Oil & foods february 2014

Edible Oil Market In India India Emerging As A Leading Milk Powder Exporter Entrepreneur Opportunity For Traditional Dairy Products

Pg 10 1

Pg 1 16

Pg 2 20

Global Outlook of Indian Biscuit Industry

Pg 2 23

Biotech Intervention: Ghee With 85% Less Cholesterol

Pg P g2 27

Investments And pportunities Galore Export of India Agri And Processed Food Pg 339 How Manufacturers Can Tackle Food Waste

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Pg 4 43

Challenges In The echanized Production of Traditional Pg 5 55 Dairy Products

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Vol. 09, Issue 04, February, 2014

Vol. 09, Issue 04, February, 2014

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Editorial From the Desk of Editor

t

Vol 09, Issue 04, February, 2014

here is no such thing as unhealthy food...someone once told me. That time maybe I didn’t believe it, but years of experience in the world of food processing, I have realised, health is not about what I eat rather it is in how I eat.

Sometimes when I order a salad at restaurant my colleague might ask, “Are you eating healthy today?” “No,” I usually reply, “I’m not eating healthy, I am eating hungry today.” Generally there is nothing healthy or unhealthy about my salad dressed in blue cheese dressing, kebabs and egg along with the lettuce, tomatoes, etc.

I would like to advise many food companies not to get overly excited about the healthy options in their products. There are a number of reasons I besmirch “healthy” foods. But first let me provide some definitions that I work with.

I don’t know if orange juice is a healthy food but I know it is loaded with vitamin C, so it is good for you and it tastes great. I know milk is loaded with essential vitamins, minerals and protein and can have low fat. I think milk tastes great, too. I don’t think of these as healthy foods but rather as delicious foods that have some nutritional advantages. I also know orange juice has a high sugar content (fructose) and too much orange juice may not be especially good for you.

I have three questions. First, who says which food is healthy? Personally, I find the advice given by health professionals is usually wrong. Remember when we should eat no eggs, now eggs are OK. How about “use margarine instead of butter”? They forgot about Trans fats, didn’t they, so now butter is not so bad. They said “cut out foods high in cholesterol” until it was decided that dietary cholesterol had little effect on serum cholesterol. How about high fructose corn syrup? A scourge? It is being replaced by other sugars. Is fat the bad guy? But then we learn not all fats, just some fats, are bad. We should eat more fish, but not too much fish because fish has mercury and other heavy metals, and besides if we eat a lot more fish, we will deplete the fish stocks on the globe.

But my personal favourite is salt. While there is a significant amount of data that sodium is not the bad guy it is made out to be, the lay press excoriates salt as a murderer. Several years ago, the editor in chief of the Journal of the American Medical Association had quoted in an article in Science journal as saying ‘these current recommendations go way beyond the evidence.’

Who says which food is healthy? That was not a solitary dissent by any means, as other prestigious scientific journals have recently published editorials making the same point – namely that there was no evidence of benefit from low intakes of sodium, and, in fact, no assurance that they were not actually harmful.

Remember the Wizard of Oz, “the great and powerful wizard.” He was treated as all knowledgeable until the curtain was pulled back. Are those people providing our healthy food guidance just another wizard yet to be exposed?

My second question is, if consumers want healthier foods why are we still becoming a more obese nation? My research has been consistent over the years: i have seen the food processing companies striving to fulfil their consumer demands for healthy food and diet, but over the year, i have also seen obesity to play a big role in the lives of middle and upper middle class people in India. People don’t get fat because they eat the wrong food, they get fat because they eat too much food. You occasionally read that if you eat a McDonalds Big Mac every day you are not getting a healthy diet .But i think, If you eat a Big Mac every day YOU are not very bright; the hamburger is not at fault.

My final question is who is your target market? I hope it’s not the various public health groups that have agendas and are not representing consumers. I know there is a target market that values healthy above all else, but I am also quite sure there is a larger target audience that wants delicious food that can be good for you. Go after both if you wish, but recognize that they are different markets.

What can a food processor do? You can make great tasting food without trying to fool people.

There is no such thing as unhealthy foods, just unhealthy eating habits. The food industry needs to go back and read the guidelines for healthy eating from the 80’s again, which says - eat a variety of foods and maintain a healthy body weight. Eat potato chips, or chocolate, or a prime rib of beef ... just don’t do it too often, or eat so much that you gain weight. It is really that simple.

The problem is the simple advice first given is just not sexy enough. We need pyramids, pictures of plates and stars on our food packages.

Let’s be honest, you can’t get on talk shows and say “eat sensibly.” You need a gimmick.

The message of the food industry could be: “We make safe, delicious and inexpensive foods that when eaten in moderation is good for your body and mind.”

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Vol. 09, Issue 04, February, 2014

Contents Pg 10

Edible Oil Market In India

India Emerging As A Leading Milk Powder Exporter

Pg 20

Entrepreneur Opportunity For Traditional Dairy Products

Global Outlook of Indian Biscuit Industry

Pg 27

Pg 23

Biotech Intervention: Ghee With 85% Less Cholesterol Investments And Opportunities Galore Export of India Agri And Processed Food

Pg 43

Pg 16

Pg 39

How Manufacturers Can Tackle Food Waste

Challenges In The Mechanized Production of Traditional Dairy Products

Pg 55

NEWS 1.

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Cadbury investing in sales to increase reach, India Indian Agro Food Product Exports Rise Nestlé launches environmental friendly ice cream freezers Indian Beverage industry to grow at 16.5-19%: report Kraft Cheese removes artificial preservatives from KRAFT singles Super light Krones PET bottle wins iF packaging design award Cremica to shed 49% to Kedaara Capital & TA Associates Bühler extends its presence in China with a turnkey project at Hangzhou Wahaha Group for processing rice and beans Catering to the silver tsunami FPI reaches $2.15 billion FDI in India Cargill acquires Dalmias’ Leonardo Olive Oil business Nestlé weighs sale of French frozen food unit Davigel India’s chocolate industry to cross `7,500 cr by 2015 Indulgence drives ice cream consumption in Russia Food processing sector registers fast growth Tesco recalls 4 Chocolate & Nut Ice Cream Cones over contamination concerns Amitabh Bachchan announced as the celebrity face of complan Danone increases stake in Chinese dairy firm Mengniu Perry’s Ice Cream Introduces Otto’s Cupcake

Vol. 09, Issue 04, February, 2014

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32 32 33 33 34 36 36 37 48 49 49 49 50 52 52 52 53 53 54

Edible Oil

Market In India

i

ndia is the largest producer of oilseeds in the world and oilseed sector occupies an important position in the agricultural economy of the country.

Oilseeds are among the major crops that are grown in the country apart from cereals. In terms of acreage, production and economic value, these crops are second only to food grains. India is the fifth largest vegetable oil economy in the world, next only to USA, China, Brazil and Argentina, and has an annual turnover of about Rs 80000 crore. India accounts for 12-15 per cent of oilseeds area, 7-8 per

cent of oilseeds production, 6-7 per cent of vegetable oils production, 9-12 per cent of vegetable oils import and 9-10 per cent of the edible oils consumption.

There edible oil consumption in India has under-went a lot of development and this is impacting the oilseeds cropping pattern, imports, exports and inter-state trade. Apart from consumption pattern, the production is also affected by change in weather (including monsoon rains), production cost, minimum support price declared by government every year and global demand & supply scenario. The oil 10

market has been changing over the years, thus to make you understand each point has been discussed separately.

CONSUMPTION According to the Solvent Extractors Association of India (SEA), consumption of edible oil has risen to around 17.5 million metric ton (mmt) in 2013 from 11.6 mmt in 2004, with the CAGR of 4.6%. India’s demand for edible oil has been rising in the last three years with the growing population, consistently with CAGR of 2.7% and around 5.5% in the Vol. 09, Issue 04, February, 2014

EDIBLE OIL last five years. The other important factor that is impacting the edible oil demand is the increase in disposable income amongst the growing middle class. This has led to change in the lifestyle, which has increased the consumption of edible oils.

The growth in consumption may have slowed in the last couple of years due to slowing economy, but it is not likely that the consumption may stabilise at any level. Even with current 3-year CAGR of 2.7%, the consumption is likely to cross 21 mmt by 2019-20. With economic growth expected to improve, the demand may be even more than current CAGR. A modest CAGR expectation of 4% by SEA shows that the demand is likely to touch 23 mmt by 2019-20.

The major edible oilseeds that India cultivates are groundnut, mustard or rapeseed, Nigerseed, safflower, sesame seed, soybean and sunflower. Apart from this, other edible oil are like cottonseed oil, coconut oil and rice bran oil, which comes from processing of cotton, copra and rice bran respectively. Palm is major oil that is consumed, but it is not cultivated in the country, rather it is imported. Out of these edible oils, palm, mustard and soya are the main consumed oil in India.

One third of the total edible oil is consumed in the four western India states of Gujarat, Rajasthan, Maharashtra and Madhya Pradesh. There has been marked switch of preferences from groundnut oil to cottonseed oil, soybean oil and sunflower oil in these four states. This change could be attributed to reasons like production cost, availability and other options available to growers which would increase their income.

In India, the average yields of most oilseeds are extremely low as compared to those other countries of the world. The cultivation of oilseeds in India is in high risk regions where there are uncertain returns on the investments. The study was formulated with the objectives of ascertaining the present and future edible oil needs of the country, current production scenario and associated constraints, yield position and trade in edible oils and its impact on the oilseed economy.

government, still there has not been adequate growth in oilseeds production.

As matter of fact the production of oilseeds has grown only by 2% from 2004 to 2013.

As far as production of edible oils from oilseeds, it has been negative. A growth of 0.6% is has only been recorded during the nine-year period from 2004 to 2013 as against CAGR of 4.6% in demand / consumption of edible oils. This has led to an increasing dependence on imports to make up for the shortfall between demand and supply.

One of the major factors that have contributed to fall in production of oil is shift from crop with higher oil recovery to crop with lower oil recovery. Crops like groundnut and sunflower has oil recovery ratio of 40% and 30% respectively; while cottonseed and soybean has oil recovery ratio of 11.5% and 17% only.

Surprisingly, government’s measure to raise minimum support price (MSP) in last few years have also not yielded desired results. MSP of various oilseeds have risen by 11-21% compounded annually over the last three years. This growth has been in the range of 7-19% if five-year period is considered from 2007-08 to 2012-13.

Within edible oil basket, the production has shifted from groundnut and sunflower to soybean and mustard. Not surprisingly, demand is the major factor which is causing this shift in production pattern. Apart from the demand, other factors like production cost and weather uncertainty have also played their part.

GLOBAL MARKET ANALYSIS PALM OIL Palm oil production in Indonesia followed the normal Low Cycle with tremors in end of 2013 and hence palm oil production in calendar year 2013 was 500,000 tonnes lower than in 2012. Production in Oil Year Oct 12 to Sept 13 was higher but the last quarter of 2013 is shaping to be poor as compared with the PRODUCTION last quarter of 2012.

From the figures from SEA, although Malaysia has fared various incentives has been offered by much better. Malaysia Vol. 09, Issue 04, February, 2014

11

has a longer history of first class estate management and therefore Malaysian palms suffered comparatively less than Indonesian ones.

For calendar year 2013 Malaysian production was at about 19.2 million tonnes. While Indonesian production was only 27.5 million tonnes, about 500,000 tonnes LOWER than 2012.

Production in Malaysia during 2014 is likely to be slightly higher than in the previous 12 months, estimated for 19.5 to 19.7 million tonnes. A lot will depend on how the second half performs and it may well be a very good second half. The critical price maker will be Indonesian production. A strong recovery from May 2014 onwards is expected for 31.5 million, a recovery of almost 3 million tonnes.

Production in other parts of the world during 2013 also lagged behind 2102.

Some recovery is to be expected in 2014.

Palm Demand: Demand for palm bio diesel for Discretionary Blending has all but disappeared. Only that which was locked in on the futures market will be activated, perhaps until March 2014. The more important demand is Indonesian Mandatory demand for transport fuel which is estimated at 3.1 million tonnes.

This is a Game Changer and at present it looks as if Pertamina will fulfil the mandate.

EDIBLE OIL

There is further talk of using some palm diesel for electricity generation also.

There is Malaysian mandatory demand as well as Malaysian exports of bio diesel.

Malaysian PME producers as well as some Indonesian PME producers are NOT subject to Anti - dumping duty and they will be able to grab a chunk of EU bio diesel demand.

At the same time, some palm demand for Discretionary Blending and for Electricity generation in EU will be lost.

Present Palm price: Crude palm oil has gained by 0.29 per cent to Rs 545.70 per 10 kg in futures market due to increased demand in the spot market.

At the Multi Commodity Exchange, crude palm oil for delivery in February added Rs 1.60, or 0.29 per cent, to Rs 545.70 per 10 kg in a business turnover of 180 lots.

While the March contract added Rs 1.10, or 0.20 per cent, to Rs 547.40 per 10 kg in 87 lots.

Analysts said speculation enlarged their positions due to increased demand in the spot market which led an upward movement in crude palm oil for the fourth day at futures trade.

Meanwhile, palm oil for April delivery climbed 0.8% to 773 dollar a metric tonne on the Malaysia Derivatives Exchange.

SOYA OIL The market awaits clarity on the Brazilian mandate for bio diesel use and the probability that the mandate will be raised further. Most participants expect it to happen. If it does, Brazil could consume an additional one million tonnes of soya bio diesel locally. The same applies to Argentina though the volume would be much lower – about 100,000 tonnes.

The market also awaits news on the renewal or otherwise of the US$ 1 per gallon Blenders Credit in USA. As regards demand and pricing of soybeans, there is more evidence to suggest that China will import 68 to 69 million tonnes as forecast by the USDA. So far this year, growing conditions of soya in South America are good. However, South America has a nasty habit of giving us an unpleasant surprise with late season dry weather in southern Brazil and in parts of Argentina. The market should not be too hasty to write in big soybean crops from South America.

Soya oil price: Refined soya oil prices gained 0.72% to Rs 676 per 10 kg in futures market hence tracking a firm trend at spot market on strong demand in view of wedding season.

At the National Commodity and Derivatives Exchange, refined soya for delivery in March gained Rs 4.85 or 0.72% to Rs 676 per 10 kg with an open interest of 103950 lots.

Similarly, oil for delivery in February moved up by Rs 2.10, or 0.31% to Rs 684.75 per 10 kg in 25,930 lots.

Analysts said fresh positions built-up by speculators on the back of strong demand supported by ongoing wedding season mainly led to rise in refined soya oil prices at futures trade.

tonnes of rapeseed oil. No auctions have been announced so far and China has, paradoxically, been importing some rape oil. Clearly someone somewhere is very reluctant to face up to the problem and is waiting for higher prices so as to liquidate those embarrassing stocks.

There will be more canola oil flowing into the US food sector. India too will import more rape oil. Overall rape oil prices will have to remain competitive with soya oil to capture more demand.

SUNFLOWER OIL So far, sunflower oil has managed to capture new markets such as China on price. It will have to remain at a discount to soya oil at least until May 2014 so that it finds a market.

Sunflower Oil Market is booming in India.

It is estimated to grow at a compound annual growth rate (CAGR) of 9.5% between 2013-14 and 2016-17. .

GROUNDNUT OIL With higher availability of raw material for crushing and weak demand, groundnut oil has been trading at four year low in recent times. Also, poor export demand for groundnut has further resulted in drastic downfall in groundnut oil prices this year.

Since December last year groundnut oil prices have been on downhill run due to higher crushing following bumper production of groundnut which was almost three times compared to last year.

In January 2013, refined groundnut oil was traded at Rs 2,250 for a 15 kg tin, an all time high price, but currently the price of same was ruling around Rs 1,3401,350, down by 40% from a record high.

Main reason for downfall in groundnut oil prices is due to higher availability of groundnut for crushing. Most of the stock in groundnut has been diverted to mills as export of the commodity has been nominal this year.

During November and December last year there was good demand of bulk buyers.

At that time over 250 tonnes of groundnut oil was traded per day, but after that retail demand decreased and till date buying activity has been not as per requirement.

At presently, nearly 50-70 tonnes of groundnut oil are being traded every day.

RAPE / CANOLA OIL The Chinese government seems to According to edible oil industry sources, be in no hurry at all to tackle its huge due to higher crushing activity, groundnut and deteriorating stocks of 4 million oil production is likely to increase to 12

Vol. 09, Issue 04, February, 2014

EDIBLE OIL 300,000 tonnes as compared to last three years’ average production of 200,000 tonnes. Gujarat have major share in groundnut oil production. Out of total production, the state has produced more than 40-45% groundnut oil, while Andhra Pradesh share is about 15-20 percent.”

On the other hand, export demand of groundnut from India fell mainly because of weak demand from China.

Overall demand in international market for groundnut is very poor. India’s export has declined because of weak demand from China.

As per Indian Oilseed and Produce Export Promotion Council (IOPEPC) data, during April-September 2013, India exported 189,867 tonnes groundnut. In the corresponding period previous year, India had exported 535,670 tonnes groundnut.

This year India’s groundnut export could be around 450,000 tonnes.

The IOPEPC has estimated kharif groundnut production for this year at 4.91 million tonnes from five states - Gujarat, Rajasthan, Andhra Pradesh, Karnataka and Tamil Nadu - which account for close to 90% of total output in the country. This is higher by 2.1 million tonnes as compared to kharif 2012, when the crop was only 2.81 million tonnes in these states, owing to monsoon failure.

The, Solvent Extractors’ Association of India recently issued a kharif crop estimate of the Central Organization for Oil Industry & Trade. The report stated kharif groundnut production for 2013-14 would be 4.71 million tonnes, against last year’s 2.62 million tonnes.

LAURIC OIL The damage caused by Typhoon Haiyan has given a boost to Coconut oil prices but we have to see how long these high prices will last. A lot will depend on the mandate for bio diesel in the Philippines.

Palm kernel oil will follow the trajectory of palm oil at some distance lower to Coconut Oil. In winding up the Supply Side, it can be seen that the tightness in palm oil is to some extent alleviated by easy availability of soft oils in the next few months until May 2014.

OIL MARKET OF INDIA Edible oil consumption, production and imports Vol. 09, Issue 04, February, 2014

000 Production

Nov 11 Oct 12

Nov 12 Oct 13

Nov 13 Oct 14

6,500

7,100

7,750

Imports

10,200

10,680

11,125

Consumption

16,575

17,330

18,225

Break-up of India’s Imports 000

2011-12

2012-13

2013-14

Palm

7,680

8,250

8,300

Soya oil

1,080

1,090

1,200

Sun oil

1,140

975

1,200

Rape oil etc

Nil

25

125

Laurics

300

340

300

Price drop in India After a drop in vegetable prices, it’s now the turn of edible oils to give some relief to the Indian consumer. Prices of all categories of edible oils have fallen in the global markets forcing companies to reduce prices by Rs 3-6 per kg since.

Prices are expected to remain at this level till March as there will be no pressure on supply.

Palm imports are expected to stagnate because palm’s discount to soft oils is narrowing. Indian refiners also prefer to import unrefined soft oils where margins Prices of soybean oil have dropped to $910 are much better. per tonne from $1,020 per tonne from the first week November. Similarly, palm oil PRICE OUTLOOK has dropped by $60 per tonne to $830.

There is presumption in stable crude Sunflower oil, which is liked by the health oil prices, with Brent crude oil trading conscious, is also on a downward mode and between US$ 95 and 115. has touched $890 per tonne from $1,000 Palm prices are already on their journey to per tonne since Diwali.

2700 Ringgits. Between now and March The market is not likely to fall further. Prices 2014 there shall be higher prices with a of edible oil at the retail end are expected to range of 2600 to 2900. It is possible that remain on the lower side in the next two to palm futures touch 3000 Ringgits by three months. US soybean production has March 2014, if Brazil implements a higher been on the higher side this year. bio diesel mandate, leading to hardening According to January 10 USDA report, of soya oil prices. It will be very difficult total US soybean production for 2013 is to sustain a high level of 3000 Ringgits for estimated at near 3.29 billion bushels, any period of time because Export Taxes which compares to 3.03 billion bushels will further enhance FOB price levels. in 2012, and 3.09 billion bushels in 2011.

Palm oil prices will do the job of moving Similarly, sunflower production in Ukraine demand away from palm oil at least until has been on the higher side.

March. Stocks may begin to replenish Whenever there is a drop in prices we try from May 2014 and prices may decline to pass it on to the consumers. Prices have thereafter. gone down by Rs 5-6 per kg and this trend A good trade would be to buy Jan-Feb- is likely to continue till February.

March 2014 and to sell either July-AugSept or Oct-Nov-Dec 2014.

IMPORTS Soya oil trade price will range from USD India is the top importer of edible oil 920 to 1000 FOB Argentina for old crop as its demand far exceeds availability oil. If the Brazilian and Argentinian from domestic sources. The gap between mandates are enhanced and if the Blenders demand and production of oil is widening Credit in USA is renewed, soya oil could and this will continue in the foreseeable rise to USD 1100 FOB. future. During oil year 2012 -2013, about Sun oil prices are expected to remain 60% of India’s edible oil consumption will competitive with soya oil all the way to be met by imports. Amongst major edible March 2014. Rape oil will remain at a oils imported, share of palm oil is about small discount to soya oil until March 75% because of its abundant and relatively 2014. cheaper supply from nearby origins like Coconut oil prices now have a bullish Malaysia and Indonesia. Edible oil imports outlook and can rise to US$ 1500 and have grown by around CAGR of 7% during beyond if the bio diesel mandate in last three years and by 16% in last five Philippines is not lowered. years.

13

EDIBLE OIL From November 2012 to July 2013 in the current oil marketing year, edible oil imports have risen by 10% to 7.8 million tonne from 7.1 million tonne in the corresponding period of last year.

The import basket has also seen changes in the last few years. While the share of refined oil has increased; the share of crude oil is falling; though it still remains at 77%. Similarly, the palm oil imports share has risen; while that of soft oil has fallen. Reduction in duty difference between crude and refined palmolein and inverted duty structure by palm oil exporting countries has led to higher imports of refined oil in India; thereby increasing share of refined oil as compared to crude oil, the SEA said in a recent statement.

Thailand which has an established market for rice bran oil, has shown interest in importing the oil from India. India, on the other hand, is a net importer of edible oil to meet its domestic demand. However, as per government policy, a bulk export of edible oil is not allowed.”

India is one of the major producers of rice brand oil globally. The country produces around 900,000 tonnes of rice bran oil annually, while the global production is around 1.2 million tonnes. Japan and Thailand produce around 70,000 tonnes and 60,000 tonnes respectively, while China produces around 50,000 tonnes per annum. India is increasing production by 50,000 tonnes per annum.

Of this 900,000 tonnes of production only 300,000 tonnes is consumed as edible oil, while the rest is used by the vanaspati industry or is blended with other oils. Mehta further informed that the country produces 9 million tonnes of rice bran, of which around 5 million tonne is processed for producing oil, and the rest is used as cattle feed. Paddy production in the country has increased from 125 million tonnes in 2004-05 to 158 million tonnes in 2013-14 (expected).

Rice bran that can be converted into oil is available in the country, if one provides better price to rice millers, then most of the rice bran would go to the oil industry.

This can also reduce our import of edible oil.

The country imports around 10 million tonnes of edible oil including palm oil, soybean oil and sunflower oil, each year, which according to the SEA runs into a

Rs 60,000 crore import bill. The country’s net domestic requirement of edible oil is estimated to be around 18 million tonnes per annum.

Earlier last year, Japan too had shown interest in importing the oil from India, however, it is more interested in collaborating with Indian companies to produce value-added products using rice bran oil, which is known as rice oil or ‘heart oil’ in Japan.

However, the current government policy does not allow export of edible oil in bulk. If allowed, India has the potential to export around 25,000 tonnes of rice bran oil per annum, claimed Mehta, adding that a few containers are already being exported.

The SEA feels that rice bran oil, which contains oryzanol and has numerous health benefits, has a huge potential in the Indian market as well. Coming at around one-fifth of the price of olive oil, and around 10% more expensive than sunflower oil, rice bran oil consumption in the country has been clocking a 20-25% growth rate in the last four-five years.

The oil is priced between Rs 115-125 a litre at present. In value terms, the 300,000 tonnes per annum rice bran oil is pegged at around Rs 3,000 crore.

Rich in monounsaturated fatty acids and a higher cholesterol reducing power than other poly-unsaturated fatty acids rich oils works to reduce hypertension, improving insulin sensitivity of the blood, contains natural vitamin E and is an antioxidant.

improving economy; the consumption is likely to grow at healthy pace and the country has to take measures to build its own production for sustaining self sufficiency. Also, over dependence on imports may prove detrimental to overall economic growth.

One of the measures that can be fruitful in reducing imports and achieving self sufficiency is promoting palm oil cultivation. Currently, palm oil cultivation is negligible. Though palm oil is presently being cultivated in parts of Kerala and Tamil Nadu, the acreage is still very low to meet palm oil demand in the country.

Another measure which can be considered is to pay special incentives to farmers to switch from grain cultivation to oilseed cultivation. India, on one hand, has excess of grains, which have to be exported at cheap rates for want of proper storage facilities, and on the other, imports edible oils which are in short supply in the domestic market.

CONCLUSION It is need of the hour for the Government of India needs to carry out major reforms in oilseed cultivation to spur the stagnating growth. This is important for ensuring that the country has self sufficiency in the edible oil segment as the consumption of edible oils will continue to grow. As population grows and as lifestyle improves on the back o f

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Vol. 09, Issue 04, February, 2014

Vol. 09, Issue 04, February, 2014

15

India emerging as a leading milk powder exporter

i

NDIA is the world’s largest producer of milk, though yields are among the lowest in the world. This year, India’s milk production is expected to rise five per cent to touch 133 million tonnes.

According to National Dairy Development Board (NDDB) notes that India’s milk production has gone up by 25 million tonnes over the last five years, as against marginal increases in production by other major milk producing nations such as the US (a 6.6 million-tonne increase over the last five years), China (5.4 million), New Zealand (2.7 million tonnes) and the European Union (1.6 million tonnes).

This has been achieved by millions of small producers unlike advanced dairy

nations which have the advantage of a temperate climate and farms with large animal holding but there is need to adopt a scientific approach with the same level of accountability on the part of all stakeholders, as is done in developed countries.

The government, which is aiming for a second ‘white revolution,’ wants producers to improve practices and follow standard operating procedures. Till about 10 years ago, India did not have any regulation governing the quality of semen.

Many of the semen labs were also not up to the mark.

Rapid changes in dietary habits, with a shift away from cereals to animal products, 16

are also fuelling demand for milk. A recent report by Credit Suisse estimates that animal products (including milk, meat, eggs and fish) account for more than 30 per cent of India’s agricultural output.

And animal products accounted for 37 per cent of agricultural growth between 2005 and 2011, says the report. The per capita consumption of food grains is declining in India, while that of milk, edible oil and meat is rising sharply. Credit Suisse estimates that milk production has been growing at a steady pace of four per cent over the past few years. Growth is due both because of an increase in the number of cattle and improvements in yield thanks to improved breeds of cow. The fat content Vol. 09, Issue 04, February, 2014

SKIMMED MILK of milk from cows in India is just 4.5 per cent, though buffaloes — which account for half of India’s milk production — give higher fat content.

Milk consumption is also expanding because of the growing demand for dairy products including skimmed milk, paneer, cheese, butter, ice-creams and chocolates.

All the leading dairies in India produce a wide range of products and advertise heavily in the media to boost consumption.

over the country’s “on again, off again” strategy towards trade curbs.

Given that India exports little whole milk powder and that importers are hesitant to buy from India, the export policy change appears to be of little consequence, according to the USDA. India’s export policy “changes frequently to adapt to market conditions and local political scenarios.

However, supporters of India’s dairy trade prospects point to the country’s growing India seeks place among top world surplus, which stands to widen further dairy exporters through a national dairy plan expected to Although India has grown to be the double output in 15 years, and increase to leading milk producing nation - with 2013 65%, from 30%, the proportion of the milk output forecast by the US Department surplus handled by large dairy groups. of Agriculture at 57.8m tonnes, up 30% over the last five years – strong growth Skimmed Milk export in domestic consumption has largely The continued growth in accounted for the increase. milk production has also Indeed, the growth prospects for the market have attracted the attention of the likes of Fonterra and Frenchbased yoghurt giant Danone, which last year paid $355m for Wockhardt Nutrition, India’s top-ranked baby food group.

However, the increasing surplus has prompted a long campaign by dairy giants, such as the Gujarat Cooperative Milk Marketing Federation, to lobby for access to the international market too, rendered especially lucrative by a recovery in prices.

Global Dairy Trade values have doubled over the past year to the highest on records going back to the 1990s, spurred by strong resulted in India emerging demand from China and weak growth in as a leading exporter of skimmed milk world production, held back by high feed powder (SMP). While India is expected to prices and poor weather in major exporters produce about 133 million tonnes of milk, such as Europe, New Zealand and the US. domestic demand is pegged at around 128 India’s government ditched a ban on million tonnes. exports of dairy products including whole The government had in the past imposed a milk powder, which the Gujarat federation ban on export of SMP and milk products, will sell through Global Dairy Trade, with worried about possible shortages and price skim milk powder. hikes in the domestic market. But with the removal of ban on milk powder export has ‘On again, off again’ resulted in a spurt in exports.

Nonetheless, some doubts remain over The country processes nearly 400,000 India’s commitment to exports, with the tonnes of SMP and the industry is US Department of Agriculture bureau confident of exports topping 120,000 in New Delhi in November cautioning tonnes a year. Indian SMP prices are also Vol. 09, Issue 04, February, 2014

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significantly lower than the price of milk powder from New Zealand, resulting in growing demand, especially from the Middle East, Southeast Asia and even South Asia. Pakistan, Afghanistan and Bangladesh are among the major markets for Indian skimmed milk powder.

GCMMF expects to export nearly 20,000 tonnes of its Amul SMP, as against just 4,000 tonnes last year. The demand is strong and Amul expects their milk powder exports to be between 15,000 and 20,000 tonnes.

After the ban on exports was lifted, India exported 60,000 tonnes of SMP worth about Rs14 billion and GCMMF expects exports to exceed Rs25 billion this year.

Another major factor boosting the prospects for exports is the sharp decline in the value of the rupee in recent months, making Indian milk powder competitive.

New Zealand, one of the largest exporters, has also been facing a problem following scares over contamination of whey powder at one of its major exporting units. Export to China from New Zealand (which accounts for 90 per cent of its imports) was badly hit following the scare.

But, with more milk powder, a weaker rupee currency and Chinese restrictions on using some New Zealand products in the wake of Fonterra’s whey powder concentrate contamination scare, India expects its SMP exports to jump by more than half to 100,000.

India is having a flush season, so there will be more milk available for SMP, and is getting good export orders for SMP. Rising export prices are boosting sales.

SMP prices have risen more than 15% in six months in dollar terms and are now lucrative for dairies. With no (export) restriction and market conditions are better, But the dairy industry here is worried that an arbitrary clampdown on exports in the future — in case of a spurt in prices or domestic shortage — could hurt India’s image as a reliable supplier of SMP.

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Vol. 09, Issue 04, February, 2014

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Entrepreneur Opportunity for Traditional Dairy Products By: Sh. P R Patel, Executive Director, Mansinhbhai Institute of Dairy & Food Technology, Mehsana

i

n brief entrepreneur is a person who takes a risk and starts a business venture to satisfy customer and earn profit. In Indian context this mentioned risk should be calculated and the business venture should have ample opportunities.

Adding value to an otherwise standard product can provide viable entrepreneurial opportunities. This may be true in many economic sectors but more apparent in traditional dairy products for the reason that India is the largest producer of milk

in world and hence there is no question of availability of milk. Altogether, market is available for Traditional Dairy Products (TDP). Further, this segment is traditional and therefore methodology and needs of customer are also known. This all can be simply proven by a single fact that no sweet shop in India had closed after opening.

Before moving further if we look to the history and origin of TDP, these were originated to 1. Preserve milk, i.e: extend 20

shelf life, 2. India is a country of Festivals, and sweets are widely used and are part of every festival & occasion from the ancient times, 3. In due course a call from urban society was generated for making the milk more palatable and more nutritious by value addition.

The TDP can simply be classified as desiccated products like Kulfi, Rabri , Basundi and Khoa based sweets, further acid heat coagulated products like Paneer and Channa based sweets (Sandesh, Rasogolla, Rajbhog, Rasmalai), fat rich products like Ghee, Makkhan, Malai and fermented products like Dahi, Mistidoi, Lassi, Chhach, Srikhand etc (Fig 1).

The another TDP segment also includes both RTE/RTS and convenience foods like Instant Kheer Mix, Khoa Powder, Gulabjamun Mix Powder, Rosogulla Mix Powder, Long Life Paneer.

With so much attention on the dairy sector, the entrepreneurs want to make profitable investments. Not only the demand for western dairy products like milk powder, baby food, butter and cheese reaching near-saturation, operating margins in traditional products are also much higher than those for modern dairy products.

According to the book on Technology of Indian Milk Products, traditional milk Vol. 09, Issue 04, February, 2014

DAIRY PRODUCTS products are the largest selling and most profitable segment of the domestic dairy industry and account for 50% of milk produced and 95% of all milk products consumed in India.

Market for this segment in India is estimated to be Rs. 50,000 Crore, and the annual growth is in-between 10-15%.

All together a niche global market has strongly emerged for ethnic Indian Dairy Products in Middle East, Europe and North America to the tune of $ 1.5 billion.

The Indian Diaspora presents an exciting avenue for globalization of Dairy mithais.

Entrepreneurs across the world are looking into the prospects of manufacturing them.

The demand for few traditional products are mentioned in the Table: 1.

overseas markets and having monopoly in domestic market as except Haldirams there is no national player in the market.

After reviewing the facts few important question arises – whether the monopoly is because of raw material or skilled labour or technology or methodology of preparation or trial & error methods to innovate or geography or because of hidden factors in the name of trade secret, which may lead to even adulteration. More often quality as desired are regional based and consistency in quality are the two key mantras for the existing entrepreneurs.

In last decade the concept of trend setting for better acceptability, protected secret to maintain monopoly and acquiring Geographical Indications came in the

Fig 1: Classification of Traditional Dairy Products From past as the TDP business remained in hands of few who know the skills for ability to make acceptable quality Indian products, even today also the manufacturing part is more skill based and not science & technology based.

Traditional, family-owned business houses like Bikanervala, Haldirams and Bikaji, are making considerable profits by exporting Indian desserts to

business of TDP. The recent example: The tribe of Dangs in Gujarat acquired Geographical Indication for Nagli based foods Another area of concern in TDP is absence of competition in mithai segment which may lead to provide opportunities to companies like Cadbury India, positioning there cocoa based products- Cadbury Dairy Milk as an Indian dessert, with a

Table 1 : Demand for major milk products in the organized sector in MT Product 1988 2009 Ghee 100,000 200,000 Cheese 4,200 15,000 Paneer 1,000 16,000 Shrikhand 3,000 5,650 Rasgolla 1,600 6,000 Gulabjamun 3,000 5,850 Source: www. mofpi.nic.in Vol. 09, Issue 04, February, 2014

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‘kuch meetha ho jaaye’ tagline. Earlier, it would resort to this positioning only during the festive season but now even campaigning for all time sweet, which not only absorbs the current market share but also changing the eating habits for future.

The full potential of TDP sector can be tapped by involving the entrepreneurs in building the quality and standards required for the global market, product diversification (including synonym products which are as good as traditional products like; Dahi- Yoghurt Probiotic Products, Ice cream – Kulfi- Frozen Yoghurt, Butter milk – Normal/ Probiotic) and value addition. Simultaneously the other area of concern is mechanization in manufacturing of TDP and its cost effective packaging and transportation.

Significant development has been made in the industrial production of TDP like Shrikhand, Gulabjamun, Rosogulla and Peda. Any innovation which can enable the organized sector to manufacture and market indigenous milk products on an industrial scale can have a far reaching impact on the dairy industry as well as on the economic condition of milk producers.

A great scope exists for further expansion of the market for indigenous milk products, provided quality and safety are ensured and the shelf life is extended to facilitate distribution over larger areas. Major innovations are needed in standardization of manufacturing, consistency, quality assurance, packaging and process engineering to adapt these products to current marketing and consumer requirements. Some commercial processes have been developed to manufacture Ghee, Khoa, Shrikhand and Gulabjamun, but much is required to be done.

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Vol. 09, Issue 04, February, 2014

Global outlook of

Indian Biscuit Industry

g

lobal Industry Analysts (GIA) reported that the world market for biscuits is projected to reach $43.1 billion by the year 2015. This is primarily driven by the changing consumer patterns

Vol. 09, Issue 04, February, 2014

towards healthy food options such as biscuits and introduction of new and improved products in innovative styles and flavors. Further, the rapid growth in consumption in the developing markets 23

By: Basma Husain

including Asia-Pacific and Latin America will also contribute to the market growth.

Bakery represents one of the traditional occupations globally and stands for conventional economic activity for various

BISCUIT WAR communities in several countries. Biscuits are highly popular across the world and people of all ages enjoy eating biscuits throughout the year. Biscuits along with bread accounts for majority of the total bakery products consumed worldwide.

Today, most of the conventional baking methods have been replaced by the new generation technologies and the shift has enabled rolling out of innovative biscuits with different types of looks, sizes, tastes, flavors and packaging. Usually, market for biscuits enjoys significant participation of organized as well as unorganized segment, which vigorously compete to cater various product categories.

Europe and the United States dominate the world biscuits market; however, growth in these regions clearly lags behind the projected market growth in emerging countries. Asia-Pacific represents the fastest growing market for biscuits. Sweet biscuits represent the largest as well as fastest growing segment in the global biscuits market. Factors contributing to growth include urbanization and increasing awareness among people about the benefits offered by bakery products, among others.

The market for biscuits is highly fragmented. In each region, the market is characterized by the presence of several local players and very few large players.

Key international players profiled in the report include Annas Pepparkakor AB, Arnotts Biscuits Holdings Pty Limited, Bahlsen GmbH & Co. KG, Britannia Industries Ltd., Burton’s Foods Ltd., Group Nutrexpa, Lotus Bakeries NV, Katies Cakes, Kellogg Company, Kraft Foods Inc., Kraft Foods (Australia) Limited, Nestlé UK Ltd., Northern Foods plc, Paradise Food Industries Pty Ltd., Parle Products Pvt. Ltd., Paterson Arran Ltd., Stiletto Foods (UK) Ltd., The Jacob Fruitfield Food Group, Thomas Tunnock Limited, United Biscuits, and Walkers Shortbread Ltd. A few years ago a biscuit brand in India made headlines when it became the world’s largest selling brand. But the story was a tad different—it stated the obvious. India, the world’s second most populated nation, was also the largest biscuit consuming country in the whole world. So, the recognition, rather obvious, perhaps came in a trifle late.

But that may not hold long enough.

The biscuit market is buzzing with new players. At stake is a Rs 10,000-crore business, which is still growing and every year, big and small players are queuing up for a share of the bite. Indian biscuit industry is thus poised to grow at a rate of 15% - 17% in the next few years India is the world’s biggest market for biscuits with a market share of 22 per cent in volumes compared with 13 per cent in the US. The way to the Indian consumer’s stomach is through competitive pricing, high volumes and strong distribution, especially in rural areas.

The slugfest for the Numero Uno position in the Rs 4,600-crore cream biscuit market India has been on for a while now ever

since ITC and Cadbury joined the fray.

Even as the skirmish continues unabated, with each of the brands baking fresh strategies, ITC’s Sunfeast, for now, has emerged a clear leader in the segment.

ITC’s cream biscuit market share stands at around 25% in value, according to industry sources who quoted all-India Nielsen numbers. The market share numbers for Parle Products and Britannia for the same period were under 20%.

Exactly a year ago, the three rivals were running a close race with their respective market shares at about 23%. However, there was no clear leader in sight then.

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Sunfeast, it appears, has inched up by capturing market share from both Britannia and Parle in cream biscuits.

Cadbury’s Oreo, on the other hand, has maintained its share of 5-6%.

ITC attributed the company’s gains in cream biscuits to its relentless focus on portfolio enrichment through innovations like Sunfeast Dark Fantasy Chocó Fills and Chocó Meltz and Sunfeast Dream Cream range. These flavours have created excitement among consumers and significantly enhanced the consumer franchise of the ‘Sunfeast’ brand,”. What’s helped in the process is ITC Hotels’s marketing and distribution infrastructure, which Sunfeast has leveraged to stay ahead of the curve.

Britannia Industries, which restaged its cream biscuit brands Bourbon and Jim Jam along with additional flavours, believes it is seeing significant positive shifts in the premium cream segment. In an intensely competitive segment with high levels of investment Brittania’s focused approach is paying dividends. The Biscuit company believes the “indulgence category” is key to its portfolio of both cookies and creams, which addresses differential consumer preferences.

Although a mail sent to Parle Products did not elicit a response till the time of going into print, the company has collaborated with Warner Bros to introduce a biscuit range embedded with Tom and Jerry faces. Parle Products believes the move will strengthen its dominant position in the overall Rs 21,000-crore odd biscuit market.

International companies’ entry in the India market has increased the market size —UK’s United Biscuits and GlaxoSmithKline, Pepsi and Kraft Foods have made a foray already and have madse their own spaces among the consumers PepsiCo which already has the snack biscuits by the name of Aliva had also brought in Quaker cookies from its international products . Quakers has been positioned here in India into premium segment of biscuits priced Rs 38/- a box.

Oats cookies are relatively new segment for Indian consumers hence it would take some time for these varieties to be popular.

Pepsi Quakers Oats were already being promoted as healthy breakfast meals in India since 2006 .PepsiCo joined other multinationals for share in Indian biscuit Vol. 09, Issue 04, February, 2014

BISCUIT WAR

market such as Kraft , United Biscuits , GSKB. PepsiCo Quakers Cookies is made from Oats and whole wheat flour with flavours like hazel nuts , honey and almond .

Cookies are placed into pvc tray and wrapped up into metallised bopp .Sold into plain cardboard boxes . We get a distinct taste of oats with coarse whole wheat flour however that is covered with chocolaty taste by presence of Chocó chips in the cookies .

Interestingly PepsiCo has outsourced manufacturing to cookies major Unibic in India to produce Quaker Cookies thus limiting itself to market this product .

Unibic itself are leader in cookies market.

Kraft has a wide basket of products across the world, including biscuits. It captured the Indian hearts with its premium biscuit – Oreo. Oreo developed a launch strategy around taking on existing market leaders in the cream segment - Britannia, Parle and ITC. Internally, they even have an acronym for this strategy - TLD (Take Leaders Down).

The focus was to target the top 10 million households which account for 70 per cent of cream biscuit consumption. Oreo launched in India in March 2011. It entered Vol. 09, Issue 04, February, 2014

the market as Cadbury Oreos because Cadbury is a stronger brand name than Kraft, and initially focused on generating awareness and rapid trials. The product was sweetened to suit the Indian palate and Kraft exploited Cadbury’s network of 1.2 million stores.

The Made in India tag meant using locallysourced ingredients, modification of the recipe to suit Indian tastes and possibly cheaper ingredients, a smaller size and competitive prices. Oreo launched its traditional chocolate cookie with vanilla cream at Rs 5 for a pack of three to drive impulse purchases and trials, Rs 10 for a pack of seven and Rs 20 for a pack of 14 for heavy usage. The cookie looks the same as its international counterpart with a motif of 12 florets and 12 dashes.

The company maintained the heritage of the bitter chocolate cookie with sweet vanilla cream to stand out from me-too products and meet customer expectations of having the real thing. Kraft initially chose to outsource its manufacturing for the Indian market instead of using Cadbury factories.

Communication and advertising have been consistent across the world as the core customer remains the same. The company 25

focused on using the togetherness concept to sell Oreos in India, with television forming the main medium of communication although other media are also being tapped.

Oreo India’s Facebook page is one of the fastest growing in the world. The company also went on a bus tour to push the concept of togetherness among families across nine cities and it used a smaller vehicle for a similar campaign across 450 small towns.

Oreo is driving point-of purchase sales with store displays and in-store promotions in a bid to overtake market leader Britannia Good Day’s distribution.

The per capita consumption of biscuits in the country has grown from a paltry 400 grams about ten years ago to 1.5-2 kg today. While this is a huge change, India still lags behind other countries like the US and UK where it is more than 10 kg and even behind many South East Asian countries where it is 4.25 kg. It is this gap that is the opportunity for new companies eying the Indian market.

For United Biscuits, India was a key, high consumption market where it did not have a footprint. This is what made it a natural choice to enter. What helped the company was also the fact that here it was just not volume growth but also higher value growth. United Biscuits, is the world’s fourth-largest biscuits maker, is focusing on revenue growth in India rather than chasing market share. India is already the biggest market in Asia for the maker of McVities digestive biscuits, just three years after its entry. Though United Biscuits invented the digestive category but now there are so many choices here that it’s hard to stand up in the midst of them.

Advertising has worked for this company and as biscuit is more competitive than most food categories. But it is seen that consumers are accepting new products faster. Digestive is still less than 1% in India, but the good news is that the category exists in every single market.

McVitie’s digestive biscuit remains the heart of United Biscuits portfolio...there’s so much room to grow in this. But they have rolled out sub-brands under variants like digestive creams and bourbons and are testing a ‘no added sugar’ variant. In many markets, The Company sell brands like Jacob’s crackers and Twiglets snacks.

Here, first, they need the scale to go into many more stores.

Over the last few years, players like

BISCUIT WAR Parle, Britannia and ITC have moved into the cookie and high value segment to capitalise on the high growth and higher margins. Even though glucose biscuits still sell much more in terms of volumes than any other segment, its share in the overall pie has gone down. The share of glucose biscuits has dropped from 70% to 50% in about five years.

Already, the two companies that dominate the Indian biscuit market — Parle Products and Britannia Industries — are being dominated by Sunfeast brand of cigarettesto hotels firm ITC and smaller brands such as Priya Gold and Cremica.

The per capita consumption of biscuits in India is said to be 2 kg a year, while its 8 kg in the US and 12 kg in the UK. What’s unique to biscuits is that it’s perhaps the only packaged food product that has universal acceptance; biscuits start at a very affordable price and are easily available.

Industry analysts said the biscuit market has undergone a drastic change in the last decade. For one, the share of the organized market, which at one point used to be just about 10%, has gone up significantly to become more than half of the total size.

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Vol. 09, Issue 04, February, 2014

BIOTECH INTERVENTION:

Ghee With 85% Less Cholesterol

Dr. R. S. KHANNA DIRECTOR, KWALITY DAIRY (INDIA) LIMITED, NEW DELHI.

Introduction Despite the fact that ghee has been revered for thousands of years by Ayurveda, it is now under a severe threat of being dumped in favour of low-fat, supposedly heartfriendly oils. ‘‘Fat is bad, ghee is the pits, lean is in’’, we are told. Notwithstanding such critics, modern science is looking at the benefits of ghee with renewed interest.

In a TV series presentation on health, Dr B S Raheja, the then Director of the All India Institute of Diabetes, categorically pointed out that ‘‘the present epidemics of diabetes, heart disease and some cancers’’ is due to ghee not being present on the food scene. ‘‘There is considerable evidence to show that this rise was due to change in dietary cooking fat and increased consumption of fast, fatty, and preserved foods,’’ he said.

All kinds of allegations about villainous qualities of ghee are being countered.

Kathryn Feldenkreis, in her book, Ghee, A Guide to the Royal Oil, explains, ‘‘Cholesterol itself is not harmful but becomes harmful when it is partly broken down or oxidised by unstable chemicals called free radicals. Ghee, and particularly organic ghee, has no oxidised cholesterol or trans-fatty acid and is very stable at higher cooking temperatures.’’ Our ancient Ayurvedic texts gave ghee the cherished title of rasayana— food that helps overall health, longevity and wellbeing. They attribute many benefits to it: Digestion: Ghee helps balance excess stomach acid, and helps repair the mucus lining of the stomach.

Preservative: Since ghee doesn’t spoil easily, it preserves the original freshness of herbs and foods.

External use: Ghee is said to prevent blisters and scarring if applied quickly to affected skin.

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BIOTECH INTERVENTION

Mind: It is said to promote all three aspects of mental functioning—learning, memory and recall.

Fertility: Ghee enhances the quantity and quality of semen and ovum for increased fertility and healthier children.

Anti-Ageing: Ghee is an anti-ageing ingredient and enhances the quality and quantity of Ojas, the master coordinator of the mind and body.

Types of Ghee There are eight types of ghee described in Ayurved.

Cow’s Ghee: Out of the eight types of ghee mentioned in Ayurveda cow’s ghee is considered best for therapeutic actions as well as for daily use as diet. It is sweet in taste and Vipaka (post digestive taste), cold in action and pacifies Vata and Pitta. It promotes body strength and eyesight and specifically useful in the treatment of poisoning. Milk of the cow is sweet in taste and has cold, soft, unctuous, thick, smooth, slimly, heavy, slow and pleasing properties. All these ten properties of milk are similar to that of Oja. Therefore it increases Oja and is Jivaniya i. e. it provides all the benefits of Rasyana.

Buffalo’s Ghee: It is sweet both in taste and Vipaka, cold

in action and heavy to digest.

It pacifies Vata and Pitta but increases Kapha and is useful for the treatment of bleeding disorders. Vijayarakshita, the commentator of Madhava Nidana, while describing the role of Anshansha Kalapana in pathogenesis mentions that buffalo’s ghee and Kapha have all the properties similar to each other, so ghee causes maximum increase in Kapha.

Charaka has advised to use buffalo’s Ghee for the treatment of jaundice particularly for the preparation of medicated ghee for this disease. Buffalo’s milk in comparison to cow’s milk is more heavy and cold and possesses more fat. It induces sleep and useful for such persons who have excessive digestive power.

Goat’s Ghee: Ghee of goat is light to digest, promotes digestive power and body strength and increases eyesight. It is Pathya for the diseases such as cough, dyspnoea and tuberculosis. The milk of goat is astringent and sweet in taste, cold in potency, light in digestion and solidifies the faeces.

It is useful in the treatment of bleeding disorders, diarrhoea, tuberculosis, cough and fever.

Sheep’s Ghee: Ghee of sheep is light to digest. It is useful in the treatment of disorders of Vata and Kapha, tuberculosis, gynaecological disorders (Yoni Dosha) and tremors. The milk of sheep is hot in potency and increases Pitta and Kapha. It may produce hiccup and dyspnoea.

Camel’s Ghee: Ghee of camel is pungent in Vipaka (post digestion taste), promotes the digestive power and relieves the vitiation of Kapha and Vata. It is useful in the treatment of chronic skin diseases (Kushtha), localized swelling in abdomen (Gulma), generalized enlargement of abdomen (Udara Roga), swelling, poisoning and worm infestation.

The milk of camel has slight saline taste, light in digestion, hot in potency and is dry. It pacifies 28

the disorders caused by Vata and Kapha, distension of abdomen, swelling, piles and worm infestation. It is specially indicated for the treatment of Udara Roga such as ascites.

Mare’s Ghee: Ghee of mare is astringent (Kashaya) in taste, light in digestion, hot in potency (Ushna Virya) and promotes digestion power. It relieves Kapha disorders and decreases the quantity of urine. Hence it may be useful in polyuria and diabetes mellitus. The milk of mare is slightly saline and sour in taste, hot in potency, light and dry in action. It promotes body strength, provides firmness to body organs and cures the Vata situated in Shakha.

Elephant’s Ghee: Ghee of elephant is astringent (Kashaya) and bitter in taste, light in digestion, promotes digestive power, pacifies Kapha, makes the feces formed and causes decrease in urine. It is useful in the treatment of chronic skin diseases (Kushtha), poisoning and worm infestation. The milk of elephant is heavy in digestion, promotes the body strength and provides maximum firmness to body parts.

Woman’s Ghee: Ghee obtained from woman’s milk cannot be used for common practice. However, it is light in digestion, promotes growth of child and digestive power and it useful like nectar. It provides relief in eye disease

Vol. 09, Issue 04, February, 2014

BIOTECH INTERVENTION and poisoning. It may not be ethically right to use the woman’s milk for common practice but due to its unique properties, it may be very useful in emergency. For instance few drops of woman’s milk put in the nostrils in the form of Nasya may stop the bleeding from nose immediately.

Mother’s milk provides all the properties of Rasayana to the child. It increases weight and is wholesome for the child. It is used for effusion of eyes in eye diseases.

Traditional Manufacture of (Ayurved) Ghee This history of ghee is not properly recorded but it is very old. Our old classical books – “Vedas” approximately third century B. C. describe ghee. It occupies a unique place in the life of a human and is so closely woven in life that practically it is inseparable. Life begins and ends with ghee. With the advent of civilization, man started domesticating cattle. His search for food, taught him to make use of milk.

His ingeniousness led to preservation of food, but for milk. Excellent nutritional quality supporting all forms of life, higher ambient temperatures and lack of development of proper technology for preservation of milk – a highly perishable commodity posed problems.

It was visualized that only one constituent of milk i. e. fat could be preserved for longer time without appreciable deterioration. This could also be due to ease with which fat can be separated from other milk constituents. This very fact led to the development of products viz. makkhan, ghee etc. which were concentrated forms of milk fat. Originally milk was allowed to sour, the curd thus obtained was churned to get butter, which upon boiling yielded ghee. Subsequently several such methods came into being.

All the above-mentioned properties of various types of ghee are of that which is obtained through the process of churning of curd of respective milk. The properties of ghee directly obtained from milk i.e. cream are mentioned separately. Similarly the properties of ghee and butter are also separate. For instances ghee relieves constipation due to its Sara properties, while butter may cause constipation due to its Grahi (astringent) properties.

many methods, however, 80-90% of the ghee produced in the country is made by traditional method. Increased awareness about energy management has led to development of energy efficient and continuous methods for ghee manufacture, which include either an oil separator to separate serum and fat phase or use of scraped surface heat exchangers.

Both the processes save energy and yield a comparable product. Ghee made through microwaving process has been shown to have higher vitamin A and E contents and appreciably lower levels of cholesterol. The different methods of ghee manufacture are: • Desi or indigenous or traditional method • Creamery-butter method • Direct cream method • Pre-stratification method • Continuous method Of all the methods, ghee produced by the traditional method still has a major share in ghee production. Simple technology, inexpensive equipment, small scale of operation and superior organoleptic quality of ghee could be some of the reasons for this. The principle of ghee manufacturer by this method entails: • Fermentation of milk • Mechanical process to gather milk fat in a concentrated form, and • Heating of the fat concentrate at a specified range of temperatures to remove moisture and induce interaction of milk fat with fermented residue of milk SNF. The characteristic aroma, flavour and taste Technology for Processed Ghee of ghee depend on the first and third For manufacturer of ghee there are steps.

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Owing to the basic lack in adoption of standard operational procedures and controls ghee produced by the traditional method lacks repeatable quality attributes. The reasons for this could be: unhygienic handling of milk; uncontrolled fermentation during curdling of milk; inherent defects in country churns and inefficient working; improper storage of butter prior to clarification into ghee; uncontrolled heating at the time of clarification; and unsanitary and undesirable pots used for production and storage of butter and ghee. The process has been found unsuitable for large scale processing by the dairy plants on an industrial scale.

Technology for Low Cholesterol Ghee Biotechnological interventions are latest in producing innovative foods for human consumption. Kwality Dairy (India) Limited (KDIL), under a license agreement with the National Research Development Corporation, has been manufacturing India’s first 85% less Cholesterol Pure Ghee in their brand “DairyBest LivLite”.

Technology to produce pure ghee with very low cholesterol in it has been stabilised by the National Dairy Research Institute, Karnal -- an institute of the Indian Council of Agricultural Research dedicated to undertake applied research in the dairy field. The Karnal institute had stabilised the technique (Fig 1) for close to five years and had handed over the technology for commercial application to the Government owned company the National Research Development Corporation.

What, perhaps prompted the National

BIOTECH INTERVENTION Dairy Research Institute to conduct research for producing low cholesterol ghee is because fat is an essential dietary component of all foods fit for human consumption. Inclusion of Ghee in a balanced diet is extremely relevant and has been recommended since the ancient dietary recommendations made by Ayurveda. Ghee has exceptional sensory and nutritional elements. Ghee is the most widely used milk product in the Indian sub-continent and is considered as the supreme cooking and frying medium.

Being an excellent source of fat-soluble vitamins (A, D, E) and essential fatty acids, Ghee holds the potential to make major contribution towards nourishment of people of all age groups. Most important bioactive components in milk fat may be cited as Butyric acid (anticarcinogenic), Conjugated Linoleic acid (CLA), Vaccenic acid (anti-atherogenic and anti-carcinogenic, muscle builders, and immunity boosters), Short chain fatty acids, Vitamins etc.

It is common knowledge that the modern medicine has been cautioning usage of ghee mainly because, it contains 0.2– 0.4% cholesterol, in both free as well as in esterified form. Although necessary for biological processes, high levels of

cholesterol in the blood have been linked to damage to arteries and cardiovascular diseases. This is the reason research worldwide has been conducted to reduce cholesterol in butter and ghee. Various physical, chemical and biological methods have been proposed for reducing cholesterol in foods especially dairy products, most of which has practical and economic restrictions.

Success of research by the NDRI prompted the Kwality Dairy (India) Ltd., to use the unique biotechnological intervention in producing “DairyBest LivLite” Ghee through use of a cyclic oligosaccharide that selectively separated the cholesterol complex. It is the only pure ghee available with 85% Less Cholesterol as compared to the commonly produced Ghee. “DairyBest Livlite” keeps intact the traditional form, colour, aroma, consistency, texture, flavour, nutritious value of ghee and has a shelf life of twelve months. The physico-chemical properties such as Reichert-Meissel (RM) value, Polenske value, Butyro-refractometer reading, Iodine value and free fatty acids of low-cholesterol ghee remain almost unaltered as compared to normal ghee. Fat soluble vitamins such as beta-carotene, A and E, which are present in milk fat

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as unsaponifiable constituents and have significance in human nutrition, as they play an important physiological role in growth, development and maintenance of life also remain unaffected.

“DairyBest LivLite” Ghee from the house of Kwality, in a nutshell has 85% Less Cholesterol, with all the qualities intact.

Fig 1: Diagrammatic Presentation for Processing of Low Cholesterol Butter/Ghee Cream (40-60% Fat), Pasteurized at 95°C Heating at 55-60° C with gentle stirring for 10-20 minutes Optimisation of reaction Parameters 1. Add - Cyclodextrin 2. Temperature 50-60° C 3. Time 15-25 minutes Cooling cream at 5-10° C 1. Making butter in butter churn, 2. Washing with cold water, Butter (90-95% Less Cholesterol) Making Ghee (85-90% Less Cholesterol)

Vol. 09, Issue 04, February, 2014

Vol. 09, Issue 04, February, 2014

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NEWS

Cadbury investing in sales to increase reach, India

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adbury brand owner Mondelez International is investing heavily in sales and route-to-market expansion in India, a priority market for the American food giant where sales have slumped to their lowest since 2005.

“We increased our sales infrastructure with one lakh visicoolers in the market and the company took big strides by expanding into rural India and reaching seven states in 2013,” a spokeswoman for Cadbury India said.

According to data provided by Mondelez, its India business grew in the “low-teens” in 2013. It was 21% in 2012 and over 30% in the preceding years.

Cadbury India attributed it to economic slowdown, increase in commodity prices and the depreciation in the rupee.

Although India is one of the fastest

growing markets for chocolates, domestic sales of the commodity have fallen with consumers spending less due to the economic slowdown. In 2013, growth in overall food segment slowed to 11.6%, from over 17% in the previous year, data showed.

At the annual performance presentation last week, Mondelez’s chief financial officer, David Brearton, said, “While economic conditions are likely to remain difficult, especially in emerging markets, we intend to leverage market share gains

to offset potential volatility.”

Despite the cloudy outlook, Mondelez’s Rs 4,000-crore plus Indian unit last year announced plans to invest $190 million to build the country’s largest chocolate manufacturing plant near Hyderabad.

“Given our advantaged portfolio and footprint, strong fundamentals and ongoing investments, we’re confident that we’re wellpositioned to take on the opportunity, as this market turns around,” said the spokeswoman for Cadbury India, which is in the process of transitioning its legal name to Mondelez India Foods.

In the Rs 6,000-crore domestic chocolate segment, Cadbury has over 67% market share, followed by Nestle at 21% and Ferrero at 6%.

Increasing market share, however, may not be easy for Cadbury, which has been pushing its pricier brand ‘Silk’ and lowestpriced ‘Cadbury Shots’. Rival Nestle, which grew 7% in 2013, too is focusing on its new brand, Alpino, and Munch. In the health beverage section, Cadbury’s Bournvita faces competition from Heinz India’s Compla

Indian Agro Food Product Exports Rise

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he Indian agricultural food products have seen a dramatic rise in exports over the last two years – rising by 55 per cent two years ago and 13 per cent last year, writes Chris Harris.

Last year’s figures from the Ministry of Food Processing show that wheat and rice products led the way.

In 2011-12 wheat exports rose to more than $202 million and then soared to more than $1.9 billion – a growth of 857.2 per cent. However the export sales of wheat were just 5.36 per cent of the total agrifoods’ export market.

Close behind the rise in exports of wheat were the rises in export sales of basmati and other rice products.

Basmati rice exports rose by 29 per cent two years ago and then last year by 10.7 per cent to reach $3.56 billion, which other rice sales rose by 53.6 per cent last year to reach $2.65 billion.

Production of food grains during 2012-13 was around 255.36 million tonnes compared to 259.29 million tonnes in 2011-12.

Meat and meat preparations, largely 32

bolstered by the sales of buffalo beef, have risen by 48.2 per cent two years ago followed by a 12.7 per cent rise last year to £3.3 billion and taking 9.13 per cent of the total export market.

Poultry product sales also saw a sharp rise in 2011-12, going up by 28.7 per cent followed by a 5.7 per cent rise last year to $84.79 million.

Two years ago, export sales of dairy products took a severe hit, dropping by 31.3 per cent. However, over the last year they rose sharply by 153.4 per cent to reach $326 million.

Fish and marine product exports rose sharply two years ago and remained fairly static last year according to the official figures with sales reaching nearly $3.5 billion.

Overall, agrifood exports for India were worth more than $36 billion and have been showing continual growth over the last three years with rises of 38 per cent three years ago, more than 55 per cent two years ago and 12 per cent last year.

Vol. 09, Issue 04, February, 2014

Nestlé launches environmental friendly ice cream freezers The move is part of Nestlé’s commitment to progressively phase out the use of high global warming potential refrigerants, such as hydrofluorocarbons (HFC).

It also allows the company to step towards meeting the Consumer Goods Forum Resolution on Refrigeration wiss food giant Nestlé is launching that encourages businesses to take actions new environmentally efficient ice to phase out some HFC refrigerants from cream freezers, developed using 2015. natural refrigerants across Europe.

Nestlé made its commitment to purchase

s

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onsumption of non-alcoholic beverages is expected to increase by 16.5-19% over the next three years as more people are trading up to packaged drinks, according to a report by the Indian Council for Research on International Economic Relations (ICRIER) and the Indian Beverage Association (IBA) released.

Corporate manufacturers of non-alcoholic beverages are expected to grow at an annual rate of 16.5% and non-corporate manufacturers at 19%, according to the report titled Unleashing the Potential of the Non-alcoholic Beverage Sector.

The estimates are based on an assumed gross domestic product growth of 7%, which is much higher than the 5% growth several economists are forecasting.

Vol. 09, Issue 04, February, 2014

NEWS the commercial horizontal ice cream chest freezers across Europe that use only natural refrigerants.

Natural refrigerant substances occur naturally like carbon dioxide, ammonia, water or air and hydrocarbons, like propane and iso-butane. These do not harm the ozone layer and have no or negligible global warming effects.

The new freezers help reduce energy consumption by more than a third over the existing systems.

Nestlé has already introduced 18,000 natural refrigerant hydrocarbon freezers across the world.

In addition, it replaced synthetic refrigerants with natural alternatives in more than 92% of its industrial refrigeration systems, with an investment of CHF240m.

Indian Beverage industry to grow at 16.519%: report India’s beverage market is largely unorganized, with nearly 75% of the demand serviced by companies in the unorganized sector. But in the past 18 months, the world’s largest beverage makers Coca-Cola Co. and PepsiCo Inc. invested heavily towards building capacity and developing bottling infrastructure in the country over the next 7-8 years, to meet the growing demand for packaged beverages.

The ICRIER-IBA report said that with the rise in incomes India’s non-alcoholic beverage sector has evolved both in terms of product variety and the number of companies in the market.

According to another report by researcher Business Monitor International, the Indian market of non-alcoholic beverage market 33

comprising carbonated drinks, juices, bottled water, ready-to-drink tea and coffee, and sports drinks is expected to touch $5.18 billion by 2015.

S.R. Goenka, president, IBA, said India’s non-alcoholic beverage sector holds several advantages in terms of its large consumer base, abundant supply of raw material and a pool of low-cost, skilled labour.

“The sector has seen double digit growth post-liberalisation, and is currently contributing over 1% to India’s GDP. With industry leaders such as Coca-Cola and PepsiCo announcing significant investment plans for India, there is a clear indication that the sector offers significant potential for growth in the coming years,” he said in a press release.

NEWS Kraft Cheese removes artificial preservatives from KRAFT singles

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raft Foods is announcing the launch of KRAFT Singles with No Artificial Preservatives, a welcomed renovation that removes artificial ingredients, while still delivering the same quality, taste, look and melt its consumers expect.

Grilled cheese made with KRAFT Singles is an iconic American tradition, beloved by kids and adults alike - and now KRAFT Singles are simpler than ever.

“We know families today want convenient foods that have no artificial preservatives and a simpler, more recognizable ingredient list, and Kraft is working to deliver more

of these options for some of our most beloved brands,” said Brian Gelb, Senior Associate Brand Manager, Kraft Foods.

“Kraft is excited to deliver the same great tasting American cheese it always has with KRAFT Singles - always made with real cheese, milk and no artificial flavors - and now with no artificial preservatives. It’s just simpler this way, and it’s the way cheese fans want it.”

KRAFT Singles with No Artificial Preservatives - available now in the dairy aisle of leading grocery stores nationwide - are offered for the American and White American varieties (currently does not include 2% milk varieties). A serving of KRAFT Singles provide an excellent source of calcium, and a good source of Vitamin D per serving, both of which are important nutrients lacking in American diets today.

What does this mean for cheese lovers?

Now there is more reason than ever to warm up the skillet to make a warm, gooey grilled cheese sandwich on a cold winter day. In fact, according to a recent survey, more

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than half (51%) of Americans are more likely to enjoy a grilled cheese sandwich during winter, with summer noted as the next most common time of year (19%) A few other fast facts regarding KRAFT Singles include: Americans Love KRAFT Singles: Nearly 4 out of every 10 U.S. households buy KRAFT Singles, with more than 480 packages of KRAFT Singles sold every minute.

Amped-up Grilled Cheese is All the Rage: With a third (33%) of Americans wanting only cheese in their grilled cheese sandwiches, Americans do love to add meats to this classic sandwich - with ham (29%), bacon (23%) and turkey (10%) topping the list. Although less popular, other delicious combinations include the addition of vegetables, such as tomato (20%), onions (8%) and avocado (6%).

Taking Taste Beyond the Grilled Cheese: While 65 percent of Americans claim that grilled cheese is their primary use for KRAFT Singles - followed by burgers and sandwiches, both at 61 percent approximately a third admit to eating KRAFT Singles right out of the wrapper (34%) or enjoying the cheese with crackers (31%).

Vol. 09, Issue 04, February, 2014

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Vol. 09, Issue 04, February, 2014

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NEWS

Super light Krones PET Bottle wins iF Packaging Design Award

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ightweights can be pretty impressive as well: an ultralight PET bottle from Krones was among the winners at this year’s packaging design awards in the “Beverages” category. In recognition of this achievement, the “PET lite 9.9 carbonated” is now entitled to wear the internationally prestigious iF label.

The innovative bottle is suitable for being filled with carbonated beverages, and has a capacity of 500 millilitres. It tips the scales at a mere 9.9 grams – making it 30 to 45 per cent lighter than comparable PET containers on the market.

The lightweight bottle has been developed by a design team at Krones that’s already won several awards for its innovative packaging solutions. One of the designers’ paramount priorities is to develop containers that are both supremely

marketable and at the same time eco-friendly.

Like the “PET lite 9.9 carbonated”, which marries affordability to ecological awareness.

Since it can be produced with minimal expenditure of energy and material, it’s a true lightweight, not least in terms of production costs and minimised environmental impact.

This is achieved, for example, by dividing up the bottle into several functional areas with different wall thicknesses.

Most of the PET material is located in the upper part of the bottle, where it is held and opened. The walls in the lower section, by contrast, receive only half as much material.

Nonetheless, the bottle is reassuringly stable for handling and consumers’ use, thanks to its sophisticatedly ingenious container geometry, in which the designers have left not a single square millimetre to chance. Further significant weight savings are achieved with the special neck finish, since in contrast to other PET bottles this one does not have a screw-cap, but a tearoff ring-pull closure.

The “PET lite 9.9 carbonated” is displayed together with the other winners in the iF online exhibition. Moreover, as from March 2014, it can be admired live as part of the iF design exhibition in Hamburg.

Ill. Krones-iF packaging design award-9.9: The innovative bottle is suitable for being filled with carbonated beverages, and has a capacity of 500 millilitres. It tips the scales at a mere 9.9 grams – making it 30 to 45 per cent lighter than comparable PET containers on the market.

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Cremica to shed 49% to Kedaara Capital & TA Associates

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rivate equity majors Kedaara Capital and TA Associates in planning to buy 49% stake in Cremica, a Punjab-based maker of biscuits and bakery products, the deal size is estimated at about Rs 300 crore, people familiar with the matter said.

Investment bank Avendus Capital is running the sale process at Cremica.

Cremica Group, founded by Rajni Bector as a backyard enterprise 35 years ago, till recently was controlled by three siblings - Anoop, Akshay and Ajay Bector - with equal shareholding.

As part of a recent settlement, Anoop Bector will take charge of the biscuits and bakery unit, while Akshay Bector will helm the condiments business.

The biscuits and bakery unit is bigger, but condiments are a faster growing business for the group. Ajay Bector along with Motilal Oswal is expected to divest stake to one of the two shortlisted financial investors.

Kedaraa Capital, co-founded by private equity veterans Manish Kejriwal and Sunish Sharma, recently raised a $540-million maiden fund. The Boston-headquartered TA Associates, managing assets worth over $16 billion globally, has been keen on a bite of the domestic consumption story. Its current Indian portfolio includes Dr Lal Pathlabs, Micromax and Billdesk.

Anoop Bector, Kedaraa Capital and Avendus declined to comment. TA Associates could not be reached for immediate comments, while Ajay Bector said he was unaware of the developments. India’s food services sector has slowed down in recent quarters as Asia’s third largest economy lost some steam. Still, foreign investors continue to explore opportunities around the broader consumption story, counting on its long-term potential.

Vol. 09, Issue 04, February, 2014

NEWS

Bühler extends its presence in China with a turnkey project at Hangzhou Wahaha Group for processing rice and beans Leading Chinese producer trusts Bühler expertise to improve quality and reduce costs with the installation of advanced cleaning and grading lines

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ondon, United Kingdom, 18th February 2014 – The Bühler Group, a global leader in rice and pulses processing and optical sorting solutions, has announced a further strengthening of its commitment to excellence in Chinese rice and bean processing with the completion of a turnkey installation at the Hangzhou Wahaha Group’s plant in Haining. Dedicated to the production of historic Chinese eight treasure porridge under the Wahaha brand, the new Bühler cleaning and grading plant has allowed Hangzhou Wahaha, one of China’s largest and most prestigious food and beverage manufacturers, to make dramatic improvements to the quality of its end product and reduce the cost of its eight treasure porridge operations.

Dating back more than 2200 years, to the Han dynasty, when it was consumed on the eighth day of the 12th month in the Chinese lunar calendar, eight treasure porridge is now a popular favourite in China and consumed every day as a convenient, cost effective and nutritious ‘fast food’. It is made with various ingredients, including red beans, cranberry beans, myotonin (Chinese barley) and oats, as well as sticky rice and black glutinous rice to create a rich porridge that can be simply opened and consumed.

With such a frequently consumed and well known product, derived from a wide variety of different raw materials, coupled with the rigours imposed by an increasingly discerning consumer in China, Hangzhou Wahaha’s mission to produce the finest porridge, reflecting its high standards, had been severely challenged in recent years. In order to build on its reputation for quality and drawing on its knowledge of Bühler’s expertise in tailor-made engineered solutions, the company trusted Bühler

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to help automate its operations, create a more hygienic working environment and achieve the high quality production of eight treasure porridge that its customers were demanding.

Replacing the existing, largely manual cleaning and sorting process, the Bühler installation involves two complete, compact and advanced lines, each of which can clean and grade the various raw materials. Currently, one line is dedicated to rice and the other to beans. Each line incorporates Bühler’s MTSD De-stoners, MTRC Vibrosifters, metal detection equipment and SORTEX Z+ sorting machines.

Incoming product is mechanically cleaned to remove impurities that are larger and smaller than the product. Then stones and metals are targeted for removal, as they are passed automatically to de-stoners and magnetic metal detectors. Reinforcing the drive for safety and quality, the produce is then fed through Bühler‘s SORTEX optical sorters, which can identify and remove product defects as well as foreign materials. The sorters effectively eliminate contaminants such as glass, stones, wood, sticks and soil blocks, as well as deformed or discoloured beans, and discoloured or unwanted varieties of rice., Each machine in Hangzhou Wahaha’s compact cleaning and sorting solution is fitted with an aspiration system that extracts any dust or dirt particles, to create a hygienic working environment that also reduces the risk of fungal growth. By 37

automating the entire process and creating a closed system, human intervention for checking or adjustments is minimised.

Bühler has removed the chance for cross contamination and boosted Hangzhou Wahaha’s throughput significantly.

“Our investment in Bühler’s advanced technology and custom-designed solutions has surpassed our expectations.

It has drastically reduced our customer complaints about foreign body contamination, which are expensive to handle in terms of both customer service and reputation; reduced our operating costs dramatically; and given us consistent quality in production,” said a spokesperson from Hangzhou Wahaha.

“We trusted the Bühler team to deliver and the resulting solution fits our requirements exactly. We look forward to working with Bühler on future projects.”

Bühler’s installation of this successful turnkey solution for Hangzhou Wahaha substantially reinforces the company’s leading position and influence in delivering innovative, customised technology projects in China and underpins its reputation for technology expertise and quality.

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Vol. 09, Issue 04, February, 2014

INVESTMENTS AND OPPORTUNITIES GALORE EXPORT OF INDIA AGRI AND PROCESSED FOOD

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ndia ranks only second to China in the world in terms of food production and fifth in areas of output, consumption, export and predicted growth. Its food processing industry is one of the major industries here. According to an estimate of the Confederation of Indian Industry (CII), the sector may generate employment of 9 million people-days and may attract US $ 33 billion investment in next ten years.

Food processing includes the processing of fruits and vegetables, dairy, meat and poultry, food grains, fisheries and consumer foods (beverages, packaged food and water). The sector is fragmented Vol. 09, Issue 04, February, 2014

into the unorganized which includes innumerable flour mills, rice mills, pulse mills, hullers, oil-seed mills, traditional food units, bakeries, processing units of spices, fruits and vegetables; and the relatively smaller organized sector of flour mills and processing units of fruits and vegetables, fish, meat, poultry and dairy. The on-going transformation and industrial scenario offers opportunities for the growth and investment of the organized players.

The areas for growth and expansion in this sector are seen in food processing, packaging, canning, refrigeration, thermo 39

Despite unfavourable global economic sentiment, food export in India has its own success story to tell though the success comes with a bit of flaw processing and speciality processing.

When it comes to the food processing sector, India ranks 5th in terms of producing, growing, consuming and exporting. According to Indian Council Agricultural Research, this sector is forecasted to reach $194 billion at the end of 2015.

The GDP share of food processing sector has been rising every year, clearly obvious judging by the figures mentioned below: • Financial Year 2009-10 – GDP was 1.3% • Financial Year 2010-11 – GDP was 1.4% • Financial Year 2011-12 – GDP was 1.5% According to the data by APEDA (Agricultural & Processed Food Export Development Authority), India’s agro and processed food exports spiralled up to 63% in the FY 2012-13. In the first ten months of the FY 2012-13, it set a record of $16.96 billion (Rs.1, 01,504 Crores).

It was $10.39 billion (Rs.62, 244 Crores)

AGRI & PROCESSED FOOD in the same period of preceding FY 201112. According to CII-McKinsey report, the processed food industry is expected to expand by 9% every year, and reach $100.19 billion (Rs.6 Lakh Crores) by 2030.

Ever-increasing demands, supply advantages and encouraging support from government policies have been instrumental in attracting foreign investors in the food processing segment of India.

FDI complements and adds to domestic investments. Besides capital, it brings in the latest knowledge, skills, and professionalism, thus allowing for the growth of technologies. India is the largest milk producer in the world, 2nd largest vegetables and fruit producer, and 3rdlargest producer of fish. The country even produces 200 MT (million tonnes) of food grains annually. India is rapidly budding as a supply centre for processed food, because it has favourable features like massive agricultural land, abundant livestock, and a cutting edge in the production cost in comparison to its competitors. India presents lucrative investment opportunities in both domestic and international markets in many segments of food processing industry.

Some of the sub-sectors with huge investment potentials are milk & milk products, fruits & vegetables, meat & poultry, and beer & beverages. So the time is now right to enter the booming Indian market with the help of a right partner.

The inflow of FDI in food processing sector in the last 3 years is as follows: • FY 2010-11 = $1,271.77 million (Rs.5,796.22 Cr) • FY 2011-12 = $1,652.38 million (Rs.7,677.74 Cr) • FY 2012-13 = $529.09 million (Rs.2,887.03 Cr) FOOD EXPORT CHRONICLE This industry is primarily export orient.

India’s geographical situation gives it the unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand, Malaysia and Korea.

One such example indicating India’s location advantage is the value of trade in agriculture and processed food between India and Gulf region.

Agricultural and processed food exports from India have set a record in 2013 financial year, despite unfavourable global

economic sentiment.

These exports have witnessed a strong demand for India’s ready-to-eat and raw food products from foreign markets.

Data compiled by the Agricultural and Processed Food Products Export Development Authority (Apeda) showed India’s agri and processed foods exports shot up 63 per cent to set a record at Rs 101,504 crore in the first 10 months of 2013, as compared to Rs 62,244 crore in the corresponding period of the year before. Cereals constituted a little over 40 per cent of India’s overall shipment in this sector. Commodities such as dried and preserved vegetables, mango pulp and pulses also recorded a sharp jump.

India’s exports of Processed Food was Rs. 38150.86 Crores in 2012-13, which including the share of products like Mango Pulp (Rs. 608.56 Crores), Dried and Preserved Vegetable (Rs. 637.96 Crores), Other Processed Fruit and Vegetable (Rs. 1733.06 Crores), Pulses (Rs. 1285.00 Crores), Groundnuts (Rs. 4065.36 Crores), Guargum (Rs. 21287.01 Crores), Jaggery & Confectionary (Rs. 917.60 Crores), Cocoa Products (Rs. 293.92 Crores), Cereal Preparations (Rs. 2240.76 Crores), Alcoholic and Non-Alcoholic Beverages (Rs. 1909.37 Crores) and Miscellaneous Preparations (Rs. 1712.06 Crores).

The commerce ministry took initiatives to promote India’s agri and processed food products in European countries in recent years, boosting India’s significance in all international events. Exports of these products haven’t been hit by the unfavourable global economic sentiment.

As a result, these exports have risen tenfold in four years, from Rs 11,178 crore in 2009-10. In Europe, Germany continues to remain a major destination for rice products, coffee, dried and preserved vegetables and poultry products. America is a major importer of India’s cereal preparations, guar gum, cocoa products, natural honey and milled products. Asian countries and West Asia are also major export destinations for a number of agri products.

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Politico-economy scenario There are apparently some economic aspects in which India is still a “success story”, though the feel-good factor may be fading for Indian and foreign investors, and the trade and balance of payments situation may look dire.

One of them is food exports: in the past few quarters, India has emerged as the world’s largest exporter of rice, possibly the world’s largest export of beef (buffalo) products and the fourth largest exporter of wheat, and is also becoming a major exporter of maize.

On current projections, total cereal exports for 2012-13 may cross 24 million tonnes, with rice exports coming to more than 13 million tonnes, wheat exports at around 6.5 million tonnes and other cereal exports at around 4.6 million tonnes.

Clearing the policy under which processed foods from agricultural commodities such as wheat, rice, onion and milk would not be subject to any export ban or restrictions was a major boost to India’s processed food exports.

Frequent bans on the exports of grains and milk in last few years had shrunk India’s chance to tap the global market for improving its agricultural and processed food exports.

But clearing of policy has opened new vistas for the exporters thus allowing them to enter into a long-term contact with Vol. 09, Issue 04, February, 2014

AGRI & PROCESSED FOOD

importing parties.

India had banned exports of onions, wheat, non-basmati rice and milk in the last few years to boost domestic stocks. Since there was no policy distinction between raw and processed items, this had hit exports of dehydrated onions, casein milk protein extracts and rice and flour-based products.

Now, even if export of a farm commodity is banned, the specified processed foods from them would continue to be exported.

Many foreign buyers were reluctant to enter into deals with Indian exporters due to the government’s power to suspend exports of a particular commodity at short notice but now with the new law things are brighter. India imposed a ban on onion export in December 2010 when the domestic prices rose sharply leading to stoppage of shipment of dried onion. The ban hit the R500-crore domestic onion dehydration industry, which has a 50% global share.

Similarly, the government had banned exports of casein and milk powder in February 2011. The agriculture minister Sharad Pawar then wrote to Prime Minister Manmohan Singh that the Centre’s policy on milk and milk products has been ‘ambivalent’ and demanded opening of exports of skimmed milk powder and casein, which the government did in 2013.

India exported dairy products worth Rs 608 crore last fiscal.

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India removed exports restrictions on non-Basmati rice last fiscal leading to the country emerging as biggest rice exporter in the world. Also with the lift on fouryear ban on wheat export lead to more than 2.5 million tonnes of wheat exports from the government’s stocks till now.

The country’s ‘agriculture and processed foods’ exports (including basmati rice, fresh fruit, and dairy and meat products, among others) is expected to cross R1 lakh crore against R82,480 crore in 201112.

Cereal exports are not the only unexpected “success” of Indian trade policy. According to the US Department of Agriculture’s report of 13 March 2013, “India is on track to tie or possibly overtake Brazil as the world’s largest exporter of beef in 2012.”

The USDA estimates India’s buffalo meat exports from the import data of other countries, and the export estimate for India for 2012 is currently at 1.45 million tonnes, representing a 14 per cent increase over 2011.

The USDA expects Indian buffalo meat exports to increase by another 15 per cent in 2013.

COUNTERVIEW: CONSEQUENCE OF EXPORT Food shortage Net exports, especially of food items, are usually taken as an indication of domestic plenty, of more than sufficient supply

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for meeting domestic needs. So these rising food exports may come as a bit of a surprise not just for the average Indian consumer, but for those who are aware of the country’s significant food deficits.

After all, India still has some of the worst nutrition indicators in the world, on par with or below many Sub-Saharan African countries. People in India are faced with accelerating prices of basic food items, which have made some food items increasingly unaffordable even for those above the income poverty line, and contributed to reduced calorie consumption of the bottom half of the population.

This has occurred even though net domestic production of cereals has increased over the past two decades.

Despite this increase, per capita net availability of cereals has been declining in every five-year period since the early 1960s, and certainly over the past two decades.

To some extent, this decline in the recent past also reflects increased public stock holding, especially in the very recent past which has witnessed significant increases in the grain reserves held by the Food Corporation of India. But this is clearly not the only reason, nor even the most important one.

Food security question Food price inflation is one reflection

AGRI & PROCESSED FOOD of the declining per capita domestic availability. That this is occurring in a context of persistent and widespread hunger among the population is the reason why food security has emerged as a major political issue. The public clamour for legislation to ensure food security has made it increasingly difficult for the UPA government to avoid at least partly trying to fulfil its own promises to the electorate in this regard.

But one of the arguments that are most frequently made by those opposed to such legislation is about the difficulties involved of the government finding enough food grain to meet its obligations under the proposed legislation. “Where is the surplus grain?” they ask.

One answer to that question seems to be glaringly obvious from the external trade data: some of it is simply going abroad.

Interestingly, “other cereals” also show significant increase in exports — mostly due to maize exports.

And exports are slated to go up even further in the coming year, certainly of wheat.

The US Department of Agriculture report on India’s grain economy suggests that in 2013-14, “wheat exports are forecast to increase to 8 million tons, including 5 million tons of government wheat.

By contrast, rice exports may not increase as much. This will not necessarily be driven

by tight domestic market conditions, since these have scarcely affected government policy in the recent past.

Rather, changing conditions in the world rice market may have an impact. Already India is supplying about one-third of the global rice trade. It became the largest supplier when Thailand cut back exports and increased its domestic stockpile by raising rice procurement prices for its own farmers, but there are indications that some of these stocks (possibly as much as 5 million tonnes) may be released on to the global market fairly soon.

Vietnam and Pakistan are also emerging as major suppliers in the relatively thin world trade for rice.

However, if non-basmati rice exports continue to go up as they have done after the ban was lifted; the value of non-basmati rice exports in 2012-13 may exceed that of basmati rice exports to touch $20 billion.

Since India is such a large country (in international trade terms, which means that its entry or exit can affect global prices) in the global rice market, it is not surprising that its entry as a major exporter of non-basmati rice was associated with some decline in global prices even though Thailand had cut its own exports in that period.

Meanwhile, of course, domestic wholesale prices of these basic cereal items have been

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increasing continuously. The increases have been particularly sharp in the period after exports bans were lifted and exports of rice and wheat have ballooned.

The consequences are evident in the very significant increases in retail prices and in consumer inflation indices, which are substantially driven in the recent past by food prices.

CONCLUSION The international markets have been unstable and investment has been less but this did not affect the Indian agri and processed food export. After lifting the ban on several food products and commodities the export has sky rocketed.

Agricultural and processed food exports from India have set a record in 2013 financial year, despite unfavourable global economic sentiment. These exports have witnessed a strong demand for India’s ready-to-eat and raw food products from foreign markets. India’s agri and processed foods exports shot up 63 per cent to set a record at Rs 101,504 crore in 2013. Cereals constituted a little over 40 per cent of India’s overall shipment in this sector. Commodities such as dried and preserved vegetables, mango pulp and pulses also recorded a sharp jump.

India is on track to tie or possibly overtake Brazil as the world’s largest exporter of beef in 2012.

However the export of agri and food productions has dented the domestic market –. No matter what the government say or do, the truth is evident in the very significant increases in retail prices and in consumer inflation indices.

Underlying all these trends is the basic stubbornness of the Central government in holding on to its procured stocks of grain rather than releasing them on the domestic market so as to benefit consumers.

This has led to the perverse situation whereby grain traders and livestock traders (and not farmers) benefit from being able to sell on the world market, while Indian consumers face rising prices.

Nevertheless, ironically India’s share in global market is still small compared to its production of agricultural items.

Fifteen countries including Saudi Arabia, UAE, UK, Bangladesh and South Africa account for more than 63% of India’s exports of fruits, vegetables and other agri-products.

Vol. 09, Issue 04, February, 2014

How Manufacturers Can Tackle Food Waste Food waste is a growing concern for the food industry, and has been tackled in a number of ways. Oil & Food Journal looks at how consumers and manufacturers can help reduce food waste.

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liminating the millions of tons of food thrown away every year in developed countries is one of the biggest challenges the industry has to tackle in the years ahead. While East Africa is afflicted by the worst drought and food shortage the continent has seen in 60 years, affecting 12 million people living in Kenya, Ethiopia and Somalia, the numbers of global food waste levels have constantly increased in recent years.

A report by Emerson, a global engineering and technology company, has revealed that India, the world’s largest producer of milk and the second largest producer of fruit and vegetables, is also one of the biggest food wasters in the world. Fruit, vegetables and grains worth Rs 440 billion are trashed every year. While the wasted fruits and vegetables alone was estimated at Rs 13,300 crore, other food products like rice, wheat, cereals and meat are also allowed to perish without consumption.

Industry experts suggest that roughly a third of food produced for human consumption is lost or wasted globally, amounting to about 1.3 billion tons a year.

In developing countries the problem lies in the supply chain: poor storage facilities, poor infrastructure and transportation, a lack of refrigeration as well as inadequate market facilities let food go bad. In developed countries on the other hand, foodstuff is primarily wasted by its end consumer.

Reducing food wastage is high on the list when it comes to increasing sustainability in the food industry. Food packaging designers and food industries/companies Vol. 09, Issue 04, February, 2014

could take an important role in reducing the growing food mountain. Through new sizes, designs and the introduction of new packaging materials that prolong the shelf life of perishable foods, an important step towards more sustainable food supply can be made..

We take a look at why we still need to reduce food waste, and investigate the ways that packaging can prevent food waste in transport and storage.

PACKAGING: THE SOLUTION NOT THE PROBLEM Many developed countries still concentrate on the reduction of packaging waste rather than a cutback in the food thrown away.

Packaging protects food, for decades; packaging was seen as nothing but waste, a nuisance to be avoided. Yet nothing 43

could be further from the truth. Packaging is a technological wunderkind that makes abundance for the masses possible.

It is despairing at the sheer absurdity of the focus on packaging waste and sustainability by policymakers compared with food waste. Packaging waste pales into insignificance compared with the losses caused by food waste.

The packaging industry needs to communicate packaging more strongly as part of the solution for more sustainability rather than to the continuous limited discussion regarding the question of disposal, the organisers claim.

Many governments and policy makers have however ignored in the past what the food packaging industry has long realised..

While the government commits to putting a series of measures into action to tackle

FOOD WASTE

and reduce packaging waste ‘towards a zero waste economy’, no steps to tackle the problem of food waste.

Smart packaging While policymakers should concentrate on the education of consumers, the packaging industry has to tackle the growing food mountain with more practical and handson measures. Today’s food packaging has to reflect changing consumption habits and other social changes resulting from demographic factors and altered lifestyles.

People are becoming more urban, single households are more common and also the aging populations have influenced the shape, size and the design of packaged food. In the future, different products, different amounts and different packaging sizes will be in demand.

Intelligently designed containers have to ensure their content is entirely consumed and that no residual amount remains in the package, while ensuring product safety, convenience, marketing and sustainability, technological advancements significantly prolong the shelf life of perishable foods.

Trays, wraps and other forms of physical barriers not only protect the food from their environment but also maintain safety and flavour, keep out oxygen and microbes, and make seasonal food available all year. Better transport packaging reduces bruising, crushing and other damage and mitigates the risk of food being thrown away before even arriving at the supermarket.

A step further has been made with the development of active packaging

materials, which do more than simply protect, store and transport food. The different plastic films interact with the food, adding to the product’s shelf life without reducing its nutrients, adding unwanted tastes and odours, or changing the texture and appearance.

The example of a simple salad bag shows the complexity active packaging: what may look like a mere sheet of transparent plastic consists in fact of up to seven different layers. Each of the layers has unique chemical properties, laminated into one single sheet only a few hundred microns thick. The result is a bag that provides the perfect environment for the fresh and perishable salad leaves. The rate of respiration is precisely controlled and gaseous exchanges of carbon dioxide and oxygen are calibrated to perfection.

The release of moisture is controlled so the leaves neither drown nor dry out, while another layer filters out UAV lights to slow down plant aging.

Another area of interest with the potential to overhaul the packaging industry and the problem of food waste in years to come is nanotechnology. Manipulating matter on an atomic and molecular scale, the opportunities seem virtually boundless.

For instance, scientists at food giant Kraft, in cooperation with Rutgers University in New Jersey and the University of Connecticut have been working on nano-particle films and packaging with embedded sensors.

One of the biggest sources of consumer food waste is the mix-up of ‘best-before’ and ‘use-by’ dates on packages. Such smart technology could be able to detect food germs and to trigger colour changes in the packaging to alert the consumer if the contents have gone bad.

Fresher food for longer There are numerous innovations in packaging that are helping to reduce the level of food waste. The right packaging can protect the product inside and delay 44

the natural process of decay for up to two weeks or more. It suits consumer demand to develop packaging that keeps food fresher longer, but it also helps reduce food waste as consumers will have more time to consume the product.

A fresh produce supplier noted that plastic film around a bunch of fresh herbs can extend its shelf life from two to five days.

The new trend to pack fresh herbs in punnets doubles this again.

A survey reported that if the consumers kept their food products in their original packaging, it would keep the product fresher for up to a fortnight. Considering most food packaging is designed to keep food fresher for longer this is a sensible move but not one that all consumers will necessarily take.

Food waste is incurred through overstocking shelves, poor inventory management and product damage during transport. This leads to opportunities for manufacturers to look at their supply chain and fix any issues that could result in food wastage.

Tetra Pak has a history of utilising packaging to reduce food waste, pioneering the development of aseptic sterilisation to enable food products to be kept fresh for up to six months without the need for added preservatives of refrigeration.

Today they continue their commitment to food safety and innovation.

Food industry is constantly innovating in order to improve the shelf life of food and beverages produced by them. Sometimes the solutions involve creating new options for extended life items, such as the Tetra Recart system that brings the aseptic carton to canned foods. The carton offers the same food waste sparing properties of cans along with weight savings and use of renewable materials that reduce the overall CO2 footprint.

Packaging food for a changing society The way we live as a society has a drastic effect on the way we eat and why we waste food. Today social and lifestyle changes have led to an increase in single or two person households and an ageing population, which in turn have led to a consumer trend for conveniently packaged food and drink.

While two for one offers and bulk retailing may provide better value for money for consumers, if they are in a small household Vol. 09, Issue 04, February, 2014

FOOD WASTE it is likely that the product will lose its freshness and probably degrade before the consumer can finish it.

Single occupancy households tend to waste around 45% more food per person than the average household, so there is clearly an opportunity for food manufacturers to cater for this group by providing smaller serving sizes or resealable packaging.

Various reactions to this recent consumer trend have included single-serve packaging that contains the right amount for only one consumer, reclosable packs that allow consumers to keep food fresher for longer and sub-divided packs that allow the consumer to take what they need and leave the rest for later.

There are many ways to fight food waste in the industry and to enable consumers to better prevent food waste. While the industry has come a long way, we can only hope that new innovations and campaigns can take us that little bit further.

THE POSSIBILITIES OF PLASTIC: SAVING FOOD THROUGH INNOVATIVE PACKAGING Current food production is enough to feed the undernourished and malnourished populations of the planet. But, according to the Food and Agricultural Organization of the United Nations (FAO), onethird of food produced today is wasted.

Meanwhile, FAO also estimates that almost 870 million people worldwide are undernourished and the Environmental Protection Agency credits food waste as the second-largest component in the U.S. solid waste stream (after paper and paperboard). Although many groups are

Vol. 09, Issue 04, February, 2014

addressing food waste, they are missing the opportunity to add better packaging as an additional tool to reduce food loss and increase food security.

When picturing sustainable food systems many people don’t imagine how plastic packaging could be incorporated, but what is important to remember is that sustainability is about the entire lifecycle of the product and package together. This “lifecycle thinking” approach considers more than just one step in the supply chain process: it’s a comprehensive view of a product from cradle to grave.

So, where does plastic play a role?

Lightweight, durable and flexible – the protective properties of plastic packaging make it one of the world’s most sustainable products for preserving a food’s freshness.

The Value of Packaging High-performance plastic packaging, that can extend food shelf life and minimize spoilage, offers significant opportunities to reduce waste while having a valuable impact on food supply and global sustainability.

Plastic packaging’s innovative design and proven performance helps enable food to travel from the farm to the table with minimal waste. Right-sized packaging, resealables and ready meals help reduce consumer food waste, while increasing convenience by making packages easy to handle, open, close and optimize contents.

Abuse-resistant plastics and barrier layers increase package durability, extend food quality and prevent food contamination.

Flexible plastic packaging helps reduce in-store waste from 3 percent to less than

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1 percent by increasing shelf life. Take, for example, a cucumber. Without packaging, a cucumber will last about three days on a store shelf. When wrapped using only a few grams of flexible plastic packaging that same cucumber will stay fresh for as long as 14 days. Similarly, dairy products’ shelf life can be greatly improved by packaging. Currently, transporting dairy products is costly for countries with limited access to cold chain logistics.

Innovative packaging designs for milk pouches are making the transportation of milk without refrigeration possible. This milk can remain unrefrigerated for up to 9 months.

Packaging food for protection and preservation has benefits that extend beyond reducing waste: packaging can also lead to reductions in land use, water use, raw material and energy consumption, greenhouse gas generation and solid waste. Take an 8-ounce steak, for example. If that goes to waste, so does the 6.5 pounds of wheat and 1,200 gallons of water it took to produce that half-pound portion alone. Since the package helps protect the product, it also helps protect the environment by minimizing the waste of all the resources related to damaged and spoiled products.

INNOVATIVE WORK DONE BY SOME COMPANIES TO REDUCE WASTE Danone Dairy UK Plastics used for yoghurt pots are recyclable but currently not widely recycled. Danone is working in partnership with Terracycle UK to recycle their packaging into new products, e.g. pots,

FOOD WASTE bags, etc. This covers both pre- and postconsumer waste. Terracycle provides free collection systems for waste packaging.

Danone customers are encouraged to set up a Danone Yogurt ‘brigade’ which is a community-based collection point.

To date 400+ Danone ‘brigades’ have been established involving over 5,000 consumers. The benefits are: • Less plastic waste going to landfill.

• Building consumer awareness and involvement.

• Raising money for charity (2p per pot). ‘Brigades’ can choose their own charity or use Danone’s charity choice Fareshare.

Danone Waters (UK & Ireland) Volvic launched their ‘greener bottle’, made with 20% sugarcane – called BioPET. This reduces the amount of nonrenewable plastic material needed to create the bottle. By combining 25% recycled plastic (r-PET) and Bio-PET, the bottle has: • 38% lower packaging carbon footprint; and • 16% lower total lifecycle footprint than previous bottles.

In addition, Volvic is aiming to reduce

the weight of the bottle from 17g to 15g, which will halve the carbon footprint of the current bottle Premier Foods Premier Foods worked with a number of charitable organisations to donate approximately 116,000 cases of food to help people in urgent social need, both in the UK and in the developing world.

• 1,050 tonnes of food waste diverted from landfill.

• Equivalent to about 1.6 million separate meals with a value of £500,000 donated to charity.

• 24 tonnes of saved CO2e (methane) emissions.

Premier Foods has made a commitment to stop sending any waste, including food, to landfill by 2015. The company is on track to achieve this challenging target. Food donations are a positive way to help those in social need whilst also reducing impact on the environment Kraft Foods Cadbury has switched to reusable rigid packaging (polypans) to significantly reduce single-use transit packaging for its ‘work in progress’ factory products.

Various ‘assortment products’ were

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packed from the production line into corrugated boxes awaiting finishing into a number of different product formats.

Space limitations required these to be transported by road to off-site storage.

Moving to polypans and an automated handling system has improved on-site storage and cut transportation time and costs. Benefits are: • Saving over 1,000 tonnes per year of cardboard (1,040 t of CO2e).

• Associated savings in resources needed to recycle corrugated wastes.

• Saving more than 40,000 road miles per year.

• Emissions savings from road vehicles by 75 tonnes of CO2 per year.

• Polypans have an operating life of 5-10 years and are recyclable INDIAN FOOD INDUSTRY – SCRUTINIZATION OF FOOD WASTE Much has been written about food waste in India. However, most of this discussion stems around agricultural produce and the absence of storage / transportation facilities that lead to its fruits and vegetables and grains being wasted / spoilt.

However, it is important to know how food waste is being tackled in other sections of the food chain. We have large grocery chains such as Reliance, Future Group, food processing companies Unilever, Nestle, Britannia and a slew of 5 star hotels who are all part of the food value chain. Let us analyse how they tackle their food waste; • Retail Grocery/Supermarket Websites of companies such as Reliance Fresh and Food Bazaar (Future Retail) do not mention any food waste based initiatives.

• Hotels - Websites of Taj, ITC and Intercontinental have specific policies and practices on food waste Oberoi Hotels and Radisson Hotel websites do not mention anything.

• Food Manufacturing companies While Britannia, GlaxoSmithKline, Nestle, Tata Global beverages, ITC Foods websites specifically talks of food waste initiatives. Kwality Dairy, Hatsun Agro Products Ltd. and REI Agro Ltd. Don’t mention anything on their website.

A close look at the websites of the hotels that mention food waste reveals that most of the initiatives for hotels stem around Vol. 09, Issue 04, February, 2014

FOOD WASTE recycling but other than Intercontinental Hotels no one mentions food donation programs. However, we did come across a very interesting article that talk of creative menu planning by hotels to reduce waste and use of unused items for creative food decoration.

While the food manufacturers talk extensively about reducing food waste as part of manufacturing, there is little talk of reducing the impact of food packaging on the environment. Food manufacturers have introduced multi layered packaging which has plastic lined with foils or laminated plastic in food items. This insulates the food and increases its shelf life but most of this is non-recyclable garbage. Many civic bodies are getting increasingly burdened with non-recyclables which largely constitute multi-layered packaging waste-thermocol, Styrofoam, etc. - it may not weigh much, but the volume is huge and unmanageable.

Also there is very little consumer involvement / awareness on this issue in India. While in developed countries brands are discussing this issue with consumers.

The narrative in India is largely about reducing agricultural waste alone.

FOOD WASTAGE IN INDIA Despite millions of Indians going to bed on a hungry stomach, the country is letting food worth a whopping Rs 44,000 crore go waste each year due to lack of adequate storage infrastructure. While the wasted fruits and vegetables alone was estimated at Rs 13,300 crore, other food products like rice, wheat, serials and meat are also allowed to perish without consumption.

The government has taken many steps to encourage creation of additional storage capacity and complimented states that had taken more interest in efficient food storage. Despite these requirement for cold storage remains very high. The country’s cold storage requirement is of 61.3 million tonne as against the present capacity of around 29 million tonne.

The Centre provides grant-in-aid for states to build cold chain infrastructure, which is 50 per cent of the total cost of plant and machinery in general, areas and 75 per cent in difficult areas including the Northeast. However, it has kept the sealing as Rs 10 crore.

Reducing the amount of food wastage was one of the major arguments the Vol. 09, Issue 04, February, 2014

government had put forth while allowing Foreign Direct Investment in retail sector, as it insisted that companies would invest in backend cold storage infrastructure.

However, since the FDI clearance, it is yet to receive a proposal from the global retail giants.

Ironically, nearly 30 per cent of the country’s fruits and vegetables perish due to lack of coldstorage facilities, while thousands of tons of food-grain rot in ill-equipped warehouses.

And Between 15 and 20 per cent of cooked food at weddings, parties or restaurants are wasted as well.

India produces around 250 million tonne of foodgrains in a year, but its annual consumption remains far lower at 220 million to 225 million tonne. The country has failed to take advantage of the higher production levels as it is reported that more than 250 million people go to bed hungry each day.

The report released by Ministry of Statistics and P r o g r a m m e Implementation last year said 48 per cent children under the age of five are stunted (too short for their age), indicating that half of the country’s children are chronically malnourished.

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NEWS

Catering to the silver tsunami

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ccording to the UN’s report on World Population Ageing, there will be more than 1 billion ‘senior’ people aged 60 plus by 2050, with 62 percent of these seniors coming from the Asia-Pacific region. Asia’s so-called ‘silver tsunami’ is imminent, and with it come multiple implications for society.

The impact should be greatest on healthcare, as many health-conditions, including osteoporosis and constipation, are agerelated. It is no coincidence, therefore, that rates of osteoporosis are projected to escalate to epidemic proportions in ageing Asia, where over the next 50 years the numbers of elderly is projected to more than triple2.

Constipation, a very common complaint amongst seniors, is also expected to become more prevalent in Asia as the elderly population grows. The region’s food manufacturers can cater to the ‘silver tsunami’ by developing or modifying food products that are relevant and beneficial to older generations.

Asia’s osteoporosis epidemic Osteoporosis, which literally means porous bone, is a disease in which the density of bone is reduced, meaning that the risk of fracture is increased. Hip fractures, which are associated with pronounced morbidity, have increased two- to three-fold in most Asian countries during the past 30 years, and it is projected that more than 50 percent of all osteoporotic hip fractures will occur in Asia by the year 20503. As the region assesses the implications of supporting an elderly population affected by the disease,

responsible food manufacturers can also play an interjectory role, by offering products tailor-made for this population group.

The elderly are more prone to osteoporosis because as the body ages it loses bone mass which results in brittle bones that are prone to painful and debilitating fracture. Low-calcium is one of the causes of osteoporosis, and it is thought that the condition may have its roots in childhood and adolescence, which is the period when the body does the most bone ‘building’.

Throughout life, calcium is continuously being deposited into multiplying bone cells, like the cement that holds together the particles of stone and sand in a chunk of concrete. Therefore, the stronger the bone development during childhood and adolescence, the healthier those bones will be in old age. Studies show that it is never too early to invest in bone health, particularly as a 10 percent increase of peak bone mass in children reduces the risk of an osteoporotic fracture during adult life by some 50 percent.

During childhood and adolescence, bones grow rapidly, but unfortunately, the majority of calcium from a normal diet escapes absorption, with estimates suggesting that barely 30 percent is absorbed.

BENEO’s prebiotic fibre Orafti®Synergy1 (oligofructose-enriched inulin) is proven to aid bone development by improving calcium absorption. In adolescents, a one-year long human intervention study supported by the United States’ Department of Agriculture (USDA) and National Institute of Health (NIH) shows that BENEO’s Orafti®Synergy1 produces positive effects on bone health through enhanced calcium absorption, leading to increased bone mineral density.5 The study, conducted on 100 adolescent subjects, was designed to test whether oligofructose-enriched inulin could increase calcium retention within bones.

Over a period of one year, calcium retention and accretion in bones increased by as much as 15 percent in the group supplemented 48

with oligofructose-enriched inulin compared to a control group. Compared to the control group, the group consuming Orafti®Synergy1 also benefited from significantly enhanced bone mineral density.

Additionally, results from other clinical trials have shown that supplementation with oligofructose-enriched inulin can also improve calcium absorption, and impact markers of bone turnover, in postmenopausal women.

Constipation concerns In Asia, self-reported surveys8 show about 13 to 17 percent of the population suffers from constipation, which especially affects the elderly. This is because as people age, the diet often becomes low in fibre, fluid intake is insufficient, and mobility decreases, putting seniors at greater risk of gastrointestinal disease and discomfort.

So-called ‘good bacteria’ can contribute to relieving the symptoms associated with constipation, by helping to balance the digestive system. Prebiotic fibres like inulin or oligofructose are substrates for microflora, encouraging the growth of bifidobacteria – the beneficial bacteria in the large intestine that help to maintain a strong digestive system. Food manufacturers can therefore cater to Asia’s seniors by supplementing common staples such as cereals and breads fortified with fibre that offers quick and easy options to boost fibre intake. Additionally, BENEO’s inulin and oligofructose is also proven to reduce constipation, by adding bulk to stools and increasing stool frequency.

Smarter enrichment Enriching a wide variety of foods for all ages with Orafti®Synergy1 for improved health is easy, as the functional ingredient is suitable in a variety of applications. With osteoporosis rates projected to escalate to epidemic proportions in Asia in less than one generation, supplementation with BENEO’s Orafti®Synergy1 to increase calcium absorption can help food manufacturers address the prevalence of the condition in Asia, via healthy, prevention-orientated nutrition. Further, enriching with prebiotic fibres can also aid a healthy digestive system for seniors, relieving the discomfort associated with constipation.

- Ends BENEO is a world leader in supplying functional food and beverage nutrients that directly address all of the important and evolving demands of the consumer products markets of today and tomorrow.

Vol. 09, Issue 04, February, 2014

NEWS

FPI reaches $2.15 billion FDI in India

Cargill Acquires Dalmia’s Leonardo Olive Oil Business

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he food processing industry (FPI) attracted foreign direct investment (FDI) worth $2.15 billion between during the AprilOctober period of this fiscal and the government expects higher inflows to improve further this fiscal, a senior government official said here today.

There is a significant increase in FDI in the food processing sector. The average FDI inflow was $117 million for 11 years ending FY12 and $401 million in FY13. During the April-October period, it jumped to $2.15 billion.

“We see more investment from Fortune 500 companies in the food processing industry,” Meena said, adding that major multinationals like Nestle, PepsiCo, Coke, Kellogg’s, Heinz, Perfetti, GlaxoSmithKline, Ajinomoto, Nissin Met, Le Bon are already present and many others are in the pipeline,” Mr JP Meena, Joint Secretary, MoFPI said.

Besides domestic giants like ITC, Dabur, Godrej, Britannia and Parle, others like Reliance, Bharti Group, Tatas, Wipro and Thapars are also entering in a big way in this field, he added.

The food processing sector is growing annually at 7.2 per cent as compared to 3.9 percent in agriculture for the last five years ending FY13, he said. It is growing at a faster rate than agriculture and investment in this sector is also increasing annually at 21.66 per cent, he said.

The government has also allocated $28 billion for infrastructure development like the mega food park scheme, integrated cold chain scheme and abattoirs modernisation scheme during the 12th Plan.

This is in addition to $18.50 billion allocated to the national mission on food processing, $3 billion to strengthen institutions and skill development, $2.9 billion for food safety as well as R&D, besides $7.5 billion for technology upgradation in the 12th Plan.

Vol. 09, Issue 04, February, 2014

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argill, an American agribusiness giant, has entered into an agreement to acquire Dalmia Continental’s (DCPL) Leonardo Olive Oil business.

Leonardo is the leading brand in the olive oil segment in India.

With this acquisition, Cargill, which already has a strong presence in the global olive oil segment, will have an opportunity to participate and create value of this nascent and high-growth category in India.

The company will now be able to consolidate its position in the premium oils segment.

Cargill India chairman Siraj Chaudhry said, “This acquisition represents a natural extension of Cargill Food’s India strategy in the premium consumer space by providing a diversified portfolio of products. We will build on its strong brand heritage, and consumers will benefit from Cargill’s commitment to quality, food safety, innovation and value.”

Cargill Foods India Consumer Sales director Aseem Soni said, “Acquiring Leonardo underscores Cargill’s long-term commitment to growing our consumer food business in India. It is an excellent fit with our existing strong brand portfolio through which we serve a significant consumer base across the country.

“Leonardo’s acquisition will give us the relevant access & entry to a premium brand in edible oils which has the potential to be horizontally integrated across other premium & related food categories.

Nestlé weighs sale of French Frozen Food unit Davigel

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wiss food giant Nestlé is considering plans to sell its French frozen foods business Davigel in a deal that could fetch the company about €300m.

The company is close appoint a bank to advise on the possible sale, reported Reuters citing sources familiar with the matter.

The proposed plans are part of Nestlé efforts to trim its sprawling portfolio.

The sources stated that potential buyers are likely to include food service firms such as Brake Brothers, Booker Group and Sodexho as well as private equity firms.

Bain & Co and Clayton, Dubilier & Rice could be the possible buyers as they have previously 49

invested in food service.

Nestle has not yet officially appointed a bank to manage the possible sale of Davigel; however, in the past it worked closely with Credit Suisse and is likely to appoint that bank for this deal.

Davigel supplies frozen and chilled meals and ice cream to restaurants and hospitals.

In 2012, it reported EBITDA of around €35m.

NEWS

INDIA’S CHOCOLATE INDUSTRY TO CROSS ` 7,500 CR BY 2015

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rowing at a compounded annual growth rate (CAGR) of about 25 per cent, India’s chocolate industry is currently worth about `5,000 crore and is likely to cross `7,500 crore mark in the next couple of years. Globally the chocolate industry is worth over $85 billion. Besides, India’s percapita chocolate consumption is hovering at about 100 gram and urban centres comprise 35 per cent of the chocolate consumption in the country. Cadbury is leading the pack with about 70 per cent market share followed by Nestle, Amul, Ferrero Rocher, Toblerone and others, ASSOCHAM said in a report.

Though lower penetration levels provide large scope for expansion of chocolate industry across India but there is a lack of interest amid regional confectionary players to enter the chocolate market as firstly, it requires huge capital investment for production and brand promotion and secondly, facing established global players ruling the market is another tough task,” said ASSOCHAM secretary

general D S Rawat. Demand for chocolates as a gift item has increased by almost 40 per cent with the advent of the festive season already and is likely to rise further as dry fruit prices have increased substantially by about 25-30 per cent, ASSOCHAM said.

Adulteration in traditional sweets eroding consumers’ confidence along with dry fruit prices going through the roof and other significant multiple factors like growing acceptance of chocolates amid varied Indian palates, attractive packaging, consistency in quality, growing gifting culture, rising urban affluence amid youth with high disposable incomes and a crazy sweet tooth together with other related factors are driving the demand for chocolates,” according to a survey conducted

by ASSOCHAM to ascertain the gifting trends this festive season.

ASSOCHAM interacted with about 1,000 consumers, traditional sweet shopkeepers, kirana stores, wholesale dry fruit traders and

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shopkeepers during the course of past fortnight in 10 cities of Ahmadabad, Bangalore, Chandigarh, Chennai, Delhi-NCR, Hyderabad, Jaipur, Kolkata, Lucknow and Mumbai. Most of the consumers said that dry fruits would be the last thing on their minds as a gifting option this festive season as its prices have already sky-rocketed and will rise further as Diwali draws closer.

Besides, majority of these also said they preferred chocolates over sweets as a gift option considering the factors like longevity, health related benefits, attractive packaging and others.

Another significant factor that is fuelling chocolate demand during festive season in India is that it can be easily ordered online and its timely delivery at the desired destination highlighted the ASSOCHAM survey.

Most of the dry fruit traders and shopkeepers said that recent rupee depreciation against major currencies had lead to an escalation of about 10-15 per cent in wholesale markets and the retail shoppers would have to cough up about 20-25 per cent more money.

Chocolate confectionary makers have also increased prices and reduced pack sizes owing to sky-rocketing input costs as prices for major ingredients like cocoa, milk and sugar have soared in both domestic/global markets and this will only lead to consumers tightening their purse strings further.

Vol. 09, Issue 04, February, 2014

Vol. 09, Issue 04, February, 2014

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NEWS

Indulgence drives ice cream consumption in Russia

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ndulgence has been the major motivating factor behind the consumption of ice creams in Russia, finds a report by UK-based research firm Canadean.

The report ‘Market Focus: Trends and Developments in the Ice Cream Sector in Russia’ analyzed the actual influence of each motivator and gave top spot to indulgence with 40.8%, followed by better value for money at 25.2%, and both personal space & time and fun & enjoyment in the third position with 21.1%.

Older consumers, aged 55 plus, have accounted for over two fifth consumption in the ice cream market, majorly driven by male consumers who held 41.9% of share in terms of consumption by volume. This indicates opportunity for healthy product

Tesco recalls 4 Chocolate & Nut Ice Cream Cones over contamination concerns

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esco, a grocery and general merchandise retailer in the UK, is recalling its ownbrand 4 Chocolate & Nut Ice Cream Cones over contamination of pain relief tablets, according to the UK

line, so that Russians can have guilt free indulgence, opines Canadean.

Moderate income and better off groups together constituted over two third of consumption with 40% by males and 42.6% by females for the former category, and 28% by males and 31% by females for the latter respectively.

Time-rich Russians outpaced all others in leisure group, holding a significant 44.6% by males and 36.7% by females, while time-pressed males and females stood next with 25.2% and 24.8% respectively, followed by time poor individuals at 22% by males and 21.2% by females.

Russian kids and babies segment has topped the charts in the heavy consumption habit analysis with over two thirds of share, indicating the need for providing products that affect health.

Although impulse ice cream had a clear edge of take-home ice cream in the market value of 2012 with close to 70% share, Canadean observed the trend for takehome is catching up in Russia as marketers position ice cream as an everyday consumption product.

It is expected that take-home ice cream will have 6.4% of positive change in market share during 2007-2017, while impulse ice cream is set to lose the proportionate share in the ten-year period.

Food Standards Agency.

The product associated with the recall is 4 x 110ml Tesco 4 Chocolate & Nut Ice Cream Cones with Best before dates: All date codes up to and including July 2014.

The retailer has issued the recall after it has found pain relief tablets within two individual cones. It will also place product recall notices in stores to notify the customers about the recall.

No other Tesco products are associated with the recall.

Consumers who have purchased the recalled product are advised not to consume and return it to the place of purchase for a full refund.

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Food Processing sector registers fast growth

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he food processing sector has witnessed fast growth, employment generation and export earnings in the recent past according to the press release issued by the central government. In major indicators, the growth in this sector has been better than other industries and the economy as a whole.

On its part, the ministry of food processing industries has contributed to encouraging investment into the sector, improving infrastructure, evolving better standards, removing bottlenecks and initiating R&D and skill development.

The National Mission on Food Processing (NMFP) was approved in June this year followed by quick formulation of guidelines to states.

The ministry has taken a number of steps for encouraging investment into the FPI sector; these include issuing expression of interest (EOI) for setting up 15 cold chain projects, information dissemination on resources and facilities available in different states, creating an investor portal, and modification of guidelines for setting up cold chains. On the Ministry’s initiative, concessional duty on food processing machinery is under consideration of the government.

Vol. 09, Issue 04, February, 2014

Amitabh Bachchan Announced as the Celebrity Face of Complan

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ndian Cinema’s legendary icon Mr. Amitabh Bachchan has added yet another feather to his cap with his association with one of India’s leading brands and nutrition experts in the health drink category, Complan. Mr. Bachchan will be seen as the ‘Taakat Ka Bhoot’ (‘spirit of strength’) in Complan’s new TV commercial placing importance on “strength”.

Renowned for its superior nutrition Complan, one of India’s favorite health drinks, has been given a complete makeover to highlight its numerous health benefits through its superior nutritional properties. The new, strategic USP focuses on strength to help children build stronger bones and muscles.

Speaking about Mr. Bachchan as the undisputed choice for the endorsement, Mrs. Seema Modi – Managing Director, Heinz India Pvt Ltd said “Celebrating its Golden Jubilee this year, Complan has signed Mr. Bachchan as one of the three celebrity brand ambassadors to unveil its new packaging and branding. It was an unanimous choice by our consumers. He is a living legend, evokes a lot of trust and embodies strength. It is the first time that Complan has associated with celebrities for endorsements.

Mr. Bachchan will bring immense credibility and memorability to Complan and the ‘Taakat ka Naya Plan – Naya Vol. 09, Issue 04, February, 2014

Complan’ brand message. We are absolutely confident that his association would only further enhance the brand’s equity and help us appeal to a wider audience.”

Commenting on his support for Complan, Mr. Bachchan said: “I feel very privileged to be a part of this innovative and thought-provoking brand campaign. I am looking forward to taking this professional journey with the team at Complan, and I am excited to see the response we will get from audiences to the new commercial and brand messaging for Complan.”

Commenting on the new brand positioning, the Golden Jubilee and signing Mr. Bachchan, Mr. V. Mohan - Wholetime Director/ VP-Business Development, Corp. & Legal Affairs & Co. Secretary, Heinz India Pvt Ltd said: “We are delighted to celebrate fifty years of Complan in India and there was no better way to commemorate this than by enlisting the support of one of India’s most recognized and trusted names.

Mr. Bachchan and Complan go a long way in delighting the discerning audience / consumers through generations.”

It is the first time that Complan will be shifting to a premium metallic packaging with a single brand color of Gold. The new logo signifies strength, conveying

NEWS this through the bold use of red in the logo design. The new packaging features icons which represent everyday tasks a child and adult engages in, highlighting how Complan helps to provide the 4As- advantages for the entire family: Appearance through enhancing physical stature, Activity, as it gives the strength to cope with life, Armour by providing immunitybuilding nutrients, and Alertness through nutrition that helps brain development and cognition. The mnemonics on the center of the pack instantly communicate the benefits of strength in the daily lives of the consumer and the image of a splash on the pack instantly stimulates the taste buds, Complan is available in 6 delicious flavors.

Mr. Abhishek Prasad – General Manager - Marketing, Heinz India Pvt Ltd further expands on the commercial’s concept and how this relates to the brand’s broader messaging of ‘strength’: “Through our extensive research we knew that Complan needed to focus on the message of strength which is personified by the profile of Mr Bachchan. The anchor for the commercial’s creative direction is Mr. Bachchan’s bhoot avatar, invisible but omnipresent, where he is seen supporting a child overcome various daily activities, be it riding a bike up-hill or carrying his heavy school bag,or helping his mom in her heavy chores- giving him that extra strength in the form of Complan.”

In the TV commercial Mr. Bachchan premiers a new avatar of a Bhooth and will be seen in a white robe with flowing white locks. The new character will provide consumers with a unique and lasting impression of the iconic Mr Bachchan.

Danone increases stake in Chinese Dairy firm Mengniu

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rench dairy major Danone has agreed to increase its holding in Chinese dairy firm Mengniu from 4% to 9.9%, with an investment of €486m.

The company, along with COFCO Dairy Investments, signed a deal to subscribe a reserved rights issue by Mengniu.

With this development, the French firm now becomes the second largest shareholder in Mengniu.

The move comes after a deal in May 2013 between COFCO, Danone and Mengniu to boost development of dairy products in China.

Subject to Mengniu’s shareholders approval, 53

the transaction is expected to be finalized in the coming months.

COFCO, Danone and Arla will combine their 16.3%, 9.9% and 5.3% respective stakes in Mengniu within COFCO Dairy Investments, a jointly-owned venture pooling all three shareholders’ interests in the governance of Mengniu.

Danone operates in Fresh Dairy Products, Baby Nutrition, Waters and Medical Nutrition segments. The company runs more than 190 production plants and has a workforce of 102,000. In 2012, it generated revenues of over €20bn.

NEWS

Perry’s Ice Cream Introduces Otto’s Cupcake

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he wait is over! Otto’s Cupcake Ice Cream is now also available in Tops Markets and soon to come to other grocery stores selling Perry’s Ice Cream. This flavor was launched last fall, and was available only at the Syracuse University Dome and at the few ice cream

stands that are open during the winter months.

The flavor named after the S.U. team mascot, Otto, was developed by Eilish Mitchell ‘12, Syracuse University graduate who works for Perry’s Ice Cream in the Quality Assurance and Research & Development Department. Avid supporter of the Orange, Eilish was thrilled when she heard that there was a need to develop a flavor for S.U. Athletics. “I knew that the flavor would have to have orange in it, but orange ice cream isn’t really a popular flavor,” says Mitchell. She tried and tried, and finally, she struck gold: “Chocolate cupcakes with orange frosting!” The flavor got team buy-

54

in really quickly and will now be enjoyed

by Orange fans everywhere Perry’s Ice Cream is sold.

This chocolate cupcake ice cream with orange colored frosting swirls and chocolate cupcake pieces not only delights all your senses, but it is also proof of the Perry family’s long-standing commitment to supporting college sports and the communities it serves. The product boasts the flavor and creaminess you expect from Perry’s and was very well received by S.U. fans and consumers alike. Through its affiliation with Syracuse University Athletics, Tops Markets is the first grocery chain to carry Otto’s Cupcake, with other fine retailers such as Wegmans, Price Chopper, and Olean Wholesale following suit shortly thereafter.

Consumers can scoop up Otto’s Cupcake at the S.U. Carrier Dome, independent ice cream stands, and retail locations across New York State, Western Pennsylvania, Northeastern Ohio, Vermont and Virginia.

In addition to Otto’s Cupcake, Perry’s has introduced a few new flavors, with more to come as the new season kicks off:

Vol. 09, Issue 04, February, 2014

Challenges in the Mechanized Production of Traditional Dairy Products

Dr. B. N. Mathur Former Director, National Dairy Research Institute, Karnal Vol. 09, Issue 04, February, 2014

INTRODUCTION India has an enormously rich heritage of vast range dairy products, which have an excellent potential for industrialization.

The age-old art and craft of mithaimaking now needs to be transformed into an exact science and technology for developing appropriate equipments for the large scale production. For attaining this objective, intensive innovative R&D and infrastructure are required. Faster growth may be achieved through integration with newly emerging, energy efficient unit operations utilizing equipments available off the shelf for performing various unit operations required in the manufacturing process rather than developing specialized equipments de novo. These initiatives will go a long way to develop our dairy industry that meets the social, nutritional needs 55

and conveniences for newly emerging life-styles. Tremendous scope exists for the strategic product diversification to improve the availability of dairy products for domestic market as well as exports for value added dairy products.

Traditional milk products represent the most prolific segment of the Indian Dairy Industry. Despite the immensity of volume of milk handled, preparation and marketing are confined to the unorganized sector. Transformation of the unorganized sector of dairy industry engaged in processing more than 54 percent of the milk produced in the country provides a formidable challenge. Only Halwais are known for their ingenuity to produce milk sweets having delectable taste; the art of preparation has been passed on from one generation to the next. Some products are

CHALLENGES very fragile and delicate to process and handle. Their preparation requires the kind of skills that are difficult to emulate mechanically. The overall standards of hygiene and manual handling that are statutorily required to be observed are quite stringent when the production is large. With the emergence of national brands like Haldiram’s, Bikanerwala, K.C. Das, Chitale’s, Ganguram’s, Brijwasi, Ghasitaram, Ghantewala, Bhim Chandra Nag, Chandu, Aggrawal, etc, significant changes are already taking place in the scales of operation and range of traditional sweets. Newer packaging systems are being introduced. Fast changing socioeconomic environment will drive the requirements for traditional dairy products to be processed and packaged in new forms.

However, the image of Indian sweets with regard to health and safety raises certain concerns. Persons with Obesity, Diabetes, and Cardiovascular Diseases are concerned about the high sugar and fat content. Recently, there have been adverse reports regarding adulteration. Scope is also indicated for the application of

Biotechnology in developing innovative traditional dairy foods with enhanced nutritional and therapeutic attributes.

R&D NEEDS FOR THE WAY FORWARD • Scientific documentation of the traditional practices for the preparation of the vast range of traditional milk products for preparing data bank of the traditional wisdom to obtain requisite product quality in terms of the physico-chemical and nutritional attributes so as to provide scientific basis for process development.

• Establishment of the regional preferences for the sensory, rheological and physico-chemical profile of the commercially important indigenous milk products through systematic surveys so as to provide scientific basis for standardization of product attributes for commercial trade practices.

• Incorporating the principles of energy conservation efficient by integrating newly emerging technologies / equipments for performing various unit operations involved in the largescale manufacture. Unit operations / Technologies such as UHT-particulate processing, MF/UF/RO Membrane processing, microwave heating, aseptic packaging developed in the western food processing industry have the potential being utilized where ever appropriate and technologically feasible.

• Developing costeffective and appropriate packaging systems represents an awesome challenge for the industrialization of traditional Indian sweets. A wide range of packaging materials need to be evaluated for their suitability.

Packaging equipments are high precision machines where design requires highly skilled engineering expertise.

Collaboration with 56

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•

•

the world’s leading packaging equipments represents a plausible approach to developing requisite equipments.

Modified atmospheric packaging (MAP) and use of oxygen scavengers in the package are some of the recent trends to deliver better quality extended shelf life products. MAP extends the shelf life by reducing oxygen and/or increasing gases, such as carbon dioxide and nitrogen, in the food environment.

Evaluation of the newly developed processes / equipments in relation to the product quality, shelf life and consumer acceptability. This feedback would permit sustained efforts for process refinement for greater commercial success.

The newly evolved processes / equipments also need to be constantly evaluated for operational difficulties, process control, safety, electrical and mechanical failures, maintenance problems, cleaning and sanitation problems and operational costs for constant refinement and improvement.

Demonstration of the performance of newly evolved processes and equipments to pave way for industrialization.

These demonstration centers could also be utilized for training of personnel from industry as well as further R&D work.

INNOVATIONS IN MECHANIZATION: Amongst the vast range of traditional sweets, shrikhand, gulabjaman, peda and probably mishti doi are so far the only one that has truly been mechanized and produced on an industrial scale. Some 3,000 tonnes of it is produced annually, at the Sugam Dairy, Baroda. Its large-scale manufacture is an outstanding example of the adaptation of equipments available off the shelf for performing various unit operations involved in the manufacture of sweets. Impressive advancements have been made in several of the R&D institutions as well as commercial dairy plants for the industrialization of a large range of indigenous milk products. The industrial production of indigenous milk products involves intensive engineering inputs for designing layout of the Vol. 09, Issue 04, February, 2014

CHALLENGES factory, selection of various equipments, selection of the manufacturing processes and evaluation of the techno-economic feasibility aspects of the industrial production.

manufacturers are quite weak and need to be strengthened. Prospects for collaboration with the world’s leading packaging equipment manufacturers need to be aggressively explored for accelerating the pace of development.

TECHNOLOGY TRANSFER FOR Indian companies will have to develop MECHANIZED EQUIPMENTS technical capabilities to a level where they Considerable R&D work has been done are competitive across the globe. This at the National Dairy Research Institute, calls for strategic planning and policy Karnal for the mechanized production support from the Government. of traditional dairy products. Employing single or multi stage scrapped surface SCOPE FOR DEVELOPING SPECIAL heat exchangers (SSHE), feasibility of DIETARY SEGMENT OF TRADITIONAL continuous production of Khoa, Burfi, DAIRY PRODUCTS Rabri, Basundhi and Malai laccha has Milk and milk products are perceived as been successfully demonstrated on pilot healthy foods. Present day consumers are scale. Furthermore, SSHE has been weight conscious, or those with diabetic integrated with a conical process vat for the condition are likely to limit their intake production of khoa with superior sensory of milk sweets. It is plausible that by characteristics. Likewise ewise processes have accentuating the positive been developed forr the commercial attributes of inherent scale production of long life milk constituents sterilized Paneer has been developed. d.

Mechanical devicee involving kinematicc half-turn nutt pressing mechanism m for paneer has been n developed on pilot ot scale. It now needss initiative on part off the entrepreneurss se to take all these vel developments to level uction. of commercial production.

DAIRY EQUIPMENT T INDUSTRY IN INDIA At present there are around 20 units in the organized sector engaged in the manufacture of dairy process equipments such as milk reception equipment, storage tanks, cream separators, clarifiers, heat exchangers, homogenizers, cream deodorizers, evaporators, spray driers etc. These meet almost 95 percent of the requirement of domestic industry.

Demand for the mechanized equipments for the industrial production of traditional milk sweets will have emphasis on automation, energy conservation, technology, price, delivery as well as performance standards. These demand high level of technical capability and investment. Presently, linkages with the R&D institutions and equipment Vol. 09, Issue 04, February, 2014

and fat d bby reduction d ti off f t andd sugar content, the dairy industry can develop Indian milk products, which would appeal to such consumers. Understanding consumer needs and preferences are critical to successful marketing and enhancing marketing value of a product.

Present day consumers prefer foods that promote good health and prevent disease.

Furthermore, these foods must fit into current lifestyles providing convenience of use, good taste and acceptable pricevalue ratio. Such foods constitute current and future wave in the evolution of food development cycle.

The health-driven foods are commonly referred to as functional foods, designer foods, pharma foods or neutraceuticals.

Molecular biology has been successfully deployed to impart unique nutritional and 57

therapeutic attributes to fermented milk products. Milk proteins, apart from serving the growth requirements, provide a source of physiologically significant range of peptides that play an extra-nutritional role in maintaining normalcy of health and well being. Nutritionally improved foods with at least one nutritional improvement over the conventional counterpart have been successful in the marketplace.

Product modification strategies include removal or reduction of fat, cholesterol, sodium and calories, and fortification with vitamins, calcium, fiber and active cultures to align with health perception of the consumer. In addition, dairy products may be augmented with health-promoting ingredients like fiber, vitamins, minerals, and other functional ingredients. Recent advances in high in intensity sweeteners and fat replacers show much promise in developing analogues of Indian sweets sugar fat, and caloric with reduced sugar, content.

BIOTECHNOL BIOTECHNOLOGICAL APPLICATION APPLICATIONS Biote Biotechnology has al already made significant contributions in dairy industry.

Biotechnology hhas recently emerged as the most emer powerful and sought powe after technology having possibilities in almost endless po all ll areas affecting ff ti hhuman life. Recent developments in Biotechnology have opened up new and exciting possibilities in Dairying and Animal Husbandry.

Biotechnology can play a significant role in raising the status of dairy sector both in terms of milk production and processing.

Dairy industry in particular can greatly benefit through the application and intervention of powerful magical tools of this technology such as rDNA technology, Genetic Engineering, Gene cloning, Hybridoma Technology and Transgenics, PCR technology and Bioprocess Engineering to develop commercial products and processes that use living systems to provide high quality nutritious, clean, wholesome and healthful dairy foods to all the people of our country.

CHALLENGES EXPORT OF DAIRY PRODUCTS UNDER WTO REGIME – PROSPECTS AND STRATEGIES Any assessment of marketing prospects in the national and international context must be seen in terms of anticipated socioeconomic and demographic changes at global level. There is also expected to be greater urbanization of population in the developing countries, which are expected to double by 2025 when an estimated 50% of world’s population will be living in cities of more than 1 million people.

Asia is also urbanizing rapidly, with even such traditional rural countries as China and India would have hundreds of million of people living in towns and cities.

According to United Nation projections, out of 26 agglomerations of more than 10 million people, in 2025, 22 will be in developing countries.

Prospects for the export of traditional milk products conforming to the international quality and packaging standards present exciting opportunities for orchestrating further growth. A large variety of Indian Dairy Products are sold in the super markets in North America, UK and South Africa produced by small scale entrepreneurs. Some 20 million Indians abroad, over half of them living in the west are a part of the upper income group.

They constitute a major market for Indian milkbased sweets. Projected domestic demand for major traditional products is 250,000 tones. In North America alone, this market is estimated around US $1 billion. Several Canadian initiatives for a project to produce Indian milk products in North America are on the anvil. New initiatives have been taken by the dairy industry in Australia for developing exports oriented R&D for traditional Indian sweets.

These all are an eloquent testimony to this growing trend. As the new wave gathers momentum, the production of dairy products conforming to the international standards of safety, hygiene,

packaging and labeling present formidable challenges. For orchestrating further growth of traditional dairy products in the liberalized global economies, pragmatic planning is required to develop energy efficiency, eco-friendly technologies for processing, development of eco-friendly / cost effective packaging systems, good manufacturing practices to meet international norms for food safety, quality assurance.

• Impact of liberalization of world economies on international trade of Dairy commodities • Identification of new avenues and commodities for global market • Remodeling of legal framework in the light of new world economic order • Identification of Dairy export zones • Infra-structural development for export oriented units • HRD strategies for sustainable dairy exports • Technology management and interventions in processing, quality control and marketing • Complexities in balancing external and internal demands • Relevance of self-reliance in open economy • International Competitiveness in milk production and processing

58

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Restructuring of Dairy industry Role of private investment in Dairy sector for export orientation Brand management

CONCLUSIONS Undoubtedly, the dairy market of the future will be much more diversified in terms of products and their packaging, with an increasing no of niche markets. The future market will not be one of anonymous bulk products; rather, it will be focused on providing a range of highly specified products, tailored to meet the needs of evermore demanding consumers throughout the world. The needs of the market will determine the change in technology that will be required in the future. Fast changing in socio-economic environment will drive the requirements for traditional dairy products to be processed and packaged in new forms. Time is opportune to provide critically appreciation of the prospects for traditional milk products in the newly emerging world scenario. There is need for all the stake holders, the dairy industry, entrepreneurs, R&D Institutions and Financial Institutions for providing requisite financial inputs and infrastructure to carry out developmental work for the industrial production of traditional dairy products.

Vol. 09, Issue 04, February, 2014

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