Oil & Food Journal

India’s Only Monthly for Processed Food, Agro Commodities, Edible Oil & Allied Segments

Vol 7 Issue 7 May 2012

RNI NO:-MAHENG/2005/15987

India’s First E Magazine-Logon to www.advanceinfomedia.com

POSTAL No./MH/MR/THANE(W) 50/2010-2012

FROZEN DESSERT VERSUS

ICE CREAM Assuming normal rainfall the

farm sector output is projected to rise by 2.4 % in 2012-13

Sesame Seed The versatile commodity

Metal detection vs.

X-ray Inspection?

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OIL FOO D EDITOR Manzar Aftab Naqvi CONSULTING EDITOR Basma Hussain GROUP EDITOR Firoz H. Naqvi firoz@advanceinfomedia.com Mumbai Adil Abbas (Mrktg. Co-ordinator) adil@advanceinfomedia.com GRAPHICS DESIGNER Anees Joya a.joya@advanceinfomedia.com CIRCULATION Seema Hayat Shaikh seema@advanceinfomedia.com Delhi Sayyed Shahnawaz +91-9871255423 GENERAL MANAGER Gyanendra Trivedi

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From the Desk of Editor

Dear Readers

T

he flagship scheme of Mega Food Parks was launched to boost the food processing sector through creation of advanced infrastructure and favourable environment for investment. Boosting the Indian food and agri sector with the launch of mega food parks, the government hadreceived accolades for it.

The mega park scheme was launched to bolster the food processing sector through creation of advanced infrastructure and favourable environment for investment including attracting foreign direct investment (FDI) by various tax incentives. Incidentally, the government allows 100% FDI through automatic route in infrastructure development including Mega Food Parks.

30 Mega Food Parks were approved by the government in three phases under the flagship scheme of Mega Food Parks announced in the Eleventh Five-Year Plan (2007-12). Of these, 15 mega food parks of first and second phases are claimed by the government to be at different stages of implementation, while the proposals received for the remaining 15 food parks of the third phase are under technical appraisal in the Ministry of Food Processing Industries.

But unfortunately even after high classed announcement of a number of megafood parks no significant development has been seen in the last three to four years in food processing activities in the country. In fact only two to three of the Mega Parks are functional that too partially.The ones that are functional are Sirini Mega food Park, West Bengal Mega food Park, Baba Ramdev's Mega Food Park are the only virtual sites. We correspondingly have great expectations from Mega food parks sectioned to Future Group and Rasna Group.

So what has transpired of this great scheme - has the mega dream gone sour? Well It is rare that a government admits that any of its programs is not doing well in spite of massive budgetary provisions made under grandiose plans. What has happened to the so called "Mega Food Park" plans envisaged setting up specialized industrial estates with high quality infrastructure for entrepreneurs to move in with minimum hassle so that considerable time is saved in chasing the various agencies to get the required permission and support. Alas, the program seems to have fallen flat in the absence of any determination and perseverance at the ground level by those vested with the task.

Anyway the ministry somehow has acknowledged to non-functionality of most of the mega food parks barring two or three. Will investment still go into this project? Projects like mega food parks are infrastructural projects which take time. There were land related issues which delayed execution. The plan was to have one mega food park in each state but at the pace in which out of thirty only three are functional. I particularly don't think It is viable to dream high.

Mega Food Park was the most ambitious scheme of the ministry of food processing industries with a focus on public-private partnership. However, absence of a very large private sector companies and problems of land availability, lack of strong backward linkages led to a delay in the implementation of the scheme.

Nothing has been found wrong with the concept of clusterisation in the hub and spokes model but the difficulties mentioned above are the reasons of slow implementation of mega Food Park. As I heard a source from the ministry say “We can only say that there is not 100% progress. How can I say they are not progressing?” And to this all I can say is “yes sir”; it is more than clear that some intentional and unintentional errors have been committed particularly with this scheme Many countries like Singapore, China and others have used this concept very effectively to boost production of value added food products, especially for exports, India seems to have found a way to "fritter" away this opportunity by the heavy bureaucratic muddle associated with government schemes. Imagine how effective and convenient it would be for a spirited entrepreneur to be housed in such a Food Park with common facilities for power, water, waste disposal, quality assessment, storage, marketing and global communication. Unless there is a priority and deep commitment such mega schemes cannot be expected to succeed no matter how much hype is generated!

Oil & Food Journal May 2012

-Editor

January 2012

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Contents

News 12 McCain Foods will launch more items in India 12

Vini to invest Rs 40 crore in food supplements

14 Cognex Sets A New Standard For Industrial Ocr 14 North Gujarat will establish its stronghold in global FROZEN DESSERT VERSUS

ICE CREAM

24

food processing markets

15 Badal seeks Pawar's nod for more mega food parks in Punjab 15 Food processors demand tax holiday for growth 16 Mega food park project to take off soon in UP 17 Focus on sustainability in Indian rice exports

32

18 China to import basmati from India

Assuming normal rainfall the

20 Ishida India Reliable Partners for Industry

farm sector

21 Bumper harvest here, Sharad Pawar bats for exports

output is projected to rise by 2.4 % in 2012-13

21 Rs 150-cr Mega Food Park over 100 acres to come up in Lucknow

43 India Section of AOAC International 44

Sesame Seed The versatile commodity 36 India's

biscuit

Metal detection vs.

X-ray Inspection?

Food Processing Can Do To Rural India What IT Has Done To Urban India: FOOD & BEV Tech 2012 concurrent with Food & Bev 2012

industry

heading towards premiumisation (Feature)

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News

McCain Foods will launch more items in India

M

cCain Foods India said it will increase it product offerings in India and enhance manufacturing capacity accordingly as it looks to double business every year.

The firm that claims to have 25 per cent market share in the estimated Rs 1,000 crore Indian frozen foods segment, said it will consider launching other items based on paneer and soya platforms besides the frozen idli-sambar combo introduced for the Delhi and NCR region.

"Our ambition is to double our business every year. If we want to double out business in the country we need to launch new products every four to six months," McCain Foods India Managing Director Vikas Mittal told reporters here.

The company, which is a subsidiary of McCain Foods Canada, currently sells frozen products, including french fries and potato specialties in the country.

"The frozen food market in India is estimated to be around Rs 1,000 crore, in which McCain currently has a market share of 25 per cent," he said.

In the vegetarian segment that is estimated to be around Rs 500 crore, the company has 60 per cent share, Mittal claimed.

On product portfolio expansion, he said

the company plans to launch various products, including paneer and soya based items.

currently has an annual capacity to process 40,000 tonnes of potato.

The company is also looking to double

Mittal said the company is also also looking to ramp up production capacity of its manufacturing plant in Gujarat that was set up in 2008 with an investment of Rs 140 crore.

He, however, did not share by how much the capacity will be increased. The plant

its retail presence in the country from the current 5,500 outlets -- a mixture of both modern retail outlets and traditional stores, he said.

McCain Foods Canada employs over 19,000 people globally and has turnover in excess of 6 billion Canadian dollars.

Vini to invest Rs 40 crore in food supplements

F

ormer Paras Pharma cofounder Darshan Patel will launch nutraceuticals in the Indian market by 2012-end. Patel forayed into personal care category with Vini Cosmetics. Now the company will invest Rs 40 crore to launch food supplements, Patel told.

The man who is credited with nurturing Paras personal care brands like Moov, Dermicool, Set Wet, Krack, parted ways from his elder brother in 2006 and started Vini Group of Companies in 2010. Mr Patel sold his one-third stake in 12

Oil & Food Journal May 2012

Paras to PE Actis for $43 million, or less than Rs 200 crore. Paras finally was acquired by Dettol and Durex-maker Reckitt Benckiser for Rs 3,260 crore, 30 times Paras' earnings before interest, tax, depreciation and amortisation (Ebitda) for 2009-10.

Mr Patel has since launched Sundeo summer poweder, Whitetone face powder, 18+ deodorant, Jinjola talcum powder, 7X itch cream and Quco hair perfume in the Indian market. He had firmed up plans to launch nutraceuticals in 2010. Although the Japanese firm

with which Vini had entered into a JV the same year, has backed out from its India plans, Patel is undeterred.

He told, "Our launch will be delayed but not be shelved just because our partners have backed out. I will invest Rs 40 crore in the category to launch products by the calendar-end." Frost & Sullivan report titled "The Indian Nutraceutical Market: Dynamics of a Consumer Driven Market" pegs the Indian nutraceutical market at $1,480 million in 2011 and predicts it to grow to $2,731 million in 2016 at a CAGR of 13%.

301-A, Diamond Khan, Srikant Dharve Marg, Naya Nagar Circle,Mira Road(E), Mumbai-401107 February 2012 Tf: +91-22-28555069, T: +91-22-22999815, Handy +91-9867992299, 9867601701

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News

Cognex

North Gujarat will establish its stronghold in global food processing markets

T

Sets A New Standard For Industrial Ocr

he Chief Minister Narendra Modi inaugurated India's biggest food processing plant 'Himalaya Fresh' near Vadnagar of Mahesana district. “Such agro-industries related to food products will change the face of farming in the arid land of north Gujarat and the lives of farmers”, he said.

C

Himachal Pradesh's world famous food processing firm Himalaya International has set up a plant in Sultanpur of Vadnagar at the cost of Rs.170 crore. The plant will process the eatables like mushroom-yoghurt-milk cheese and potato chips, French Fries etc.

This is the first industrial project in this unindustrialized area.

ognex Corporation, world's leading supplier of machine vision systems, has introduced OCRMax™, a new tool for optical character recognition (OCR) and verification (OCV) applications that gives Cognex vision systems and vision software the power to achieve the highest read rates while keeping misreads to a minimum. OCRMax is fast, easy to set up and simple to use across all In-Sight® vision system and VisionPro® vision software platforms.

Maximum flexibility OCRMax overcomes the limitations of other OCR technologies. It is an all-inone tool that can handle character variations, text skew, proportional fonts and variable string lengths, making it the most robust character recognition tool in the industry. OCRMax is easy to set up and use, with minimal training being required.

Best character segmentation The key to achieving the highest read rates with OCRMax is its superior character segmentation capability. The segmenting functionality takes each character line and splits it into individual regions that each contains one character. This robust functionality ensures that OCRMax can handle distorted, touching and variably spaced characters. It can also accommodate uneven surfaces and lighting variations to the background of the characters. In addition, OCRMax lets users control 14

Oil & Food Journal May 2012

key parameters to further improve segmentation performance, resulting in even higher read rates and fewer misreads.

Easier font training and management OCRMax has an intuitive user interface that makes font training a very simple process. This makes reads more consistent and repeatable in virtually any environment. OCRMax users can also export and import fonts from external storage, making training easier and increasing the tool's flexibility. In addition, users can share the same fonts across multiple Cognex systems, further streamlining and simplifying font management.

Read any code, anywhere “Industries are putting a major focus on traceability in the supply chain,” said Bhaskar Banerjee, Business Unit M a n a g e r, V i s i o n S y s t e m s .

“Consumers and other stakeholders are requiring it. OCRMax gives manufacturers the power to ensure that labels match products, to verify print legibility of codes and to match text to barcodes or 2-D Data Matrix codes. The ease of use and set up, powerful segmentation functionality and simple, flexible font training that OCRMax offers, make it a powerful solution for any manufacturer.”

To learn more and try OCRMax for InS i g h t o r Vi s i o n P r o , g o t o www.cognex.com/OCR.

The Chief Minister welcomed the Himalaya Industry's Chairman Mr. Manmohan Malik's announcement that around 10,000 farmers will be made partners through this agro-industry with a view to encourage mushroom farming. “North Gujarat will establish its stronghold in the world food processing markets”, Chief Minister said.

The Chief Minister also welcomed the company's announcement of giving scholarship to village students and of building sports complex.

Mr.Modi called upon people to partake in coming Krishi Mahotsav which will be launched on May 6. As many as one lakh scientists, ministers, government employees, office bearers will visit the villages to acquaint farmers with the scientific methods in the field of agriculture and animal husbandry, he said.

Mr. Malik and his family said that they have set up this biggest plant with the encouragement of the Chief Minister.

Gujarat is making strides in industrial development due to the state government's transparent industrial policies. The company also announced ten percent salary hike for the plant workers on this occasion.

The owners of Himalaya also welcomed the Revenue Minister Anandiben Patel, Chairman of Gujarat Housing Board Jyanti Barot, Visnagar MLA and other office bearers.

News Badal seeks Pawar's nod for more mega food parks in Punjab note of these suggestions and incorporate them in their scheme.

Badal also mentioned that the state government had already provided certain major concessions of such kinds of projects including: exemption from basic stamp duty and registration fee on first sale and transfer of built up space of units or land in project area. In addition exemption from electricity duty up to five per cent for five years, permission of direct purchase of food grains, maize, barley, fruits and vegetables required for primary processing by the units in the Mega Food Park project. Also exemption is given from payment of Mandi Fee, Rural Development Fee and Infrastructure cess to the extent of one per cent each, subject to a maximum of 50 per cent of fixed capital investment.

P

unjab Chief Minister Parkash Singh Badal urged the Union Minister of Agriculture and Food Processing Industries Sharad Pawar to allot more mega food parks in the state being the granary of India.

In a letter to Pawar, the Chief Minister said that Punjab being the agrarian state has been so far allotted one such food park being set up by International Mega Food Park Limited at village Dabwala Kalan in Ferozepur district.

Seeking Pawar's personal intervention to direct the Ministry of Foof Processing Industries (MoFPI) to grant more such parks, Badal said that it

would not only propel agro industries in the state but also richly benefit our farmers.

The Chief Minister also pointed out that the state government in consultation stakeholders representing food procession industry has already prepared a blue print inviting suggestions from them to be incorporated in the upcoming schemes of MoFPI for boosting investment in this sector. These suggestions, if implemented, would go a long way in attracting investors to invest in Mega Food Park projects. He requested the Union Minister to direct MoFPI to take

The exemption and concession is given for a period of 10 years whichever happens earlier, permission of sublease of land by Special Purpose Vehicle (SPV) to the food procession units and exemption from ceiling limit on land being purchased from the industrial purpose including Mega Food Parks as per latest amendment in Punjab Land Reforms Act, 1972.

The Chief Minister also informed Pawar that state's Industrial Policy provides for an empowered committee, which can consider tailor-made concessions on case-to-case basis as well.

Food processors demand tax holiday for growth

T

he CEOs of the several food processing and FMCG firms have demanded a 100 per cent tax holiday for food processing units. They pointed out that the sector is poised to be the growth driver of the country's economy.

cold chain industry on prive public partnership basis, fast implementation of GST for a harmonised tax structure, exemption of import duties on machinery and raw materials, and establishment of quality food laboratories.

At a CEO round-table organised by Confederation of Indian Industry (CII) here, the industry representatives also urged the Union Government to concedre the long pending demands such as uniform implementation of Agricultural Produce Marketing Committee Act, promotion of

Lack of proper infrastructure in the sector is resulting in a wastage of Rs 30,000-crore food every year.

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Mr Rakesh Kacker, Secretary, Ministry of Food Processing Industries, said: “The sector grew by an average of 8 per cent between 2006 and 2010. This is higher than

the growth of the manufacturing sector.

Agriculture has also been growing 2-3 per cent which means we are adding more value to agriculture.�

However, the Government is looking at resolving certain problem areas of the sector such as land, he said.

He said that cold chains have been doing quite well with eight already being set up.

Another 10-15 will come up by the end of this fiscal and the Government had approved another 30 new projects last month.

News

Mega food park project to take off soon in UP two land leases to be issued. Holding the first lease itself, the second sub-lease for the MFP land is with ABNL. However, according to the Central government rules for setting up a food park, the land holdings must be in the names of the individual processing units.

Since ABNL cannot further lease this land to individual units, the government is now trying to iron out the concerns, either by amending the UPSIDC bylaws, or by selling additional land, adjacent to the existing MFP, to ABNL. In such a case, Aditya Birla Nuvo Limited (ABNL) will hold the first lease and can issue the sub-lease to individual processing units,'' Gupta said.

U

ttar Pradesh government will soon clear the decks for setting up the state's first mega food park project. Pending since 2010, when the Union ministry of food processing industries gave an in-principle approval to a proposal submitted by Aditya Birla Nuvo Limited (ABNL), the food park project will come up at Jagdishpur in Sultanpur district.

The project was, till now, caught in a web of technical complications.

With the new Samajwadi Party government appearing eager to boost the industry presence in UP, the project is likely to take off soon.

Speaking to media, UP's Infrastructure and Industrial Development Commissioner AK Gupta, said: ''The project was delayed because of some technical concerns regarding the land lease. Uttar Pradesh State Industrial Development Corporation, which is the owner of the land will take a decision in this regard soon.''

Currently, UPSIDC bylaws permit only

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With UPSIDC is deliberating over the matter at present and a decision is likely soon.

Setting up a mega food park in UP is expected to leverage the state's position as a leading supplier of raw materials UP leads in producing wheat, sugar, potato, milk and livestock - in agriculture.

The scheme is expected to raise India's processing of perishables from the existing 6% to 20%, value addition from 20% to 35% and the share in global food trade from 1.5% to 3% by 2015.

In this light, the current project was expected to tap into UP's potential by developing the value chain from the farm to the market.

Since the scheme will be developed on a cluster-based approach, it will be driven by demand, pre-marketed and would facilitate food processing units to meet environmental, safety and social standards.

The expected outcome is increased realization for farmers, creation of high

quality rural processing infrastructure, reduction in wastage, capacity building of the producers and processors and creation of an efficient supply chain along with significant direct and indirect employment generation.

According to ABNL's existing proposal, the Central Processing Centre (CPC) will be set up at Jagdishpur, with primary processing centres at Sultanpur city, Faizabad, Rae Bareli, Barabanki, Lucknow, Pratapgarh, Ambedkar Nagar and Jaunpur.

The company has also proposed to acquire 70 acres of land from UPSIDC in Jagdishpur industrial area or seek UPSIDC's permission to have the requisite land transferred from Indo Gulf Fertilisers to the Special Purpose Vehicle (SPV) floated for setting up the MFP. Though the company had, in its initial proposal, proposed to hold 94% equity in the SPV to be floated for the MFP, it has, subsequently, agreed to keep its equity at a maximum of 74%, as desired by the government.

Significantly, the UP government had earlier, launched a food park scheme, but it failed to create waves in the state.

Currently though five food parks exist in UP, only one - at Sahjanwa, Gorakhpur has been able to remain profitable since its inception in 2005.

Attempting to bridge the gaps through the new 3-tier MFP scheme, the government also made provisions for an efficient supply chain and backward linkages.

The scheme will also provide processing, packaging, environmental protection systems, quality control laboratories and trade facilitation centres.

News

Focus on sustainability in Indian

I

rice exports

ndia's rice production in 2011-12 increased 7.1 per cent to 102.75 million tonnes (mt), which, according to the UN Food and Agriculture Organisation, is part of the “good performance in Asia”. In fact, the improvement in the production of this foodgrain has been widespread in the continent, with China making major gains and Indonesia, Vietnam, Cambodia and the Philippines reporting higher output.

Pakistan, too, has seen a recovery in production after the earlier year's floods caused damage to the crop.

In this secular Asian output surge, Thailand, which before the October floods was seen by the US Department of Agriculture accounting for 31 per cent of world exports of the commodity this season (July to June), found at least 3.5 million acres of its rice fields turning into a sea of water. While Thai losses in the beginning were estimated at 3.4 mt of paddy or 2.25 mt of milled rice, the Southeast Asia's rice bowl saw some good recovery from wet season replanting, since harvested. The USDA now estimates Thai milled rice production at 20.3 mt, which makes it essentially unchanged from last year. India could not have returned to exporting non-basmati rice at a more opportune time than in September last year. As there was speculation about the fate of Thai rice production around that time, the crop of that origin became so much more expensive, with the government launching a subsidy programme to buy paddy from farmers at a hefty premium over market prices. The combination of the two factors sent the Thai rice price to a three-year high of $669 a tonne in November, even as the Asian benchmark price was down 15 per cent from a year ago. This gave a major break to India,

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recommencing export of non-basmati rice after four years. India's rice came very much cheaper than the one of Thai origin, in particular. It also enjoyed a competitive edge over Vietnamese rice.

Samarendu Mohanty, chief economist at the International Rice Research Institute, makes the important point that India's return as an exporter spared a “spike in world rice prices”. He says India came as a saviour. “The timing was so perfect because Thailand was implementing in the same month its rice mortgage programme, where it increased domestic price by nearly 50 per cent,” he notes. “It pretty much boils down to if Thailand would increase domestic price by that much, then the global rice price would go up accordingly. But that didn't happen because of Indian rice costing about $100 a tonne cheaper.”

The high cost of Thai rice will see its exports slipping to 8.5 mt to nine mt this season from 10.5 mt a year earlier. In fact, the problems visiting Thailand this time have worked to the advantage of India trying to find its feet again in the world rice market, thanks to the break caused by domestic difficulties. On cost count alone, some traditional Thai rice buyers have been procuring from Indian traders.

Parallel to India making inroads into some friendly African countries, it is receiving good inquiries from Indonesia. It speaks well of the members of the All India Rice Exporters Association (AIREA) that India could export 4.5 mt of normal rice and another 2.5 mt of aromatic long-grain basmati rice in 2011-12. The latter happened despite the payment settlement issue with Iran, a major outlet for our premium grain.

Some fortuitous developments, like the ones in Thailand, came as a big aid to India, which absented itself from rice

exports for a good while. The challenge for the country now is to cement its place as a regular exporter of the commodity.

AIREA president Vijay Setia says the need of the time is to take a “long-term view of rice exports”. The high point of any such strategy should be to focus on selling processed and high value-added rice in the world markets. Perhaps, portions of the benefits of higher export price realisations will then percolate down to farmers. Trade officials think the good harvest in 2011-12, inventories well in excess of buffer norms and forecast of a normal monsoon this year should allow unhindered rice exports in the next two years, at least. Now is the time to sort out the infrastructure bottlenecks, particularly relating to cargo handling at ports that rice exporters have experienced.

However bullish the trade may be, the long-term sustainability of India's rice exports will depend on its ability to break the very slow rate of growth in productivity of the crop. The 2011-12 Economic Survey says during the decade ended 2011-12, growth in area under rice was 0.04 per cent whereas “growth in production and yield was 1.72 per cent and 1.68 per cent, respectively”.

That land will remain perennially in short supply as room has to be made for building industry is not in doubt. The redemption in a situation of declining per capita availability of foodgrain lies in our research institutions introducing new high-yielding strains of rice. This is why Prime Minister Manmohan Singh has given a call for a second green revolution.

The rice crop remains highly raindependent, the irrigation coverage for it being less than 60 per cent. That the command area of irrigation for rice needs to be stepped up quickly cannot be overemphasised.

News

China to import

basmati from India I

t is unlikely that the Chinese will take to biryani easily with chopsticks but the government's decision to finally allow the import of Basmati rice from India will add to the increasing trade between the two countries.

After nearly six years of waiting and careful scrutiny of a 100-page dossier about the rice, the goahead from the Chinese government finally came on April 13. The first consignment of Indian Basmati is expected to land in China – the biggest market for rice in the world – later this year.

Discussions on the issue began in 2006.

“As per requirement, we submitted details about Basmati like assessments about its quality and pests. The General Administration of Quarantine, Supervision and Inspection went through the details,” K Nagaraj Naidu, Counsellor (Trade & Commerce) In 2009, Chinese scientists and officials visited Basmati growing sites in north Indian states. They checked whether standard operating procedures were followed to ensure that processing and storage houses were free from pests.

But the final decision got delayed.

The issue was raised during a bilateral meeting January 2010 and again in February 2012 before the nod came earlier this month.

Now, the ministry of agriculture in India has to issue a quality certificate.

Subsequently, a meeting between Indian exporters and Chinese importers is likely to be held in China to thrash out the modalities of trade.

India will face competition from Pakistan, which already exports Basmati 18

Oil & Food Journal May 2012

to China.”Pakistani Basmati is cheaper but India has a lead in South Asia in Basmati trade,” Naidu added.

China will not be an easy market to break into because the type of rice popular here is the sticky variety easy to maneuver with chop sticks. “The good thing is that people here are experimenting more with food now. Indian food is also becoming popular. Also, 500000 Indians come to China; initially, five star hotels, the expat community and Indian students will targetted,'' the Indian diplomat said.

National Dairy Plan to Meet the Projected Demand of 150 Million Tonnes by the End of 12th Plan: Pawar Sharad Pawar, Minister of Agriculture and Food Processing Industries has expressed hope that the recently launched National Dairy Plan will be able to meet the growing demand of milk products. Addressing the Parliamentary Consultative Committee attached to his Ministry, he said that the demand for milk is projected at 150 million tonnes and 180 million tonnes by 2016-17 and 2021-22 respectively. Milk production with an annual incremental growth rate of 6 million tonnes per annum is needed over next 15 years to meet the growing demand of milk in the country, Pawar further said.

Higher GDP growth and growing incomes on account of various schemes of the government has led to rapid growth in demand for milk. Unless production increases at the required pace, there is a possibility of widening gap in supply of milk in future which can lead to increase in dependence on milk imports, said Pawar. At present, with a production of 121.8 million tonnes, and

an average incremental growth rate of 4.1 million tonnes per annum, India is world leader, the Minister added.

The members discussed National Dairy Plan (phase -1) and issues related to nutritional level in fodder, enrichment of straw, availability of loans for dairy farmers, welfare schemes for them, support to women co-operative dairy plants, automation, need for awareness creation for better implementation of existing schemes.

The National Dairy Plan (phase-1) was launched at Anand (Gujarat) recently. It involves total investment of Rs. 2242 crore and aims at increasing milk production by increasing productivity of milch animals and providing rural milk producers with greater access to the organized milk processing sector.

The scheme is to be implemented in 14 major milk producing states – Uttar Pradesh, Punjab, Haryana, Gujarat, Rajasthan, Madhya Pradesh, Bihar, West Bengal, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Orissa and Kerala. These states collectively account for over 90% of country's milk production. The scheme will be implemented by National Dairy Development Board through end implementing agencies comprising State Governments, State Livestock Boards, Cooperative Dairy Federations, ICAR Institutes and Veterinary/Dairy Institutes/Universities. Pattern of funding under the scheme will be 100% grant-in-aid for nutrients and breeding activities. Harish Rawat, Minister of State for Agriculture was also present in the meeting.

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News

Ishida India Reliable Partners for Industry

A

company that provides products

and solutions for weighing, packaging, inspection and detection, Ishida India caters to the needs of all types of industry, from food to manufacturing and retail to chemical.

Ishida India, which is a 100% subsidiary of Ishida Japan, commenced its Indian operations in April 2007 covering markets in India, Bangladesh, Nepal and Sri Lanka. A pioneer in Weighing and Packaging systems with an installation base spanning over 3,500 systems, over the past 5 years, Ishida India has added products like Platform scales, Laboratory Balances, Moisture Balances, Weigh Bridges, and Tank weighing systems to its portfolio.

Mr. Takayasu Yamada who has been in India handling Indian operations since the inception of Ishida India says that with the addition of these products, “we can cater to the entire weighing needs of 20

Oil & Food Journal May 2012

the customer beginning from incoming material, processing, packaging and shipping.�

With this exhaustive product range the customers are bound to benefit, as the entire weighing systems will be from one source leading to better purchasing power and dependence on one single entity for after sales service.

As a company, Ishida India is also known for its reliability as the systems run 24 x 7, 365 days. Shut downs are only for a few hours.

With its facility in Gurgaon, Ishida India began its assembly operations of Multihead weighers, Check weighers and Platform scales.

Quality happens to be one of the important focuses of Ishida India.

Engineers from Ishida Japan visit their vendors frequently to train and upgrade the manufacturing processes.

Our R&D continues to work on improvement and innovation of technology to meet customers' demands.

All of Ishida India's systems are custom built with customer needs varying from one to another.

Ishida India has been recommended for ISO Certification 9001:2008 & 14001:2004 by TUV nord.

Ishida India boats of a team comprising dedicated sales, marketing, manufacturing, Software and projects pers onnel w ho unders tand the customer's requirements and go all out to fulfill their weighing needs.

The markets catered to by Ishida are namely Industry, Supermarkets, R&D Labs and Educational Institutions, apart from the Jewellery market.

With present sales to market figure of over 100 crores, Ishida India aims at becoming the largest player in the weighing segment over the next 5 years.

Ishida India's Corporate Philosophy is based on the harmonious integration of a three way belief system, namely, doing good for customers, good for society and finally good for the company. It is

News Bumper harvest here, Sharad Pawar bats for exports

A

griculture minister Sharad Pawar is pushing for more farm exports as India gathers a bumper harvest of food grains, cotton a n d s u g a r c a n e .

While rice export has crossed a record 4 million tonne, Pawar believes that there is still scope for bigger cotton and sugar shipments. The third advance estimates of the agriculture department peg grains output at an all-time high of

252.56 million tonne. The previous estimate was at 250.42 million tonne.

Rice output is likely to be at an all-time high of 103.41 million tonne while production of wheat is likely to be at 90.23 million tonne - up from the target of 84 million tonne, Pawar said.

India consumes about 76 million tonne of wheat a year. The bumper stocks might spur Indian state-owned firms and private companies towards exporting wheat to Iran, which could help partially settle New Delhi's oil import bill with We s t e r n s a n c t i o n s - h i t Te h r a n .

India has allowed exports of 2 million tonne of wheat, easing an early 2007 ban on overseas sales. India's April 1 wheat stocks at government warehouses were at 19.9 million tonne, nearly five times the official target for the quarter ending June 30. The production of oilseeds and pulses is likely to be at 17.02 million tonne and 30.06 million tonne respectively. The country is also likely to have a sugar cane output of 351.19 million tonne.

"We have a record production of cotton

estimated at 35.2 million bales (170 kg each). Sugar production is also at a record level of 26 million tonne. We need to come out with a clear stand on farm export at the meeting on April 30," said Pawar. Pawar will be attending the meeting called by prime minister Manmohan Singh, along with commerce minister Anand Sharma, food minister K V Thomas and finance minister Pranab Mukherjee to discuss exports.

He said that a meltdown in global sugar prices is a cause of worry for mills burdened with oversupply. Next year's sugar cane crop too could lead to a good production for the third consecutive year.

"With Brazilian sugar arriving in the international market, sugar prices are likely to come down drastically. A delay in sugar exports may make exports nonlucrative for sugar companies," he said.

The farm minister pointed out that the abundance of milk powder with private and cooperative dairies are forcing milk producers to sell milk at low rates.

Rs 150-cr Mega Food Park over 100 acres to come up in Lucknow

T

aking forward its agenda of promoting Lucknow as a major industrial hub, Uttar Pradesh has planned a Mega Food Park spread over 100 acres in the state capital. The land is available with the government and the project cost is estimated at over Rs 150 crore. This would be the third major project planned in Lucknow after two IT enclaves, namely 'IT City' and 'IT Park' spread over 100 acres and 25 acres respectively.

UP Infrastructure and Industrial Development Commissioner (IIDC) Anil Kumar Gupta said 50-60 companies had already applied for setting up units at the proposed Mega Food Park.The project would be set up under the union food processing ministry scheme, wherein the central government would provide incentive. “This matter had been caught in some legal and bureaucratic issues, which we are confident will be resolved by month

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Oil & Food Journal May 2012

end,� Gupta informed at an interactive session with Confederation of Indian Industry (CII).

He informed the state government had urged the Centre to allow for second lease by the UP State Industrial Development Corporation (UPSIDC) for the food processing infrastructure.

Industry had long been demanding setting up of food parks in UP for increasing farm income and adding value to agricultural produce. The state has a huge potential of food processing and exports due to high production in both foodgrains and horticulture, including potato, sugarcane, wheat, rice and vegetables.Mega Food Parks could be established for any segment such as f r u i t s a n d v e g e t a b l e s , d a i r y, meat/poultry and wine or it could combine different segments.

Such units would provide backward and forward linkages covering the entire food processing value chain and

implement best practices in post harvest management.According to an official estimate, India would need an investment of almost Rs 1,00,000 crore in food processing to raise its percentage to 25 per cent of the total agricultural produce annually.

Experts believe that the 2nd Green Revolution will not be successful unless the imperatives of post harvest management and value addition mechanism in agriculture were adopted.

The percentage of food processing industry is as high as 80-85 per cent in developed economies vis-Ă -vis under 10 per cent in India. Even Thailand and Philippines had benefited much due to their robust food processing infrastructure. Northern states in general have been lax in encouraging investment in food processing industry. The previous Mayawati regime in UP had also not actively sought any central aid in boosting food processing.

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Oil & Food Journal May 2012

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Oil & Food Journal May 2012

Ice Cream

FROZEN DESSERT VERSUS

ICE CREAM

L

ately there has been a lot of hues and cry about the use of vegetable oil inice-creams, it has been claimed that consumers are feeling very embittered and cheated. The whole issue has been craved as if the companies that are using vegetable oils instead of milk fat in the ice cream have done a delinquency that is reprehensible.Amusingly the news has also claimed that the use of vegetable oil in ice-creams is not health friendly and is as well shady to the taste buds. But what 24

Oil & Food Journal May 2012

ever seen or said, the fact is that very few consumers can tell the difference between an ice cream and frozen dessert.

There is actually a very thin line dividing frozen desserts and ice-creams. The Traditional, or “regular,� ice cream uses cream or milk containing about 10 p e r c e n t b u t t e r- f a t , a l o n g w i t h sweeteners, flavorings and thickeners.

Regular ice cream is somewhere in the middle of the ice cream health scale, with light and reduced fat ice creams containing fewer calories and less fat

than regular ice cream, and premium and super premium ice creams containing more fat and calories than regular ice cream. A frozen dessert is vegetable oil based product that contains imported palm kernel oil or coconut oil instead of locally produced butter fat. Frozenyogurt comes from non-fat or regular yogurt that is mixed with flavorings, sweeteners and thickeners, then churned and frozen in the manner of regular ice cream. The beneficial bacteria found in regular yogurt do not survive the

Ice Cream freezing process. While real ice cream is made with milk fat; frozen dessert is made with vegetable fat, which is almost 80% cheaper.

However according to the definition of milk and milk products under the Prevention of Food Adulteration Rules, 1955, an ice-cream is a product with not less than 10 per cent of milk fat, whereas in comparison, frozen desserts contain vegetable oils, such as palm kernel oil and coconut oil, that can be brought in tariff-free from anywhere in the world.

Vegetable oils are also much cheaper than butter fat and hence becoming very cost effective for the ice cream industry that offer frozen dessert.

Excluding a few companies in the market such as Amul, Mother Dairy, Hatsun Agro Food Ltd and Havmor, others – Led by Hindustan Unilever's Kwality Walls, Vadilal, Lazza Ice Creams and Cream Bell all serve frozen desserts - in identical cups, cones and sticks as ice cream- and have found a strong foothold in the country in less than two decades since Kwality Walls introduced them. International brands such as HaagenDazs, Movenpick (Nestle), Swensen's and Baskin Robbins offer original or regular ice-creams.

Vadilal sells both.

Frozen desserts, which look and taste like ice cream but are made out of vegetable fat, have silently grabbed a

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Oil & Food Journal May 2012

40% share in India's 1,800-crore organised ice-cream market without most consumers realizing they are not ice cream.

But food authority officials and original ice-cream makers such as Amul and Mother Dairy that use only dairy fat say frozen dessert makers have been misleading consumers by passing them on as ice cream. And they claim that Consumers have been eating frozen desserts presuming them to be ice creams.

Amul, the category leader in ice creams

with 40% market share, declaresthat companies are misleading consumers by not mentioning upfront they are frozen desserts and pricing them as much as ice cream despite lower costs. Consumers are fooled into buying frozen desserts. It is a lookalike category. Most brands mention frozen desserts in small letters and push the category instead of advertising it as dessert.

What the opponents need to understand is that the consumers make choices based on a number of

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Oil & Food Journal May 2012

Chain ICceoldCream

factors including calories, fat content, indulgence and portion control – but taste preference is always key and as such and the companies always strive for superior tasting products. There is no doubt dairy is the number one ingredient in all ice cream, frozen dairy desserts and frozen desserts. In fact, frozen desserts do contain milk, just not the kind that contains butter fat, which is the crux of the issue for the rival ice cream makers.

The genuine fact is that there is no health hazard in using either of the two ingredients. Traditionally, icecreams have been made out of milk fat, so it might be considered as cheating by some consumers. But nutritionists say there is nothing

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Oil & Food Journal May 2012

terribly wrong about vegetable fat.

After all, edible oil is regularly used in Indian cooking and snacks. But it could be more harmful than milk fat.

Vegetable fat contained in frozen desserts is generally unsaturated and hence, healthier, Ice creams and frozen desserts are two very different things.

Ice creams are made of dairy fat which contain cholesterol and Trans fats therefore aren't very healthy whereas Frozen Desserts are made of fat from vegetable oils which contain very less cholesterol and no Trans fats making them a very healthy snack!

Talking in aspect regarding the fatty issue, it is Ideally known that frozen dessert contain no more than 4 grams fat

and the fat quotient of frozen desserts varies considerably, depending on the amount of fat in the cream, milk or yogurt used as the primary ingredient. In general, ice cream contains between 6 to 16 grams of fat per ½-cup serving, with premium ice creams containing between 17 and 24 fat grams per serving. Frozen yogurt ranges from the 0 grams fat contained in ½ cup of non-fat yogurt brands, to the 1 to the 3 fat grams in lowfat frozen yogurt, and the 4 to 9 fat grams in premium frozen yogurt desserts. The average frozen yogurt and light ice creams take up about 4 percent of your daily allotment for cholesterol, while regular and premium ice cream represents at least 7 percent of your recommended daily amount of cholesterol.

So categorically the fat uptake in ice creams are much more comparatively and in today's time of health consciousness many consumer like the fact that they can consume something that is equivalent to ice cream but rewardingly not as high in calories as an original ice cream.

For example depending on brands and flavoring, regular ice cream contain between 130 and 190 calories. Factoring

in light and premium ice creams, the caloric range runs from 90 to 340 calories in each ½ cup scoop. Regular, or low-fat, frozen yogurt has between 70 to 140 calories in each ½ cup serving, with the entire range of frozen yogurt running from 90 to 190 calories per ½ cup scoop.

The carbohydrate count has less to do with the type of dairy product used than on the sweeteners and flavorings.

Regular and light chocolate ice cream, as well as chocolate frozen yogurt, all has about 18 to 19 grams of carbs per serving.

Ice cream and frozen dessert are calcium-rich dairy products. The average chocolate frozen yogurt and ice cream products contain between 72 and 85 grams calcium according to USDA figures. Therefore, milk-based desserts like ice cream and frozen yogurt deliver between 7 to 9 percent of the calcium you need each day. Thus it is not difficult to assess that frozen desert have nutrition value better than ice cream with an added importance of lesser calories and cholesterol As a matter of fact you'll get many of the vitamins and minerals offered by milk in frozen yogurt and ice cream. Varieties featuring real fruit may provide additional nutrients. According to

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USDA figures, the average ½ cup serving of chocolate frozen yogurt or chocolate ice cream provides at least 5 percent of the protein you need each day.

The dairy desserts also deliver 2 percent of the recommended daily values of iron, magnesium, phosphorous, potassium and vitamin A, as well as several B-complex vitamins, including folate. The ice cream varieties were slightly higher in these nutrients than the average frozen yogurt. Some frozen dessert makers add extra vitamin C to preserve flavor and color, meaning that your vitamin C content may vary from 1 percent to 10 percent.

The Price factor is another major point that cannot be eluded.

Using of vegetable oil becomes pocket friendly not only for the industry but also for the consumers. Like One kg of vegetable fat (vanaspati) is about Rs 50-55 a kg, while one kg of milk fat (ghee) is Rs 245-350 a kg. On a litre of ice-cream, cost of a milk fat mix is Rs 60/litre and the cost of vegetable oil mix is Rs 30/litre.

Vadilal manufactures both ice-creams and frozen desserts in a 50:50 ratio to cater to all segments of customers and according to them, while it is cheaper to produce frozen desserts, the margins for both turn out to be the same. Further the

vadilal folksround aboutthat consumer are well aware of the difference. In Europe, both are called ice-cream, while in the US, the differentiation is maintained.

The Rs 2,500-crore frozen dessert market in India is growing at an average of 15 per cent and is still dominated by regional players. The per capita consumption of ice-creams in India is very low and considering the hot weather, there is space for factory made ice-creams along with matkakulfi, asharfi, koti ice-cream and Rs 5 candies to survive and grow.

Frozen desserts by Kwality Walls, Vadilal, Lazza, and Cream Bell have already grabbed 40% share in ice-cream market, what more is there to say except that the consumer of today is health conscious one, who go for things that can give your taste buds a tingle but with the stipulation that it does not play with their health.

Frozen dessert makers are, meanwhile, upbeat about the prospects of this category.Hindustan Unilever's Kwality Walls, which makes only frozen desserts and does not use milk fat, pronounces the category to be growing on the strength of a series of exciting products.

Cream Bell, an ice cream and frozen dessert brand of RJ Corp's Devyani Food Industries, have frozen desserts accounting for 50% of its sales. The company entered the category in 2006.

There is no dearth of takers for frozen desserts in the Indian market now. For cream bell, both categories are growing at 25-30%. South Indian ice cream player Lazza Ice Creams, which introduced frozen desserts a decade ago, has seen the vegetable stuff overtaking ice cream in the last five years when it has been growing 50% year-on-year.

Frozen desserts accounted for 55% of Lazza's turnover of 150 crore in 201011.

Indian mind-sets have changed towards frozen desserts and the consumer is comfortable in consuming them. Frozen desserts have taste as par excellence and that is the reason the few consumer can differentiate. Those who can distinguish go for frozen dessert or yogurt for bothhealth and taste.

News

Rs 150-cr Mega Food Park over 100 acres to come up in Lucknow

A

sia's largest dairy Gujarat Cooperative Milk Marketing Federation Limited (GCMMF), which markets the Amul brand, is planning to achieve a turnover of Rs 30,000 crore by 2018, two years ahead of its target date “considering the consistent growth that it has been recording over the last five years.”

“We ended 2011-12 with a turnover of Rs 11,670 crore, recording a growth of 20 per cent for the fifth consecutive year.

The way we are growing, I think, we will achieve our target two years before 2020,” RS Sodhi, managing director of GCMMF), told reporters. To take the Amul label to the next level of growth, Sodhi said, the federation was going all out to make dairy farming a contemporary and trendy business by encouraging youth to take up farming, besides increasing payments to them.

“Over the last three years, payments to farmers have increased at least 50 per cent. Also, Amul has started procuring milk from outside Gujarat – from Rajasthan, Haryana, Punjab, Uttar Pradesh, West Bengal, Bihar and Maharashtra – to broaden the reach of its brand,” he said.

Demand for milk and milk-based products is growing by the day on account of the increasing per capita income and consumption, which at present is at 280 millilitre per day in India. Milk production in the country is expected to touch 130 million tonne this year as against 90 million tonne in the US, according to him.

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Oil & Food Journal May 2012

GCMMF is charting an expansion plan involving an outlay of Rs 3,000 crore, which would see the number of its milk processing units increase to 49 from the present 40, and the capacity touching 18 million litre, from the present 14.5 million litre per day in the next four years.

Announcing the launch of Amul Pro, a new whey protein brown beverage in Hyderabad today, taking its product portfolio to 41, Sodhi said the product had a price advantage over competitor brands.

The milk food drinks market in India, currently pegged at Rs 3,000 crore or 80,000 tonne a year in volume terms, is dominated by global brands – Horlicks and Complain (white beverage), and Bournvita and Boost (brown beverage).

While Horlicks is the market leader, enjoying a 50 per cent share, Bournvita is currently the largest brown beverage brand with a 19 per cent share.

“Amul loves fighting MNCs. Amul Pro is the most value for money offering in the category and is priced at Rs 150 per 500 gram jar, as against Rs 175 (Bournvita) and Rs 165 (Horlicks),” he said, adding that the federation was aiming at a 10 per cent of the pie of the segment in the next two years.

Replying to a query on Cafe Amul, the federation's quick service restaurant business, Sodhi said they were running six cafes in Gujarat and West Bengal.

“We are still in the learning stage,” he said while declining to comment further.

Ice Cream

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Oil & Food Journal May 2012

Biscuit

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Oil & Food Journal May 2012

Inauguration Assuming normal rainfall the

farm sector output is projected to rise by 2.4 % in 2012-13

Weather Gods likely to “shower� their blessings on the country again:

I

ndian Meteorological Department (IMD) has predicted a normal monsoon in 2012. The monsoon is expected to hit Kerala on June 1st with a model error of +/- four days. The Southwest monsoon is crucial not only for agriculture, but also for the general economic growth. The four month monsoon season would be, by and large normal across the country.

However, the IMD office did not entirely rule out the impact of El Nino, which could cause fewer rains during the second half of the season. The track record of IMD's forecast for the last one 32

Oil & Food Journal May 2012

decade on the monsoon rainfall has not always been right. Let us keep our fingers crossed and hope for a normal monsoon during 2012 season which will bode well for the economy, as it will boost rural demand and bring down inflationary trend. Assuming normal rainfall the farm sector output is projected to rise by 2.4 per cent in 201213. This would be the fourth straight year of increase in farm income, though growth is expected to be moderate against a seven per cent rise in 2010-11.

As per the CMIE report, major oilseeds production is expected to grow by three per cent in 2012-13, after being hit in the preceding year. Higher production of groundnuts, soyabeans and sunflower seeds is expected to drive the growth in output of oilseeds. In 2011-12, groundnut cultivators turned to alternative crops in anticipation of higher returns. Production of groundnuts is estimated to have declined by over 17 per cent to 6.9 million tonnes in 2011-12.

This had caused a demand-supply gap leading to steep increase in groundnut prices during January-April, 2012. The present price scenario will motivate cultivators to undertake sowings of groundnuts on a wider scale in the current fiscal year. Consequent to this production of groundnut is projected to recover by over 16 per cent to touch eight million tonnes in 2012-13.

Let us all pray that the Rain Gods continues to smile by blessing the country with bountiful rains!

Rupee Slides to a Record Low The Rupee slided to 54.64 to a dollar today, sending shivers down the spine of the importers and the Government too.

Introduction of General Anti Avoidance Rules (GAAR) and increase in long term capital gains tax, approved in the budget did not go well with the FIIs. They have started withdrawing funds from the Indian equities, which coupled with the high demand for dollars from importers, weighed heavily on the Indian rupee.

The negative rating of India's economy

Biscuit

by S&P on 25th April, 2012, also had a bearing in moving the sentiment against Indian rupee in the foreign exchange market.

The Indian currency which stood at Rs.50.20 to a US dollar on 15th March, 2012, depreciated rapidly to US$ 52.50 per US dollar on 30th April, 2012 and further depreciated to USD 52.90 per US dollar on 8th May, 2012. At the time of writing this news letter the Indian currency has touched an all time low of Rs. 54.64 to a Dollar. It is expected that the Reserve Bank would intervene by taking some immediate measures to stop further sliding of the rupee and salvage the deteriorating condition of the economy.

Surge in Import of Vegetable Oils The data released by the Association for import of vegetable oils indicates a surge in imports by about 30% during first half of the oil year (November 2011 to April, 2012). The total imports are reported to be at 47.1 lakh tonnes compared to 36.0 lakh tonnes during the same period of last year. Surprisingly, import during April 2012 has nearly doubled over last April and is reported to be at 9.25 lakh tonnes compared to 4.75 lakh tonnes.

Import of RBD palmolein in first half of the year increased by 89% and is reported to be at 9.20 lakh tones as compared to 4.87 lakh tones during the same period of last year. Import of RBD Palmolein is likely to increase in the forthcoming period, as the current Indonesian inverted export duty structure, encourages export of refined oil (9% export duty), over crude palm oil (18% export duty). This is evident from the fact that the spread between CPO and RBD palmolein has reduced to just US$ 20, against US$ 60, a year ago.

Indonesia is expanding rapidly its refining capacity of CPO, which would lead to large-scale exports of RBD Palmolein into India, thereby jeopardizing the operations of the domestic vegetable oil refining industry.

The Association has been representing to the Government continuously, to take remedial measures, by way of revision of tariff value and imposing of higher import duty on refined palmolein in order to safeguard the interest of 33

Oil & Food Journal May 2012

domestic refining industry.

Export of Edible Oils in branded consumer packs of up to 5 Kg. Export of edible oil in bulk is banned since 4 years. However Government has permitted exports of edible oil in branded consumer packs up to 5 kgs, subject to a ceiling of 10,000 tonnes per annum. Earlier DGFT was updating their Website regularly showing the total quantity of edible oil exported till date to enable the exporters to enter into new contracts based on the balance ceiling available. However, since October 2011, DGFT has not updated its Website. In absence of this vital information, the exporters are finding it very difficult to enter into new contracts as they fear that the ceiling may be over, thereby forcing them to default on the export contract.

The Association has taken up this issue once again with DGFT and we fervently hope that DGFT starts updating this information on its Website regularly to facilitate the exports of refined oils in consumer packs.

Delegation to Bangladesh The Managing Committee at the last meeting reviewed the export performance of different oil meals to various regions. It was observed that Bangladesh and Pakistan are turning out to be the emerging markets for exports of Indian oilmeals. Currently Pakistan imports about 3 lakh tonnes of oilmeals and an equal quantity is being imported annually by Bangladesh from India.

There is a good potential for growth as Pakistan has granted India the Most Favoured Nation status for this trade.

Also the recent successful bilateral negotiations will push further the exports of oil meals to Pakistan.

Bangladesh could emerge as another big market for oilmeals. The only constraint with Bangladesh is non-availability of railway rakes. In view of this export potential, the Managing Committee has decided to depute a trade delegation to Bangladesh some time during July or August to study the current status of their feed industry and for further export promotion of oil meals into Bangladesh.

Doctors Meet and RBO Seminar SEA had organized Doctors' Meet and RBO Seminar on 22nd April 2012 at

Mumbai, which was attended by large number of Doctors, Dieticians, Cardiologists and of course members of the Association. The Doctors' Meet was unique as leading cardiologist Dr. Chocalingam and Dr. V. Prakash, Former Director of CFTRI and other speakers held the delegates spellbound for three hours, convincing them emphatically about the attributes of Rice Bran Oil as good healthy oil. Though India is produces about 8.5 lakh tonnes of rice bran oil, unfortunately, a major portion of the refined rice bran oil is used for blending or in the manufacture of vanaspati and hardly 2 lakh tonnes is consumed directly as cooking oil. The seminar emphasized the need to focus on creating an awareness about the virtues of rice bran oil, thereby increasing the direct usage of refined rice bran oil as cooking oil and providing its health's benefit to the public at large. The Seminar in Mumbai has taken this agenda forward and it is expected that it will increase the usage of rice bran oil in this region. I compliment Sri O.P. Goenka, Chairman, RBO Seminar & Dr. A. R. Sharma, Chairman, SEA RBO Promotion Council and their team for organizing this Doctors' Meet and RBO Seminar and making it a great success.

Feed & Feed Ingredients Conclave2012 SEA and CLFMA are jointly hosting Feed & Feed Ingredient Conclave-2012 at Bangalore on 21st July, 2012 on the theme 'Future Outlook for Feed Industry vis-à-vis Demand-Supply of oilmeals and Price Outlook' I invite all the members to actively participate in the Seminar and enhance their knowledge through networking and deliberations of the seminar. As we all know, this is an irreplaceable 'ingredient' to success in business, as is aptly put in the following quote: “If a man empties his purse into his head, no man can take it away from him. An investment in knowledge always pays the best interest.” Benjamin Franklin.

SUSHIL GOENKA President-SEA

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Sesame Seed

Sesame Seed The versatile commodity S

esame seed is one of the oldest oil seeds the human race has ever known. The seeds of the sesame plant are the source of the very useful Sesame oil and have been used as a flavoring agent since the ancient time.

Today, Sesame seed are extensively grown and traded in international market. About 60-70 percent of the traded Sesame are used for oil extraction, the rest being used as food ingredient.

Sesame seeds are generally of two distinct types, the white and the black.

There are also intermediate colored varieties varying from red to rose or from brown or grey. The seeds are either de-hulled or used with hull depending 36

Oil & Food Journal May 2012

World Sesame Production, 2010 India China

16.2

32

Sudan 15 .3

Ethiopia Nigeria

18.8

3

8.2

6.5

Myanmar Others

Sesame Seed provide them some value addition in terms of health benefits. Sesame oil being rich in natural antioxidants and 0.255 components which reduces bad cholesterol, is fast emerging as the new choice for the urban health conscious population.

Sesame processing: 0.125 Challenges and 0.102 Opportunities In an increasing 0.07 globalizing world, the 0.06 struggle to meet international market conditions and be competitive is becoming increasingly difficult as S uda n E t hiopia N ig eria M ya nm a r T a nza nia consumers (and therefore buyers) are becoming more and more conscious market potential. about health concerns and suppliers The new trend is very much reflected in from different parts of the world are export figures of 2009, where Ethiopia also becoming more and more cost exported the highest volume of Sesame efficient. seed followed by India and China. The

E xp ort F igu re s 2 00 9 , m ill io n t on s 0.3 0.25 0.215 0.2 0.15 0.1 0.034

0.05 0 In dia

China

upon the type of application.

The seeds are important ingredients for the booming bakery & confectionary industry and are added to give a crunchy flavor to food products like burgers, cakes and biscuits. It is also a generously used condiment to impart color, aroma and texture in the very popular Chinese and Japanese cuisine. Sesame seeds offer a high level of oil i.e. around 55% of its total mass.

The Global trends and Market Dynamics The total global production of sesame seed sums up to around 3.8 million tons annually, India and Myanmar being the highest seed producer followed by China.The world Sesame production is very much dominated by Asian and African countries.

total value of commodity exported by these countries was around 1 billion US$.

Source: FAOSTAT Import FiguresA large 2009, million number of countries tons import

0.35

0.4 0.3 0.2

0.161

sesame seeds to fulfil their domestic consumption demand. The value of the total seed imported by China and Japan was around 650 million US$.

The phenomenal growth of sesame market continues with internationally traded Sesame seeds value being doubled in last 5 years with a steep 40% rise in the total quantity traded.

Growth Drivers The confectionary and bakery industries are growing at a fast pace and demand from companies like KFC and Mc Donalds for good quality sesame seeds have increased steeply. People life styles are changing very fast and the popularity of continental and Chinese cuisine has led to growth of the overall sesame market.

Global consumers are now ready to experiment different products which

0.106 0.09 0.073 Over 1 million tones Sesame seed goes

0.1

into the international trade annually, making it a highly traded (26%) commodity in the world. Previously the export of this oil seed was mainly from India and China, but due to an increasing international market demand, new players such as Ethiopia, Sudan, Nigeria and Tanzania have now entered the market. Not only there is a rise in export volumes but also new buyers are coming into the market to gain from the global

0

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Oil & Food Journal May 2012

Moreover, to ensure premium price for the commodity and enhance the market share through exports, maintaining product quality is most important. Most importers who supply ingredient distributors and oil processors only want to purchase properly cleaned, washed, dried, colour-sorted, size-graded and impurity-free seeds of given minimum oil content (not less than 40 percent) packed according to international standards. Usually, only seed meeting these criteria may be exported from a producing country.

Today, the challenge for Sesame seed processors is to consistently meet the stringent quality standards for export and import market. To play a dominant role in the international trade, they need to enhance their competitiveness by increasing productivity and reduce process losses.

With strong expertise and knowledge in seed processing, BĎ‹hler have been instrumental in providing complete processing solution to its customers to increase their competitiveness in the international market. With more than 70

0.036 0.035

38

Oil & Food Journal May 2012

39

Oil & Food Journal May 2012

Sesame Seed sesame processing plants spread over processing hubs like India and Nigeria, Bϋhler customers are producing the best quality of product and gaining a premium price for them.

The fact that Bϋhler has more than 95% share in sesame seed export market in India which has 25% share in sesame international trade, clearly showcases the confidence level of sesame processors on Bϋhler.

Bϋhler customers are benefitted not only from the in-depth knowhow and worldclass capabilities of Bϋhler in providing complete mechanical engineering solutions but also from automation & control systems and project management, including hulling of sesame.

Customers can be assured that with Bϋhler on their side, they will always have the edge on global competitive

sesame market and continue to be profitable.

Bϋhler – Redefining Quality In today's food industry, producing safe and hygienic foods is no longer a choice but an absolute requirement. With Regulatory bodies like WHO, Codex and FAO emphasizing more and more on the food safety issues and individual traders having their own quality specification, the need of hygienic conditions, high reliability and clean environment in the processing plant is a m u s t . M o r e o v e r, f o r v a r i o u s applications in food and for oil extraction, the seeds are expected to be of uniform grade and free from impurities.

Bϋhler colour sorting machines 'Sortex ' equipped with state of the art optical technology, remove the minutest

impurities and delivers a graded product for various application.

Th e h ig h ly en g in eer ed B ϋ h ler processing plants selectively remove light seeds which usually have higher Free Fatty Acid (FFA) either through aspiration or through gravity separator and thus ensures that final sesame have less than 2% FFA which is considered suitable for oil extraction.

Like all Bϋhler machines, these machines too offer high productivity and hygienic processing, while maintaining optimum operating costs and low power consumption. With product output purity in the range of 99.95%, Bϋhler is surely redefining quality standards for world Sesame market.

For further enquiries please contact: Surojit Basu surojit.basu@buhlergroup.com

AP Dairy facing 25% supply deficit

A

ndhra Pradesh Dairy Development Cooperative Federation (APDDCF), a statewide enterprise of cooperatives for dairy development and the secondlargest milk procurement agency in India, is currently facing a 25 per cent deficit in milk supplies.

“The consumption of milk and dairybased products has increased tremendously over the years in the state. The demand is so huge that even after we have doubled our milk procurement this year to 400,000 litre per day, we are facing a shortage,” APDDCF managing director and vicechairman Mohd. Ali Rafath, told. Milk procurement is growing in the state over the years. For APDDCF alone, the milk procurement has increased to 113.6 million litre in 2011-12, a growth of 4.16 per cent from 109.1 million litre in 2010-11.

“The milk procurement is expected to see a 20 per cent rise in the coming year with the proposed National Dairy Plan (NDP) and the State Milk Mission,” he said.

NDP, a World Bank-funded scheme, with a total budget Rs 2,246 crore, will

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Oil & Food Journal May 2012

provide around Rs 140 crore to each state in the next five years to facilitate milk productivity. It will support animal nutrition, breeding, cold storage creation and overall increase in milk procurement.

“The State Milk Mission, a proposed Rs 6,000-crore plan to boost milk procurement at the state level, is expected to increase milk productivity by two litre per day per farmer,” Rafath added. Also, Nabard's Dairy Development Fund, which was launched this year, is facilitating the dairy business in the state. This year itself, farmers have shifted to dairy from farming, as dairy business does not involve any risks. It also gives good returns, APDDCF project manager Prabhakar said. “Farmers' earnings from APDDCF have grown to Rs 258 crore in 2011-12, from Rs 45 crore in 2004-05,” he added.

APDDCF, started in 1981 to develop milk procurement, processing, packaging and marketing in the state, currently has a network of 5,000 villages, 4,673 milk collection centres, 85 milk routes, covering 11 districts in the state.

Its turnover has grown tremendously over the years – from Rs 177 crore in 2003-04 to Rs 450 crore in 2011-12.

“We expect the same growth to continue in the coming years,” Prabhakar said.

APDDCF, which retails its products under the 'Vijaya' brand, now enjoys a 70 per cent market share in Hyderabad and 30 per cent across the state in milk-based products, competing with players like Masqati, Jersey and Heritage.

Other initiatives APDDCF is planning to expand its icecream division in partnership with two private companies - Continental Food and Meghna Foods. “We are in talks with the South Central Railway (SCR) to provide ice-creams and other milkbased products. We will be covering Andhra Pradesh and Tamil Nadu in Phase-I,” Rafath said.

For the year 2012-13, APDDCF targets to achieve Rs 3-crore revenues from its Vijaya packaged drinking water, which it had launched in October 2010. This year, Vijaya packaged water recorded a turnover of Rs 1.68 crore, Prabhakar said.

Biscuit

India's

biscuit

industry

heading towards premiumisation (Feature) India's Rs.150-billion ($3 billion) biscuit industry, the third largest in the world, is witnessing a major shift towards 'premiumisation' as consumer preferences change, fuelled by soaring disposable incomes in smaller towns and health awareness.

People with lower incomes are also upgrading from the 'affordable' glucose biscuits to mass cream biscuits and mass cookies.

The biscuit industry, which consists of economy, middle, premium and superpremium segments, is likely to grow at 20 percent annually in the next few years.

But the premium and super-premium segments, according to industry experts, are believed to be growing at a much faster rate, probably more than 30 percent on a year-on-year basis.

"Currently, economy and middle segments (mass segment) comprise about 70 percent of the total biscuit market in India. I think in the next five years, the share of the mass segment would come down to 60 percent and the rest would be premium and superpremium segments," Parle Products group product manager B. Krishna Rao told over phone from Mumbai.

Parle, which is India's largest biscuit maker with a 45 percent market share, said biscuit companies in the country are coming up with more products in the rapidly growing premium segments to tap the market.

"Competition in the economy segment is extremely difficult as it would put pressure on the bottom line (profit)," Rao said.

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Oil & Food Journal May 2012

Explaining the reasons for the consumers' growing preferences towards the premium biscuits than the mass products, he said smaller towns were now having modern trade centres with consumers possessing more disposable incomes, which resulted in spreading of mall culture.

"Currently, there are about 40 mini metros across the country. The scenario was different a few years ago. Smaller towns like Durgapur, Asansol, Surat and Rajkot now have modern trade centres like malls. Retail chains like Big Bazaar are coming up also in tier II and tier III cities," he observed.

He said while the economy segment was likely to grow at a range of 15 percent to 18 percent annually, the premium segment was expected to clock 30 percent growth.

As a result, Rao said, a lot of companies would introduce products in the premium and super-premium biscuit segments in the days ahead.

Parle, which owns brands like Parle-G glucose biscuits and 20-20 in the mass segment, also possesses brands like Hide & Seek and Hide & Seek Milano in the premium segment.

While biscuits priced at Rs.100-150 per kg are categorised as middle segment, biscuits with an MRP of Rs.125-150 per kg fall in the premium category. Priced at below Rs.100 a kg are in the economy segment and above Rs.150 a kg in the super-premium segment.

Another biscuit major Britannia seconded Parle's observation on the consumers' preference shifts towards premium products.

"Over the last few years, the biggest shift that has been happening (in the country's biscuit industry) is the premiumisation shift," said Anuradha Narasimhan, category director, health and wellness, Britannia Industries.

"And this is best borne out by the reducing contribution of the glucose segment. The glucose segment used to contribute 33 percent by value a couple of years ago and this has dropped to 24 percent," Narasimhan stated.

According to her, people belonging to the lower income group are upgrading to mass cream biscuits and mass cookies.

She said the current trend would not just continue but grow in magnitude and people would prefer not just 'affordable delight' but seek specific benefits in food products, including health needs.

"We see the benefits of health as well as indulgence being played out - these benefits will democratise and not just be the purview of top-end audiences.

Health and convenience are primary drivers of food consumption - with the health need being very key," she pointed out.

Narasimhan said the health wave in India was being fuelled by the high prevalence of diseases such as diabetes and hypertension as well as awareness driven by the media.

"We believe the biscuit market will continue to grow in the range of 20 plus percent - with premium segments growing much faster," she added.

Britannia, which operates in both the mass and premium segments, has popular brands like Marie Gold, Little Hearts and Time Pass.

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Oil & Food Journal May 2012

Event Report

India Section of AOAC International

A

OAC International (Association of Official Analytical Communities) is a globally recognized non-profit association found in 1884. The organization is committed to being a proactive, worldwide provider and facilitator in the development, use, and harmonization of validated analytical methods and laboratory quality assurance programs and services.

On 5th April 2012, India Section of AOAC International was inaugurated by Dr.Deepa Bhajekar – President of India Section of AOAC International (MD – MicroChem Silliker, India). Dr.Deepa a PhD in Industrial Microbiology has over 18 years of experience food testing and analysis in microbiological, chemical, nutritional analysis, shelf-life studies, pesticide residue testing, heavy metal analysis, dietary supplement analysis.

And has expertise in use of various analytical instruments for food & water, standardization & validation studies.

She is on the board of Scientific Panel Member in Food Safety and Standards Authority of India for methods of sampling and analysis also involved in in the method up gradation in the DGHS Manuals. With such an expert background in the analytical field, Dr.Deepa with the platform of India Section of AOAC International can help to provide the Indian analytical industry with opportunities to find a common solution to common analytical problems.

AOAC International based in USA serves to its members and the communities of analytical sciences by 43

Oil & Food Journal May 2012

providing the tools and processes necessary for community stakeholders to collaborate and, through consensus building, develop fit-for-purpose methods and services for ensuring quality measurements. This is AOAC's mission. Leveraging the knowledge, experience, and expertise of more than 3000 members with one-third of its members outside the United States, AOAC has developed a proven model to achieve its mission and vision and bring value to the analytical communities that it serves.AOAC encompasses 16 sections worldwide, representing four continents and over 90 countries outside of the United States. Sections provide opportunities for technical individuals likes scientists, industry professionals, academia, analytical experts and others to share information, build professional contacts, expand leadership skills and gain practical management experience.

India Section can bring additional awareness of AOAC within the country and within the industry throughout the region. Identifying experts in the food arena, including government, industry, and academia and forming members will help identify high priority issues and examine analytical test methods to solve problems specific to the India matrices.

The objective to start such a prestigious analytical organization in India by Dr.Deepa Bhajekar was to bring bringing AOAC closer to the Indian analytical communityand to serve as resource for timely knowledge exchange, networking and high-quality analytical information for Indian analytical community.

At the seminar various experts from the industry and academia were present along with Dr.S.S Ghonkrokta (Director Enforcement- FSSAI) and Mr. Mahesh Zhagade (Commissioner- FDA) from the regulatory department to support this organizationwhich will act as a driving force to bring together experts from the industry, academia and regulatory for a collative analytical movement in India.

India Section of AOAC International will provide a unique platform for the analytical industry to recognize current and upcoming analytical trends which pose as a challenge for the industry and develop feasible upgraded solutions, upgrade Indian laboratories on the global map for technical expertise and also provide a networking platform for the analytically inclined. It will be a bridge between the private and public sector.

India Section of AOAC International – Inagural Seminar (5Th April 2012) , From left to right in pictureDr. Kaushik Banerjee (President Elect, India Section of AOAC, National Fellow, National Research Center for Grapes) Dr. Sumit Sen (Chemist Technology Based Expert & Foreign Inspection Cadre Member, US FDA, and PastPresident, AOAC Southern California Section) Mr. Mahesh Zhagade (CommissionerFDA) D r. S . S G h o n k r o k t a ( D i r e c t o r Enforcement- FSSAI) Dr.Deepa Bhajekar (President, India Section of AOAC, MD-MicroChem Silliker)

Metal Detection

Metal detection vs.

X-ray Inspection?

C

onsumer safety has always been a primary concern for food processors. However, the recent enactment of the Food Safety & Standard Act (FSSA) has turned the intensity up even higher. With significant costs and penalties for noncompliance, processors will be relying, more than ever before, on the latest quality control methodologies and equipment to keep the food supply safe.

Although recalls due to Listeria, E. coli and Salmonella, may be grabbing headlines, foreign object contamination is an equally important food safety issue—and an all too common occurrence.

Most raw foods and ingredients originate in a natural environment—a field, an orchard, a farm, etc. As the food is picked or harvested, foreign 44

Oil & Food Journal May 2012

objects such as stones or glass can end up comingled and transported into the processing plant. Additionally, objects found in manufacturing facilities—such as metal and plastic—can also find their way into the processing stream. Lastly, fragments of bones, pits or shells that are removed during processing can end up hidden in the final products.

In addition to more stringent regulations, retailers have also started to make product inspection demands on food processors—even refusing to do business with those not employing the latest technologies. With these drivers currently in place, the objective of this white paper is to review the attributes of both metal detectors and X-ray systems and for which each is best suited. (The technologies are frequently deployed

at different points in the production process which means it is not uncommon to find both on the same production line.)

The goal is to provide food quality professionals with comparative information which can then be used to make the right decision for individual product and processing requirements.

The challenge Metal detection and X-ray inspection traditionally have been the first line of defense to identify the presence of foreign contaminants in food products before they have the chance to leave the processing plant. For food quality professionals, process engineers and corporate food safety executives who decide which technology will best protect them from contaminants, choosing a detection system is

Metal Detection

typically based on three things: the optimum detection point, overall application capability and total cost/benefit.

However, even though detection technologies have been employed by food processors for decades, engineering and software improvements continue to set new standards. This has led to some confusion regarding which technology to employ and why.

The basics In security applications, such as airport screening, metal detectors use radio frequency signals to react to moving metal (e.g., coins in your pocket). X-ray systems produce density images that are analyzed for irregularities. Deploying these technologies for food applications is more complex. The size and type of anomaly being detected is more challenging and the rapid speed in which the detection needs to take place makes the process more 45

Oil & Food Journal May 2012

complex. In fact, in many cases, the real challenge isn't finding the contaminant; it is ignoring the product, packaging or environment.

False detections add up to big costs and high frustrations.

Metal detectors and X-ray systems for food applications must be very sensitive, easy-to-use, fully automatic, fast, extremely robust, reliable and cost effective. This is a tall order for any automated system that must run for many years in a hot, wet factory and make reliable pass/fail decisions on literally millions of products.

Foreign object detection performance

is determined in three ways: detectable contaminant types, minimum contaminant size and probability of detection.

Below is a basic summary of detectable contaminant types by technology. Please note these are general guidelines. Situations can occur when contaminants can be missed, or conversely, find foreign objects you thought weren't possible.

The best practice prior to deployment is always to test many samples with different contaminants. This helps you understand how the product and contaminant react when in the

Metal Detection detection system. See Table 1 below.

Table 1 — Detectable contaminant types by technology.

Minimum contaminant size depends on the system design/technology and the product effect (how much the food itself “looks like” a contaminant to the system). Probability of detection means “what is the chance of missing a contaminant in real production with real products running at real speeds?”

Typically, the larger the contaminant the higher the probability of detection.

This fundamental trade-off is addressed by building in margin for error, setting periodicmandatory audits and performing preventative maintenance. Policies, procedures, training and discipline are the order of the day.

Selecting the detection point Companies typically use Hazard Analysis Critical Control Point (HACCP) methodology to manage their food safety. The first part of the process, (HA) identifies which contaminants are most likely to occur.

Next, is the determination of the (CCP)—or in the case of contaminants, the best detection point.

CCPs can occur in multiple places: at the beginning of the process; after cutting, sifting or mixing; immediately after a bag or box is filled; or at the end of the line.

Ideally, the goal is to find problems early in the process to reduce the cost of rework or scrap while still ensuring the final product is safe. Inspecting large cases immediately prior to shipment is not always the right decision.

The optimum detection point can influence which technology should be employed. Metal detectors can be installed almost anywhere, but their performance depends on the size of the aperture (hole) the product passes through. In general, they work best for bulk conveyed or piped product or products in small packages.

X-ray systems are dependent on product size, too, but have greater sensitivity with large products than metal detectors. Due to the basic detector sensor scanning rate, X-ray systems are limited by speed. They are typically found closer to the end of the 46

Oil & Food Journal May 2012

line. Because X-ray systems need a constant, known speed to construct images, they cannot be used in gravity flow applications. Metal detectors are ideal for these types of products.

Decision-making check list Before making a decision, answer these fundamental questions: What

contaminants do you wantto find and where do they come from? See Table 2 below.

Table 2 — Capability comparison between metal detection and X-ray inspection.

Given all the factors that affect application performance, the best way to select a technology and specific system is to run a test. Try everything to make the system fail. Strive for near 100% probability of detection with no false readings. Make sure you have enough detection margin so the system can run trouble free for hours without false rejects or the need for calibration.

X-ray inspection guidelines X-ray systems create grayscale images

corresponding to density. To detect a contaminant in those images the contaminant must have significant contrast compared to the product the contaminant is inside.

Shown here are some typical contaminant material densities compared to water (i.e., waterdensity = 1.0). General X-ray system

capability regarding the detection of these materials is shown at right in Table 3. The only way to definitively determine what can and cannot be detected (material and contaminant size) is to have an application specialist run a test.

Table 3 — Typical contaminant material densities compared to water Typical metal detection capability Sensitivity decreases for wet/variable products. (X-ray systems also can detect metals—typically in the 0.5 mm to 2 mm range. The capability is dependent on the density and texture of the product, not the aperture size.)

Table 4 (at right) is for dry products that are not conductive.

Metal Detection Table 4 — Metal detection capability for dry, non-conductive product.

Package material trends The need to market products in packaging materials which costeffectively enhance shelf life has led many brand owners to convert to metalized film or foil-based structures.

These materials not only provide better oxygen, moisture and UV-light barriers, but they also improve shelf presence.

However, metal-based structures are not compatible with metal detectors.

On the other hand, X-ray systems have no problem seeing right through these packages and are able to detect very small contaminants inside. Packaging material trends will continue to be a critical factor in contamination detection choices.

Missing product detection While the focal point of this white paper is foreign object contamination, it is important to point out another benefit of X-ray detection. The technology is ideal for the detection of missing products. A good example is a tray filled with individual chocolates. With many higher-end brands garnering upwards of $20 per pound, it is critical that all pieces are in place and not broken. The ability of

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an X-ray system to “see� inside a container enables it to detect not only

when a contaminant is present, but also when a specific food item is not.

This is not possible with metal detectors.

Equipment costs vs. failure costs Small incidents can cost lakhs of Rupees and lead to total business disruption. How much are you willing to risk? Weigh this against the total cost of ownership for the metal detection or X-ray system including installation, training, maintenance, repairs and the cost of downtime. In general, metal detection systems are less expensive than X-ray units and

last two-to-five times longer. If your main concern is metal contamination in small, dry products, choose a metal detector. If you want to find glass, rocks, bones, plastic, or have metallic packaging, an X-ray system can be the best return on investment.

Conclusion Metal detector and X-ray systems have been deployed for decades.

Deciding which to use can be difficult.

Find vendors with both technologies and long, successful track records.

They can easily provide you with the confidence you need. Finally, make sure you fully educate your staff on use and operation. Audit the system regularly to assure your policies and procedures are being followed.

In general, metal detection systems are less expensive than X-ray units and last two-to-five times longer. If your main concern is metal contamination in small, dry products, choose a metal detector. If you want to find glass, rocks, bones, plastic, or have metallic packaging, an X-ray system can be the best return on investment.

Shelf Lives

Packaging researchers are working on innovative new ways to make food last longer and look better on store shelves everywhere. We from oils and food journal check out some of the industry's most impressive life-extending packaging concepts.

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E

ven before food scientists and technologists entered the industry, the extension of shelf life has been at the centre of handling foods. Traditional treatments such as canning, heating and other preserving methods with salt and sugar have been around for hundreds of years, based on the human desire to also survive lean times.

Changing consumer demands, however, have altered the treatment of foodstuff and research into better processes to extend shelf life has surged.

The requirements for new technologies are precise: they should have less detrimental effects and result in no changes in the appearance, texture and flavour of the products.

As consumer demand continues to shift towards the ready availability of fresh produce, the packaging industry is working to extend the shelf-life of fresh food with a range of innovative packaging concepts.Here we explore some of the industry's most promising life-extending technologies, from outline concepts still deep in development stages to products on store

shelves today.

CO gas-flushing for fresh-looking red meat "Modified atmosphere packaging (gasflushing) has increasingly been used to make meat look redder for longer."

Meat technologists and microbiologists have known for many years that gas mixtures containing carbon dioxide slow down bacteria such as pathogens, which could cause potential diseases, and pseudomonas, which are responsible for the development of slime and odours on meat stored in the fridge.

Modified atmosphere packaging (gasflushing) has however increasingly been used to make meat look redder for longer to appeal to shoppers and consumers.

In the process, the amount of oxygen (O2) is lowered in the package from 20.9% to 0% to slow down the growth of aerobic organisms and the speed of oxidation reactions. The removed oxygen is then replaced with carbon monoxide (CO), which keeps the colour of the meat red.

Even though there was no risk found in

Shelf Lives 6th International Seminar on Wheat & Wheat Products Moving Towards Food & Nutrition Security

the use of low levels of CO, some critics and consumer groups, as well as the European Food Information Council (EFIC) and FSSAI, are concerned that it can hide visual evidence of spoilage, asking for special labels that indicate when red meat has been gas-flushed.

However, microbiologists widely

recognise the process as a safe form to prolong the shelf life of red meat and make it more appealing for consumers.

Active packaging: antimicrobial film The development of active packaging, which upgrades packaging from a passive barrier to a proactive method of

protecting food and extending shelflife, has been building momentum in the industry over the last decade.

Keeping organic foods fresh for longer has positive implications for both consumer safety and in on-going efforts to reduce food waste. Given the potentially revolutionary effect of active packaging on the shelf-life of products like meat, fish, cheese and fresh vegetables, it's unsurprising that research in this area is receiving funding on a governmental level.

The Fraunhofer Institute of Process Engineering and Packaging IVV has developed an antimicrobial film that releases an agent on to the surface of the food it is wrapped around to eliminate bacteria and other pathogens which accumulate over time.

"The surface is the primary point of attack for germs and using only the smallest quantities of active agent, the packaging thus provides effective protection for food."

Fraunhofer chose sorbic acid for its active antimicrobial agent, as it is nontoxic and non-allergenic, as well as being neutral in taste and smell. In 2010 tests, the antimicrobial film destroyed around three quarters of the E. coli pathogens that had been injected into pork loin samples.

M&S breaks mould with ethylene absorber "By adding a small plaster-style strip at the bottom of strawberry punnets, the ethylene gets absorbed and the berries stay fresh."

Red, sweet and tasty - that is how consumers like their strawberries. But all too often the temptation turns into a rotten nightmare.

"This 'killer paper' has been shown to wipe out bacteria like E. coli and S. aureus in just three hours."

To blame is ethylene, the hormone that causes fruit to ripen and then turn mouldy. In order to slow down this process and extend the fresh look of strawberries, British supermarket giant Marks & Spencer (M&S) introduced a simple but ground-breaking new packaging in January 2012.

By adding a small plaster-style strip at

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Shelf Lives

the bottom of strawberry punnets, which contains a mixture of clay and other minerals, the ethylene gets absorbed and the berries stay fresh.

The 8cm x 4.5cm strip, manufactured by the British firm prolongs the shelf life of strawberries of up to two days without affecting the recyclability of the packaging.

M&S agronomists say that: "This new technology is a win-win for their customers - not only will their strawberries taste better for longer, but we really hope it will help them to reduce their food waste as they no

50 Oil & Food Journal

May 2012

longer need to worry about eating their strawberries as soon as they buy them."

The retailer claims that previously carried out trials have shown a minimum waste saving of 4%, equating to 40,000 packs or 800,000 strawberries a week during peak season. Should it prove successful, the retailer plans to introduce it for all its berries.

Heat-resistant chocolate packaging In 2010, when Kraft Food started looking for a new hi-tech thin film for packaging its chocolate bars, the food giant marched out to tackle one of the biggest issues the confectionary

industry still has: as tempting as chocolate bars are, they quickly become very unappealing when they start melting at temperatures of around 33°C and get a white 'bloom' discolouration when stored in direct sunlight.

No breakthrough has been reached so far, but the area of printed electronics is opening up attractive new potential.

One idea is to provide energy from printed batteries or solar cells, which could trigger a cooling process once the packaging gets too warm.

Photovoltaic (PV) company Kornaka has already introduced solar cells, which use a wider spectrum of visible and invisible light sources to generate power. The photo-reactive materials can be printed or coated onto flexible substrates using roll-to-roll manufacturing, similar to how newspaper is printed.

Made from semi-conducting polymers and nano-engineered material, the printed active fabric is squeezed between printed electrodes, the substrate and the packaging material, and absorbs photons to trigger the release of electrons which are then transported to create electricity.

The finished material is only about 50Âľm-250Âľm thick and could therefore be just right for the use for chocolate packaging.

Nanotechnology: silver nanoparticles Nanotechnology might operate on the tiniest scale possible, but it has massive potential in a range of fields, not least that of packaging.

We ' v e a l r e a d y l o o k e d a t t h e implications of the 'nano-brick' concept being developed at Texas A&M University, which is claimed to be 100 times more oxygen-impermeable than standard plastic bottles by researchers.

Another nano-concept catching the packaging world's attention is the use of silver nanoparticles. The germicidal properties of silver compounds have been well known for centuries, but new research suggests that tiny silver nanoparticles, no wider than 1/50,000 the width of human hair strand, can be applied as an effective antimicrobial

Shelf Lives to survive the mechanical loads involved in the manufacturing process.

Perhaps most promising is the fact the Wheylayer researchers have developed an industrial-scale method of applying whey protein layers to film and combining them with other intelligent films to increase protection.

They have managed to develop a whey protein formulation that can be used as the raw material for a film barrier layer and have also developed an economically viable process which can be used to produce the multifunctional films on an industrial scale. If the project's production method is as simple and effective as scientists believe, Wheylayer could be well placed to meet increasing European demand for sustainable composite films in the near future. coating on to packaging materials like plastic and metal.

Researchers at Bar-Ilan University in Ramat Gan, Israel, reported to the journal of the American Chemical Society that they had used ultrasound techniques to attach silver nanoparticles to a paper surface.This 'killer paper', as it has been dubbed, has been shown to wipe out bacteria like E. coli and S. aureus in just three hours.

Using nanoparticles, the researchers have been able to extend antibacterial potency beyond what is achievable with larger silver particles.

The major challenge that remains for the academic world is to find a practical way of refining the technique so that it's a practical preservative packaging option for supermarkets and other food outlets around the world.

The sustainable germ killer As well as improving consumer safety and food waste, another major priority for the development of intelligent food packaging is the reduction of packaging weight while maintaining recyclability.

To this end, a pan-European R&D project called Wheylayer has been developing a method of coating plastic film in a biomaterial made from natural whey protein rather than petrochemical-based polymers like 51

Oil & Food Journal May 2012

ethylene vinyl alcohol (EVOH).

The latest results from this research have revealed this substance's potential as an efficient, sustainable and economically viable alternative to petrochemicals. The whey proteinbased layer is completely biodegradable and forms an effective shield against water vapour and oxygen, while the correct concentrations of bio-based softeners and additives allow the whey proteins

Indian standpoint on high pressure preservation Indian Institute of Crop Processing Technology (IICPT), Thanjavur, is now calling for the need to look at high pressure processing for food safety.

Food safety is the responsibility of the growers, manufacturers and processors and food handlers. The supply to consumers is in different forms such as fresh, preserved and processed products of plant, animal and marine

Shelf Lives origin.

During the past two decades, numerous researches on food preservation using emerging technologies have been developed. Since these processing techniques have little or no new thermal effects on food, they are commonly referred to as non-thermal preservation technologies. Among these emerging technologies, the most promising ones for food application are high-pressure processing and use of pulsed electric fields. Although the fact that high pressure kills microorganisms and preserved food in the early 19th century, its commercial benefit became available to the food processing industry in a decade ago, stated officials at IICPT. The concept of high pressure treatment of foods involves subjecting food materials to pressures as high as 9,000 times the atmospheric pressure. It is uniformly applied throughout a food material independent of its mass and time, they added.

Typically, the pressurisation time for foods is independent of the quality of food placed in the pressure vessel, the presence of air in the food increases the pressurisation time, since air is more compressible than water.

According to IICPT, in contrast to the thermal treatment, high pressure processing does not break the 'covalent bonds' in food, and thus helps to preserve the flavour. The effect of high pressure on enzymes is largely due to the nature of the proteins.

In fact, the first commercial production of high pressure processed jam was carried out in Japan in 1992, which was well received by consumers. Since then a diverse range of foods, including fruit juices, vegetables, milk, yoghurt, cheese, fish, pork, beef, ice cream, Japanese unrefined rice wine and rice cakes containing herbs are processed using this technology, stated IICPT. The non-availability of suitable equipment burdened early application of high pressure. There has also been considerable progress made in equipment design which has ensured global recognition of the potential for

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such technology in food processing.

Moreover, high pressure technology can supplement conventional thermal processing for reducing microbial load or substitute the use of chemical preservatives. The advantage of high pressure technology includes that it enables, food processing at ambient temperature or even lower temperature.

Causes of microbial death leads to improvements in overall quality of foods and it can be used to create ingredients with novel functional properties.

The food technologists globally recommend high pressure processing to prevent hazardous micro-organisms

methods to prolong shelf life, also comes the question of how these treatments influence the structure and quality of food. Old but proven technologies are continuously being replaced due to the evolution of knowledge about products as well as growing consumer demands for gentle processing. However, the new technologies can entail new dangers for the safety of food.

According to many food technologists, the question of safety for the product has to be re-asked and tested with every new technology. With strict approval processes in countries such as in the US through the FDA, the Canadian Food

like E Coli, Salmonella and Vibrio.

Presently the food industry is interested in eliminating the harmful organisms.

IICT officials' said that High pressure processing was not likely to replace traditional methods. However, they observed that high capital expenditure could limit the application initially but this could be offset by lowering the cost expenses of lower operating costs if efficient energy systems were used.

Inspection Agency (CFIA) in Canada and various regional organisations in Europe and FSSAI in India the failure of such new methods have almost been barred.

Nevertheless, demands on safety are greater than ever before. Food quality has increasingly become a selling factor as consumers ask for fresher, more natural and healthy products. New technologies, to extend the shelf life of food, have to go with this trend and provide highest quality while guaranteeing a longer shelf life.

The question of food safety Along with the development of new

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Food Processing Can Do To Rural India What IT Has Done To Urban India: FOOD & BEV Tech 2012 concurrent with Food & Bev 2012

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he 4th edition of Food & Bev Tech 2012 was held concurrent with Food & Bev 2012, an International Exhibition and Summit on Food and Beverage sector between 25 to 27 April 2012 at Mumbai.

The event was inaugurated by Mr. Rakesh Kacker, Secretary, Ministry of Food Processing, Government of India in the presence of Dr Sudhir Kumar Goel, IAS, Principal Secretary - Agriculture & Marketing, (Additional Charge) Marketing Cooperation, Government of Maharashtra, Mr. Piruz Khambatta, Chairman, Food & Bev 2012, Rasna India and Mr. Pradeep Banarjee, Cochairmanship, Hindustan Unilever.

It was supported by the Ministry of Food Processing Industries, Government of India, Government of Maharashtra as Host State and Government of Gujarat as Partner State.

State participation from Maharashtra, Gujarat, Kerala and Punjab also showcased their strength in the food

Event Report

sector.

True to CII's commitment for the year to support SC/ST entrepreneurs throughout the year, Food & Bev has a special showcasing of them in the area of Food & Bev under the aegis of DICCI – Dalit Indian Chamber of Commerce and Industry.

Major highlights of the show included Retail, Wine & DICCI Pavilions.

The event hosted an International participation from Foodtech Holland showcasing their latest technology and trends to the Indian market.

Over 150 companies showcased their latest technologies and Food products spread across 8000 sqm of exhibition space.

The new initiative at 4th Food & Bev Tech 2012 was launch of “The Food Show - Food & Bev 2012” which provided platform for companies to market and promote their products and services to food and beverage industry professionals, distributors and importers, supermarket chains, hotels, restaurants, airlines, railways, food 54

Oil & Food Journal May 2012

service providers and also interact with buyers and delegates on the innovations that could benefit all.

collaboration with KPA Pumps, Germany The vertical Body maker, Schuler India

The Retail Pavilion of the exhibition was a platform for the retail chains and institutional buyers to have a face to face interaction exclusively with the exhibitors at Food & Bev 2012. The buyers part of the Retail B2B meeting were Aditya Birla Retail Ltd., Future Group, Godrej Nature's Basket, DMart, Reliance Fresh and The Oberoi Group.

New Product launches during Food & Bev Tech 2012 Innovative processing solution for diced products, HRS Process Systems Spray Dynamics range of coating and seasoning applicator, Heat and Control Refrigerated transportation solution, Ingersoll Rand Sanitary Centrifugal Pumps by Pharmalab India in technical

One tonner capacity refrigerated truck, Sanden Vikas checkweigher with capacity ranging from 600 gms to 6 kgs Checkweigher, Bizerba India.

Fully Automatic Modular Cip Systems, Automation Valve Cluster, E Doodh Solutions.

Paper Bags with foil lining inside, Swiss Pack.

S.S Powder Blender & S.S Centrifugal pumps & Pump Stand, Zeutech Engineering.

EZ-Fluo™ Rapid Detection System. A Fast, non-destructive, fluorescent staining-based system for microbial detection, Merck Millipore.

Servo Auger, Powder Packing Machine,

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Interpack Machines Tum E Yummies Kids Drink Launched

by V & V Beverages Pvt. Ltd An exclusive CEO's Interaction with Mr Rakesh Kacker, Secretary, MOFPI, GoI was organized parallel to the event. Mr Kacker, during the discussion reiterated the need for greater quality consciousness in food processing industry.

Industry members raised issues such as uniform implementation of AMPC Act, promotion of cold chain industry on PPP basis and fast implementation of GST for a harmonized tax structure. In addition, industry opined establishment of more education centers and quality food labs.

In view of the large scale employment food processing sector generates and in order for benefiting farmers, industry representatives also opined exemption of import duties on machinery and raw materials and 100% tax holiday for the new food processing units.

Food, a fundamental need for survival, will only see a rise in the future. India, with a large agricultural base, is rightly poised to meet the food needs of the world. If this has to happen, India has a 55

Oil & Food Journal May 2012

lot to do. An exclusive summit organised by the Confederation of Indian Industry (CII), the 5th International “Food & Bev Summit 2012” discussed on the ways that India can become the food factory of the world Mr. Rakesh Kacker, Secretary – Ministry of Food Processing Industries, GoI said, “Government of India is committed to the growth of the food processing sector. A lot of things are happening in the sector which grew by an average of 8% between 2006 and 2010. This is higher than the growth of the manufacturing sector. Agriculture has also been growing 2-3% which means we are adding more value to agriculture.” He informed that his Ministry is trying to involve the state governments more and more in their schemes.

While highlighting the problem areas, he said that many of them have been resolved or are in the process of resolving with large budgetary allocations. “The main problems have been related to land. In many projects we have worked closely with State government and removed problems.

Cold chains have been doing quite well with 8 already being completed and 10-

15 more to be completed by the end of the financial year. We have got a very good response from the private sector and just last month we have got approval for 30 new projects. The Government's major area of focus is skill development.

Industry needs skilled manpower and we are dedicated to developing that for the food processing industry.”

He said that the major thrust for the ministry is to move out of project implementation and leave it to the State government.

Dr. Sudhir Kumar Goel, IAS, Principal Secretary – Agriculture & Marketing, (Additional Charge) Marketing Cooperation, Government of Maharashtra said, “I am here on behalf of state government to make a few offers. Firstly we are willing to work with industry in the back end. We will provide all inputs to farmers from where you source all material from them.

Anyone willing to have an end to end solution can come up and we can start having discussions immediately.

Backend will be entirely our responsibility and it will not eat upon your profit margins. We have enough projects and money allocated into it to

Event Report

take care of that.”

Piruz Khambatta, Chairman, Food & Bev 2012 and Chairman & Managing Director, Rasna said, “Food processing can do to rural India what IT has done to urban India – bring prosperity and growth. Food processing sector can act as a vehicle for 21st century India.”

Elaborating about this Mr. Khambatta said, “GoI have so many schemes that industrialists have to educate themselves to take advantage of them.

31% of spending done by Indians is on food. You cannot thus get wrong with food processing. We are an agricultural nation and we can expand food processing. There's a huge scientific and management talent and well developed finance market. This sector is a boon for SMEs as you can start a business with very less money. India can rightly be food factory of the world and this can also lead to food security. We need food security more than defence. We need to feed our people. Besides that food processing can control inflation.”

He unveiled a 12 point agenda for exponential growth that includes 56

Oil & Food Journal May 2012

definition of agriculture to include processed food products, regulations to be made conducive for contract farming, corporate farming and cooperative farming, zero goods and service tax GST on food processing, improvement of R&D, market development assistance extended to food processing companies by government etc.

Mr. Pradeep Banerjee, Executive Director – Supply Chain, Hindustan Unilever Ltd said, “The call for inclusive growth is loud and clear. As an industry when we develop our plans to make India the food factory of the world, we cannot forget that inclusive growth has to be at the core. Secondly, we have talked a lot and for a long time. There is now an urgent need for action. And thirdly we need to take Private Public partnership to new heights.”

The second session saw an interesting debate where advertising pioneer Mr. Prahlad Kakar in his imitable humour and style, while chairing a session, taught the Food and Bev industry branding and marketing. He said that though we have great Food & Bev

tradition, we have not known how to build brands from it and take advantage from the same.

In view of the recently mandated Food Regulations, exclusive session on the new Food Safety Regulations was organized by CII- Jubilant Bhartia Food and Agriculture Centre of Excellence (FACE) explaining the shift from policing to self regulation, end-product testing to system standards, multiplicity of orders to a single act & focus on Risk assessment rather than control of adulteration in the new Food Safety Act in India.

The 3-day's CII Food & Bev International exhibition, positioned technology and food under one roof. The exhibition was a platform to explore the ways of making India the food factory of the world. The event was successful in garnering a large number of enquires which will culminate into actual business going forward. The increased interest by the delegates continued to grow indicating the growth story ahead in this sunrise sector.

Organised By:

Indian Ice Cream Manufacturers' Association

In Association with:

AFTPA ( An Association of Allied Sectors of Agro & Food Industry in India )

India’s Ist Fortnightly Newspaper For Beverages, Food & Allied Industries

Indian

Icecream Congress & Expo 2012 The one and only plat form where who’s who of the

Ice-Cream industry

exchange their thoughts.

To know more about the next gathering, email us.iice@advanceinfomedia.com 57

Oil & Food Journal May 2012

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Oil & Food Journal May 2012