Food Drink & Franchise - September 2014

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d Fast Foonts: a Restaurtomer The Cus Test Service

S e pte mbe r 2014

MOBILE APPS: The Changing Face Of Retail BURGER KING Refreshes its image IMPROVING Operational Efficiencies

TETRA PAK

Leads the Way in Greener Packaging

EDITOR’S COMMENT

Doing Better IT’S SEPTEMBER, which means it’s time for

a new school year to start for millions of students around the world. This month we’re taking our inspiration from school and the drive to always be improving your operations, looking at businesses that are taking the initiative to make a change. We are talking to Tetra Pak about their mission to lead the packaging industry in more sustainable production and materials sourcing, examining the meaning behind Burger King’s new slogan, and looking at the best reasons to introduce a mobile app for your business.

So read on, enjoy, and consider what you can do to make your own changes for the better.

Enjoy the issue!

Sasha Orman Editor Sasha.Orman@wdmgroup.com 3

share happiness

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CONTENTS

Features

8

Supply Chain Tetra Pak Promotes Packaging Sustainability Conversation

TOP 10

Production

Fast Food Restaurants: The Customer Service Test

Weighing In On Operational Efficiencies

14 20 Franchising

Retail

Be Your Way: Burger King Revamps Its Image

Mobile Apps: The Changing Face of Retail

34 5

Contents

68

60

Corpoica

Colombian Agricultural Society

Hacienda La Cabaña

48

98

78

Company Profiles

Kekén

America Latina 48 Kekén

CAMANICA

60 Assoc.: SAC 68 Corpoica

90

78 Hacienda La Cabaña 90 A ssoc.: ProNicaragua 98 Assoc.: CAMANICA

PRONicaragua

112 TMF Foods

120

112 TMF Foods

Australia 120 Assoc.: Australian Nut Industry Council

Australian Nut Industry Council

134

Canada

128 Assoc.: Australian Refigeration Association

Chestnuts Australia

134 Assoc.: Chestnuts Australia

Brazil 142 Assoc.: Brazilian Beef Exporters Association

128

Australian Refigeration Association

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PRODUCTION

Weighing In On Operational Efficiencies Written by: SASHA ORMAN

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PRODUCTION WEIGHT: IT’S A purely objective measurement, and an integral part of determining portioning and production rates. But what other benefits can accurate and state-of-the-art scales bring to your food processing operation in terms of efficiency and continuous improvement?

Mettler Toledo recently released a webinar, “Increasing Operational Efficiency with High Performance Weighing, Measuring and Inspection Solutions and Services,” that focuses on improving operational efficiencies through weight systems.

As this insight explains, there are actually several major benefits that a good weight measurement system can introduce to your processing facility to help you increase your regulatory compliance, client satisfaction, and revenue.

Improving Traceability Traceability has always been an important factor in food processing, but in recent years it has moved into the spotlight and become more important than ever. As consumers become more concerned with where the food they eat comes from, they look to food processors to provide 10

September 2014

‘There are actually several major benefits that a good weight measurement system can introduce to your processing facility to help you increase your regulatory compliance, client satisfaction, and revenue’ them with a roadmap from end to end of your supply chain – and a problem, especially a problem that cannot be properly traced, can be devastating to your reputation.

As Mettler Toledo’s seminar explains, there are several definitive benefits to integrating an efficient traceability system into your operations. A functional traceability system has the power to: • Minimize the potential number and impact of product recalls; • Increase customer confidence while protecting your brand and image, and; • Optimize your product efficiency

A good weights and measurement system will minimize recalls, increase product quality and refine and reduce material wastage and quality control by monitoring raw material usage, product uniformity, and other metrics There are several ways to implement traceability programs, and they can be as simple as recording all of your orders and measurements with a pad and pencil. But that perceived simplicity can actually harbor a strong potential for human error and inaccuracies, which can come back to your brand and cause problems down the line. To be successful today,

it is critical to take advantage of the vast amount of modern technology available to food processing industry.

“A decent improvement can be reached by application of barcode technology,” says Urs Berli, Market Manager of Mettler Toledo’s Food Industrial Division. “Combined with a barcode printer and scanner, a scale can help to increase transparency about status and location of raw materials and finished goods and final products through clear and easily identified labels.”

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PRODUCTION For a larger and more complex operation, a more complex traceability system is needed to deftly handle the twists and turns of your operation.

“If a manufacturer uses multiple components or splitting points, the best method is clearly a fully integrated software-based system, providing full data transparency for precise and fast recall,” says Berli.

While such a system usually requires a larger financial investment up front, the added benefits like real time data and stock optimization can far outweigh the costs.

Upping Your Data Integration “The benefits of integrating data have

been well communicated in recent years,” says Berli. “When it comes to the weighing part of manufacturing opreations, these benefits also apply.”

Traditionally, as well as intuitively, weigh systems have always been able to communicate weight. But today’s cutting edge weighing systems can measure much more than just pounds and ounces – they can also convey such information as raw material usage, finished goods production information, deviation from target weights, and configuration changes. With this information at the ready, a processor can gain the insight needed to improve and optimize the production process.

Website link to Mettler Toledo’s webinar

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September 2014

W E I G H I N G I N O N O P E R AT I O N A L E F F I C I E N C I E S

‘Today’s cutting edge weighing systems can measure much more than just pounds and ounces – they can also convey such information as raw material usage, finished goods production information, deviation from target weights, and configuration changes’ “The right hardware, software, communication network that meets the data integration requirements – care must be given to design and maintain a system that will provide a reliable performance as well,” says Berli, explaining the necessity for a weigh system that can communicate detailed information and synchronize with PC applications and other systems.

“With the rapidly expanding use of internet on the factory floor in the last five to ten years, the available knowledge of best practice information and troubleshooting has grown considerably. To ensure reliable communication, it is critical that the proper communication hardware is selected and that best practice for network and installation and design are followed.”

For further information: These are just some benefits that a strong weigh system can bring to processing and packaging operations, but there are many more. Check out the full seminar HERE

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FRANCHISING

BE YOUR WAY: Burger King Revamps Its Image After forty years, Burger King officially changed its slogan – how is this seemingly small change affecting the way the franchise makes decisions and interacts with the public?

Writ ten by: SASHA ORMAN

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FRANCHISING WHEN YOUR BRAND has been around for decades, sometimes an image overhaul is necessary to keep things fresh and keep consumers interested. Sometimes that change is drastic and widely broadcast, as with Domino’s highly publicized Turnaround campaign. Other changes are more subtle, like Burger King’s slogan change from “HAVE IT YOUR WAY” to “BE YOUR WAY,” which was officially approved in May 2014, parting way with the previous tagline after forty years of use.

It’s just a slogan – but no change, no matter how subtle, is made without careful planning and intent when it comes to multibillion-dollar worldwide franchises. What’s more, Burger King has indicated that the

“BE YOUR WAY’ is a better reflection of who we are and how we want to interact with our guests.”

– Axel Schwan, Burger King Corporation Executive Vice President and Global Chief Marketing Office 16

September 2014

slogan change denotes a change in Burger King itself – not in its menu lineup or its store façades but, according to a BK press release announcing the change, more of a shift in the brand’s cultural identity and in the way that it is hoping to connect with its audience:

“BE YOUR WAY” reminds people that no matter who they are, they can order how they want to in BURGER KING® restaurants and that they can and should live how they want anytime. It’s ok to not be perfect.

Self-expression is most important and it’s our differences that make us individuals instead of robots.

BURGER KING® restaurants are, and always have been, a place where you come as you are, eat what you want, how you want, with whom you want, and step out of this world of standardization that tells you if you do something different, people might look at you. The BURGER KING® brand says, “bring on the eyeballs.”

“BE YOUR WAYSM’ is a better reflection of who we are and how

B E Y O U R W AY: B U R G E R K I N G R E V A M P S I T S I M A G E

we want to interact with our guests.” added Axel Schwan, Burger King Corporation Executive Vice President and Global Chief Marketing Officer, in the press release. “And, the executions under BE YOUR WAYSM will showcase our guests being their own way in whatever iteration that may be.”

It’s a change that makes absolute sense – Burger King CEO Daniel Schwartz is just thirty-three years old, extremely young compared to his competitors in the fast food franchise world, and within

that youth lies an opportunity to shake up the status quo, look at consumer interests with fresh eyes, and genuinely connect with a younger demographic.

It also makes sense considering the state of Burger King’s biggest competition – McDonald’s has been in a sales slump, and is locked in breakfast battle with Yum Brands in a bid to distance itself from burgers.

Burger King already asserted itself as a go-to burger joint by using its Burgers for Breakfast campaign 17

FRANCHISING

‘So often you hear about restaurants and restaurant chains that are completely resistant to change of any kind, so terrified of alienating their current consumer base’

B E Y O U R W AY: B U R G E R K I N G R E V A M P S I T S I M A G E

to get its name out in the middle of the franchise breakfast wars, and this is another opportunity to prove its differences by reaching out with a new look. Since McDonald’s and Yum Brands already have it covered with new menu revamps, Burger King needs something else and a new social outlook is the perfect thing to define itself as a different kind of QSR chain.

Building genuine connections with your fan base takes time, but a step like this change can go a long way toward showing consumers that you’re offering something different. Burger King has also Just for the San Francisco Gay Pride 2014, Burger King introduced a new burger: the Proud Whopper

already made an effort to prove to its consumer base that the slogan update isn’t just empty lip service.

Its Pride Whopper campaign in San Francisco during Pride Week was polarizing, between fans who approved and those who took offense. But by aligning itself more closely with brands like Chipotle, Burger King managed to resonate soundly with a younger audience, and that seems to be exactly the demographic that Burger King was aiming to reach with the campaign anyway.

So often you hear about restaurants and restaurant chains that are completely resistant to change of any kind, so terrified of alienating their current consumer base. But when you’re a rapidly growing franchise, especially one that sees a true opportunity to shoot ahead in the franchise rankings for the first time in years, attracting the attention of a new and younger consumer base can be a vital strategy for success. If Burger King is successful with this rebranding, it could place the franchise in a very strong position with consumers in the upcoming future.

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R E TA I L

MOBILE APPS: The Changing Face of Retail

Restaurants and retailers are turning to apps in droves for everything from discounts to online ordering to mobile payments. How are these apps working to benefit both consumers and retailers, and could an app be the right choice for your brand?

Writ ten by: SASHA ORMAN

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R E TA I L JUST A FEW years ago, cell phones were only just starting to become commonplace and PDAs were seen as necessary only for busy executives and entrepreneurs.

Today the sheer abundance of cell phones has rendered once ubiquitous payphones almost obsolete, and a lot of those phones are smartphones – Business Insider estimated that 22 percent of the world’s population would own a smartphone by the end of 2013, while in the United States that number is closer to 60 percent.

As smartphones have become more and more commonplace among the general public, apps have become a key way for retailers and restaurant chains to engage with

‘Apps have become a key way for retailers and restaurant chains to engage with consumers’ 22

September 2014

consumers. As these smartphones and apps become more advanced in their capabilities, they’re completely changing the face of retail and what a business is able to offer.

A Wealth of Applications What can an app do for your consumers? A lot of it depends on what your business is offering to begin with, but several new apps are displaying a range of what apps can do.

Increased Convenience – Restaurant and brewpub chain BJ’s Restaurant and Brewhouse made headlines earlier this year with the launch of an app that promises to

BJ’s Restaurant & Brewhouse app

M O B I L E A P P S : T H E C H A N G I N G FA C E O F R E TA I L

Walmart’s Savings Catcher app transform the casual dining restaurant experience. The app allows diners to make a reservation, place an order for the table or takeout, and pay within the app for a completely streamlined experience. While developers still have some kinks to work out – reviews on the app’s iTunes page assert that it still has issues with crashing and connecting for autopay – once perfected it could be a real boon for everyone from traveling

families in a rush to business teams on a tight lunch break schedule.

Better Deals – On the more strictly retail side, several chains are looking into apps that can deliver unbeatable deals right to a consumer’s phone.

This summer Walmart announced its new Savings Catcher app. This one goes above and beyond broadcasting a store’s own deals, aggregating better sales and savings from big 23

R E TA I L

XXXX box competitors like Target and Costco then matching them with discounts or gift cards to make up the difference. It’s a ruthless way of doing business, but it is certainly going to change the face of retail as the competition is going to have to find another way to appeal to consumers apart from the best prices alone.

While smaller retailers may not have the overarching reach and power to compete and create an aggregator for every other retailer under the sun, that doesn’t exclude them from getting in on the trend. For instance, 24

September 2014

‘While smaller retailers may not have the overarching reach and power to compete and create an aggregator for every other retailer under the sun, that doesn’t exclude them from getting in on the trend’

M O B I L E A P P S : T H E C H A N G I N G FA C E O F R E TA I L

businesses are experimenting with beacons to beam deals to consumers with the app installed when they even pass by a location’s general vicinity.

Is an App the Right Choice for Your Brand?

If you aren’t at least in the research and development stage already, you may be wondering whether getting started with an app of your own is the right choice for your brand. The short answer is: there is no short answer. While an app may be the perfect step forward for some, but

it isn’t a one-size-fits-all choice for everyone. For standalone retailers and single restaurants, it may not be worth the investment to hire a third party to create an app – although your consumers may still appreciate it and reward the effort with increased business. But for chains and multilocation retailers, in this day and age it is often well worth the effort.

The information age is only becoming more developed and focused. With the right technology, you can be right there with it as it progresses.

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S U P P LY C H A I N

TETRA PAK Promotes Packaging Sustainability Conversation Recycling has become a welcome part of our sustainability lexicon, but what about the other end of a package’s life cycle? Tetra Pak Canada is shifting the conversation toward a stronger reliance on renewable resources, with a campaign that makes good environmental sense and good business sense Writ ten by: SASH A ORM A N

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S U P P LY C H A I N EVERYONE KNOWS ABOUT the concept of sustainability right now – for many businesses, the question is: “why should I care?”

Tetra Pak is one company hoping to show its peers in the packaging industry that there are many reasons to start making more sustainable choices now. This summer, Tetra Pak Canada launched its Moving to the Front campaign in an effort to bring packaging manufacturers, materials suppliers, brand owners, NGOs and other relevant stakeholders together to go back to the source and embrace renewable packaging resources.

Putting Renewability at the Forefront A crucial part of Tetra Pak’s Moving to the Front campaign is its white paper, co-written by the World Wildlife Fund and entitled What is Renewability in Packaging and Why Should We Care? In this paper, Tetra Pak lays out an urgent call to action based on observable environmental issues DOWNLOAD: Moving To The Front: A Call For A New Industry Commitment to Renewabilit

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September 2014

that have been growing more threatening in recent years.

“The world is growing. Increased travel, greater populations in urban areas, and higher demand for convenience products and packaging are putting an alarming strain on the world’s supply of scarce natural resources,” the paper begins.

“Supplies of clean air and water are under pressure; and oil, natural gas, and minerals are expected to run out by the end of this century. We are playing a self-destructive game with the limits of our planet, and the time to change, innovate, and lead is now.”

How can businesses in the packaging industry innovate and lead? The crux of the Moving to the Front campaign advocates getting ahead of environmental standards and taking up a more sustainable business model built around the sourcing and use of renewable materials. “Businesses can become leaders and protect their long-term sustainability by transitioning from the linear ‘take, make, dispose’ model for packaging to a circular, restorative model that considers every stage of the package life cycle,” the paper continues. “In particular, businesses

T E T R A PA K : PA C K A G I N G S U S TA I N A B I L I T Y C O N V H ER ES AA D TL II O NN E

could shift the traditional focus from the end of the package life cycle to the beginning, by considering the raw materials and quantity used in the creation of a package. The main role of a package is to protect the product within, but as long as this is upheld, the sourcing of raw materials and renewability can become a priority.”

According to Tetra Pak, it’s an issue that has been building within the company and becoming more critical for some time now. “Despite a lot of well-intentioned efforts to preserve the planet, we feel that we’re not doing enough as a society and an industry,” says Elisabeth Comere, Tetra Pak’s Director of Environment and Government Affairs. “We feel that there’s a real urgency to act, due to the very simple fact that there will be more people on the planet – we are expected to reach 9 billion by 2050 – and those people will have more needs, there will be a growing demand for product, we expect the demand for raw material to double by 2050. At same time, there is an increasingly limited supply of resources to make those products.”

This assessment of the future has led Tetra Pak to publish its white paper

“In particular, businesses could shift the traditional focus from the end of the package life cycle to the beginning, by considering the raw materials and quantity used in the creation of a package” – Tetra Pak’s Moving to the Front campaign Whitepaper

Products made from recycled Tetra Pak packages

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S U P P LY C H A I N and launch its Moving to the Front campaign. “With this campaign, we wanted to create a movement for industries to really embrace renewable resources,” says Comere, clarifying renewable resources as those that can be effectively managed and regrown naturally, like wood fiber or sugar cane.

“We want to engage a conversation around better management of resources, around the role of renewable resources, together with our industry peers, our consumers, government authorities, NGOs, all stakeholders really, and start building a common understanding of how renewable resources can benefit both the planet and their business.”

Environmental Benefits and Business Benefits But while the environmental impact of the packaging industry may be concerning, it can be an uphill battle getting many brands and businesses to look into renewables and sustainability if there is even a hint that changing the status quo might be a drain on the bottom line.

According to Tetra Pak’s campaign, however, committing to sustainability could prove to have an opposite 30

September 2014

Tetra Recart® carton package for recycling

Carton materials for recycling

Packaging material plant

T E T R A PA K : PA C K A G I N G S U S TA I N A B I L I T Y C O N V E R S AT I O N

“We want to engage a conversation around better management of resources, around the role of renewable resources” – Elisabeth Comere, Tetra Pak’s Director of Environment and Government Affairs effect for businesses today. Tetra Pak’s white paper posits that, In addition to the environmental benefits of using renewable resources – including mitigating natural resource scarcity, mitigating changes in climate and enabling biodiversity – renewability provides important business growth advantages.

“That’s really what we try to showcase with our white paper,” says Comere. “There is not only an environmental case, but also a business case to be made behind the use of renewable resources – there are real opportunities to capture value and support business growth.”

As Comere explains, taking a sustainable approach and making use of renewable resources isn’t just about

warm feelings – it also makes good business sense. Manufacturers that rely on renewable resources for their raw materials often find that they have a steadier and more reliable access to those resources, with less price volatility. Then there’s the increasingly important factor of consumer perception and engagement.

“We believe that businesses can start building even better brand equity around brand renewability, because consumers increasingly aware of this issue and will reward companies who move in this direction – they can even differentiate themselves from their competitors and emotionally connect with consumers,” she says. “Clearly our movement is an environmental call to action, but it’s also a business opportunity to move away from the traditional business model of take-make-dispose to something that is more innovative and respectful of the planet.”

Involvement Along the Value Chain Packaging manufacturers work closely every day with their resource suppliers to ensure that the raw materials are in place to deliver a 31

S U P P LY C H A I N

Tetra Pak® cartons with FSC™ logo consistent and high-quality product.

Packaging manufacturers hoping to make better use of renewable resources need to get their suppliers on the same page and involved in their thought process. According to Tetra Pak, involvement throughout the supply chain is an important part of developing the moment.

“We would love for suppliers to join the campaign and get engaged on our side,” says Comere. “We are launching something that is really a long term process – if you look even at recycling, it took years of promotion and education to see business embracing 32

September 2014

recycling -- and having them on board and actively engaged with us would already be some kind of success.”

When connecting the supply chain in this movement, traceability and standardization also become important. Suppliers can do their part in the movement by getting involved with third party certifications like the Forest Stewardship Council (FSC) and ensuring that their own supply chain has sufficient traceability to satisfy clients and consumers that want to know a product’s full life cycle.

“That’s a basic requirement – we ask our suppliers to have a traceability plan

T E T R A PA K : PA C K A G I N G S U S TA I N A B I L I T Y C O N V E R S AT I O N

in place to ensure that wood fibers come from a responsibly managed forest and we can track that wood fiber back to its origin,” says Comere. “It’s the same thing if we use sugar cane to make the plastic caps of cartons, we believe that certifications like Bonsucro ensure good management of sugar cane. We really want our suppliers to use those certifications.

Clearly it’s not enough for us to rely on renewable resources – we want to rely on renewable resources that are responsibly managed.”

Reaching Out Now that the Moving to the Front campaign has been launched, the next step toward is to reach out and educate the industry, suppliers, consumers, and other stakeholders.

“We want our customers to understand the business case behind it, so we need a conversation on the end of life of products and recycling, and with this campaign we want to expand the conversation,” says Comere. “We are not shifting but expanding the conversation to better resource management, and working together with those industry partners and NGO partners

to look at what materials we use to make those products, how we source those materials, what makes sense and what doesn’t.”

Tetra Pak doesn’t expect its campaign to catch on overnight – but like the recycling movement before it, the brand is counting on a slow burn of interest that will grow until renewable resources are expected and the norm. In the meantime, the movement is looking for early adopters willing to be brand ambassadors and help further the cause.

“It took a lot of time to get recycling to the level of where it is today,” says Comere. “We think it’s going to be exactly the same, and we want to build on that recycling commitment and really give the opportunity to the industry to engage with that.”

For further information on the movement, ‘Moving to the front’ Website: Doing Whats Good and download the whitepaper, ‘Moving To The Front: A Call For A New Industry Commitment to Renewability’

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TOP 10

Fast Food Franchises

to Consider Right Now Written by: Sasha Orman

SO, YOU’RE THINKING of exercising your entrepreneurial nature and becoming a restaurant franchisee? You might be tempted to buy into the biggest brand name, but that might not be your best bet – without doing the

research, you could end up paying too much for an oversaturated franchise and an uphill battle for profits from the start.

Choosing a franchise to buy into requires careful planning and consideration of a wide range of

factors, from store types to startup costs to market saturation.

With so many factors at play, it can be difficult narrowing down a list of the best franchise options – ultimately it comes down to your region and your

individual goals. But these are ten that seem to be going places fast – if you’re planning two jump on board the franchising train, any of these would be well worth the consideration.

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TOP 10

10

Taco Bell

STARTUP COSTS: $585,300 – $1,205,600 (endcap); $1,193,300 – $2,465,600 (traditional) FRANCHISE FEE: $25,000 (endcap); $45,000 (traditional) ROYALTY: 5.5% ongoing If you’re going to stick with one of the biggest brands around, it couldn’t hurt to bet on a proven winner in the moment. The Yum Brands subsidiary has been dominating the fast food franchise landscape in recent years, is entering new markets with tests into fresher and more upscale fare, and offers a reasonable franchising fee and scaling startup costs depending on location models. www.tacobell.com

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September 2014

FA S T F O O D F R A N C H I S E S

09

Chick-Fil-A

INITIAL FINANCIAL INVESTMENT: $5,000 ROYALTY: 50% of sales Chick-Fil-A’s political stance has made it a tricky investment in recent years, but the brand is gearing up for a more inclusive image overhaul and rapid expansion, appealing to potential franchisees in growth areas identified throughout the United States. With a price tag of as little as $5,000 to open a location of your own, it might be the lowest startup cost in the industry, making it an enticing option and building fierce competition among potential franchisees. But be aware that the ChickFil-A franchise model is different from others – all franchisees rent their property and location with no option to buy, and royalties more than make up for that low startup cost in the long run. Still, for determined newcomers with low startup capital, it can provide a good first taste of the franchising industry. www.chick-fil-a.com 37

TOP 10

08

Smashburger

STARTUP COSTS: $330,250 – $787,250 FRANCHISE FEE: $40,000 ROYALTY: 5% net sales BONUS: Ability to obtain a liquor license is a plus There’s a reason why Forbes, Fast Casual, and Restaurant News have all named Smashburger one of the most promising franchises – the brand skyrocketed to popularity amid the “better burger” trend, and is expanding just as fast. This one requires more money up front than some, plus a higher franchise fee, but those costs could be offset by increased income commanded by a higher end product. www.smashburger.com 38

September 2014

FA S T F O O D F R A N C H I S E S

07

Dunkin Donuts

STARTUP COSTS: $240,100 to $1,667,750 FRANCHISE FEE: $40,000 – 90,000 ROYALTY: 5.9% of sales East Coast staple Dunkin Donuts is exploding across untapped markets within the United States right now. Dunkin is looking for franchisees to roll out multiple locations throughout the South, the Midwest, the Rockies and the West Coast – and the brand has also earmarked the Pacific Northwest fore opportunities in the future. While normally the remarkably low minimum startup estimate compared to similar-sized franchises would put Dunkin Donuts higher up the list, its franchise fee can be prohibitively high for many franchise newcomers, making a franchise partnership difficult to attain for anyone who is not a seasoned professional – and considering that all eyes are on Dunkin Donuts with every new opening lately, that may be exactly the brand’s intentions. www.dunkindonuts.com

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TOP 10

06

Jersey Mike’s

STARTUP COSTS: $216,000 – $400,000 FRANCHISE FEE: $18,500 ROYALTY: 6.5% gross sales In business since 1956, Jersey Mike’s is another sandwich joint on the rise in the franchise field. While the brand is much smaller than Subway, it boasts a laid back local atmosphere and a menu with a lot of consumer appeal and a strong reputation for customer service that lends itself to repeat business. Small and simple build-outs and relatively low startup costs, including a temptingly low franchise fee, make this a brand a worthy contender. www.jerseymikes.com

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September 2014

FA S T F O O D F R A N C H I S E S

05

Bojangles

STARTUP COSTS: $357,000 – $553,750 FRANCHISE FEE: $25,000 ROYALTY: 4% sales Bojangles gets a lot of praise for being one of the most franchisee-friendly chains in the business. The concept is simple with a lot of consumer appeal, and the brand’s current small size (around 600 locations throughout the United States) means that there’s still a massive amount of room for growth without flooding the market – right now the brand is actively looking for franchise partners across the Southeast, Mid-Atlantic, Northeast and Midwest, which is a lot of area to cover. Plus, who couldn’t use more quality fried chicken options? www.bojangles.com 41

TOP 10

04

Panera Bread

STARTUP COSTS: $550,000 – $650,000 FRANCHISE FEE: $35,000 ROYALTY: 5% of net sales With trendy fresh food and an admirable reputation for charity work and other good deeds, Panera Bread is growing quickly and thriving in today’s consumer environment. With Forbes reporting only three store closures in the last three years, it’s a solid option. The only potential downside is that it’s purely for the high roller – Panera Bread expects franchisees to have the capital to quickly launch aa series of locations (the company recommends 15), and requires a net worth of at least $3 million and an initial investment of up to $650,000 to get started. www.panerabread.com

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FA S T F O O D F R A N C H I S E S

03

Tim Hortons

STARTUP COSTS: $337,000 – $665,000 FRANCHISE FEE: $35,000 ROYALTY: 4.5% weekly BONUS: Only interested in teams of two or more active franchise partners Tim Hortons may be approaching saturation in the Canadian market, but its merger with Burger King Worldwide should provide the North American coffee and breakfast chain with the marketing and financial support it needs to truly step into the global spotlight and begin expanding in earnest. Along with its cult favorite status among fans, Tim Hortons has a strong franchisee-friendly reputation for offering extensive training, relatively low royalties, and flexible options like leasing or purchasing a location. www.timhortons.com 43

TOP 10

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FA S T F O O D F R A N C H I S E S

02

Firehouse Subs

STARTUP COSTS: $178,376 – $625,801 FRANCHISE FEE: $20,000 ROYALTY: 6% net sales With the public turning toward fresher fare, sandwiches are seriously gaining a popularity advantage over burgers in recent years. Though Firehouse Subs is a franchise brand that has been on the market for nearly two decades, it’s really picking up speed and making strides in popularity. With a relatively low franchise fee and extremely flexible startup costs to fit a number of budgets and restaurant spaces, it’s a good bet for success. www.firehousesubs.com

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TOP 10

01

Which Wich Superior Sandwiches

STARTUP COSTS: $150,00 – $450,000 FRANCHISE FEE: $30,000 1st year; $25,000 2nd year onward ROYALTY: 6% of net sales Two things that nearly every consumer loves: a simple menu, and the potential for customization.

It’s a paradox of a concept best 46

September 2014

personified by the perennial popularity of In-NOut’s “secret menu” – the most basic bare-bones menu, jazzed up with hushed unwritten inclusion of combos like grilled cheese sandwiches and Animal Style fries.

It also explains the perfection of Which Wich Superior Sandwiches, a simple sandwich shop concept taken to the next level of consumer engagement with the addition of a seemingly endless mix-and-match menu (with a few ready-to-go

complete sandwich options for novices and the indecisive).

There are a few reasons why experts are pointing to Which Wich as a franchise to look out for this year – Forbes named it one of the best franchises in its price range.

With plenty of room for expansion, and a wide variety of franchising options meant to fit in anywhere

from universities and airports to standalone shops, the benefits of Which Wich’s business side are an even match for the sterling reputation of its consumer side. www.whichwich.com 47

Mexican pork with global production standards: From breeding to retailing and export, KekÊn goes hand in hand with Mexican consumers and looks towards demanding foreign markets  Written by: Mateo Rafael Tablado Interview by: Rebecca Castrejon Produced by: Taybele Piven Interviewee: Claudio Freixes, CEO Jorge Ricaud, Commercial Manager

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C O M PA N Y N A M E

Food processing plant

Satisfying The Most Demanding Palates Since 1994 ekén (an affiliated of Kuo Group) is a company dedicated to breeding, processing, commercializing and selling meat. Its industrial activities are sustained by pork meat and complemented with chicken and beef production. Their breeding and processing operations are carried out in the Mexican states of Yucatan, Bajio (Irapuato) and Aguascalientes.

Kekén’s main business units are exports and a

K Farms

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September 2014

SECTOR

distribution chain through Maxicarne stores.

Two of the company’s managers are Jorge Ricaud, a zootechnician-agronomist, who graduated from the University ITESM in the state of Queretaro. Ricaud serves as the current commercial director of Kekén and his experience includes a 10-year career for Campi, another member company of Kuo Group located in the Mexican state of Yucatan. The CEO of Kekén is Dr. Claudio Freixes, a veterinarian with prior experience in Chile (his homeland) and Europe.

“We seek to develop fresh and refrigerated products, with an additional value for consumers: marinated, portioned, seasoned, but basically in the vein of fresh produce” – Jorge Ricaud, Commercial Director of Kekén

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www.pic.com

KEKEN

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Freixes has been in this managerial position for the past six years, with previous experience in operations.

In pork production, Kekén has integrated a network of commercial partners from entrepreneurs in rural communities to small producers as a way to reach the most demanding markets. Slogans such as “from the farm to the table” are falling short due to their expansion in Asia and North America, a success that implies high management standards and constant updates in technology and health procedures.

Their distribution channel includes all 250 “Maxicarne” convenience stores; these branches supply customers in the domestic market and through food establishments.

The company is on track to meet their 2015

Key People

Claudio Freixes CEO of Kekén

PERFIL DE PROVEEDOR Employees: 2,400 Established: For over 40 years, the success of our company is attributed to the significant investment in genetics, technology and health.

Industry: Swine Genetics.

Services: International leader in providing superior swine genetics and support to increase the genetic potential to the maximum in the meat chain.

CEO: • Karim Bitar - Chief Executive • Bill Christianson - COO PIC Latam • Martin Perez - Director PIC Latinoamerica.

Visit our webpage: www.genusplc.com

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Warehouse processing plant w w w. k e k e n . c o m . m x

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KEKEN

Cutting plant

expectations, including a more aggressive presence and distribution in the southeast region of Mexico to further expand operations into the country’s capital with new stores and production plants.

“Our goal is to duplicate Kekén’s operations by 2015. With a year and a half left to reach this target, we will certainly achieve this goal. With this level of motivation and professionalism of Kekén’s human resource, we will be able to achieve anything,” says Claudio Freixes, CEO of the company.

L AT I N A M E R I C A

Strategic Planning Based On Differentiators Kekén’s star product is refrigerated pork meat and it will remain the company’s specialty.

The bastion of Maxicarne stores is the starting point for local routes, covering deliveries for “intermediate” customers such as restaurants and other food outlets.

The advantage offered by each Maxicarne branch is to deliver a variety of meat that consumers could rarely find in other establishments where display space is limited.

“We seek to develop fresh and refrigerated products, with an additional value for consumers: marinated, portioned, seasoned, but basically in the vein of fresh produce,” says Jorge Ricaud, commercial director of Kekén.

Technology To Meet Objectives Kekén depends not only on their retail distribution, but also on specialized logistics that demand refrigeration and a process manipulation in sanitary conditions, as well as a strict feeding control to provide secure and healthy results.

“We also need logistics in transportation, distribution and refrigeration centers to maintain our products in optimal conditions and for them to stay fresh and healthy for consumers,” says Freixes.

Metal detector

Processing

Communities & Partners One of Kekén’s greatest successes has been to establish partnerships with farmers and w w w. k e k e n . c o m . m x

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KEKÉN small entrepreneurs in the regions where their processing plants are located.

The company has helped small farmers get loans to build their farms from scratch and small businesses have joined the project by aligning production standards. After 20 years of partnering with the community, not only were these farms paid for in full, they also successfully expanded.

“This started before the concept of social responsibility was created and it has been a success,” says Freixes.

Store Maxicarne

Maxicarne interior

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September 2014

International Growth The company has begun its foray into the Japanese market, with the consideration of their premium policies and prices on quality produce.

Kekén wants to maximize their capacity in this country. Within the Asian market, they are also involved in the Korean pork industry.

In regard to their closest clients, their exports operations have expanded into the United States and Canada, thus representing a great potential for development.

Key Suppliers There are specialized areas such as genetics and salubrity in which providers must perform at their best to continue working within the global standards of Kekén.

Another key aspect is the environmental temperature control in the process of reproduction of swine in hot environments. This is

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very important for the comfort of animals and for them to achieve their maximum productivity.

Developments in Numbers By 2015, the company plans to commercialize more than 180,000 tons of meat per year.

Subsequently, the construction of new plants and farms will become a basis for their second goal, which is to produce 340,000 tons of meat per year by 2020.

Company Information C O M PA N Y

Keken INDUSTRY

Food (pork breeding, slaughtering, packaging, distribution) HEADQUARTERS

Merida, Yucatan, Mexico FOUNDED

“Our goal is to duplicate Kekén’s operations by 2015. With a year and a half left to reach this target, we will certainly achieve this goal. With this level of motivation and professionalism of Kekén’s human resource, we will be able to achieve anything”

1994 EMPLOYEES

3,500 REVENUE

USD $382 million EMAIL

jorge.ricaud@keken.com.mx WEBSITE

www.keken.com.mx

– Dr. Claudio Freixes, CEO of Kekén

www.facebook.com/pages/KEKEN/326922912133 https://twitter.com/kekenmexico w w w. k e k e n . c o m . m x

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Colombian Agricultural Society: (SAC) Written by: Jenny Patricia Perdomo Produced by: Taybele Piven

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C O L O M B I A N A G R I C U LT U R A L S O C I E T Y

Journalism workshops

The Colombian Agricultural Society - SAC, is the highest agricultural trade association of national character, composed of farmers, ranchers, foresters, rural production professionals, and universities, legal persons of the same character and trade associations formed by them. It was founded on December 15, 1871, with the purpose of promoting the advancement and ensuring through public discussion of the interests of the sector. It is a private, non-profit entity.

The role of the SAC is to bring the representation of the producers of agriculture.

In this sense SAC carries out internal articulation of interests and serves as interlocutor with other social groups and the state.

“SAC should have adequate autonomy and independence, not only with the State but also from private interests that may be faced by other organizational consulting” – Rafael Mejia Lopez, SAC President 62

September 2014

SAC contributes to the strength and functionality of Colombian democracy as well it helps to organize the society, synthesize the aspirations of producers, build consensus through dialogue with other social groups and harmonize the interests of the agricultural sector with the general interests of the nation.

SAC has a fundamental commitment to the highest aspirations of the Colombian welfare, justice, peace and unity, based on the democratic system. This was stated by the union campaign from Colombian Agricultural Society, “SAC is not political or religious, or totalitarian, or corporate, it

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is simply an open democratic organization where each farmer can work accordingly with their spirit and their own ideas and feelings.�

To fulfill its function of representation, SAC uses the media to reach its public and publishes the National Agriculture Magazine, a newsletter and website, among others. Performs other contacts with unions and other social organizations and also has political representation with the state.

Members

Working for the Colombian fields

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Rafael Mejia Lopez, President of SAC

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In this regard, the SAC is, by law, an advisory body of the Government in the field of agriculture and participates in its own right, inter alia: the boards of the National Apprenticeship Service, Sena, the Colombian Agricultural Institute, ICA, the Colombian Institute Rural Development, Incoder, the Colombian Corporation of Agricultural, Corpoica Research, the Permanent Commission on Wage and Labour Policies, also on the board of the Fund for Financing the Agricultural Sector, Finagro.

The Colombian Agricultural Society is the only guild leadership that exists in the country, i.e., the union of unions. This constitutes a valuable institutional and organizational development, thanks to the wisdom and foresight of farmers and industry associations.

The existence of producer associations and their leadership responds to two distinct problems. The first exercise as spokesman and representative of their particular products and procedures and relevant negotiations, the dome devotes his attention to the general interests of all producers of agriculture and its alignment with the interests of the nation. Consequently, the SAC coordinates and express the positions of the agricultural sector in aspects of welfare policies of the rural population, prices, credit, land reform, suitability, land, research, innovation and technology transfer, management of natural resources, marketing of agricultural products,

Agribusiness meetings

Agriculture Congress

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C O L O M B I A N A G R I C U LT U R A L S O C I E T Y

Seminars from SAC

foreign trade, public investment directed to the rural sector and the impact of global economic management on agricultural production.

To properly perform its functions, the SAC should have adequate autonomy and independence, not only with the State but also from private interests that may be faced by other organizational consulting. This autonomy and the relative distance of the SAC regarding immediate interests allows it to act with authority and balance in their pronouncements. This requires a solid institutional, technical and financial entity.

Tour Brasil

The existence of the SAC and the scope of its action are based on the trust and support of the unions, associations and agro producers. They are its reason for being, its beginning and its end.

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“SAC has a fundamental commitment to the highest aspirations of the Colombian welfare, justice, peace and unity, based on the democratic system” – Rafael Mejia Lopez, President of SAC

Company Information NAME

Colombian Agricultural Society INDUSTRY

Agribusiness HEADQUARTERS

Colombia SERVICES

Promotes national agricultural development and welfare of producers, represents and defends the interests of those living in the Colombian countryside, promotes partnership and cooperation PRESIDENT

Rafael Mejia Lopez ADDRESS

Carrera 7, Numero 24-89, Torre Colpatria EMAIL

prensa@sac.org.co WEB

www.sac.org.co

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Corpoica is Colombia’s future in agriculture: One of South America’s most promising agricultural research centers

Written by: America Barcelo-Feldman Produced by: Taybele Piven Interviewee: Roberto Albornoz, Director of Valuation Translated by: Rafael Tablado 69

CORPOICA

Through their Research Center

Innovation from the farmlands Corpoica (Colombian Corporation for Farming Research) is a non-profit public entity of technical and scientific character, created for purposes such as research development, technology transfer (TOT) and tech innovation promotion for the farming sector. The corporation was founded on January 25, 1993, after a set agreement by the assembly of founding members at Palace of Nariño (the building where the President of Colombia’s office is located).

“El Mira”, based in Tumaco, Nariño, Corpoica provides 40 thousand seeds of hybrid palm OxG ELMIRA to the domestic and

Also, Corpoica supports SSATA (Subsystem of Technical Assistance for Farming) through process development, organization and sharing knowledge, following standards set

by Colombia’s Agricultural and Rural Development Ministry.

international market

“We operate 14 research centers which encompass our country’s different agricultural regions, showing our leadership in TOT and development,” says Roberto Albornoz, Valuation Director.

“We operate 14 research centers which encompass our country’s different agricultural regions, showing our leadership in technology transfer and development” – Roberto Albornoz, Valuation Director

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Albornoz shared details about the corporation’s attributes, on-going projects and future plans. The executive has a vast record in the successful development of agricultural projects and agricultural marketing. He also majored in Economy, obtaining post-graduate achievements in this area. Albornoz has performed both for the private sector as well as for government entities since 1977. He obtained a doctorate, academic specialization and work experience in Europe, Brasil and in the U.S.A. Albornoz has been in charge of different institutions, companies, public and private entities, chambers and associations.

Corpoica transfer

Corpoica’s transforming vision for the farmlands Corpoica’s goal is the development of scientific knowledge and transfer of technology for the

Scientific and Technological Agreement between CORPOICA and the Colombian National University w w w. c o r p o i c a . o r g . c o

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CORPOICA agricultural sector through research and innovation. This vision has changed with the passing of time, considering that in late 2010, the government increased the corporation’s budget for new research projects in farming development.

Bio-fertilizers and Monibac and Rizobiol, part of the organic agricultural inputs of Corpoica

The corporation’s agenda is based in interdisciplinary large-scale projects to be developed in a five-year plan.

According to Albornoz, between US$40M and US$50 million have been procured for project development over the last 20 years: “We’ve earned the government’s and the people’s trust, because they are able to see the need for a research institution such as ours as well as the benefits derived from it,” he says.

Staff management This institution’s main focus is obtaining knowledge and having the right personnel. The staff includes 100 professionals with doctorate degrees and 130 who achieved a Master’s.

Corpoica’s management perceives partnerships with local colleges as a vital investment rewarded by attracting a qualified workforce.

Corpoica Labs

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Staff training is a priority for Corpoica. An example of this is the government’s “Tiempo de Volver” program (meaning “time to return”) inviting Colombian doctoral researchers abroad to work in Colombia in order to increase the domestic

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Key people

Roberto Albornoz Albornoz, Director of Valuation

Corpoica seeds

industry’s performance. The institution’s personnel are always encouraged to pursue postgraduate education.

Corpoica Labs

Agricultural improvements The corporation has improved technology transfer from process digitalization up to progress in genetics and farming techniques. w w w. c o r p o i c a . o r g . c o

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Technology solutions for livestock

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As a result from performance evaluations carried by the government, the corporation has been assigned to accomplish duties such as system revision of technical upgrades to be run by the agriculture ministry. The institution has its own labs offering research-derived services; future plans include equipment acquisition for genetics and both plant and animal genomics.

Corpoica products

“We support TOT, so projects are handed directly to regional trade unions and technical assistance corps, thus increasing farming competitiveness,” says Albornoz.

Competitive differentiation within domestic production The corporation’s differentiators are delimited by their top priorities: assisting in improvements for stockbreeding activity, and reaching international standards in Colombia’s farming variations.

Corpoica has strengthened its alert systems and agro-climatic management to assist Colombia in extreme situations such as droughts and floods, as it happened with the “El Niño” phenomenon,

Corpoica investigator

“We’ve earned the government’s and the people’s trust, since they can see the need for our institution and the benefits derived from it” – Roberto Albornoz, Valuation Director w w w. c o r p o i c a . o r g . c o

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CORPOICA affecting Colombia’s stockbreeding and farming activities for more than eight months. The corporation has set technical procedures able to manage regional climate change, overcoming such challenges.

“We must focus into launching products which help achieving globally-competitive agricultural production,” says Albornoz.

Domestic expansion The corporation is planning an expansion process for its 14 centers, so every single zone in the country is properly represented. Contact offices are soon to open in coffee-producing

www.vidcol.com

vidcol@vidcol.com

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zones, one more in southern Colombia and there will be a re-opening of the Carmen de Bolivar office, which was affected by domestic violence in previous years.

“We want to improve our budgets, hence improving also our TOT programs and our technology, and we also want to follow up with the recommended agro-climate models for current climate change,” says Albornoz.

Company Information C O M PA N Y

Corporacion Colombiana de Investigacion Agropecuaria (Corpoica) INDUSTRY

FDF World HEADQUARTERS

Bogota, Colombia

Suppliers The corporation has earned an excellent reputation thanks to its partners for research and synergy with suppliers has intensified during the last four years. Also, the arrival of quality supplies complying with global standards has increased.

FOUNDED

January 25, 1993 EMPLOYEES

1,000 REVENUE

USD $80 million EMAIL

Corpoica’s future Goals for Corpoica include becoming their country’s most important research institution within the next five years. To accomplish this feat, the corporation is focused in the expansion of research projects benefitting Colombian farming soon to be implemented nationwide.

atencionalcliente@corpoica.org.co WEBSITE

www.corpoica.org.co

h t t p s : / / t w i t t e r. c o m / C o r p o i c a w w w. y o u t u b e . c o m / c h a n n e l / U C 9 L 1 x v A m q c u r e C b G 0 H G Q 7 7 A w w w. c o r p o i c a . o r g . c o

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Setting a faster pace in the palm oil industry in Colombia: “We work to strengthened the palm oil industry in Colombia by developing new markets for these healthy and highly productive High Oleic Palm Oil products”

Written by: Mateo Rafael Tablado Produced by: Taybele Piven Interviewee: Camilo Colmenares, CEO of Hacienda la Cabaña

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HACIENDA LA CABAÑA S.A.

Key People

Camilo Colmenares CEO of Hacienda La Cabaña

Sustainable Industry Precursors acienda La Cabaña is a pioneer company in Colombia in the palm oil industry. If there is a company which the oil palm plantations should follow, it is this one. As precursors in the Colombian market, they have been in operation since 1961, when they began production with only 50 hectares.

H

“At first, palm developed very slowly due to infrastructure difficulties and the absence of federal incentives,” says Camilo Colmenares, CEO of the company.

The road has been long for Hacienda La Cabana, who, after years planting and harvesting, built their first extraction plant in the mid-1970s.

Since then, they have increased their acreage space 100 times as well as their extraction plant capacity of 30 tons per hour in the process of palm fruit and 70 tons per day in the process palm kernel.

Vision and Leadership in the Production of High Oleic Palm Oil Hacienda La Cabaña’s core market is Bogota, capital of Colombia; and within their projected growth overseas their main markets are in Central America, Mexico and the United States, given their proximity to the ocean and to the Panama Canal. Additionally, they seek to offer their products to European markets.

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Palm seeds

Palm oil

While the rise of “commodities” (raw materials markets) is over and its prices continue to decline, the company is searching for international markets given that domestic consumption of edible oils and biodiesel is adequately supplied with the current national production. Hacienda La Cabaña is also asking for the government’s help to promote the cultivation of palm oil through an www.lacabana.com.co

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HACIENDA LA CABAÑA S.A. increase in the mix of biodiesel levels greater than 10 percent.

Descargue fruto en

In recent years, the company developed a “hybrid” palm variety, known as high oleic palm oil. This species offers a number of competitive advantages in the cultivation process, from its extraction and product commercialization, to taking advantage of the weather conditions such as:

tolvas

• Its resistance to certain pests and diseases such as bud rot, a disease that destroyed more than 50,000 hectares of palm oil in Colombia.

• High oleic palm oil is naturally fluid, contrary to normal palm oils in cold regions that are mixed with soybean oil (imported to Colombia in high volumes) to be consumed as a liquid; therefore, this new product can replace soybeans imports.

• It has a lower content of saturated fatty acids, a trait valued by the global market.

“The country needs to invest more in research and development to establish an industry from palm oil” – Camilo Colmenares, CEO of Hacienda La Cabaña 82

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Strategic and Beneficial Location As part of their strategic planning, Hacienda La Caba単a studies weather conditions in other areas such as Uraba Antioque単o, near the border with Panama, where the climate, soil and location make it a key point for the company to expand operations. This is traditionally a farming and banana-growing region, with businesses affected by recent issues such as currency exchange. As a result of their next entry in this new market, palm plantations could reactivate the economy and open new jobs.

Seeds of La Caba単a

Hacienda La Caba単a - Cirad

www.lacabana.com.co

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HACIENDA LA CABAÑA S.A. “Another advantage is that this area is next to the ocean, making it easier to export to United States and Central America, as well as import inputs at lower costs,” said the CEO. Automation and Research as Differentiators Oil palm exploitation always requires labor, since pollination of high oleic palms must be manual. This benefits the creation of jobs in rural areas; however, it also means a high and constant demand and cost.

Human resource management

petroquimicosbreton.com

La Cabaña systematically incorporates technology in some processes so that the

info@petroquimicosbreton.com

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dependence on labor becomes only essential in processes where this is critical.

In conjunction with research institutions such as CIRAD and PalmElit (both located in France), they have developed new materials that allow higher production at lower costs, further comprising constant experimentation with genetic engineering.

“The country needs to invest more in research and development to establish an industry from palm oil,” says Colmenares.

Research with CIRAD

Getting to Hacienda La Cabaña

www.lacabana.com.co

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HACIENDA LA CABAÑA S.A.

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Human Resource Management More than 30 percent of the field work done in palm oil cultivation is produced by women. This change began between 1998-2000, thanks to an inner boost in human management and the promotion of new openings in La Cabaña.

Care for the Environment The company follows environmental regulations not only on their plantations, but also in the vicinity. One example is their ecological conservation areas nearby, such as the banks of rivers, mountains and natural corridors, which are protected to maintain the natural ecosystem of species in each region. In case of epidemics and plagues, the use of chemicals is restricted or is the last resort.

Corona híbrido

“Business is different from 25 years ago, when environmental issues were not important and mountains and forests were replaced by palms.

Today, we are some of the main promoters of environmental practices in the regions where we

“The most important thing is that Colombia appreciates palm oil as a national product and gives it the value it deserves. This matters a lot, and it is also a global trend to consume local goods” – Camilo Colmenares, CEO of Hacienda La Cabaña www.lacabana.com.co

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HACIENDA LA CABAÑA S.A. operate, and these techniques can be adapted to other businesses in the field,” the executive said.

Commercial Allies Hacienda La Cabaña shares their growth and national success with small farmers who posses a land size under 50 acres. The company buys crops from these small businesses at a competitive price and provides them with technical advice and additional agricultural services.

Plam production

Future Developments As a pioneering company in its field, it is their job to succeed against new challenges in the entire palm industry in Colombia. For this, Hacienda La Cabaña has very clear and precise objectives for the next five years: 1. To develop and increase High Oleic Palm Oil plantations that are resistant to pests and diseases.

2. To rehabilitate and replant in recently devastated areas such as Tumaco, where bud rot destroyed entire plantations. This infestation is considered a nemesis in the palm oil industry.

3. To develop the local market for the displacement of soybean oil imports by processing more high oleic oil.

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4. Leveraging surplus production for exports to Central America, United States and Europe.

Company Information C O M PA N Y

National conditions for obtaining these achievements are not entirely balanced favorably: “We have environmental regulations, labor laws, trade and safety regulations, all according to first world standards, but the country does not offer first world conditions,” he adds.

Hacienda La Cabaña S.A. INDUSTRY

Palm oil HEADQUARTERS

Bogota, Cundinamarca, Colombia FOUNDED

“The most important thing is that Colombia appreciates palm oil as a national product and gives it the value it deserves. This matters a lot, and it is also a global trend to consume local goods,” says Camilo Colmenares, CEO of Hacienda La Cabaña.

1961 EMPLOYEES

850 EMAIL

dcalderon@lacabana.com.co WEBSITE

www.lacabana.com.co

www.lacabana.com.co

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Company logo goes here

PRONicaragua Produced by: Taybele Piven

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PRONICARAGUA

Nicaragua’s success harvest in cocoa industry

N Harvest

icaragua has always been highlighted by the quality of its agricultural sector, as weather conditions and abundant water resources make the country ideal for producing a wide variety of crops instead. Thus, the cocoa industry of Nicaragua has established itself as the most dynamic in Central America, and also enjoys a favorable environment for the modernization and increased production and processing. Also, cocoa available in the country is the Trinitarian type, if properly fermented, is the preferred raw material for thin and dark chocolates.

Annually 4,000 metric tons of cocoa from approximately 8,000 hectares are produced and exported primarily to Central America and Europe. However, the country has more 350,000 cocoa hectares suitable for growing, mainly located in the North Atlantic Autonomous Region and the South Atlantic Autonomous Region, according to a study by the Ministry of Agriculture and Forestry (MAG ) done in 2010.

Since 2007, cocoa exports were driven by rising grain prices on the international market and increased domestic production. These

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“The competitive advantages that Nicaragua offers are what has driven the growth of the cocoa industry in the country�

Cosecha

have shown an annual compound growth rate of 24 percent in value and 22 percent in volume between 2007 and 2012, from U.S. $ 1.32 billion in 2007 to U.S. $ 3.93 million in 2012, to 900 metric tons in 2007 to 2.400 metric tons by the end of 2012. Currently, until July 2013, there have been w w w. p r o n i c a r a g u a . o r g

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PRONICARAGUA

Worker & harvest

Harvesting

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U.S. $ 4.26 million and 1,890 metric tons in terms of exports of this product.

The competitive advantages that Nicaragua offers for investments in agribusiness are what have driven the growth of the cocoa industry in the country. First, Nicaragua has access to more than 1,500 million people worldwide since it has signed free trade agreements (FTA) with several other countries.

Moreover, Nicaragua is the largest country in Central America in terms of territory and more than 50 percent are uncultivated, representing a large availability of land. The Government has also made it a priority to attract quality foreign direct investment and creating a more favorable environment for business in the country in recent year’s environment.

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Harvest

Most cocoa farmers in Nicaragua are considered small producers with average production areas of 1 hectare. However, from the year 2010, a large group of foreign and domestic companies have begun investing approximately 5,000 hectares of cocoa plantations in the South Atlantic Autonomous Region (RAAS), specifically in El Rama and New Guinea in the region Autonomous North Atlantic (RAAN) in the municipalities of Siuna, Bonanza and Rosita, and Rio San Juan. Additionally, some Nicaraguan companies began to invest in cocoa plantations and in total, according to their projections, are expected to arrive to cultivate more than 8,000 hectares in the next 10 years.

“The company first entered Nicaragua in 1991, buying and supporting the production of small cocoa farmers, due to their excellent quality�

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PRONICARAGUA

“Annually 4,000 metric tons of cocoa from approximately 8,000 hectares are produced and exported, 50 percent mainly to Central and Eastern Europe�

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Company Information INDUSTRY

Nicaragua’s official investment and export promotion agency COUNTRY

Nicaragua EXECUTIVE DIRECTOR

Javier Chamorro KEY PEOPLE

An example of success in the cocoa industry in Nicaragua is the case of Ritter Sport, internationally recognized company dedicated to the production and marketing of fine chocolates from around the world. The company first entered Nicaragua in 1991, buying and supporting the production of small cocoa farmers, due to their excellent quality. Beginning in 2011, the company decided to invest around U.S. $ 25 million in cocoa plantations of at least 3,500 hectares and in 2012 began to expand its operations and that Nicaragua had found the ideal conditions for the production, processing and export of cocoa.

General Alvaro Baltodano, Presidential Delegate for investment WEBSITE

www.pronicaragua.org

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Seafood excellence for the global consumer: Camarones de Nicaragua, shrimp production under global standards

Written by: Rebecca Castrejon Produced by: Taybele Piven Interviewee: Roberto Ferron, General Manager for CAMANICA Translation by: Rafael Tablado 99

C O M PA N Y N A M E

Atarrayero sampling shrimp

Superiority in crustaceans

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September 2014

fter almost 20 years from its inception, Camarones de Nicaragua (known as CAMANICA) has established itself as one of the leading shrimp production companies in Latin America.

This standout leadership brought PESCANOVA (Spanish multinational) to focus into the corporation’s industrial globalization

SECTOR

process in Central America, thus allowing commercial expansion in the area after the acquisition of CAMANICA in 2007, whose competitiveness nationally matched PESCANOVA’s strategic vision.

CAMANICA’s farms are the largest in Latin America; the company’s operation consists of shrimp breeding and processing, producing over 900 million prawns monthly.

A very strong competitive advantage for

“Every supplier’s role is important at the end of the day” – Roberto Ferron, CEO, CAMANICA

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Key People

Roberto Ferron CEO of CAMANICA

Sponsoring sports in the communicty

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CAMANICA is the quality of Nicaraguan water— among the purest in the world—and also a value added which has earned the company FDA and GlobalGAP approval. Under sustainable production and compliance with government regulations, the company exports up to 10-ton prawn shipments to important markets such as the U.S. and Europe. Also, the processing plant is continually upgraded through a US $175 million investment for the research and development department as well as acquiring the newest cutting-edge technology and machinery.

As PESCANOVA’s subsidiary, the company’s supply chain has products and services from suppliers in Central America up to logistics management in their Spanish headquarters.

Today, CAMANICA is an established company professing international leadership and a positive global projection towards its production goals.

Managerial leadership CAMANICA is one of Latin America’s leading companies in shrimp and other species’ breeding, farming and marketing. Their CEO, Roberto Ferron, is a Spanish executive whose love for the sea drove him to leave his career as an economist in order to major in Oceanography.

Following his five-year education, specializing in Mariculture, Ferron began a promising tenure with Grupo Pescanova in 1997. He started as an operator for the production area, and in 1999, he was put in charge of mariculture. Soon, he was

L AT I N A M E R I C A

named diagnostic laboratory manager, remaining in that position until 2001.

By 2006, Ferron had already been appointed as a technical director. That same year, PESCANOVA began working abroad, breeding whiteleg shrimp and other seafood products with salmon-breeding affiliates in Portugal and tilapia fishers in Brazil, among others. But it was not until 2007 that PESCANOVA scouted Central America in order to achieve strategic expansion into countries such as Ecuador, Guatemala, Nicaragua and Honduras. Further research resulted in the

Greenhouses for juvenile offspring

View of Traditional Farms

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C A M A N I C A - G R U P O P E S C A N O VA

Breeding of larvae in Miramar

Packaging for sale example; Europe product

acquisition of CAMANICA that same year, where Ferron first joined as a laboratory manager in intensive farming before becoming the head of the front office by 2012. “My father was an economist too, but I walked away from all that due to my love for the sea; since mariculture is involved with the essential proteins from animal origin, without which we would not be able to do anything at all. In this life, doctors are necessary, lawyers are necessary, but the work derived from mariculture is necessary up to three times a day: breakfast, lunch and dinner,� says Ferron.

New management Due to the company’s growth during recent years, the management has focused on sustaining

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L AT I N A M E R I C A

progress through expansion and increasing productivity for every single activity performed by CAMANICA, including collaborations with other companies from the PESCANOVA corporation in other locations worldwide and continuous improvement breeding shrimp for export to Mexico, United States and Europe.

Additionally, CAMANICA has paved the way in disease-free breeding, they have successfully developed breeds in different feeding phases, and their plant has been upgraded with the latest technology.

“We have always tried to perform at our best to contribute to the company’s local breeding operation, based in our work with other species abroad,” says Ferron.

Global differentiation Even though Central America’s natural conditions provide only two growing cycles a year, CAMANICA supplies large volumes year-round due to a 100 percent vertical structure, controlling every single stage in the process from inception to distribution. The company is always in compliance with food quality requirements and standards.

“Product quality and compliance with health standards are our best marketing resources; these are the most important factors in the markets we supply. We are certified and consumers can make sure that every single aspect surrounding our product finds itself in

“Product quality and compliance with health standards are our best marketing resources; these are the most important factors in the markets we are suppliers to.

We are certified and consumers can make sure that every single aspect surrounding our product finds itself in compliance with regulations and standards” – Roberto Ferron, CEO, CAMANICA

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Bringing you The Science of Survival

MADE IN USA

You produce them.

We protect them.

Nutritional and Biological Control Program for

Raceways & Nurserys Systems

Hatcheries Stage 1

Raceways

Farms Stage 3

Nurserys

Epicore BioNetworks Inc. is an ISO 9001:2008 Registered Company

USA: 4 Lina Lane Eastampton, New Jersey, 08060 USA • Telephone: (609) 267-9118 • Fax: (609) 267-9336 e-mail: Information@EpicoreBioNetworks.com • www.epicorebionetworks.com Ecuador: Vía a la Costa km. 11 (antes de la gasolinera Mobil) • Teléfonos: (593-4) 2990663 / 2992171 Fax: (593-4) 2990874 • e-mail: epicoreecuador@epicore.com.ec Epicore BioNetworks Inc. is a public corporation with a registered office in Calgary, Alberta, Canada and with shares listed on the TSX Venture Exchange (symbol EBN).

CAMANICA

L AT I N A M E R I C A

compliance with regulations and standards,” says Ferron.

Exports and expansion CAMANICA’s consistency has turned into a 15 percent growth during the last three years. The goal for 2015 is producing more than 1,000 tons and consolidating related investments for the next five years.

As one of Latin America’s largest laboratories with certified production quality, conditions are proper now for third-party sale of shrimp larvae, guaranteeing food security.

Their breeding and processing plant is focused in preserving the previously achieved production levels of packaging more than 140 tons per day,

SUPPLIER PROFILE

Traditional Farms

- EPICORE BIONETWOKRS INC.

Number of employees: 38 employees Establishment year: 1987/01/09 Type of industry: We design, develop and manufacture innovative and environmentally responsible biotechnology products and specialty animal feeds.

Main service: Microbes and enzymes that have applications in aquaculture, agriculture and horticulture, cleaning and sanitation, food processing and nutrition, waste water, pollution control and environmental remediation.

Recent projects: ”Global Aquaculture Advocate” Publishes Epicore Article Featuring a New Shrimp Growing Technique.

CEO: William P. Long CEO Website: www.epicorebionetworks.com

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www.inveaquaculture.com/best-balance

CAMANICA

L AT I N A M E R I C A

with a growth forecast of up to 180 tons. As for larvae production, the goal is to produce more than 11,000 tons of finished products by the end of the year.

Sustainable development Among the sustainability projects developed by the company, are permanent energy saving programs and a solar panel system for the laboratory’s water supply during December and January. These projects benefit soil conservation, increase water quality and help the preservation of a green environment and surroundings.

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C A M A N I C A - G R U P O P E S C A N O VA Remaining consistent with the labor’s immediate environment, the company manages intermediate breeding as part of sustainability and socially responsible programs.

“There is intensive breeding and non-intensive breeding; we have an intermediate process able to enhance our soil’s productivity. During the last year, we have experienced better water quality,” says Ferron.

Internal view of laboratories

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September 2014

Key suppliers Without key providers’ supplies, CAMANICA’s aquafarming production quality wouldn’t be possible. Some of the fully met needs in this area include hi-tech equipment, raw material and other supplies enabling the company to meet the demand of consumers worldwide. Imports from Norway, Iceland and the United States are key factors in their supply chain.

“A local hardware provider is as key a supplier as big logistics and transportation companies are, too. Every supplier’s role is important; at the end of the day, constant improvement is always required; proteins from vegetables, animals and prices vary, we must rearrange our routines on the go when such changes happen,” says Ferron.

The future Aquaculture has become a feasible alternative for animal protein production. And it turns out this activity was an important factor in Nicaragua’s economic growth during the last 10 years.

L AT I N A M E R I C A

CAMANICA plans to keep growing based on their 15 percent annual increase in production for the next five years, along with sustainable improvements and preserving quality standards as a commitment to their country, environment and foreign market.

“We are one of our trade’s model companies in Latin America, and obviously we want to keep at that same level,” says Ferron.

“We have always tried to perform at our best to contribute to the company’s local breeding operation, basing our work with other species abroad”

Company Information C O M PA N Y

CAMANICA (Grupo Pescanova) INDUSTRY

Aquafarming HEADQUARTERS

Chinandega, Chinandega, Nicaragua FOUNDED

1995 (Founded), 2007 (acquired by Pescanova) EMPLOYEES

1,400 REVENUE

USD $105 million EMAIL

info@camanica.com.ni WEBSITE

www.camanica.com.ni

– Roberto Ferron, CEO of CAMANICA

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TMF Foods (The Meat Fa

TMF Group Scales Up

With state-of-the-art production equipment and a new res TMF Foods is ready to take on the future with confidence Written by: Sasha Orman

Produced by: Sean Bakke

actory)

search and development center,

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TMF FOODS

What are your customers thinking when it comes to your product? Is it time to gather feedback, and are you ready to review the results and make a change?

TMF Foods is ready. The Canadian meat processing brand has been serving foodservice and retail sectors for years, iconic brands like their award winning “Lou’s BBQ” fully cooked line up of products such as Pulled Pork, Pot Roast and Ribs among other items and “Peameal Bacon of Canada”, is taking its business to the next level with an extensive rebranding and packaging relaunch effort to 114

September 2014

capture an even greater market share and take all of Canada and beyond by storm.

A New Look “In Canada, the fully cooked category still a fairly new category,” says Dameion Albanese, Executive Vice President at TMF Foods. This makes any insight into consumer opinions all the more valuable.

As the company found, that even though they are the leader in its sector currently capturing 62-65 percent of the market share, there was still room for improvement.

“We found that our old packaging

CANADA

was causing confusion among the consumer, there was a lot going on within the package, and that was turning people away from buying our products.� Through this extensive research and close

relationship working with marketing company Stir Communications, TMF Foods successfully launched a new look with Lou’s BBQ, featuring mouth watering graphics and simple readable packaging that just screams Tmffoods.com

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TMF FOODS quality and consistency which has been customers and understanding what the everlasting message of founder and their needs are, it’s a lot easier for us CEO Lou Albanese. to have them to come to our facility and use our kitchen as if it were their A Focus on Development own operation,” explains Albanese.

The best way to understand what your Outfitted with high-end equipment customers need is to work with them like Garland ranges and flat top grills, directly, and TMF Foods has invested Frymaster double basket fryers, in a 2,500 square foot state-of-theSalamander ovens and more, TMF art research and development center Foods’ new facility allows clients that will help them collaborate with to create test menus or meal ideas clients using the same top of the line that they can recreate in their own equipment those clients would use in kitchens. “A lot of the equipment that their own facilities. we do have is “plug and play”, so “When we’re dealing with our clients have that flexibility to use our

"The Name behind the Names you know" Packaging Group

We make cartons consumers can’t wait to get their hands on.

Great service, reliable cartons, and definite shelf appeal.

Listening to our clients, and ensuring we meet their needs, is one of the things that sets the PaperWorks Packaging Group apart. We’re dedicated to not only giving you cartons that look great, but that represent your brands the way they deserve.

www.paperworksindustries.com

Producer of the highest quality Dressings, sauces, and mustards for Retail, Foodservice and Industrial markets throughout North America.

www.selectfoodproducts.com

CANADA

products in the setting that they have in their everyday restaurants.

It also helps elevate us and bring us to the next level when dealing with top grade customers.”

The new Culinary Center is also outfitted with a cutting-edge video and computer system, plus a new projector system and two 72-inch flat screen panels, giving clients options for meeting and presentation space. “A lot of our customers are always looking for offsite facilities to hold corporate meetings, and this is a great place where they can come in and do Powerpoint presentations or other large presentations to the rest of their team,” says Albanese.

“They can come here and have a presentation going on one screen, and then pictures and logos on a different screen.”

Improved Production Updated research and development capabilities can only go so far if they are not backed up by improvements at the production level as well. At TMF Foods, rebranding goes hand in hand with updates at every level including production.

One recent important update has been the installation of a new Curruthers shredding machine to improve the strand and definition of pulled pork, plus new TMF products like pulled beef and pulled turkey.

In addition to the New Culinary Centre on the second floor of the new 5000 square ft. expansion, another update takes place on the first floor. TMF has added a brand washing station equipped with an automated rack washing system.

“Before we were washing all of our racks that would go into the cookhouse by hand, which was very cumbersome and time consuming,” notes Albanese. “So we’ve invested in a wash system not unlike a mini car wash unit which was brought in from Italy. So now all of our racks go through this “car wash” which saves us time and allows us to have them back into production as fast as possible.”

Growing and Evolving TMF Foods has grown substantially within the last few years, but it is not finished yet. “As of right now, we are one of the very few companies that has brand presence right across Tmffoods.com

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TMF FOODS

Canada, – we own the category, and we see huge potential for growth in the fully cooked category,” says Albanese. “Our goal is to continue growing that category and our market share within it.”

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September 2014

relationships with their partners in both the retail and foodservice industries by delivering the best possible solutions that meet the customer’s needs. “Whether it’s restaurants or end users at home, everybody’s strapped for time,” Albanese adds. “Consumers are

CANADA

Company Information INDUSTRY

Food HEADQUARTERS

Ontario, Canada FOUNDED

1978

looking to get a delicious, high quality home cooked meal in front of their families, and restaurateurs are looking to get a quality and consistent product from order to the plate as quick as possible. This market for fully cooked products is continually growing and we will continue to grow along with it.�

Tmffoods.com

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Australian

Indust Council:

Written by: Laura Close Produced by: James Hayes

n Nut

try

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A U S T R A L I A N N U T I N D U S T RY C O U N C I L

Tree nut production is on a truly commercial scale in Australia

AUSTRALIA, THE BIGGEST island in the world (and the smallest continent), is a dynamic first world economy, well-known for its agricultural and mineral wealth; it is also an increasingly important producer of tree nuts for the global marketplace. Macadamias, almonds, walnuts, chestnuts, pecans, pistachios and hazelnuts are all grown here.

Tree nut production on a truly commercial scale in Australia dates back only to the 1980s, but since that time the industry has invested heavily in expanding output volume whilst maintaining a keen focus on 122

September 2014

quality. Today, buyers from Asia, Europe, the USA and elsewhere recognise Australia as the source of premium quality nuts, especially in the northern hemisphere off-season.

The Australian Tree Nut Industry This vast continent is characterised by a wide array of soil and climatic types (ranging from tropical through to cool temperate) such that almost any nut species can and does succeed in some part of Terra Australis.

A modern and cutting edge industry does not appear overnight nor without considerable effort, and the Australian tree nut industry has

FOOD

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A U S T R A L I A N N U T I N D U S T RY C O U N C I L relentlessly pursued world’s best practices and technologies as well as importing or cultivating varieties suitable to local conditions. Today, Australia is home to an enviable pool of knowledge as well as a culture of innovation upon which to develop a future-facing industry whose

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September 2014

exceptional product is already much in demand around the globe.

Tree nut production in Australia is dominated in scale by almonds and macadamias, with the former representing more than 50% of the total area planted and the tonnage produced. The macadamia,

AUSTRALIA

Australia’s iconic native species, accounts for approximately 34% of area planted and 30% of tonnage produced.

Buoyant markets and sound business models continue to drive investment in new plantings such that the Australian crop is forecast to increase by as much as 44% by 2025, substantially on the basis of trees already in the ground.

The hazelnut industry is an example of a historically small sector which is poised to leap into the commercial mainstream with 5,000% growth predicted over the next decade. Walnuts - already on a growth trajectory - and pistachios will more than double in output, whilst chestnuts and almonds are expecting increases of more than 30%. Overall, the farm-gate value of Australian tree nuts is forecast to increase by 82% by 2025.

The tree nut industry employs around 5,000 people throughout regional Australia with more than 15 million nut trees planted around the country.

Tree nuts are already Australia’s largest horticultural export sector, with current foreign earnings of

more than AU$650M per annum.

Thanks to a powerful and persistent worldwide dietary trend and a strong set of local production values that emphasise food safety and eating quality, as well as excellent social and environmental stewardship credentials, the Australian tree nut industry is likely to surpass AU$1B in export sales before 2025.

Australia’s agricultural industries are among the most sophisticated, highly mechanised and environmentally aware in the world.

If there is one thing its farmers know how to do, it’s how to grow high quality produce for export.

Australian farmers have a reputation for being among the most efficient and advanced in the world.

Because of our relatively small population, we have always looked to overseas markets to sell much of our agricultural production.

As a result, Australian farmers are well aware of the needs of export markets and the importance of supplying reliable lines of high quality product. This is what has driven nut production in Australia and our highly skilled growers have concentrated on refining their ability w w w. n u t i n d u s t r y. o r g . a u /

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Mixed Nuts

to supply premium product to buyers around the world.

Australia is serious about growing quality nuts and increasing production into the future. A driver of this is its ability to provide supply in the northern hemisphere off-season.

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September 2014

trade and consumers is that they now have access to a ready supply of the freshest nuts all year round.

As a result, important markets can be developed or expanded without fear of a lack of supply. This is how the pre-Christmas period has developed to become a lucrative

AUSTRALIA

Company Information INDUSTRY

Food HEADQUARTERS

ELANORA Queensland EMPLOYEES

Chaseley Ross Executive officer PRODUCTS/ SERVICES

market for Australian fresh pecans in China. It’s also why consumers in major markets around the world can now buy fresh walnuts, almonds, pecans and hazelnuts all year round.

For further information, visit the Australian Nut Industry Council website www.nutindustry.org.au

The Australian Nut Industry Council is the federation representing the seven Australian nut producing industries at a national level.

We aim to strengthen, unify and promote the production, marketing and consumption of nuts within Australia and internationally.

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Australian Refrigeration Association (ARA)

Energy Ef ficiency in the HV Writ ten by: Tim Edwards

VACR industr y 129

A U S T R A L I A N R E F R I G E R AT I O N A S S O C I AT I O N ( A R A )

Tim Edwards and the next generation

The Role Of Refrigeration and Air Conditioning in Energy Efficiency and GHG Emissions Reduction Air Conditioning and Refrigeration (HVAC&R) is obviously an important contributor to economic performance and the quality of life. It is seldom recognised as an industry 130

September 2014

and its contribution to energy consumption and Greenhouse Gas Emissions (GHG) is broadly misunderstood and understated.

The industry makes a central contribution to fundamental industries including the built environment, food production

AUSTRALIA

and distribution, healthcare and pharmaceuticals and virtually all other human activities. The importance of the HVAC&R industry in Australia is demonstrated by the following statistics : • 45 M individual installations • 2% of GDP, $26B annual spend, $ 6B capital investment PA, perhaps $100 B installed HVAC&R infrastructure at current $ value • 22% of electricity consumption • 12/14 of national CO2e emissions (GHG emissions) • 20,000 firms, 170,000 direct employees, of whom about 70,000 are licensed to handle fluorocarbon refrigerants.

This same level of development is apparent throughout the industrialised world and is rapidly being realized in developing countries reflecting the fundamental role of HVAC&R in economic development. The industry offers major sources of energy efficiency and the resulting cost savings throughout the world.

HVAC&R Climate Change Impact The contribution of HVAC&R to greenhouse gas emissions

is pervasively misunderstood and understated.

The energy consumption of the HVAC&R industry (indirect emissions) is extremely high (22.3% of electricity, about 10% of national emissions) reflecting the many operating systems and their continuous use. It is direct emissions that are little understood and pervasively misrepresented.

The Australian national accounts report refrigerant emissions to be about 1% of national emissions. This dramatically understates the volume of direct emissions for a series of reasons that defy logic and give rise to a great deal of misunderstanding.

The real impact of the HVAC&R industry in Australia is in the order of 14% of national emissions.

This is comprised of 10% of national emissions due to energy consumption and 4 % due to unintentional and intentional fluorocarbon refrigerant emissions.

This understatement matters a great deal. It has the effect of failing to recognise HVAC&R as a primary potential source of emissions reduction. It has the effect of failing to recognise that there are w w w. A u s re f . o r g . a u

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A U S T R A L I A N R E F R I G E R AT I O N A S S O C I AT I O N ( A R A )

President Tim Edwards 132

September 2014

AUSTRALIA

solutions available in Natural Refrigerants, for which direct emissions would be minimal. The natural refrigerants are highly energy efficient and therefore would contribute to reduced indirect emissions. The use of natural refrigerants would eliminate direct GHG emissions and reduce indirect emissions by 20 to 50%, a potential total reduction in national emissions of 7%.

The Potential Role of Natural Refrigerants The natural refrigerants are ammonia, carbon dioxide, hydrocarbons, air and water. These refrigerants are commercially proven and highly energy efficient when used in the right engineering context. They have been shown to be effective in meeting the wide range of refrigerant requirements by HVAC&R sector.

As a result their use can make a major contribution to HVAC&R energy efficiency and emissions reduction. The transition to NRBT (Natural Refrigerant Based Technologies) would virtually eliminating direct emissions because natural refrigerants have very low GWP and reduce indirect emissions by up to 50% through increased energy efficiency. The use of NRBT would pre-empt a major increase in GHG emissions in the developing world. It is fundamental to recognise that the transition to NRBT will deliver major cost savings to end users of the HVAC&R services. The potential cost savings in Australia are in the order of $ 8B per annum.

Company Information INDUSTRY

Food HEADQUARTERS

New South Whales Australia FOUNDED

December 2011 EMPLOYEES

President Tim Edwards, Vice President Ben Adamson, Secretary Stefan Jensen, Treasurer Ross Bradshaw H.E PRODUCTS/ SERVICES

Not for profit, Industry association for refrigeration and air conditioning, also known as the Heating, Ventilation, Air Conditioning and Refrigeration industry (HVACR)

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Chestnu Australia Inc. (CAI)

Compied by Tanya Edwards

uts 135

CHESTNUTS AUSTRALIA INC (CAI)

Members of CAI participating in Chestnut promotions

CHESTNUTS AUSTRALIA INC. (formerly The Chestnut Growers of Australia Ltd) is a growers group which was formed in 1991. Membership is drawn from all over Australia and includes representation from suppliers and large commercial growers, hobby farm enthusiasts, nurserymen and women, Agriculture Departments

136

September 2014

and other horticultural experts.

Chestnuts Australia Inc. aims to assist its members with relevant information on the growing, harvesting and marketing of chestnuts.

The association is dedicated to the growth of the Chestnut Industry through: • Grower education • Promotion

FOOD

• Research • Sharing of information Industry overview The Australian chestnut industry operates principally in the southern states of Australia, including NSW, Tasmania and Victoria, plus southern areas of SA and the south western area of WA. Approximately

70 per cent of the national crop is grown in north east Victoria.

The main varieties grown are Red Spanish, Purtons Pride and De Coppi Marone. Chestnuts flower during November and December and are harvested from March through to May. Many chestnut orchards are small family-owned orchards, but there

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137

CHESTNUTS AUSTRALIA INC (CAI) are several large-scale commercial plantings, and the average size of new orchards is increasing.

The chestnut industry has always been aware of the possible biosecurity issues it faced, the main threats being Chestnut blight, Chestnut weevil and Chestnut gall wasp. The depth of knowledge and preparedness was made very evident in 2010 when there was an outbreak of Chestnut blight.

This outbreak was reported swiftly due to grower knowledge and biosecurity training. Chestnuts Australia, in conjunction with VicDEPI, were able to inform all growers of the immediate measures that were needed to heighten the level of biosecurity. An Industry Development Officer was appointed in January 2014 to further improve biosecurity vigilance.

Current production • Area under production is about 1,000 ha. • Production is about 1,500 t a year of fresh chestnuts.

Industry potential Chestnut production is expected to 138

September 2014

increase to 2,000 t by 2020 as young orchards come into production.

New varieties and improved orchard management techniques have reduced time to bearing and resulted in increased nut yield, nut size and ease of peeling.

Most chestnuts are handpicked except in many large orchards, which are fully mechanised as a result of new harvesting machinery being developed.

Growers are planting and reworking older trees to newer and more consumer-friendly varieties.

Markets: present and future Chestnuts are highly valued in Europe, the USA, Japan, China and Korea.

Most growers sell the bulk of their crop through the fresh wholesale markets in each state.

Small quantities of fresh and frozen peeled chestnuts are exported to Japan and Singapore.

The Australian industry produces products such as frozen peeled whole chestnuts, chestnut meal, flour and puree. These value-added products are now being successfully marketed locally and overseas and

FOOD

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CHESTNUTS AUSTRALIA INC (CAI)

Chestnuts in their burr 140

September 2014

AUSTRALIA

have the potential to expand the overall market for chestnuts.

The chestnut industry is seeking new export markets for fresh and frozen peeled chestnuts to sustain increased production.

Nut size is important in the fresh chestnut market and new pruning techniques have enhanced this quality.

Competitive advantages • Australian chestnuts are fresh in the northern hemisphere off-season.

• Australia will soon again be free from chestnut blight, the fungal disease that has devastated orchards and native forests overseas. The eradication of chestnut blight is nearly complete with nine of the thirteen orchards affected being cleared of the disease after extensive industry surveys.

• With the exception of New Zealand, importing fresh chestnuts into Australia is prohibited.

• Australia is free from insect pests such as the chestnut gall wasp and chestnut weevil.

• Australia’s pest-free status means chestnuts are produced without insecticides.

• Australian chestnuts are highly regarded in Japan for good flavour and quality appeal.

• The Australian chestnut industry is consumer focused and the latest tree varieties being selected are based on ease of peeling and superior flavour.

Overseas, yield is generally given a higher priority than eating quality in varietal selection.

Company Information INDUSTRY

Food HEADQUARTERS

Myrtleford, Victoria, Australia FOUNDED

1991 EMPLOYEES

CAI Executive Committee/Industry Development Officer/ Communications Officer PRODUCTS/ SERVICES

Incorporated Association

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141

ABIEC:

Brazilian Beef Exporters Association

In 2014, ABIEC reinforces sanitary and reliability concepts to promote Brazilian beef abroad Written and produced by: ABIEC e CDN

143

ABIEC Brazil is committed to maintain the sanitary status and access new markets to reach US$ 8 billion in beef exports

Gulfood 2014

“The national beef exporting industry was built on very solid principles which will enable the country to reach new record on exports in 2014, near the US$ 8 billion mark” – Antônio Jorge Camardelli, President of ABIEC

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September 2014

With a 288% growth in exports in less than ten years, Brazil has maintained the leading position in the worldwide ranking of beef exports in 2013.

The Brazilian Beef Exporters Association (ABIEC) – which was established in 1979 and today includes 26 member companies in this sector, accounts for 95% of the Brazilian beef exports – has had active participation in promoting these products.

ABIEC indicates sanitary status guarantees offered by the industry and the country as key factors for the success of the segment, besides the increasing competitiveness, the efficiency in cattle production and the high quality standards of the final products.

“The national beef exporting industry was built on very solid principles which will enable the country to reach new record on exports in 2014, near the US$ 8 billion mark. We’ve had major achievements last year, such as the evolution of the Brazilian sanitary status and the increase in share of the main markets. That can help us better negotiate the inclusion of our product in the list of new potential buyers”, explains Antônio Jorge Camardelli, ABIEC’s president.

In 2013, Brazil registered a record in beef exports reaching US$ 6,6 billion, a 13.9% growth in comparison to 2012. “In addition to this

BRAZIL

Key People

AntĂ´nio Jorge Camardelli President of ABIEC

significant result, we also had other important launching such as the electronic seal which is a technology that can reduce the time spent on bureaucratic processes in cargo authorization in our country�, says Fernando Sampaio, the association executive director. ABIEC expects to have the first commercial results of this technology still in 2014.

In addition, the Association also predicts a very

Fernando Sampaio Executive Director of ABIEC

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Gulfood 2014

ABIEC

BRAZIL

active year in the sustainability area, which has been increasingly gaining importance and representativeness in Brazilian agribusiness. “We have an important agenda to be developed this year, which includes partnerships with Federal Government and Public Ministry, to maximize competitiveness and support to livestock producers,” informs Sampaio.

History The ABIEC was created as a response to Brazil’s low share in the global trade of beef in the late 1970s, repressed by numerous requirements and protectionist policies in the foremost markets of that time. Establishing the Association also enabled beef producers to develop a direct channel with national government agencies and international organizations, greater protection of the industry’s interests, and expansion of efforts to reduce trade barriers. w w w. a b i e c . c o m . b r

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ABIEC

“We have an important agenda to be developed this year, which includes partnerships with Federal Government and Public Ministry, to maximize competitiveness and support to livestock producers” – Fernando Sampaio, Executive director of ABIEC 148

September 2014

BRAZIL

“Less than a decade ago, Brazilian beef was not on the agenda of issues to be discussed on international forums, with total sales near the US$ 500 million mark per year. Today, we are very proud to know that we managed to change this reality by reaching more than 13 times the exports value”, stated ABIEC President, Antônio Jorge Camardelli.

Association Information Industry

Food h ea d q u a r t e r s

São Paulo, Brazil

ABIEC in numbers: Results of beef exports from January to December 2013

f o u n d at i o n

1979

• Revenue: US$ 6,6 billion • Tonnage: 1,5 million metric tons • Major Buyers: »» Hong Kong »» Russia »» European Union »» Venezuela

N u m be r o f a s s o cia t e s

26 companies Key people

President: Antônio Jorge Camardelli Executive Director: Fernando Sampaio

Balance of Cattle in Brazil • 171 million hectares (422.5 million acres) of pasture • 1.2 head of cattle per hectare • Total herd of 212 million head • 40.4 million head slaughtered • Approximately 20% of the beef produced in Brazil is exported

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