines. Today, Rademaker is the recognized leader in flexible croissant lines, guaranteeing large quantities. Over three decades of experience become evident in an unsurpassed dough quality.

Mr.Onno Kuiper Bakery Technoligest Rademaker BV

goes well beyond the delivery and installation of bakery production lines alone. Dedicated, highly skilled and experienced professionals employ the latest engineering technology to provide customers with solutions that allow them to face the future with confidence. Based upon customer requirements, Rademaker food technicians combine customized innovations with the latest standard technology, resulting in flexible production lines and turn-key solutions. • It is no surprise that dough processing holds no secrets to Rademaker. Rademaker solutions are geared towards the customer’s specific dough process and products. The development process starts in the Rademaker Technology Centre, here production processes are tested in an optimal testing environment. Rademaker technologists develop the best products their customers demand and translate these into a Rademaker production line that will yield maximal results in terms of product quality and return on investment, with a focus on ingredient and waste reduction • The Rademaker portfolio contains a wide range of dough processing machines. Rademaker incorporated its bread knowhow into the flexible Crusto bread line that allows its users to anticipate the future

Vol.10 Issue 05 MARCH 2015

• The secret of good croissant dough and pastries originates in the laminator process. Rademaker is an expert in stress-free dough sheeting and handling and has valuable experience in sheeting technology. That is why Rademaker developed four different laminator methods, based on market-driven research and development. Rademaker Laminators guarantee high output and the very best quality. They can be developed both as a block processor or a fully automated laminator. By adding the Rademaker universal make-up line also a wide range of pastry products ca be produced. • Rademaker also offers production solutions for pie and quiche products with their Pie line. • A unique combination of proven and new technology plus attention for detail, all based on customer requirements, guarantee Rademaker to be the perfect partner in the bakery industry. Therefore it is no surprise that Rademaker has proven itself as a worth full partner for the Worldwide baking industry. Standard Machinery recently, participated at the International Foodtec show 2014 at Mumbai organized by Koelnmesse. The company had the biggest stand at the show and hosted a Live Bakery where all Rademaker products were showcased. These products were made on the Rademaker line at one of our client’s factories in the Northern region of India. We transported these products and brought them to Mumbai because we wanted the

people to feel and experience the actual quality of the laminated products made on the Rademaker State of Art Line. We froze these products and baked them at the show on all the days. The response was excellent and visitors were not only interested in the products but also in the technology behind these products. Based on our observations at the show is that the mindset of the customers is changing in a progressive manner and they are willing to invest in quality equipment. There is tremendous potential in the food processing sector in general. The customers are willing to go ahead with State of Art Technology to improve their quality of current products. Our role is to support these customers in the best manner by providing the best service by providing the right solution to the right customer and servicing our customers to the best of our abilities and we will continue to do so.


Energy Booster

26 www.agronfoodprocesing.com

Analysis of the Indian energy drink market By: Basma Husain

E

nergy drinks are widely consumed by adolescents as these claim to improve performance, endurance and alertness. Looking at the contents in the energy drinks and their benefits, the industry may like to relook at what the consumers really need. Increased urbanisation, rising disposable income and growing health consciousness among the Indian youth has increased the demand for non-carbonated drinks called energy drinks. At the same time long and erratic working hours and the increasing occurrence of social gatherings are driving Indian consumers towards consumption of energy drinks which are primarily classified as non-alcoholic, caffeinated beverages and sports drinks. Over the past few years, the sale of energy drinks has been driven by changing consumer

Vol.10 Issue 05 MARCH 2015

lifestyle and increasing demand for alcohol mixers. The market size of energy drinks in India is estimated at about Rs 700 crore, growing 20-25% year-on-year. The carbonated drinks market is close to Rs 6,000 crore and is growing by 10-12% annually, says a report. According to Euromonitor International, with changing lifestyles and increasing paucity of time, urban consumers are relying on energy drinks to cope up with fast paced lifestyles. Most of them would continue to use energy drinks to boost stamina and energy levels. However, it noted that the high price of energy drinks would restrict its growth in tier II and tier III cities. The energy drinks market in India is at a nascent stage and it has huge potential for

growth. There are many and currently the energy drinks market in India is dominated by multinationals with brands like Red Bull GmbH leading the market having off-trade value share of 69%. The other players in this space include Coca-Cola, PepsiCo, Monster Beverage, Spitz KG, Krungsiam Beverage (all multinationals), JK Ansell, K G Functional Beverages, Hector Beverages, Heinz India, Bisleri, Vedantika Herbals, Dabur, Goldwin Healthcare and XXX Energy Drinks (local). Euromonitor observed that although Red Bull remained the leader in terms of value share, it has been losing share to other late entrants including Monster and KS. Amway, a global player in health and nutrition space, too entered the Indian energy drinks market in 2008 by launching


27 www.agronfoodprocesing.com

Energy Booster PET bottles in India. The company noted that Urzza does not contain caffeine but it is fortified with essential vitamins that help tired ones to bounce back with energy fit for all age group. The company, eyeing at sales revenue of Rs 1,000 crore by 2015, has spent two years and put in a total investment of Rs 200 crore for developing and manufacturing Urzza. It will be manufactured at seven locations in the country, five at Bisleri’s own units and two at third party manufacturer, and distribute it through its existing network strength of over five lakh outlets.

Red Bull continued to enjoy the first mover advantage (entered in 2002) and long established presence across the country. Looking at the growth in this niche space, many young entrepreneurs are venturing by launching new range of products targeting young Indian teenagers. In 2012 and 2013, JK Ansell (Raymond Group Company), Monster Energy Drink, and K G Functional Beverages introduced new range of products to tap the double-digit growth in energy drinks market. To add to this trend this year two companies Bisleri International and Poorav Group have introduced their energy drink brands in India. Kolkata-based Poorav group, by partnering with Krungsiam Beverage Company, one of Thailand's largest energy and fruit drinks companies, has launched its energy drink Commando in India in April this year. The product is made available at Rs 85 per 250 ml. The company claims Commando contains 45 gms of caffeine against other energy drinks that normally contain 80 gms of caffeine per 250 ml. To make up for the lower caffeine level, it added 'lysine' — an amino acid produced in human bodies that acts as a catalyst for metabolism — to achieve a similar impact. The company is looking at a sales target of 1.2 lakh cans per day and to achieve this it is setting up

Vol.10 Issue 05 MARCH 2015

a factory near Kolkata, with a capacity to produce 12 lakh cans of Commando. A few months later, Bisleri International, a company that pioneered the concept of mineral water in India, announced its foray into the energy drink segment with launch of Urzza in the first week of September. It would be available in 250 ml cans and 300 ml PET bottles priced at Rs 50 each. Positioned as a liquid charger, Urzza is the first energy drink to be available in

Urzza would be rolled out nationally, targeting major metros, mini-metros, towns and rural markets. The product would be available in general and modern trade outlets, corporate and college canteens, multiplexes, airports, bars, clubs, restaurants, mom-and-pop stores, grocery stores, etc. The company has also planned an extensive 360-degree marketing campaign, involving television, print, digital and outdoor media, which kicked-off during mid-September. Challenges for energy drinks While the market for energy drinks is expanding and is expected to grow further, the drink manufacturers have a challenge of supplying drinks that consumers feel


28 www.agronfoodprocesing.com

   

 

 

   

 

   

 







     



  

Vol.10 Issue 05 MARCH 2015

 


29 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


30 www.agronfoodprocesing.com

Energy Booster drink makers need invest on innovative products which are harmless to the consumers. The energy drink makers need to invest on innovative products which are harmless to the consumers. And even the new government has asked cola giants to look at reducing the sugar content in soft drinks.

ppm (parts per million)).

is safe.

The World Health Organisation (WHO) study published in Frontiers in Public Health on October 14, 2014 also said the health risks associated with energy drink consumption are primarily related to their caffeine content. A caffeine overdose can cause palpitations, hypertension, dieresis, central nervous system stimulation, nausea, vomiting, marked hypocalcemia, metabolic acidosis, convulsions, and, in rare cases, even death. In adults, there is also an increased risk of arterial hypertension and Type 2 diabetes, as high consumption of caffeine reduces insulin sensitivity. High caffeine consumption among pregnant women increases the risk of late-miscarriages, small for gestational age infants, and still births. The WHO study also warns that consumption of energy drinks among adolescents is associated with other potentially negative health and behavioral outcomes such as sensation seeking, use of tobacco and other harmful substances, and binge drinking and is associated with a greater risk for depression and injuries that require medical treatment. The WHO study concludes by saying that the potential health risks related to heavy consumption of these products have largely gone unaddressed. The energy drink manufacturers will have to evolve a strategy to overcome this challenge of gaining the consumers’ confidence that what they are consuming

It is a well-documented fact that many of the energy drinks have a very high content of sugar and caffeine that can make one feel fresh and energetic, and too much of caffeine can cause various manifestations of. Considering the risk factors of having high level of caffeine in energy drinks, FSSAI has already set guidelines for energy drinks. The energy

Vol.10 Issue 05 MARCH 2015

The Food Processing Industries Minister Harsimrat Kaur Badal, requested PepsiCo Chairman Indra Nooyi, to further bring down the sugar content of soft drinks so that the health aspects of such products are duly taken care of. She also suggested that the company should bring out such new products in the market that are tasty as well as healthy and nutritious. Nooyi stressed that they would endeavor to provide products that are healthy and nutritious. The soft drinks industry, which is launching energy drinks, has to address the issues and concerns raised by WHO and other agencies. Otherwise the industry might face many challenges and hurdles. With huge investments coming from cola giants in the coming years, the Indian energy drinks market can witness launch of natural healthy nutrition drinks in the coming years.


31 www.agronfoodprocesing.com

Two Steps Back

Government Policies, not hoarding, responsible for Food Inflation Government Policies fueling Food Inflation

and Discouraging Investments

Vol.10 Issue 05 MARCH 2015

D

o you know, state governments charging 19.5% taxes at first point of sale between farmer and buyer on basic commodities. According to Economic Survey 2015, it is now clear that major cause of food inflation of agriculture commodities is state government policies. It is very strange that where commercial entity like traders are charging about 1 to 2% commission in commercial transactions, so called welfare state working for the cause of consumers and farmers are charging as high as 19.5% taxes as market transaction

tax (i.e. mandi tax) and related charges. Is there any other place in the world where basic agriculture commodities (without any value addition) is taxes so heavily? Modi government is making all attempts


32 www.agronfoodprocesing.com

Two Steps Back

systems to by-pass the high tax regime to survive. High Tax regime is Discouraging Investment: Please see the table below. Punjab is one of the biggest producer of wheat but there is hardly any investment in wheat mill in Punjab. why? State governments are organizing investment submit to attract investment. Why policy makers are not realizing that investors have to compete in open market. It is more sensible for any person to buy wheat flour from other state and sell in Punjab and rather then to do wheat processing in Punjab. It will be worth an effort to study how any mill located in Punjab can survive in wheat milling business without by-passing the local taxes. This will open a new management theory of competitiveness.

to invite investments but not able to make the impact because of these policies of state governments. State Governments survive on taxing basic commodities: Please see the table below. This is more than profit of any highly profitable companies. It is also very strange that state governments blame middleman for price rise and hoarding whereas they are the biggest contributor for black marketing and forcing people to by-pass the tax laws. Why Investment in Food processing is not coming? It is also not surprising to say that the states which are charging high taxes are also not able to attract investment in food processing activities. I will not be surprised if the existing traders and food processing companies in high tax states may be working on

Vol.10 Issue 05 MARCH 2015

Prime Minister is talking about invetsment in food industry, Union Minister for Food processing is from Punjab and from the ruling party in Punjab, but still they are not able to convince the Punjab government to reduce these illogical taxes which hurting Punjab economy. Who is benefiting from High states taxes? In the name of food secuirty state governments are exploiting central government. Is this any different than any middleman exploiting common consumer by creating cartels? Food Corporation of India is milking cow for these states. From the above table it seems that Punjab, Haryana and MP are actually exploiting FCI by charging such high taxes because these taxes are source of revenue for the state. Future of High Tax State is dark: What will happen if FCI will stop buying from these states. Farmers will suffer badly and state economy will crash. As long as FCI will continue to buy at High tax rates, no investment will come to these states. The day FCI will stop buying from these states, there will not be any buyer to buy from farmer. Investment will take time to come. farmers and state

economy will suffer badly. This is also the reason why these state governments force central government to increase Minimum Support price (MSP) because high MSP means more revenue for the state. This is forcing inflation on poor consumers for the whole country. Suggestion: 1. Please do not exploit food security needs of common man by charging heavy taxes on basic foods with rent seeking attitude of state governments. 2. Make state taxes sensible to promote investment otherwise investors will never go for high tax areas. 3. Existing units will also suffer due to competition from low cost regime of other states. 4. This will hurt employment opportunities in high tax areas as well as other revenue opportunities.

For Updated News Everyday logon to www.agrofoodprocessing.com


NEWS

33 www.agronfoodprocesing.com

Mother Dairy declared as a "public authority" by Delhi high court under RTI Act "In the present case, the basic infrastructure of the petitioner’s (Mother Dairy) undertakings waspromoted by funds provided by the Central Government; whether the said funds found their way through NDDB or otherwise is not material. National Dairy Development Board (NDDB) subsidiary Mother Dairy Fruit and Vegetable Private Limited has been declared a "public authority" as defined under the Right to Information (RTI) Act, making it amenable to disclosure of information. The High Court also said that incorporation of Mother Dairy as a wholly owned subsidiary of NDDB was for better management of certain undertakings. A Delhi High Court bench of Justice VibhuBakhru dismissed the petition filed by Mother Dairy Fruit and Vegetable Pvt Ltd, which had challenged the Central Information Commission (CIC) April 15, 2011 order holding it to be a "Public Authority" within the meaning of section 2(h) of the 2005 RTI Act. "The entire equity of the petitioner is held by the NDDB. Thus, even though petitioner's Board of Directors manages its affairs, NDDB would exercise control over the affairs of the petitioner as its principal shareholder. "The power of shareholders of a company to appoint and remove directors results in them exerting real influence over the affairs of a company. The Central Government retains complete control over NDDB and for all practical purposes; it is an instrumentality of the Central Government.

Vol.10 Issue 05 MARCH 2015

"Thus, in my view, the petitioner would also be a public authority on account of being substantially financed by the Central Government," the bench said. "A body which is owned or controlled by an appropriate government would not cease to be controlled by an appropriate government only because an intermediary corporate entity is introduced for better management. Plainly, NDDB is under the control of the central government and the petitioner being a subsidiary of NDDB would be indirectly under the control of the central government," it said. The CIC's April 15, 2011 order had held Mother Dairy to be a "Public Authority" and directed it to appoint a Central Public Information Officer (CPIO) and an Appellate Authority. Senior advocate Arvind Nigam, appearing for Mother Dairy, contended that the petitioner was a company registered under the Companies Act, 1956 and a subsidiary of NDDB. He argued that Mother Dairy had neither received any finances from central government nor does any government hold any equity capital of the petitioner. Therefore, CIC's order that the petitioner was a public authority was "erroneous".

Amul - Asia’s 2nd largest dairy union after 25 years After decades, the Kaira District Cooperative Milk Producers Union Limited (KDCMPUL) popularly known as Amul Dairy has overtaken Mehsana-based Dudhsagar Dairy to emerge as Asia's second largest milk union. Set up in 1946, KDCMPUL is credited for being the cradle of country's White Revolution as it was from milk city Anand - that the co-operative dairy movement took off in the country. All other district dairy unions of Gujarat which are now members of the Gujarat Co-operative Milk Marketing Federation (GCMMF) - the apex body that markets brand Amul - were set up in the decades following 1960. Being the only one, Amul Dairy had enjoyed the 'numero uno' position. But decades after that its position had started slipping with north Gujarat-based dairy unions overtaking it in milk procurement. It is after a gap of 25 years that with a 13.5 per cent growth in its overall milk procurement, Amul Dairy has this year overtaken Mehsana Dairy. It is also after 15 years that Amul Dairy has emerged as Asia's second largest dairy after Banas Dairy which is holding the numero uno position since 2010. Price of imported edible oil slips to fiveyear low; palm oil cheaper by 22%, soya oil 16% Amul Dairy's feat has also broken the myth that rapid urbanization saturates milk collection base in semi-rural pockets. "When Amul Dairy's milk procurement had started slipping it was argued that rapid urbanization in Charotar region and exodus of farmers to foreign shores from the NRI-rich belt are the reasons for the decline. The same argument is given by Mehsana Dairy now. The statistics, however, reveal that if farmers are consistently paid good prices they pay more attention to animal husbandry. Where farmers aren't consistently paid good prices, they move out of animal husbandry," said an expert. While Dudhsagar Dairy is paying Rs 480 per kilo fat to its farmers (members who pour milk at village societies), both Amul Dairy and Banas Dairy are paying Rs 560 per kilo fat to its registered members.


Global Safety

34 www.agronfoodprocesing.com

Food safety regulation: global comparative study

Food safety is a scientific discipline describing handling, preparation, and storage of food in ways that prevent foodborne illness. This includes a number of routines that should be followed to avoid potentially severe health hazards. The tracks within this line of thought are safety between industry and the market and then between the market and the consumer. In considering industry to market practices, food safety considerations include the origins of food including the practices relating to food labeling, food hygiene, food additives and pesticide residues, as well as policies on biotechnology and food and guidelines for the management of governmental import and export inspection and certification systems for foods. In considering market to consumer practices, the usual thought is that food ought to be safe in the market and the concern is safe delivery and preparation of the food for the consumer.

Vol.10 Issue 05 MARCH 2015

Food can transmit disease from person to person as well as serve as a growth medium for bacteria that can cause food poisoning. In developed countries there are intricate standards for food preparation, whereas in lesser developed countries the main issue is simply the

availability of adequate safe water, which is usually a critical item.[1] In theory, food poisoning is 100% preventable. The five key principles of food hygiene, according to WHO, are; 1. Prevent contaminating food with pathogens spreading from people, pets, and pests. 2. Separate raw and cooked foods to prevent contaminating the cooked foods. 3. Cook foods for the appropriate length of time and at the appropriate temperature to kill pathogens. 4. Store food at the proper temperature. 5. Do use safe water and raw materials. FAO/WHO Codex Alimentarius Commission The Codex Alimentarius is a collection of international food safety standards


35 www.agronfoodprocesing.com that have been adopted by the Codex Alimentarius Commission (the “Codex�). The Codex is based in Rome and funded jointly by the FAO and the WHO. In the early 1960s, the Food and Agriculture Organization (FAO) of the United Nations and the World Health Organization (WHO) recognized the importance of developing international standards for the purposes of protecting public health and minimizing disruption of international food trade. The Joint FAO/WHO Food Standards Program was established, and the Codex Alimentarius Commission was designated to administer the program.

Global Safety

to ensure that its standards withstand the most rigorous scientific scrutiny. The work of the Codex Alimentarius Commission, together with that of FAO and WHO in their supportive roles, has provided a focal point for food-related scientific research and investigation, and the Commission itself has become an important international medium for the exchange of scientific information about the safety of food. The standards of Codex have also proved an important reference point for the dispute settlement mechanism of the WTO. See hormones disputes DS26, DS48, DS320, DS321,

finished product to be unsafe, and designs measurements to reduce these risks to a safe level. In this manner, HACCP is referred as the prevention of hazards rather than finished product inspection. The HACCP system can be used at all stages of a food chain, from food production and preparation processes including packaging, distribution, etc. The Food and Drug Administration (FDA) and the United States Department of Agriculture (USDA) say that their mandatory HACCP programs for juice and meat are an effective approach to food safety and protecting public health. Meat HACCP

and sardines dispute DS231.

systems are regulated by the USDA, while seafood and juice are regulated by the FDA. The use of HACCP is currently voluntary in other food industries.

The founders who established the Food Standards Programme and the Codex Alimentarius Commission were concerned with protecting the health of consumers and ensuring fair practices in the food trade. They felt that both of these objectives could be best met if countries harmonized their food regulations and adopted internationally agreed standards. Through harmonization, they envisaged fewer barriers to trade and a freer movement of food products among countries, which would be to the benefit of farmers and their families and would also help to reduce hunger and poverty. They concluded that the Food Standards Programme would be a solution to some of the difficulties that were impeding free trade. The advantages of having universally agreed food standards for the protection of consumers were recognized by international negotiators during the Uruguay Round. It is not surprising, therefore, that the SPS Agreement and TBT Agreement, within the separate areas of their legal coverage, both encourage the international harmonization of food standards. Importantly, the SPS Agreement cites Codex's food safety standards, guidelines and recommendations for facilitating international trade and protecting public health. The Codex Alimentarius is a sciencebased organization. Independent experts and specialists in a wide range of disciplines have contributed to its work

Vol.10 Issue 05 MARCH 2015

Over the years, the Codex has developed over 200 standards covering processed, semi-processed or unprocessed foods intended for sale for the consumer or for intermediate processing; over 40 hygienic and technological codes of practice; evaluated over 1000 food additives and 54 veterinary drugs; set more than 3000 maximum levels for pesticide residues; and specified over 30 guidelines for contaminants. Hazard analysis and critical control points or HACCP HACCP is a systematic preventive approach to food safety from biological, chemical, and physical hazards in production processes that can cause the

HACCP has been increasingly applied to industries other than food, such as cosmetics and pharmaceuticals. This method, which in effect seeks to plan out unsafe practices based on science, differs from traditional "produce and sort" quality control methods that do nothing to prevent hazards from occurring and must identify them at the end of the process. HACCP is focused only on the health safety issues of a product and not the quality of the product, yet HACCP principles are the basis of most food quality and safety assurance systems, and the United States, HACCP compliance


36 www.agronfoodprocesing.com is regulated by 21 CFR part 120 and 123. Similarly, FAO/WHO published a guideline for all governments to handle the issue in small and less developed food businesses.

Solvent Extracted Oil, De-Oiled Meal and Edible Flour (Control) Order, 1967, Milk and Milk Products Order, 1992 etc. have been repealed and amalgamated under the Food Safety and Standard Act.

Food safety standard in different countries

The Act has also established a single reference point for all matters relating to food safety and standards, by moving from multi- level, multi- departmental control to a single line of command. To

India Food Safety and Standards Authority of India, established under the Food Safety and Standards Act, 2006, is the regulating body related to food safety and laying down of standards of food in India. Food safety has become a major global concern. Increased incidences of food borne illnesses are threatening the food security of millions of people worldwide. In order to establish and implement a comprehensive food safety system, it is necessary for a country to enact and enforce appropriate laws and regulations. Food, safety standards can be defined as the requirements and practices for food producers’ manufacturers, handlers, processors, food supply outlets and food consumers for the purpose of ensuring food safety in terms of hygiene and health. India being a developing country needs to focus on food safety more rigorously. Hence, the Food Safety and Standards Authority of India (FSSAI) has been established under Food Safety and Standards Act, 2006 which consolidates various acts & orders that have hitherto handled food related issues in various Ministries and Departments. Various central Acts like Prevention of Food Adulteration Act, 1954, Fruit Products Order, 1955, Meat Food Products Order, 1973, Vegetable Oil Products (Control) Order, 1947, Edible Oils Packaging (Regulation) Order 1988,

Vol.10 Issue 05 MARCH 2015

this effect, the Act has established an independent statutory Authority – the Food Safety and Standards Authority of India with head office at Delhi. Food Safety and Standards Authority of India (FSSAI) and the State Food Safety Authorities are responsible for enforcing various provisions of the Act. China

Global Safety Food safety is a growing concern in Chinese agriculture. The Chinese government oversees agricultural production as well as the manufacture of food packaging, containers, chemical additives, drug production, and business regulation. In recent years, the Chinese government attempted to consolidate food regulation with the creation of the State Food and Drug Administration in 2003, and officials have also been under increasing public and international pressure to solve food safety problems. However, it appears that regulations are not well known by the trade. Labels used for "green" food, "organic" food and "pollution-free" food are not well recognized by traders and many are unclear about their meaning. A survey by the World Bank found that supermarket managers had difficulty in obtaining produce that met safety requirements and found that a high percentage of produce did not comply with established standards. Traditional marketing systems, whether in China or the rest of Asia, presently provide little motivation or incentive for individual farmers to make improvements to either quality or safety as their produce tends to get grouped together with standard products as it progresses through the marketing channel. Direct linkages between farmer groups and traders or ultimate buyers, such as supermarkets, can help avoid this problem. Governments need to improve the condition of many markets through upgrading management and reinvesting market fees in physical infrastructure. Wholesale markets need to investigate the feasibility of developing separate sections to handle fruits and vegetables that meet defined safety and quality standards. European Union The parliament of the European Union (EU) makes legislation in the form of


37 www.agronfoodprocesing.com

Global Safety food safety regulations. In 2006 food hygiene legislation changed and new requirements came into force. The main requirement resulting from this change is that if you own or run a food business in the UK, you must have a documented Food Safety Management System, which is based on the principles of Hazard Analysis Critical Control Point HACCP. United States The US food system is regulated by numerous federal, state and local officials. It has been criticized as lacking in "organization, regulatory tools, and not addressing food borne illness. The Food and Drug Administration publishes the Food Code, a model set of guidelines and procedures that assists food control jurisdictions by providing a scientifically sound technical and legal basis for regulating the retail and food service industries, including restaurants, grocery stores and institutional foodservice providers such as nursing homes. Regulatory agencies at all levels of government in the United States use the FDA Food Code to develop or update food safety rules in their jurisdictions that are consistent with national food regulatory policy. According to the FDA, 48 of 56 states and territories, representing 79% of the U.S. population, have adopted food codes patterned after one of the five versions of the Food Code, beginning with the 1993 edition.[18]

directives and regulations, many of which are mandatory for member states and which therefore must be incorporated into individual countries' national legislation. As a very large organization that exists to remove barriers to trade between member states, and into which individual member states have only a proportional influence, the outcome is often seen as an excessively bureaucratic 'one size fits all' approach. However, in relation to food safety the tendency to err on the side of maximum protection for the consumer may be seen as a positive benefit. The EU parliament is informed on food safety matters by the European Food Safety Authority. Individual member states may also have other legislation and controls in respect of food safety, provided that they do

Vol.10 Issue 05 MARCH 2015

not prevent trade with other states, and can differ considerably in their internal structures and approaches to the regulatory control of food safety. From 13 December 2014, new legislation - the EU Food Information for Consumers Regulation 1169/2011 - require food businesses to provide allergy information on food sold unpackaged, in for example catering outlets, deli counters, bakeries and sandwich bars. United Kingdom In the UK the Food Standards Agency is an independent government department responsible for food safety and hygiene across the UK.[15] They work with businesses to help them produce safe food, and with local authorities to enforce

In the United States, federal regulations governing food safety are fragmented and complicated, according to a February 2007 report from the Government Accountability Office.[19] There are 15 agencies sharing oversight responsibilities in the food safety system, although the two primary agencies are the U.S. Department of Agriculture (USDA) Food Safety and Inspection Service (FSIS), which is responsible for the safety of meat, poultry, and processed egg products, and the Food and Drug Administration (FDA), which is responsible for virtually all other foods. The Food Safety and Inspection Service has approximately 7,800 inspection program personnel working in nearly 6,200 federally inspected meat, poultry and processed egg establishments. FSIS is


38 www.agronfoodprocesing.com

Global Safety of competency code on their certificate. Basic food safety training includes: • Understanding the hazards associated with the main types of food and the conditions to prevent the growth of bacteria which can cause food poisoning and to prevent illness. • Potential problems associated with product packaging such as leaks in vacuum packs, damage to packaging or pest infestation, as well as problems and diseases spread by pests.

charged with administering and enforcing the Federal Meat Inspection Act, the Poultry Products Inspection Act, the Egg Products Inspection Act, portions of the Agricultural Marketing Act, the Humane Slaughter Act, and the regulations that implement these laws. FSIS inspection program personnel inspect every animal before slaughter and each carcass after slaughter to ensure public health requirements are met. In fiscal year (FY) 2008, this included about 50 billion pounds of livestock carcasses, about 59 billion pounds of poultry carcasses, and about 4.3 billion pounds of processed egg products. At U.S. borders, they also inspected 3.3 billion pounds of imported meat and poultry products. There have been concerns over the efficacy of safety practices and food industry pressure on U.S. regulators. A study reported by Reuters found that "the food industry is jeopardizing U.S. public health by withholding information from food safety investigators or pressuring regulators to withdraw or alter policy designed to protect consumers". A survey found that 25% of U.S. government inspectors and scientists surveyed have experienced during the past year corporate interests forcing their food safety agency to withdraw or to modify agency policy or action that protects consumers. Scientists have observed that management undercuts field inspectors who stand up for food safety against

Vol.10 Issue 05 MARCH 2015

industry pressure. According to Dr. Dean Wyatt, a USDA veterinarian who oversees federal slaughter house inspectors, "Upper level management does not adequately support field inspectors and the actions they take to protect the food supply. Not only is there lack of support, but there's outright obstruction, retaliation and abuse of power. Australia Food Standards in Australia requires all food businesses to implement food safety systems. These systems are designed to ensure food is safe to consume and halt the increasing incidence of food poisoning, and they include basic food safety training for at least one person in each business. Food safety training is delivered in various forms by Registered Training Organizations (RTOs), after which staff are issued a nationally recognized unit

• Safe food handling. This includes safe procedures for each process such as receiving, re-packing, food storage, preparation and cooking, cooling and reheating, displaying products, handling products when serving customers, packaging, cleaning and sanitizing, pest control, transport and delivery. Also covers potential causes of cross contamination. • Catering for customers who are particularly at risk of food-borne illness, as well as those with allergies or intolerance. • Correct cleaning and sanitizing procedures, cleaning products and their correct use, and the storage of cleaning items such as brushes, mops and cloths. • Personal hygiene, hand washing, illness, and protective clothing. New legislation means that people responsible for serving unsafe food may be liable for heavy fines.


39 www.agronfoodprocesing.com

NEWS

India’s capital - New Delhi to host the next edition of International FoodTec India & PackEx India India’s capital - New Delhi to host the next edition of International FoodTec India & PackEx India: India’s leading trade fair for food and drink processing and packaging industry from September 14 –16, 2015, Pragati Maidan, New Delhi. Overwhelming response from the exhibitors and visitors and their feedback has lead to the change of frequency and the venue of International FoodTec India & PackEx India in 2015. Starting from 2015, these trade fairs will become annual events that alternate between the locations of New Delhi and Mumbai. This will be an ideal platform to food and drink processing and packaging technology suppliers to explore the promising market of North India. The previous edition organized in 2014 had a total of 466 exhibitors from over 30 countries that presented their products and technologies on the three trade fair days, 48% of which were international companies. In terms of trade visitors, there was an increase of 6% compared tobearlier edition with 12,007 visitors. For the first time most of the key visitors from different industry sectors were present during all the three days visiting at the exhibition and constructively

gathered insights into the technologies for the food and drink processing and packaging industries. International FoodTec India will reinforce its status as India’s most important business platform for the suppliers to the food and drink industry by spreading its reach and stepping in to northern India. Confirmations being received from leading technology and material suppliers to food & drink industry about their participation in the exhibition speaks about the confidence the industry stakeholders have on International FoodTec India.

Government of India, factors like increasing spending on food products; increasing nuclear families and working women; demand for functional / neutraceutical products; growth of organized retail and private label penetration; changing demographics and rise in disposable incomes and increasing urbanization will lead to healthy growth of food processing industry in the years to come. To facilitate this growth, investments in processing facilities is a must by both private enterprises and government. International FoodTec India will highlight the new trends and latest developments catering to the entire manufacturing value chain – processing, packaging, quality management and allied services and solutions.

The food and beverage industry in India is continuously evolving. According to Ministry of Food Processing Industries,

Once organized, this trade fair will be the largest B2B exhibition on food and drink industry and packaging industry, which New Delhi has never seen before. It is expected to attract over 450 exhibitors from over 30 countries and over 12,000 trade visitors from India and abroad – predominantly from the Indian subcontinent.

Using genomics to improve food safety

T

he Consortium for Sequencing the Food Supply Chain will use genetic data to better understand and improve food safety. The metagenomics study will be used to categorise and understand microorganisms and the factors that influence their activity in a safe factory environment. Firstly, the scientists will investigate the genetic ‘fingerprints’ of living organisms such as bacteria, fungi and viruses and study how they grow in different environments such as countertops, factories and raw materials. The data will

Vol.10 Issue 05 MARCH 2015

be used to further investigate how bacteria interact, which the scientists say could result in completely new ways to view supply chain food safety management. “The Consortium for Sequencing the Food Supply Chain has the potential to revolutionize food safety, providing a powerful tool to identify and address new threats on an unprecedented scale, enabling critical breakthroughs in global food safety,” said Dave Crean, vice president, corporate research and development, Mars, Incorporated.


40 www.agronfoodprocesing.com

NEWS

Govt. discussing proposal with IRDA to digitally map farms with satellite for crop insurance

T

he government is preparing to deploy orbiting satellites to digitally map each farmland in the country, data from which will be used to provide tailor-made crop insurance cover to farmers. A senior government official said that a proposal in this regard is being discussed with the insurance regulator, Insurance Regulatory and Development Authority of India ( Irda).

tailor-made insurance cover." A concept note on 'development of plot-level insurance' through satellite technology is being prepared, which will be discussed with all stake holders, the official added. The data will also be useful in providing vital agricultural knowledge

Explaining the move, the official said the idea is to digitally map all of India's farming plots using GPS readings and offer farmers yield-based insurance products, which will cover their individual risks. At present, crop insurance mainly covers the loans taken by a farmer and not his farming activities. "Satellite based estimation model is very important because of small farm sizes in the country," the official said. "Based on the imagery from the satellite, a vegetative index will be determined and after co-relating the data with yield for a particular crop, the yield of the individual farmer will be estimated to work out a

deliberations, adding that working groups at state government level will be set up to chalk out a roadmap. The scheme will be first launched in select states before being taken up nationally in phases. "Discussions are on with Madhya Pradesh and Punjab. The implementation of this model can be initiated from the next rabi period," the official said. The government is also looking to run a pilot model, where in insurers will promote plot-level insurance with a target of around 500 acre per village. The move is in sync with Prime Minister Narendra Modi's call for focusing attention on the health of soil in agricultural areas to boost productivity and bring about increased prosperity.

inputs to the farmers. "Irda will work with insurers to develop a standard product that will be easy to market with terms of settlement to attract farmers," said another official aware of that the

At present, the National Crop Insurance Programme provides for taking up pilot studies to explore the possibility of using modern technologies like remote sensing technology to supplement yield assessment through crop cutting experiments.

Germany to work with Punjab in promoting organic farming

G

ermany will help Punjab in promoting organic farming in the state which is considered to be as the foodbowl of the country. It was agreed in a meeting of a German delegation led by Peter Bleser, Parliamentary State Secretary (Vice Minister) Ministry of food and agriculture comprising representatives of German ministry of food and agriculture, federal parliament and government agencies.

Vol.10 Issue 05 MARCH 2015

The delegation called on Punjab Agriculture Minister Tota Singh.Singh told German minister that Punjab has played a key role in making India selfsufficient on food security front. "Now Punjab and Germany should join hands to promote organic farming in the state," he said. It was also agreed in the meeting that Punjab Agriculture University would exchange technological knowhow with agricultural universities of Germany and would jointly work to come out with new strains of pest resistant crops. Singh said the government is developing custom hiring method through village co-operatives to help farmers and also trying to reduce the use of pesticides to minimize damage to crops. Further elaborating, the minister said the

state government is actively promoting green manures and organic farming and also encouraging local manufacturers to produce machines. He disclosed that the state government is using ground water re-charging to stop depletion of ground water. He also conveyed that the government was encouraging farmers to adopt crop diversification techniques so that their income is enhanced. Bleser in the meeting informed that farmers in Germany are trained to equip themselves with latest know how in farm sector. He also informed that Germany has very advanced technology in seed and animal genetics.


41 www.agronfoodprocesing.com

Adopt new methods to boost agri-production: Modi

P

rime

Minister Narendra Modi said there is a need to adopt new scientific methods to boost agricultural production in the country. The agricultural production can be transformed with the use of new scientific methods, he said while launching the 'Soil Health Card' (SHC) scheme in Suratgarh, situated over 300 km from Jaipur. The SHC scheme will help farmers to know the quality of soil and appropriate usage of fertilisers.

Highlighting the importance of soiltesting, Modi said that "it can help farmers to know what exactly the problem in their land is and how it can be sorted out". "The health of soil needs to be assessed at regular intervals so that farmers add required nutrients to the soil. You (farmers) can have bumper production only if land is fertile," the prime minister said. He called upon farmers to go for soiltesting at least once a year. "Soil-testing can help each farmer to save at least Rs.50, 000 per year," Modi said. He urged the state government to use school laboratories for soil-testing during vacations and teach students about the testing methods. The prime minister also asked other states to set up expert committees on agriculture.

Decision on restructuring the FCIto be taken soon by Food Ministry covers pulses and oilseeds under MSP.

F

ood Minister Ram Vilas Paswan said that, a decision on restructuring the Food Corporation of India will be taken soon.Wehave held meeting with the FCI officials, the agriculture and the fertilizers minister to make a complete decision," he said. A number of recommendations would be implemented by FCI alone, others by the department of food and public distribution and the rest by the various ministries from agriculture to fertilizers. Officials in the food ministry said agriculture officials discussed about relooking and fixing the minimum support price (MSP), which currently covers 23 commodities or just

Vol.10 Issue 05 MARCH 2015

Agriculture ministry officials suggested FCI should start procuring pulses and oilseeds. However, FCI in its response said they were not a part of the public distribution schemes and we have agencies like Nafed to procure other commodities," said the official. The FCI suggested various thoughts and discussed procurement and quality control, said the official. "We wanted to know what the FCI officials feel about the recommendations and how they are planning to implement it," said the official. He added Paswan had asked FCI to give the implementation schedule of setting up silos in the country. The FCI has called for a meeting of its officials in New Delhi on February 17, to chalk out means to support procurement in backward states. Ministry officials said the chemical and fertilizers ministry is yet to submit its views on giving direct subsidy to farmers.

NEWS

Agri minister supports GM crops

A

griculture Minister Radha Mohan Singhsupported genetically modified crops, saying technology holds "great promise" to address crop losses due to drought and floods. While addressing the Indian Seed Congress in Agra, agriculture minister said although commercial release of newer technologies could help boost crop yields and improve farmer income, faster technology adoption could happen only if there is a rational regime for technology pricing and licensing. India has permitted commercial cultivation of Bt cotton, but imposed a moratorium on commercial release of Bt brinjal in February 2010 owing to concerns aired by green activists. The moratorium was imposed by the previous United Progressive Alliance-led government. The National Democratic Alliance government, and right wing-affiliated groups such as Swadeshi Jagran Manch and Bhartiya Kisan Sangh are also opposed to GM crops. In May last year, Singh had said the Centre would allow GM technology only if it is very essential. The Bharatiya Janata Party had in its manifesto for the 2014 General Elections had said it would not allow GM foods without a full scientific evaluation of its long-term effects on soil and production, and their biological impact on consumers. "Apart from increased productivity to produce more from less water and land, the losses that occur due to droughts, floods, biotic and other abiotic stresses also need to be eliminated decisively through adoption of appropriate technologies. In this context, genetic engineering holds great promise," said Singh.


42 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


43 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


44 www.agronfoodprocesing.com

NEWS

Global Stevia Market is Registering a Robust Growth and Expected to Reach US $ 565.2 Million by 2020, By Future Market Insights.

F

UTURE MARKET INSIGHTS (FMI), with sharp focus on emerging regions, delivers key insights into the global stevia market in its recent report titled, "GLOBAL STEVIA MARKET - MARKET ANALYSIS AND OPPORTUNITY ASSESSMENT, 2014 2020". According to the report, theglobal stevia market is projected to grow at a single-digit CAGR during the forecast period, accounting for US $ 565.2 Mn by 2020. Shifting consumer preference for natural sweeteners is a major factor driving growth of this market. Additionally, stevia extracts are finding increasing application in soft drinks and juices, ice creams, and various other products. This is attributed to its high-intensity natural sweetness properties. Due to these factors, share of the stevia market is expected to account for around 15% of the overall sweetener market by 2020. BROWSE FULL REPORT WITH TOC AT: The global stevia market is subsegmented on the basis of the type of liquid, powdered and leaf form. The powdered stevia sub-segment is projected to account for around 65.4% share of the total stevia market by 2020, owing to ease of availability and use. The liquid

stevia sub-segment, on the other hand, is expected to record a CAGR of around

9.0% during the forecast period. All forms of stevia extracts are extensively used in end-use industries such as dairy, bakery, confectionery, beverages, packaged food, snacks and others. Increasing introduction of products with stevia-based sweetener ingredients in various end-use industries is expected to bolster growth of the global stevia market by 2020. Increasing popularity of such products owing to growing modern retail, urbanization, awareness and health concerns and changing preferences of

consumers are major factors driving growth of this market. BROWSE ALL REPORTS BY FUTURE MARKET INSIGHTS: Apart from the application in the food and beverages industry, introduction of products with stevia-based sweeteners across end-use industries such as bakery and confectionery is expected to bolster growth of the global stevia market by 2020. Furthermore, the global stevia market is driven by the need for effective alternatives for artificial sugar-based products owing to changing consumer lifestyle, increasing product visibility in urban areas and approval by the U.S. Food and Drug Administration (FDA) for rebaudioside A as an ingredient in food products in European countries. FMI analyst Vipassa K sheds light on why stevia extracts will become a mainstream ingredient in the global food and beverages industry in the near future. "_Increasing demand for alternatives to synthetic or artificial sweeteners due to health concerns, coupled with rising demand for plant-based sweeteners is projected to fuel growth of the stevia market over the next five to six years_," she said.

Chr. Hansen wins research award at Probiota 2015

A

t this

year’s Probiota congress in Amsterdam, a panel of leading industry experts selected Chr. Hansen as one of three emerging science winners, for their in vitro microbe screening platform. The platform enables identification of microbes capable of modifying the function of human immune cells.

Vol.10 Issue 05 MARCH 2015

These capabilities are expected to exert a health benefit in conditions of excessive inflammation and the platform is currently being expanded to be used in Chr. Hansen’s large bacteria screening programs. Important understanding in developing probiotic products Benedicte Flambard, Vice President, Chr. Hansen Health & Nutrition Innovation, comments on the results: “In the support of our current probiotic products, and in the development of the next generation products, generating high

quality scientific data and maintaining the best possible scientific documentation is key. We build our understanding of all our microbes using multiple in vitro and ex vivo platforms along with manufacturing characteristics and this award demonstrates the importance of such insight.” Ida Mosbech Smith was also acknowledged for her study at the International Probiotics & Prebiotics Scientific Conference 2014, where she won the “Young Scientist Award”.


45 www.agronfoodprocesing.com

Colorful and healthy: researchers develop two new potato varieties

R

esearchers have developed two new varieties of potatoes which have high nutritional value and are highly suitable for industrial processing. Developed by the Basque Institute for Agricultural Research and Development, NEIKER-Tecnalia, a state-owned, notfor-profit public corporation, the new varieties are striking in appearance: ‘Miren’ has bright yellow flesh and ‘Entzia’ is purple. As well as its vivid color, Entzia is characterized by a high presence of antioxidant components and a considerable quantity of anthocyanins, a pigment with bioactive potential and reported beneficial effects for human health. Entzia is destined mainly for the

specialised and gastronomic market as well as for the foodstuff industry, as it is suitable for creating functional foods, purees and colored fried potato chips. Its concentration of bioactive compounds - phenols and vitamin C, among others - and its antioxidant capacity are significantly higher than in conventional varieties. Entzia also has a high concentration of iron, zinc, potassium and magnesium, with a 100 g portion of the fresh potato containing about 25% of the recommended daily intake (RDI) of iron and zinc plus 17% and 22% of the RDI of potassium and magnesium. The Miren variety performs well during the cooking process, has a good flavor and a firm, smooth texture. Its concentration of carotenes is higher than that of the ordinary commercial varieties. Its commercial potential is further enhanced by its high output, ease of washing, oval shape, striking yellow color and its superficial eyes. Another feature of the Entzia and Miren varieties is their increased resistance to disease, mainly to the ‘Y’ potato virus and pectobacteriumatrosepticum, respectively.

Using genomics to improve food safety

T

he Consortium for Sequencing the Food Supply Chain will use genetic data to better understand and improve food safety. The metagenomics study will be used to categorise and understand microorganisms and the factors that influence their activity in a safe factory environment. Firstly, the scientists will investigate the genetic ‘fingerprints’ of living organisms such as bacteria, fungi and viruses and study how they grow in different environments such as countertops, factories and raw materials. The data will be used to

Vol.10 Issue 05 MARCH 2015

further investigate how bacteria interact, which the scientists say could result in completely new ways to view supply chain food safety management. “The Consortium for Sequencing the Food Supply Chain has the potential to revolutionize food safety, providing a powerful tool to identify and address new threats on an unprecedented scale, enabling critical breakthroughs in global food safety,” said Dave Crean, vice president, corporate research and development, Mars, Incorporated.

NEWS

US Agriculture Department approves genetically modified non-browning apples

T

wo genetically modified varieties of non-browning apples, Arctic Golden and Arctic Granny Smith, may soon be commercially available following approval from the US Agriculture Department. These apples are said to retain their fresh appearance and color without turning brown after being sliced or bruised. The development is expected to increase the sale of apples.The genetically modified apples are being developed by Canadian company Okanagan Specialty Fruits. The Guardian quoted president of Okanagan Specialty Fruits, Neal Carter as saying: "It is the biggest milestone yet for us and we can't wait until they're available for consumers." "After being modified, the GM fruits produce 10% of the PPO of normal apples, which is not enough to turn them brown." The department's Animal Plant Health Inspection Service said that the apples were approved to be sold in the US as they were unlikely to pose a risk to other plants in the form of bacteria, fungi and other threats. The Food and Drug Administration has no mandatory review process for genetically engineered foods and is supervising the new apples through a voluntary consultation with Okanagan. Explaining the browning process of apples, the company said on its website that polyphenol oxidase (PPO) was responsible for the enzymatic browning of both potatoes and apples. After being modified, the GM fruits produce 10% of the PPO of normal apples, which is not enough to turn them brown.However, these new apple varieties have attracted criticism from the Organic Consumers Association (OCA), which argues that genetic changes preventing browning could be harmful to human health. It has already petitioned the USDA to deny approval, adds the publication


46 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015

NEWS


47 www.agronfoodprocesing.com

Odisha aims to increase food processing units up to 25% by 2025 in collaboration with District Industries Centre (Ganjam) and Appex Guide line (NGO). It was sponsored by the State Mission Directorate of NMFP and MSME Dept. of Government of Odisha.

P

anchanan Dash, Secretary, Micro, Small and Medium Enterprises (MSME) Department, Government of Odisha while attending a workshop at the Diamond Jubilee Town Hall said that, the state government targets to increase food processing units in the state up to 25 percent within 2025. He added that various schemes have been implemented and awareness programs are being conducted to promote food processing sector in the state. The one-day workshop on ‘Envisioning the future of food processing industries through MSME development in Odisha’ was organized by the Institute of Entrepreneurship Development of Odisha

Panchanan Dash pointed that National Mission on Food Processing (NMFP) scheme offers lot of opportunities for small and medium industries. He suggested that those who want to make new industries can get loans and government subsidies under this scheme.

Vol.10 Issue 05 MARCH 2015

Government removes minimum export price on potato

G

overnment has decided to remove the minimum export price of potato as its availability has increased and prices have eased in domestic markets. In June last year, the government imposed

Entrepreneurs of small and medium industries and members of Self Help Groups throughout the district attended the workshop. They discussed on new technologies for food processing units, Government schemes, scope and opportunities of export. Director of NMFP for the State NityanandaPalai, Chief Program Officer of Institute of Entrepreneurship Development M.K Sahu, and Director of College of Fishery of Rangeilunda block were also present in the workshop.

Vision Document 2015 to Promote Food Processing Industries

In order to promote food processing industries, increase level of processing and exploit the potential of domestic and international market for processed food products, Vision Document 2015 was prepared by the Ministry of Food

NEWS

Processing Industries, which envisaged trebling the size of investment in the processed food sector by increasing the level of processing of perishables from 6% to 20%, value addition from 20% to 35% and share in global food trade from 1.5% to 3% by 2015. To achieve these targets, an investment of Rs. 100,000 crore was required by the year 2015. Out of which, the share of Government was Rs.10, 000 crore.

minimum export price (MEP) of $450 per tonne on potato to increase domestic availability and cool prices. "Keeping in view of the prevailing lower prices and higher domestic availability of potato, the government has decided to remove the MEP on export of potato," the Commerce Ministry said in a statement. "The removal of existing MEP on potato will help farmers in realizing better and remunerative prices and would also help the exporters in earning valuable foreign exchange for the country through exports," it said. Potato prices are hovering at about Rs 10 per kg in the national capital.

For Updated News Everyday logon to www.agrofoodprocessing.com


48 www.agronfoodprocesing.com

Japan offers help in food processing sector

J

apan’s Mayewaka Manufacturing Company executives met Chief Minister N. Chandrababu Naidu and offered support to the State in bringing technological improvements in the food processing sector. The company’s chairman Yoshiro Tanaka

that Mayewaka would seek Official Development Assistance (ODA) from Japanese government agencies such as METI, MAFF, JBIC, and JETRO& JICA. Mr. Tanaka also informed the Chief Minister about his visit to Srini Food Park in Chittoor district. He told the Chief Minister that Mayekawa has already tied up with 24 potential companies and wants to bring them to invest in AP to construct a Mega Food Park. While Special Chief Secretary (Planning) S.P. Tucker explained the opportunities for investments in the State, the Chief Minister asked Mr. Tanaka to identify a potential site near Krishnapatnam port for exports and enquired about the major food imports required by Japan.

Tamil Nadu has the potential to be the food processing capital of India

T

amil Nadu can be the food processing capital of India, said Dr K Singaravadivel, Director, Indian Institute of Crop Processing Technology (IICPT). Tamil Nadu is the largest producer of bananas and tapioca and second largest producer of coconut and eggs and is also the third largest producer of coffee, tea, and sugarcane in the Country, Singaravadivel, said addressing an "Agri and Food Process Conclave", here. Inaugurating the Conclave K Ramasamy, Vice Chancellor, and Tamil Nadu Agricultural University focused on strengthening India's position in the global food processing industry scenario and reducing high percentage of wastage of the agricultural produce. The food processing sector has

Vol.10 Issue 05 MARCH 2015

undoubtedly the potential to be an industry driver that can transform India's rural economy, but there are a number of constraints both in the forward and backward linkages in the sector, he said. RavindraSannareddy, Chairman, Southern Regional Council, ASSOCHAM, joint organisors of the Conclave, said that the agro-climatic condition in the State made it suitable for growing almost all kinds of agricultural and horticultural crops and setting up of food processing industries. E. K. Ponnuswamy, President, CODISSIA (Coimbatore District Small Industries Association) highlighted the constraints in the backward and forward linkages in the food processing sector and urged Tamil Nadu government to play an important catalytic role in this effort by building partnerships with various Central agencies, bankers, financial institutions and technical and management institutions. Surendra Singh, Assistant Industrial Advisor, Ministry of Food Processing Industries, identified potential areas for investment in Tamil Nadu especially in fruit processing, fruit wines, vegetable industry, and medicinal plants.

NEWS

Global summit on food processing from April 23 to 24 to attract investors in Jharkhand

Industry Department is going to hold a global summit on food processing during April 23 and 24 to attract investors in Jharkhand. Chief Minister Raghubar Das released the posters and booklets of the oncoming summit meet. The CM on the occasion said that the State government would work sincerely towards development of agriculture, food processing, fertilizer processing and IT along with industry growth. Industry secretary Himani Pandey said Jharkhand has great potential in the field of food processing which ought to be harnessed. She said that summit was being organized to bring investors, growers, traders, suppliers and transporters on a common platform. She further said that Jharkhand stands second in the country in the field of Tomato production and notched up sixth place in the field of production of peas. Apart from these, she said, Jharkhand also produces various forest based products. There are good opportunities in the fields of fisheries, dairy, meat production, she said. Himani Pandey went to add that work on Jharkhand Mega Food Park coming up on 65 acres of land near Ranchi would be completed by the end of March. The six primary processing centres at the Park would add up the strength of central processing centre in Ranchi. Women selfhelp groups have done commendable work in the field of poultry in Gumla, she said.


49 www.agronfoodprocesing.com

Dalmia Bharat Sugar obtains one more sugar mill in Maharashtra

NEWS

Food fest in Dubai to be attended by 270 Indian firms and trade bodies

I D

elhi-based Dalmia Bharat Sugar Industries has acquired Ninaidevi SSK, a sick sugar cooperative in Maharashtra's Sangli district, for Rs 24.32 crore through auction process. Its second buyout in the country's largest sugar producing state signifies increasing preference among companies with a national presence and international trading houses for Maharashtra over Uttar Pradesh for new investments.

Confirming the latest acquisition, Pankaj Rastogi, executive director, DBSIL said, "The unit acquired recently has a capacity of 1,250 TCD (tonnes of cane per day). This unit has not been in operation since 2006-07 and we are in the process of overhaul of the same and expect to do a trial run this crushing season during February/March. The expansion plans for this unit will be drawn up after the trial runs."

Dalmia Bharat Sugar Industries (DBSIL), which claims to be among the top three sugar producers in the country and owns three sugar mills in Uttar Pradesh, had entered Maharashtra about two years ago by acquiring Kolhapur-based Datta SSK for Rs 135 crore through auction process. Singapore-listed Olam International had acquired Kolhapur-based Hemarus Industries in 2011 while Karnataka-based Shree Renuka Sugars runs Panchgaga Sugar mill from the same district on lease. Another international sugar trader ED and F Man too had tried to acquire a sugar mill in the past.

The Kolhapur-Sangli belt is known for highest sugar recovery of more than 13%,compared to about 11.5% recovery in the state as a whole and mere 9% in UP sugar mills. Absence of the State Advisory Price (SAP), unlike in UP, is another attraction for the investors in sugar sector.

Dalmia group has already taken possession of the Ninaidevi sugar mill. As against the reserved price of Rs 19.38 crore, the sale price was Rs 24.32 crore," said MS Karnad, managing director, Maharashtra State Co-operative (MSC) Bank.

Vol.10 Issue 05 MARCH 2015

Rastogi said that the company is in the process of stabilizing and consolidating its acquisitions, with no plans at present for further expansion. DBSIL's total crushing capacity - in its three units in UP and the Kolhapur unit in Maharashtra - is 27,300 TCD. The company had planned to invest Rs 210 crore for increasing the capacity of the Kolhapur plant from 2,500 TCD to

ndia has actively and regularly participated in Gulfood and this year is no exception. As many as 270 Indian companies and trade associations, including the likes of Priyagold and Parle, will take part in a major food exhibition here to showcase their products and exchange ideas. In one of the largest such gatherings, besides the indigenous companies and trade associations, many government organizations will be participating in the 'Gulfood', scheduled to be held from February 8-12. Major Indian brands showcasing their products at the expo are Allanasons, Amira, Bonn, Cremica, Dukes, India Gate, Parle, Priyagold, MTR, Mothers Recipe, Ramdev and Rasna among others. The major government enterprises expected to take part in the expo are the Agricultural & Processed Food Products Export Development Authority (APEDA), cashew Export Promotion Council, Coffee Board of India, Indian Oilseed & Produce Export Promotion Council and the Tea Board of India. The assortment of products and services that would be available at the expo range from agro commodities, biscuits, frozen meat, cashew, coffee, fruit beverages, oilseeds, processed food, ready-to-eat foods, rice, spices, tea among others. India is one of the world's major food producers but accounts disproportionally less in the international food trade arena. This indicates vast scope for both investors and exporters, it said.


50 www.agronfoodprocesing.com

Mitsubishi acquires 34% stake in Indo Nissin Foods area of the property, in addition to all buildings and structures, as well as plant and machineries." Mitsubishi said in a statement: "Entering the market for the manufacture and sale of instant noodles, a staple in Asia, will enable MC to establish food processing and manufacturing as one of its core businesses overseas."

M

itsubishi (MC) has announced that it will now hold 34% stake in Indo Nissin Foods, which produces Top Ramen instant noodles in India, for an estimated Rs5bn ($80.22m). The deal will give MC rights over Nissin Foods' operations in Singapore, India, Thailand and Vietnam. MC said that the transaction is a part of its new strategy to expand in the Asian market by forming alliances with leading companies. Managing director at Indo Nissin Gautam Sharma, said that the company's Japanese parent will own majority stake with 66% and will drive the business.

In partnership with Nissin Foods, MC is expected to leverage its vertical integration business model expertise. Mitsubishi has a huge presence across processed foods, frozen and chilled foods, confectionery, pet food and liquor in Japan. Sharma also explained that: "We will leverage the alliance to significantly improve business and profitability through vertical integration of supply procurement, improving cost competitiveness, strengthening distribution network, and building relationships with retailers and distributors." Employing approximately 68,383 people, Mitsubishi is headquartered in Japan and has capital worth JPY204bn.

"ITC will acquire the land and built-up

SLCM Recognized as the Emerging Brand for Rural Impact

S

ohan Lal Commodity Management (SLCM) Pvt. Ltd. was conferred with Emerging Brand Award for Rural Impact at ‘Rural Marketing Forum & Awards’ by CMO Asia on 14th February, 2015 in Taj Lands End, Mumbai during the felicitation ceremony. The award was received by Mr. Sandeep Sabharwal, CEO – SLCM Group. While receiving the award, Mr. Sandeep Sabharwal said, “This award is the validation of our consistent hard work and our relentless effort towards defining the agri logistics industry." Several industry leaders participated & were nominated in different categories. Amongst the winners

Vol.10 Issue 05 MARCH 2015

in other categories were Colgate, JCB, Hindustan Level, Tata Distcoms & Intra Communications. The key idea behind the Rural Marketing Forum is to establish a cost effective reach model and pry into the rural consumer behaviour to optimize the potential. Many leading brands belonging to varied categories such as FMCG, consumer durables, agro chemicals, cement, electronics, telecom, agri tech, etc., shared their knowledge and expertise about the rural market scenario while discussing strategy models and important rural case studies.

NEWS

ITC will enter tea, coffee, dairy biz after foray in juice market

T

he

department of food technology of the Andhra Loyola College (ALC) proposes to offer a one-day training programme soon on food processing for homemakers and unemployed youth in the city. The college mooted the idea after the inauguration of its food technology laboratory. The lab had machineries for making bakery products, ‘khova’ and confectionery and ice cream lines. The lab would soon acquire 15-20 kgcapacity fruit and vegetable processing machineries. G Mathew Srirangam, lecturer in Zoology and co-coordinator for the UGC grants programs, said that participants in the training course would be taught about the science and engineering that added value to food items such as cakes, jellies, breads, etc. They would also be enabled to gain an in-depth knowledge of raw foods and how to handle, process and package them to make them safe, convenient, nutritious and, most importantly, greattasting products, he added. He further said that the training programme would help the unemployed youth and the housewives to get jobs in food processing industries or even start their own enterprises with minimum investment. He said that each participant in the training programme would be charged just Rs 500 and added that the college would also conduct 15 days-toone-month diploma programs during the summer vacations at a minimum of Rs 2,500 to Rs 5,000 per student depending on the duration. All these apart, the department was also allowing interested people to make different varieties of bread, biscuits and cakes on their own using its facilities/ machineries by collecting a nominal charge of Rs 500 a day.


51 www.agronfoodprocesing.com

NEWS

Growing Indian Alphonso mangoes with hot water Britain, so there will be strong export to Britain; other European countries import mangoes from Africa and Brazil," he added.

Fruits and Vegetables gets service tax relief on storage service

Regarding the other four vegetables, he said India has not been able to provide the necessary guarantees yet that the packaging and treatment would be done in a way to eliminate the insects. India's prized Alphonso mangoes will be treated with "hot water" as part of procedures to remove any contaminants like fruit flies before being exported to Europe, especially Britain, where they have a large market, a top EU trade official said Maurizio Cellini, First Counselor, Head of Trade and Economic Affairs team of the European Union to India, has opined that among the procedures India has to abide by to export mangoes to the 28-member bloc is of treating fruit with hot water. Cellini also said that while the mango has been allowed for export, the ban on four other Indian products - eggplant, bitter gourd (karela), taro plant (arbi) and snake gourd (chichinda) - has not been lifted. The EU had last May slapped a ban on the Indian mango and the vegetables following concerns over contamination, mainly from non-European fruit flies. The European Commission voted to lift the ban on Indian mangoes in late January and the final decision was taken on Valentine's Day Feb 14. Cellini said a number of controls have been put in place by India, including some conditions for the packaging. "There has been a commitment by India to treat mangoes with hot water, which was an additional requirement which is apparently important in order to guarantee that the products are free of contaminants like mosquitoes, insects which may come with the fruit," Cellini said. "I know that Indian mangoes are very popular in

Vol.10 Issue 05 MARCH 2015

"Our experts came to India and made an inspection a few months ago. The result of the inspection was that things were making progress for the mango but for the other products they were not there at the right point," he added. On the dragging India-EU free trade agreement negotiations that have been going on since 2007 but are stuck on certain niggling issues, Cellini said that EU is fully committed to negotiations and if completed "it would be a boost to the European Union and to India alike. "There are some difficult points still to discuss and we need to get back to the table and see whether India is willing to consider certain sensitive points of the negotiation which for the EU are important. "If we see positive signals, I'm sure the negotiations can continue and we are hoping to reach a mutually satisfactory solution in a short time," he added. The negotiations are stuck over the EU demand for duty cut on European automobiles, auto components and wines and spirits. India has been asking for greater access to the European markets, mainly the UK and Germany for its professionals. Cellini also said the EU can contribute to the Narendra Modi government's initiatives like Make in India, Smart Cities, infrastructure and renewable energy.

In fact, increase in service tax is the main concern for most players in the FMCG category.The government has given exemption from service tax to certain pre-cold storage services for fruits and vegetables, a move aimed at promoting food processing sector and checking price rise of perishable items. “The tax exemption is being extended to certain pre-cold storage services in relation to fruits and vegetables so as to incentivise value addition in this crucial sector,” Finance Minister ArunJaitley said in the Budget. The Budget document elaborated that exemption would be on services by way of pre—conditioning, pre—cooling, ripening, waxing, retail packing and labeling of fruits and vegetables. The government also clarified that service tax exemption to transportation of ‘food stuff’ by rail, vessels or road, will be limited to foodgrains including rice and pulses, flours, milk and salt. The document added that transportation of agricultural produce is separately exempted, which would be continued.


52 www.agronfoodprocesing.com

NEWS

Liberal imports of oil-seeds need of the hour Can we Make-in-India the bulk of edible oil that we need rather than allowing imports in massive volumes? Can we have a strategyto compress such volumes in the short- and long-term? Edible oil imports from Indonesia, Malaysia, Brazil, Argentina, the US, etc., are likely to touch 12 million tonnes in FY15—an escalation of 45% in quantity terms from 8.3 million tonnes in FY11—and at current prices, they could be $8.5 billion or Rs 53,000 crore. A split-analysis of major oilseeds whose imports spiraled can be seen in the accompanying chart. The cost of value-addition, of crushing of the seeds, is irrationally incurred and paid for because most of it happens abroad, while processing capacity is far in excess at home; this also, therefore, has consequences for employment generation. Against an annual consumption of 20 million tonnes for all types of oils from all varieties of seeds— palm, soyabean, rapeseed (canola), sun flower, rice bran, cotton seed.etc.— the supply-side does not exceed 8 million tonnes. Resorting to massive import of oils is, thus, projected as a necessity rather than the result of flawed policies. Easy imports have veiled domestic supply-demand mismatch. Rational policy-makers cannot ignore the fact that with a rising GDP and improved lifestyles, the additional demand of edible oil will have to be met, which will be a minimum of 1 million tonnes per annum. At this rate, by 2020, imports may be 1820 million tonnes, of about $14 billion or Rs 88, 000 crore. No reform action to decelerate the importburden has been taken or initiated. Since the futures prices of palm oil dipped by $200 per million tonne and soya oil by

Vol.10 Issue 05 MARCH 2015

$400 per million tonne in the last two years, the government just tinkered with import duties on the higher side at the behest of local industry. For example, these days, the price of locally-produced soya oil from Indian oilseeds is $180 higher than CBOT futures—about 26%. This emboldens inefficient production, which is a negative for the national food economy. Let us introspect on how this situation has evolved. There is relatively cheaper palm oil import from Indonesia and Malaysia on

which the Indian industry and consumers have relied upon. This constitutes 70% of the total imports. But now, discerning consumers prefer superior variety of oils from beans, canola, and sunflower seeds. These could be crushed from GM (genetically modified) seeds as well. The world has moved ahead with GM crops, while politically, and officially, doubts and confusion on GM strains prevail in India. The lab tests and field trials are pending. Our yields/production of oilseeds has not amplified, though agro-economists continue to debate on attaining higher efficiencies with inputs of fertilizer, power and water. Why can’t the inherent efficiencies of biotech revolution be an integral part of the tactical policy for higher productivity? Let producers/

consumers be offered the choice between all forms of crops—conventional (with fertilizer usage), organic and GM. Why are the economies of scale and lower values attainable through advanced technology being denied to the people? Paradoxically, Indian imports contain oil crushed from GM seeds. We are using GM end-products while imprudently excluding the mother-ingredient from Indian agriculture. China annually imports 74 million tonnes of soya seeds and imports almost negligible volumes of soya oil. The EU recently gave its member countries the option of choosing to use biotech seeds. Inhibitions, even environmental, against biotech crops are vanishing fast. Pending a final decision on the use of GM seeds, the solution lies in permitting liberal import of oilseeds—GM or otherwise—for being crushed domestically. The industry will produce edible oil and de-oiled seed cake for both for domestic and overseas consumption. To illustrate, India needs to import about 11 million tonnes of soya seeds to bridge the current gap of 2 million tonne of soya oil (about 18% recovery) in demand and neutralize oil import. This would provide 9 million tonnes of soyameal for trading worldwide. There will be net saving because of the absence of oil import and export of soyameal and the domestic prices of soya oil will also converge with lower international prices—and not reflect a disparity of 26%. Solvent extraction industries may set up port-based plants for crushing beans with the intent to export meal and sell oil domestically—just as some sugar mills process raw sugar into refined sugar in the western and eastern coasts of India for export and local use. This is a win-win situation.


53 www.agronfoodprocesing.com

NEWS

Mondelez buys Enjoy Life Foods Prime lending rate Enjoy Life makes 40-some cookies, snack bars and savory snacks that are free of the eight most common food allergens: wheat, dairy, peanuts, tree nuts, eggs, soy, fish and shellfish.

E

ven the maker of Oreo cookies is buying into the world of health snacks.

Mondelez, which also makes such familiar snack brands as Cadbury, Chips Ahoy and Ritz, announced the acquisition of Enjoy Life Foods, which specializes in allergy-free snack foods. Both companies declined to disclose the purchase price.

For Mondelez, with annual revenue of $34 billion last year, it's part of an effort to improve its products. "We have a critical role to play in empowering consumers to snack mindfully," says Mark Clouse, chief growth officer. By 2020, says Clouse, the company plans to boost its "Better Choices" products to 25% of its revenue; increase the availability of portion-control products by 25%; reduce sodium and saturated fats in its products by 10%; and increase use of whole grains in products by 25%.

In order to improve quality Indian Railways introduces 'Ready to Eat' meals

M

inistry of Railways has decided to introduce service of branded pre-cooked 'Ready to Eat' meals on trains in order to improve quality and hygiene of on-board catering services and also to offer more variety of food to the passengers. According to the guidelines, the Ready to Eat (RTE) meals will include precooked food, frozen food, etc., packaged through modern technology including retort packing which have a shelf life of not less than three months. In the first phase, service of branded precooked Ready to Eat' (RTE) meals/ frozen foods will be served on all Mad/ Express Trains having Pantry Cars as an 'add on' option under the category of a-la-carte to the passengers addition to other standard Items as part of the catering services on payment basis. Shortlisting 'Ready to Eat' brands will be

Vol.10 Issue 05 MARCH 2015

done by North Western Railway on behalf of Indian Railways shall select firms which produce reputed and branded RTE meals/ items so as to provide variety, quality & hygienic RTE meals at affordable price to the passengers across all zonal railways. The CCM/NWR may ensure that the shortlisting of brands is done within one month from receipt of this letter and the 'Ready to Eat' choice is made available for sale latest by 1st march 2015. This policy will be reviewed after one year of successful implementation. 'Ready to Eat' meal items are to be served in sealed and packed conditions to the passengers to ensure that there is no adulteration and contamination of the products due to multiple handling. The licenses shall ensure that 'Ready to Eat' items are served in such a manner that the

for warehouse, food processing projectsreduced: NABARD

N

abard has reduced prime lending rate ( PLR) to 9 per cent from 9.25 per cent on loan to private sector under the Warehouse Infrastructure Fund (WIF) and Food Processing Fund (FPF). It has also reduced the rate of interest from 10 to 20 basis points (bps) on their long term refinance facility depending on the repayment period. The new rates came into effect from February 9, 2015. Loans under WIF are given for providing loans for construction of warehouses and cold storages. On the other, FPF is meant for establishment of mega food parks and food processing units. Nabard has already sanctioned loans valued at Rs 2,500 crore under WIF out of a total corpus of Rs 5,000 crore. It has also sanctioned loan to the tune of Rs 500 crore under FPF which was having corpus of Rs 2,000 crore so far. "While we are hopeful of achieving the target under WIF by the fiscal-end, we may not be able to achieve the projected target in case of FPF for a simple reason that the sector of food processing was not doing well in the country and hence we haven't received good number of proposals under this fund so far," Nabard chief general manager, corporate communication, Surya Kumar told. "We have reduced the rate of interest for loans falling under the long term refinance facility to 10 bps in case of repayment period going beyond 5 years, while it has been reduced by 20 bps in case of loan with the repayment tenure of less than five years,Kumar said. This will facilitate the banks to borrow at concessional rates to enhance their investment credit to the agriculture and rural development portfolio which contributes to the capital formation, he added.


54 www.agronfoodprocesing.com

NEWS

India’s confectionery market to grow 71% in 4 years to grow. According to Canadean’s data, sugar confectionery and gum will outsell chocolate in volume. Gum is expected to increase by 64 percent in volume consumption by 2018, compared to 41 percent growth in chocolate. In terms of value, however, chocolate is still on top.

I

ndia has seen higher disposable incomes in recent years thanks to economic growth and development, particularly in the middle class. This class accounts for 45 percent of the total confectionery consumption in India, more than half of which is gum. “In India, gum is seen as a luxury item, with branded products predominantly available in urban areas,” says Safwan Kotwal, analyst at Canadean. “This is especially true for gum that provides fresh and minty breath, as it portrays a professional and well-groomed image that is becoming more vital to success in the Indian workplace." But geography also factors into India’s growing fascination with gum. The hot climate and soaring temperatures mean people prefer gum and jellies to chocolates, especially in the summer, and it shows in the way the market is expected

“Weather plays a vital role for sugar confectionery and gum sales,” says Kotwal. “However, when translated into value terms, the chocolate market still dominates and is expected to surpass the $1 billion mark in 2018.”

erfetti Van Melle has

developed a new Center Fresh chewing gum line in India the confectioner claimed will give "long-lasting freshness" to consumers.

Vol.10 Issue 05 MARCH 2015

Women entrepreneurs in Nashik are all set to establish a food cluster in the city. The group of women had sent a request to the Maharashtra government seeking its permission for the establishment and after the government’s approval, is now waiting for a space allocation from the MIDC. If things fall in place, it will become India’s first food cluster to be run by women.

That’s in part because chocolate continues to be a favorite among children. While gum is popular with adults, kids still love sweets and toffees, keeping them high in demand. In 2013, kids nine years and younger were responsible for almost a quarter of sugar confectionery and chocolate consumption. “Consumers in this age group, like in any other country, have a preference for sweet tasting products, which will be further enhanced as they develop their tastes and preferences for certain brands and products,” says Kotwal. So despite the growing interest in gum, chocolate will remain a staple in India’s confectionery market.

Perfetti Van Melle adds to Center Fresh gum range in India

P

Nashik to have India’s first allwomen food cluster

Nikhil Sharma, marketing director for the confectionery giant's Indian business, said: "Long-lasting freshness is a very relevant benefit in the gums category. Our R&D developed a product whose freshness lasts longer than the other gums available in the market. We are extremely excited about this new launch and we believe this will open up new avenues for consumption." The confectionery giant first launched Center Fresh in India in 1994.

Around 40 women were given training by the Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) through MITCON. They were trained in food processing in Pune and Mumbai through technical visits. Following the training, the women underwent an interview programme when 20 of them were shortlisted. This group then made a presentation for running an industry and a company under the name of UDYOGINI CLUSTER PVT LTD was established. This cluster will include industries like new processed food, production, packaging, labelling, and research and development. “We have trained these women for two months. Being India’s first food cluster run by women, it will send a very positive message to the society,” said Chandrakant Dixit, secretary, MACCIA.


55 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


56 www.agronfoodprocesing.com

M&M wants to milk dairy sector; eyes up to Rs 750-cr buyout farm equipment maker in the world by volume. The focus of the company would be - premium milk or a mass brand entering the high-end space makes better business sense. About the rationale for the diversified Group to enter the milk business, an official said being the largest farm equipment player and also a leading entity in the agri segment, foraying into the dairy sector would only complement its business cycle. Mahindra Agribusiness is keen to enter the over Rs 3-trillion Indian dairy sector through a Rs 150-Rs 750 crore acquisition of a brand that has good supply chain and branding in place. Money is not a problem when it comes to a good dairy brand. More than 80 percent of the over Rs 3-trillion dairy sector is in the unorganized space and this offers a huge opportunity for the company that is the largest

Mahindra ShubhLabh Services, a Group entity, has emerged as the largest grapes exporter by working directly with farmers. It undertakes contract farming of grapes in Maharashtra and provides farmers with technical support. Dairy can supplement farmer incomes in tough times and act as a hedge against climate risks, he said, adding the company wants to replicate the supply chain success in grapes collection in the milk segment too.

National dairy plan in Kerala The NDP, being implemented by the Kerala Livestock Development Board for strengthening the State’s dairy sector, involves financial assistance of the National Dairy Development Board. It is being implemented in Kannur, Kozhikode, and Wayanad districts. The objective of the NDP is to improve the productivity of milch animals by ensuring availability of quality frozen cattle semen under the artificial insemination programme, KLDB officials said. The NDP is being implemented in association with the Animal Husbandry Department and the Malabar Regional Milk Producers’ Cooperative Society The Minister also inaugurated the KLDB’s scheme of free disbursement of cattle feed. The board also launched a scheme of providing for free calves of quality indigenous cattle species to farmers to promote organic farming. The State government will institute awards for farmers and societies or agencies

Vol.10 Issue 05 MARCH 2015

engaged in conserving indigenous cattle breeds in the State, Agriculture Minister K.P. Mohanan has said. Inaugurating the State-level implementation of the National Dairy Plan (NDP) at Koothuparamba, Mr. Mohanan said that ‘Gopalratna’ award would be presented to the farmer adjudged best in his/her efforts for the conservation of indigenous breeds such as Vechur cows and Kasaragod dwarf. ‘Kamadhenu’ award would be given to the dairy societies and agencies conserving the indigenous breeds. First, second, and third prize winners would get a purse of Rs.1 lakh, Rs.50, 000, and Rs.25, 000 respectively, the Minister said. The Minister said that milk production in Malabar had increased from 3.5 lakh litres to five litres a day in the past two years. He said that the problem of cattle feed shortage in Malabar would be solved by April.

NEWS

Coconut milk will be available nationwide at Starbucks stores.

In the second-largest Starbucks request of all time, Starbucks said it received 84,000 customer requests for a non-dairy alternative to dairy and soy through their suggestion website, the company said in a press release. The coconut milk option will cost you an extra 60 cents. However, that’s the same as the cost of using soy milk in your coffees and teas. The company tested out coconut milk in certain store locations last October, before deciding to incorporate it into the permanent menu. Starbucks product innovators took the idea of using the milk alternative to the kitchen, researching and developing recipes for classic drinks made with coconut milk, before the February announcement. Starbucks Single Origin Coconut Milk, the official brand the company will use, is certified vegan and sourced from coconuts grown on the Indonesian island of Sumatra. The move from the world’s biggest coffee chain also comes as smaller rivals such as Peet’s Coffee and Coffee Bean & Tea Leaf also offer non-soy dairy milk alternatives.

For Updated News Everyday logon to

www.agrofoodprocessing.com


57 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015


58 www.agronfoodprocesing.com

Vol.10 Issue 05 MARCH 2015



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

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

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

Innovations for a better world.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.