Food EU 7 by GDS International

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LACTOSE INTOLERANCE Peder Tuborgh, CEO of Arla Foods, on some tough times for the dairy giant P40

REAP WHAT YOU SOW www.nextgenerationfood.com • Q3 2009

Swine ﬂu and the food industry P44

HEALTHY EATING Androulla Vassiliou outlines the EU’s recipe for food safety P88

Big business is going bananas for Fairtrade, but is growing corporate involvement setting the movement up for a fall? P32

ETHICAL P I L S

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Over 600 in-house scientists in 30 countries have prepared my lunch.

Each day at Provimi we challenge 600 in-house scientists to come up with high-quality animal nutrition solutions. Worldwide, over 800 products have been developed so far. Numerous inventions are waiting to be discovered. Collectively, we continue to aim at improving animal feed quality and safety. In fact, constant evolution is at the root of what we do. Ever since our beginning in 1927, we have been at the forefront of our industry. Every day is a new day of learning about animals, their environment and the best possible ways of feeding them. As we continue to shape tomorrowâ&#x20AC;&#x2122;s nutrition, we are committed to respecting the environment and animal welfare, and contributing to food safety â&#x20AC;&#x201C; from breakfast to lunch, dinner and beyond. Learn more about Provimi at www.provimi.com.

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ED NOTE NGFOOD:aug09 27/08/2009 09:51 Page 5

FROM THE EDITOR 5

Built to last Could a stronger focus on sustainability be critical in safeguarding our future food supplies?

’m certainly not what you would call a hardcore treehugger. I take short haul flights, drive my car where I need to and own no clothes made of hemp. But when it comes to food, I am part of a growing minority that puts environmental and ethical concerns near the top of its shopping list. For these consumers, terms like ‘sustainable’, ‘free-range’ and ‘organic’ are extremely important. So much so, that we’re often willing to pay a premium to secure them. Recent years have seen a steady increase in sales of such products, giving rise to optimism that we could be on the verge of a sea change in the way we produce our food. The other view is that this is merely a blip, and ethical consumerism will soon be consigned to the dustbin of history, nestled alongside the Betamax video and the idea that house prices can only go up. On the face of it, the naysayers do have some ammunition to support their opinion. The reason our system for producing food looks like it does is because it is efficient. Industrial farming

“If we don’t have the beans, we can’t make the bars, and there was for us a long-term view that we needed to invest more in our cocoa sustainability” Cadbury’s Alex Cole (page 38)

and production enables massive economies of scale, making food significantly cheaper for the consumer. Given the current economic climate, it seems unlikely that the average shopper is going to opt for more costly products when there are cheaper alternatives available. Rising food prices also present an obstacle to widespread adoption of socially conscious consumerism. Organisations such as Fairtrade guarantee poor farmers minimum prices and pay a premium to promote social causes. When food prices rise as they have done recently, Fairtrade-certified companies are put at a significant disadvantage to others less concerned with the welfare of their suppliers. They either accept smaller returns or are forced to pass the cost on to consumers. There is an argument that now is not the time to be concerned with sustainability. The food industry is experiencing the same difficulties as many other sectors, with areas such as dairy particularly hard hit. But to ignore the importance of sustainability because of short-term challenges could leave

“The worst part is the milk prices we are seeing. It’s historically low and I see that it is hurting our farmers and they are struggling” Arla Foods’ Peder Tuborgh (page 40)

us facing much bigger problems in the future. Sustainability isn’t just about making the middle classes feel better about their shopping choices. It’s about ensuring that we retain access to the supplies of food that a growing global population needs. If farmers aren’t able get a decent price for their crops, they will only keep farming for so long. If intensive production methods deplete the land and give rise to diseases in stock animals, then we all suffer. As I said at the outset, I’m no eco-evangelist. All I’m suggesting is that the goals of major food producers and ethically aware consumers aren’t necessarily so far apart. Sustainability doesn’t have to be an either/or proposition. The sooner we understand that, the sooner we can start moving towards a system that works for everyone. n

Huw Thomas Editor

“Given the diversity of food in Europe, things will go wrong. What matters is that we can identify problems and remove affected products from the market” EU Commissioner Androulla Vassiliou (page 88)

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CONTENTS 6

44 When pigs ﬂu Prevention is obviously better than cure, so NGF asks what needs to be done to prevent future outbreaks of zoonotic diseases such as swine flu

Fair play? With big name companies like Starbucks and Cadbury now on board, the Fairtrade movement is gathering momentum. Can its commitment to social justice and sustainable development withstand the pressures of big business?

88 Safety ﬁrst Androulla Vassiliou, EU Commissioner for Health, outlines the law’s role in protecting the continent’s food supplies

Spilt milk The past year has been pretty tough for dairy giant Arla Foods. CEO Peder Tuborgh explains that, rather than dwelling on past troubles, the company has its eyes fixed on better times to come

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CONTENTS 8

The hot seat

The essential ingredients

Fighting back

102

50 Added value

58 The right chemistry

Maryse Hervé of the ELC talks to us about the safety of food additives, educating consumers and the role of science in regulatory procedures

The challenges posed by legislation and the possibility of a global regulatory framework for additives

ROUNDTABLE DISCUSSION 62 Ingredients with Jan Grøndal of Einar Willumsen, Michele Fite of Solae, Frank Goovaerts of Solanic and Simon Cuthbert of Obipektin 106 Nutrition with Erich Erber of Biomin, Javier Sanz of Hipra and Ton van der Laan of Provimi 128 Processing with Mark Drapanas of Intralox, Arthur Oude Roelink of Jonge Poerink Conveyors and Trevor Howard of PPM Technologies UK

72 Sustaining the food chain NGF takes a look at how the food and drink industry is tackling the challenges of sustainability whilst assuring its competitive edge

INDUSTRY INSIGHT 52 Victor Ferrari, Horphag Research 54 Colleen Flanagan, Petro-Canada 60 Jaap Kluifhooft, Lipid Nutrition 126 Dirk DeNutte, GP Allied

EXECUTIVE INTERVIEW 78 The white stuff Disease Control, global demand and going green are all high in the International Dairy Foundation’s agenda. Next Gen Food sits down with President Jim Begg to hear about his key priorities

56 Eddy Stempfel, Shell Lubricants 86 Eric Chen, Raycome 100 Graeme Ward, Prattley 124 Brian McCluskie, CFS 134 Bjørn Hegstad, AcryliCon

96 The hot seat Declan O’Brien of IFAH-Europe tackles the big issues in animal health

102 Fighting back Bernard Vallat of the World Organisation for Animal Health on the challenge of battling disease in a global marketplace

Shell Cassida value engineering + food safety =

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How can we work together? Shell can partner with you to offer a lot more than just high performance food grade quality lubricants. Do you want to reduce the possibility of food contamination? Do you want to improve machine performance and deliver cost savings to your business?

Shell Food Grade lubricants Helping you to enhance performance without compromising food safety www.shell.com/food

If you have answered yes to these questions, then to find out how and for more information, talk to the Shell Food and Beverage Team: Jo Griffiths Tel: + 44 (0) 7899 823 503 Email: Joanna.Griffiths@shell.com

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DESIGNED TO MEET CHALLENGES

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CONTENTS 10 114 The Man from Del Monte

118 Head versus heart

At a time when many big brands are feeling the squeeze, NGF meets Fresh Del Monte Chairman and CEO Mohammad AbuGhazaleh to find out what keeps the company flourishing through good times and bad

Andrea Rosati of EAAP explains the importance of basing animal health decisions on science

ASK THE EXPERT 70 Raphael Singer, Jungbunzlauer 82 Mark Redshaw, Evonik Degussa GmbH 84 Bill Horner, Uncle Ted’s Organics Ltd 92 Paul Young, Waters Corporation 94 Doris Engesser-Sudlow, DuPont Qualicon 98 Wouter Claassens, Munters

IN THE BACK

120 The feed chain In recent years, the proportion of genetically modified crops being used for animal feed has risen sharply. Tony Bell and Alexander Döring of the European Feed Manufacturers’ Federation looks at the links between GM and food safety

136 It’s a wrap With increasing pressure to meet sustainability goals, we ask Julian Carroll, Managing Director of EUROPEN, to explain the risks, challenges and achievements of the packaging

The man from Del Monte

Photo ﬁnish

140 Taking it to the tweets! 142 Final Word: Is organic a write off? 143 In review 144 Photo ﬁnish

The feed chain

114

120 136

It’s a wrap

3S Packaging Technology GmbH an independent German Packaging Technology organisation is looking back on 15 years of successful manufacturing and integration of full-range packaging solutions. 3S product lines include state-ofthe-art top-loading and horizontal cartoning equipment and the latest end-of-line machines. Robotic automation and the integration of horizontal flow-wrapping and vertical bagging machines are completing the 3S one-stop-shop concept.

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Park Hotel, Bremen, Germany 15 - 17 September 2009

Chairman/Publisher SPENCER GREEN Director of Projects ADAM BURNS Editorial Director HARLAN DAVIS

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The Next Generation Pharmaceutical Summit is a three-day critical information gathering of C-level technology executives from the pharmaceutical industry.

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A Proven Format This inspired and professional format has been used by over 100 CIOs and CTOs as a rewarding platform for discussion and learning.

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A well organized and productive meeting with good topics and open discussion – worth the effort! Dr. Mark Burfoot – Executive Director, Pfizer

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The advertising and articles appearing within this publication reﬂect the opinions and attitudes of their respective authors and not necessarily those of the publisher or editors. We are not to be held accountable for unsolicited manuscripts, transparencies or photographs. All material within this magazine is ©2009 NG Food.

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UPFRONT THE BRIEF

OVER 1 BILLION GO HUNGRY

According to the latest estimates from the UN’s Food and Agriculture Organisation (FAO), there are more hungry people in the world than ever before. Figures show that more than one billion people worldwide, almost a sixth of humanity, are now undernourished. This year the figure is set to reach an historic high of 1.02 billion as the number of hungry people is expected to grow overall by about 11 percent. “A dangerous mix of the global economic slowdown combined with stubbornly high food prices in many countries has pushed some 100 million more people than last year into chronic hunger and poverty,” said FAO DirectorGeneral Jacques Diouf. These figures mark a sad reversal of all the hard work carried out over the past four decades to diminish the high levels of hunger. Executive Director of the UN’s World Food Programme (WFP) Josette Sheeran said: “Unless the world responds, we are in danger of losing a generation Figures to hunger and malnuset to reach an trition. We have historic high of the know-how, the tools and the techas the number of nology to feed the hungry people world. Let history not grow say of our generation that we let the opportunity of ending hunger slip through our fingers.” The economic crisis has only served to fuel the problem by lowering incomes and increasing unemployment. Research by WFP shows that poor households all over the developing world are eating fewer and less nutritious meals and many are cutting back on healthcare and schooling for children.

1.02 billion

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UPFRONT

THE BRIEF

the International Fund for Developing countries are Agricultural Development (IFAD) the hardest hit as almost all of pointed out the need to support the world’s undernourished live smallhold farmers in order to boost there. In Asia and the Pacific, an food security and promote ecoestimated 642 million people are nomic growth. suffering from chronic hunger; “Many of the world’s poor in Sub-Saharan Africa 265 miland hungry are smallholder farmlion; in Latin America and the ers in developing countries. Yet Caribbean 53 million; in the they have the potential not only to Near East and North Africa 42 meet their own needs, but to boost million; and in developed counfood security and catalyse broader tries 15 million in total. economic growth. To unleash this The urban poor will probably potential and reduce the numface the most severe probber of hungry people in lems because lower exthe world, governport demand and An ments, supported reduced foreign estimated by the internationdirect investment al community, are likely to hit people are suffering need to protect urban jobs hardfrom chronic core investments in er. But rural areas hunger agriculture so that will not be spared. smallholder farmers have Diouf stressed that access not only to seeds and ferit is vital to give poor countries tilisers but to tailored technolothe development, economic and gies, infrastructure, rural finance, policy tools required to boost and markets,” said Nwanze. their agricultural production One way in which the WFP is and productivity. “Investment directly trying to tackle global in agriculture must be increased hunger is through a new fundbecause for the majority of poor raising campaign, which was countries, a healthy agricultural launched in June. A Billion for a sector is essential to overcome Billion is a new page on the WFP poverty and hunger and is a website where over a billion interpre-requisite for overall econet users can log on to donate nomic growth,” said Diouf. money to the cause. Kanayo Nwanze, President of

NEWS IN PICTURES

Spouses of government leaders attending the 2009 G8 summit in Italy visited WFP’s Rome headquarters on July 10 for an event highlighting the role of women in the ﬁght against hunger

642 million

2009 HUNGER MAP

<5%/Extremely low 5-9%/Very low 10-19%/Moderately low 20-34%/Moderately high >5%/Very high Insufﬁcient data Source: The State of Food in the World 2008. Food and Agriculture Organisation of the United Nations and FAOSTAT.

The Queen and The Duke of Edinburgh visited the Heinz Beans factory in Wigan, England, to mark the 50th Anniversary of its ofﬁcial opening in May 1959

China, the world’s largest pork producer and consumer, has initiated stockpiling of frozen pork to help support prices

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UPFRONT COMPANY NEWS

NUTRITIONAL

VALUE According to a recent study entitled ‘Consumers valuation of nutritional information: A choice experiment study’, featured in Food Quality and Preference journal volume 20, Spanish consumers are willing to pay more for food products that carry a nutritional panel on packaging than for those that just make a ‘light’ nutritional claim. The results suggest that although consumers value both types of nutritional information, the nutritional facts label is valued more than a specific nutritional claim. A further outcome of the study revealed that the presence of a well-known brand is valued more than health attributes when shopping – although health attributes are playing an increasing role.

FAST FACT The EU is the world’s

largest exporter and second largest importer of food and drink products Source: European Commission

GREEN IS GOOD New research published in the British Journal of Cancer suggests that vegetarians are less likely to develop certain cancers than those who eat meat, fish, or both. A study examined a group of 61,566 British men and women, comprising 32,403 meat eaters, 8562 non-meat eaters who did eat fish ('fish eaters') and 20,601 vegetarians over a 12-year period. The results were independent from factors such as alcohol consumption, smoking, body mass index (BMI), physical activity level and, for women only, use of the contraceptive pill.

FOOD SAFETY TESTING For products of animal origin, such as meat, fish and milk, DSM supplies several diagnostic tests by means of which the safety can be checked. These are the Delvotest product range from DSM Food Specialties and the PremiTest and PremiTest Salmonella from DSM Nutritional Products. The Delvotest and the PremiTest both detect the presence of antibiotic residues above a certain concentration, the former in milk and the latter in meat, fish and eggs. Francoise de Goeijen, global business development manager Food Safety for DSM Nutritional Products, who is based in Urmond, in the Netherlands, says: “The PremiTest is the only fast test for antibiotic residues in the world. Consumers in-

Differences in stomach and bowel cancer rates were not as pronounced as expected given previous research. Vegetarians had marginally higher rates of colon and rectum cancer. Cervical cancer rates among vegetarians were twice those of meat-eaters. Breast and prostate cancer rates were similar, although there was less risk for prostate cancer among fish eaters than meat eaters. “More research is needed to substantiate these results and to look for reasons for the differences,” said lead researcher, Tim Key, from the Cancer Research UK epidemiology unit at Oxford University.

creasingly want products in which no antibiotics are present, and in response the number of tests supplied to the food industry is continuously rising.” The PremiTest Salmonella is also unique in its kind. While other Salmonella tests only indicate the presence or absence of Salmonella, this test determines which serotype is involved. Salmonella occurs in more than two thousand different serotypes, with some variants making humans sick. EU law requires serotyping and this test gives results at once, preventing expensive and time-consuming additional testing. Moreover, serotyping may help to pinpoint the source of contamination. The PremiTest Salmonella was developed by Check-Points in Wageningen, in the Netherlands, but DSM has handled the worldwide distribution in the food industry since 2006. Various big laboratories have shown an interest or have already started using the test, including three European State Laboratories. For more information on DSM’s services and products visit www.dsm.com

Premi®Test Salmonella is the fastest and most reliable method available for serotyping Salmonella. Premi®Test Salmonella is the ideal tool to fight Salmonella contamination quickly and effectively in the food chain. DSM’s Premi®Test, for rapid detection of antimicrobial residues in food and feed, has been granted of official certification in Europe (AFNOR) and the USA (AOAC).

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UPFRONT COMPANY NEWS

KEEPING AN EYE ON YOUR PRODUCT The requirements of quality control in the production and processing of food are constantly growing. Responsible laboratories must master not only new tasks and a constantly growing sample throughput, but are also required to supply faster results, since most plants operate with increasingly high throughput. The modern Fourier-Transform near infrared (FT-NIR) technology offers many possibilities for fast and easy quality control in the laboratory and at-line, as well as in-process control of many different products. The potential of near infrared spectroscopy was discovered in the 1960s first for the rapid characterisation of agricultural products like grain. Other areas in the food business took longer to pick up the benefits, but the development of easy to use instruments, new sampling accessories and sophisticated software packages gave NIR a rapid boost. Today NIR is widely used in all areas of the food industry, including dairy, meat and edible oil manufacturing. The main apFor more information, please visit www.brukeroptics.com

plications are the identification and quantification of raw materials, in-process materials, and finished products throughout the entire production chain. Bruker Optics offers an FT-NIR system that can cover a wide range of applications in food analysis. An array of customised accessories for dedicated sampling modules is available for any type of liquid, powdered, semi-solid or solid sample. With a minimum of training, any person in production or in the lab is able to perform an analysis. A set of starter calibrations provided by Bruker Optics allows a quick and easy implementation of FT-NIR technology. The fast measurement and the simultaneous determination of multiple parameters like fat, moisture and protein allows for the analysis of many more samples within a given time, leading to a better understanding and control of raw materials, products and the production process and, consequently, a better quality, more consistent product at a lower cost.

GLOBAL PERSPECTIVE The latest issue of Next Generation Agriculture US featured an interview with LAMPKIN BUTTS, President of Sanderson Farms, the fourth largest poultry producer in the US. Sanderson is facing one of the most challenging periods in its history due to the credit crunch and the rising cost of animal feed which, Butts says, is largely attributable to the use of corn crops for biofuels. “It has driven the price of corn and soybean to historical highs,” he says. To read more, visit www.ngagro.com

IS SOY THE SOURCE?

between 10 and 12 grams and as a result manufacturers have come under In recent years studies have high- increasing pressure from governments and consumers to reduce lighted the health risks associthe salt content of their ated with excessive salt The food products. New consumption. Salt is average salt of course an essenconsumption in the research conducted by Stefanie Kremer tial part of the diet West is estimated between from Wageningen but World Health University’s Centre Organization for Innovative Con(WHO) guidelines per day sumer Studies has suggestsuggest that per capita ed that adding soy sauce to certain daily consumption should be foods could help retain saltiness withlimited to five grams. The average salt consumption in out altering the taste intensity or pleasthe West is actually estimated to be antness of the food.

10-12g

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UPFRONT

COMPANY NEWS

FAT TO MAKE YOU FULLER The Institute of Food Research has recently conducted a study that explored the satiety effects of fat. Funded by the Biotechnology and Biological Sciences Research Council and published in the British Journal of Nutrition, the study revealed a fat formulation that can make you feel fuller for longer. The new formulation remains stable in the acidic environment of the stomach and empties into the small intestine more slowly thereby increasing satiety. “This formulation could be used as an ingredient in new foods to make them more filling, which in turn could help reduce over-consumption of calories,” said Dr Martin Wickham from the Institute of Food Research. During the study volunteers were fed a fatty test meal comparable in volume to a large conventional meal. Their stomachs were then imaged in real time, using an ultra-fast type of MRI scanning called echo-planar

imaging, until they looked empty. The volunteers’ sense of fullness, appetite and hunger was monitored at hourly intervals for twelve hours and blood samples were also taken. After consuming a meal featuring an unstable formulation the volume of the meal in the stomach emptied rapidly. The watery part of the meal emptied into the small intestine first, followed by the floating fatty layer. After one hour the volume was nearly half that of the stable meal, which made subjects feel fuller, less hungry and have less appetite and for which the satiating effect lasted for up to12 hours. These findings mean it is possible to produce two meals with the same fat content but different satiety effects. So if you’re going to eat fat, it is possible for that fat to be present in a way that makes you feel fuller. “Our research proves it is possible to design oilin-water emulsions with different behaviours in the gut to influence gastrointestinal physiology and, ultimately, satiety,” said Dr Luca Marciani from the University of Nottingham.

DAIRY COW WELFARE

nutritionally balanced feeding. Scientific experts have also highlighted the imThe European Food Safety Authority (EFSA) recent- portance of allocating enough space for cattle movely published five scientific opinions and a scientific re- ment when designing resting, feeding and walking areas. Over the last 30 years genetic selection has led port regarding the welfare of dairy cows. The recommendations by EFSA’s panel on to changes in body shape and increased the size of dairy cows, therefore increasing their requirement Animal Health and Welfare (AHAW) outlined the for space. fact that the genetic selection of dairy cows The scientific experts used all availto increase milk yields, housing and able data in order to define the necesfeeding are all factors that need to be sary lighting levels, indoor and mastitis addressed to ensure the health and are the most signiﬁtemperature and relative humidity welfare of the animals. cant indicators of required for good welfare. Lameness and mastitis are the poor dairy cow The panel also said that while the most significant indicators of poor dairy welfare use of tie-stalls continues, cows should cow welfare, as well as reproductive, metahave daily exercise that involves walking freely. bolic and behavioural disorders. The Panel concluded that achieving reduction of mastitis can be On this point, six members of the AHAW panel exobtained not only from treating the disease and pre- pressed a minority opinion highlighting evidence of venting its transmission, but also from improving the poor welfare in dairy cattle held in tie-stalls and recanimals’ immune systems. This can be achieved by ommended that dairy cattle should not be routinely minimising stress factors and through controlled and kept in them.

Lameness

TOP 10

Super food items that can help in avoiding cancer:

1 2 3 4 5

7 8 9 10

Tomatoes

Garlic

Berries

Broccoli/Sprouts

Soybeans

Tea

Pumpkin

Spinach

Apples

Pineapples

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UPFRONT COMPANY NEWS

GOING ORGANIC Unlike conventional paprika oleoresin, a bulk product obtained by hexane extraction, organic paprika extract is produced from sweet red peppers (Capsicum annuum) obtained by organic farming. After harvesting, drying and milling of the ripe fruits, a powder results with dark red colour, aromatic mild taste and almost no capsaicin. The powder material is processed by supercritical CO2-extraction to create the paprika extract. This method is not only compatible with organic certification; it works under gentle conditions and exclusion of oxygen and eliminates any solvent residue problems. CO2-extraction separates carotenes, mainly capsanthin and capsorubin, the most valuable ingredients, as well as fatty oil, some tocopherols and volatile flavours, which are present as trace components. The supercritical paprika extract is standardised with organic sunflower oil to 40,000 cu. corresponding to three percent carotenoids. Furthermore, organic rosemary antioxidant is added, also coming from supercritical extraction. Rosemary diterpene phenols, mainly carnosic acid, have approved stabilising efficacy on the colour, they are healthy and are anti-microbial ingredients at the same time.

Organic certification of the starting material means there is no risk of sudan dyes and other extrinsic colours and of increased pesticide levels. Supercritical extraction on the other hand guarantees the product has extremely low germ counts and meets the stringent requirements of heavy metal residues. Mycotoxin content is controlled to meet legal requirements. Organic paprika extract is therefore a safe product for sensitive, high-grade applications. The extract is most suitable for providing an attractive orange/red hue to organic certified products, independent from the ph-value of the formulation, and widely stable to heat during production. Since total capsaicinoid content is 50 ppm in the paprika extract, this is not only suitable for savoury products, meat, pickles, seasonings, dressings and snacks, but also for coloured fruit, dairy products, sweets and beverages. For more information please visit www.ďŹ&#x201A;avex.com

Largest suppliers of agricultural products to the EU: % of total agricultural Main Trade imports in 2007 Partners Source: Eurostat COMEXT

1 2 3 4 5

FOOD FRANĂ&#x2021;AIS

A study of French eating habits, conducted by the French food agency, AFSSA, has shown consumption changes over the last decade. The French now eat 10 percent more fruit and vegetables, 11 percent fewer sweet foods, 16 percent fewer eggs, 10 percent less meat and 24 percent less milk.

TOP 10

Bread and potato consumption is down seven percent and pasta and rice is up 14 percent. Traditional croissant-like pastries, sweet pastries and biscuits are also in decline (down 13 percent), replaced by ice-cream (up 32 percent) and chocolate (up 58 per cent).

7 8 9 10

Brazil

16%

USA

Argentina

China

Turkey

Switzerland

New Zealand 3%

Indonesia

South Africa

Australia

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UPFRONT COMPANY NEWS

USE YOUR LOAF… USE NOVAMYL Fresh, delicious bread is an impor- baked products over time. Its unique tant element in daily diets through- properties enable bakers to boost their out the world – and consumer tastes profits by reducing both unit costs have been honed to expect a wide and the number of deliveries required variety of quality bread products. to keep fresh produce on the shelf. However, before 1990, bread was Maintaining the crumb freshness of considered a highly perishable com- baked goods is an important qualimodity, quickly loosing crumb firm- ty parameter. Loss of crumb freshness and springiness. This changed ness has a significant negative with the launch of Novamyl, a fresh- financial impact on bakers as stale keeping enzyme from Novozymes returns may account for between that delivers unique bread quality 10-15 percent of production output. This flexibility extends to production whilst extending shelf life. scheduling and distribution, Biotechnology offered enabling manufacturpotential solutions, but Bread ers to cost-save even the suitability of made with a more through exhigh dose of many of the suggestNovamyl is soft panding their mared alpha-amylases ket with longer to prolong bread distribution routes, freshness was limited after baking satisfying customer ordue to their tendency to ders on down days and probe either inactivated too early or remain active after baking. But ducing longer runs. Novozymes is committed to deNovamyl remains stable during gelatinisation temperatures and is veloping new solutions for changing inactivated by the time the bread business needs, fuelled by a belief that leaves the oven. There is also no bio-innovation can improve many danger of overdosing - adding more manufacturing processes by overNovamyl results in an even better coming problems found in existing product. Bread made with a high ingredients and materials. The freshdose of Novamyl is as soft 21 days er bread is, the better it looks, feels and after baking as bread with a low tastes. Using Novamyl enables bakers to offer their customers bread of a sudose after 10 days. Novamyl is the only proven so- perior quality that can be relied upon, lution that extends the freshness of right up until they finish the loaf.

SHAPING UP The EU’s decision to completely scrap its 20-year ban on misshapen fruits and vegetables came into effect on July 1, 2009. Under new rules, 26 types of fruit and vegetables will no longer have specific marketing standards relating to classification, size, shape, development, variety and labelling. Produce such as cabbage, onions, cherries, avocados and courgette can now be sold without restriction. However specific marketing standards

will apply to the 10 most popular fruit and vegetables, including apples, citrus fruit and tomatoes. These will now be labeled as nonstandard. EU agriculture commissioner Mariann Fischer Boel conceded that the rules banning the over-thecounter sale of misshapen fruit and vegetables were long-standing examples of “unnecessary red tape” emanating from Brussels.

21days

For more information please visit www.novozymes.com

FAST FACT

Food and drink producers in the UK may be pouring up to

€186,000

a day down the drain by failing to maximise the potential for water efﬁciency Source: Envirowise

SAFETY GUIDANCE A new guidance document has been published by The European Food Safety Authority (EFSA) which outlines the information that industry needs to provide for the safety of food enzymes to be assessed. According to the document, industry should provide details of the physico-chemical characteristics of the food enzyme and data from toxicological tests. EFSA will then address the safety of the source materials, the manufacturing process and dietary exposure. EFSA produced the guidance following new EU legislation, which aims to establish a consistent process that food additives, food enzymes and food flavourings must

fulfil in order to be approved. This will involve a safety evaluation by EFSA, followed by final approval by the Commission. EFSA said that safety evaluation of food enzymes will start with those already on the market in the EU. After this, an EU list of authorised substances will be drawn up by the European Commission. EFSA will then turn its attention to safety evaluations of new food enzymes. Industry has largely come out in support of a unified approach to assessing enzyme safety, instead of having to undergo separate approval processes in France and Denmark.

Superior elasticity and springiness for high quality bread

Novamyl® has been used by bakeries since 1990 to achieve superior crumb elasticity and springiness in bread. It is a natural freshkeeping enzyme solution that brings a proven quality to bread improvers, helping industrial bakeries raise the quality of their baked goods. Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries, we create tomorrow’s industrial bio-solutions, which both improve our customers’ business and the use of the planet’s resources. For more information, visit www.novamyl.com

Novozymes AD.indd 1

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UPFRONT GLOBAL NEWS

TRANS FAT FREE In December 2006, New York City declared a war on artificial trans fats as the city’s Board of Health announced it would undertake action to phase the artery-clogging fats out of all its licensed eating establishments. Two years down the line and more than 98 percent of restaurants, school cafeterias and street vending establishments had stopped using trans fats for cooking, frying and baking. Since New York's measure passed, more than a dozen jurisdictions, including California, have adopted similar laws and many national restaurant chains have followed suit in cutting trans fats from their menus.

At the G8 Summit in L’Aquila, Italy from the 8-10th July, the leaders of 40 States and International Organisations approved the L’Aquila Initiative on Global Food Security. The aim of the initiative is to invest €14 billion in three years to encourage rural development of poor countries. The decision has been adopted by all of the countries represented in L’Aquila, as well as the G8 and G5 countries, Egypt, Australia, South Korea, Indonesia, Denmark, The Netherlands, Spain, Turkey, Algeria, Angola, Ethiopia, Libya, Senegal, and Nigeria, along with the African Union and all of the International Organisations.

Following the tainted milk scandal last year, Chinese importers of fresh milk, milk powder and whey will have to apply for import permits from the Commerce Ministry from August. The Commerce Ministry also requires Chinese buyers of dairy products to report their cargoes twice a month. In the first five months of this year milk powder imports surged 156 percent mainly from Australia and New Zealand as consumers switched to imported brands. The milk scandal resulted in the deaths of at least six children, according to figures from China’s Dairy Association.

FOOD SECURITY

IMPORT LICENCES

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UPFRONT

GLOBAL NEWS

OVER AND ABOVE

GROSSLY OVERWEIGHT

Brazil will buy as much as 3 million 60 kg bags of export-grade coffee from its farmers in the 2009 season at rates well above current market prices in an effort to force private buyers to pay more to compete for supplies. The agriculture ministry’s crop supply agency Conab has been holding auctions to sell option contracts to producers.

African Americans are 51 percent more obese than white Americans, and Hispanic Americans are 21 percent more obese than their white compatriots, according to new figures from the Centers for Disease Control and Prevention. The findings of the report, which was published in CDC’s Morbidity and Mortality Weekly Report, are fundamental for the food and beverage industry, as it has come under increasing pressure to tackle obesity. The US Department of Health and Human Services (HHS) aims to reduce obesity rates to 15 percent in every state before 2010, but the trend is going the other way: In 1991, no state had an obesity rate of over 20 percent – now only one state, Colorado, has a rate below 20 percent.

Japan’s proposal for a common set of guidelines to promote smooth global investment in agriculture was endorsed by other leaders of the G8 at a summit in July. As the price of grain has rocketed over the past few years, competition to secure food production has gained momentum. This has exposed nations with low food self-sufficiency, such as Japan, to the volatility of the commodities markets. Japan is the world's largest net food importer and wants to establish common rules and promote responsible international investments in agriculture in the face of growing farmland acquisition or ‘land grabs’ in developing countries.

INVESTMENT

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UPFRONT IN MY VIEW

26 WERNER BAUER, Chief Technology Ofﬁcer of Nestlé. Nestlé has always had a very good attitude towards R&D. I remember when I first joined the company 20 years ago, there was a tremendous sense of goodwill towards research and development, a belief that whatever the problem, R&D has the potential to fix it. That attitude has not changed. The greatest challenge in moving from a classical agroconverter company into a nutrition and wellness company was realigning our competencies. We had to transform our organisation into one where we developed high added value products, which meant we had to build up our R&D capabilities transforming even our most basic research facilities. In a blind taste test between our product and the competition our product has to have 60 percent superiority. Ideally we want to be higher than that, but with a minimum 60 percent superiority we can launch that product. Secondly we aim to achieve nutritional superiority. I remember 20 years ago when we first started to talk about functional food and people thought it sounded like moon-food, real sci-fi stuff. Today, people are coming round to the idea that there are certain things that are really good for your longterm health. The longer we live, the more influence food has on our future health. Actually we are reverting back to some of the beliefs our grandparents had about the effects of certain food stuffs. We are increasingly seeing that what works for one person will be different for another. The more we know about human genetics and nutrition the more we are able to help people make decisions about what they should eat. Scarcity of good water, scarcity of good agricultural land, scarcity of certain raw materials. All these factors will lead to the necessity to re-think food production and distribution. We will have to rethink how it’s transported and over what distances. We could see a return to the values of local production and consumption.

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UPFRONT

COMPANY NEWS ORGANIC CONFUSION Market research organisation IGD has concluded that the organic food sector must improve consumer awareness regarding the wider benefits of organic food. Its new research shows that 10 percent of UK shoppers say they have found cheaper products offering the same benefits as organic. The British appear to be confused by organic with eight percent claiming that they are no longer sure what organic stands for. However, 19 percent of UK shoppers said they were maintaining the same level of spending on organic food and nine percent said they intended to spend more when they have the money to do so.

FAST FACT

Japan is the world’s largest net food importer Source: www.mofa.go.jp

CARBON FOOTPRINTS In an attempt to inform consumers about the environmental impact of their products and to convince them to make greener choices Tesco, has begun displaying carbon footprint labels on milk bottles. Before pursuing the initiative Tesco commissioned a survey on green attitudes and found that half of the respondents understood what carbon footprint meant and over half said they would seek lower carbon footprint products when shopping.

The supermarket is starting with milk but plans to extend the scheme to cover 500 products by the end of the year. In the case of milk, the carbon footprint labels reveal that the bulk of emissions come from the agricultural stage, with methane from cows being largely responsible. Tesco spokesperson David North said: “We are currently embarking on a number of research projects to reduce the carbon emissions from milk production. For example, we’re working on using different feeds that might help reduce methane emissions from cows, and encouraging the use of renewable energy on farms.”

PACKAGING UNDER THREAT A new French law, adopted in July by the French National Assembly and Senate, could threaten the efficiency of the supply chain in the packaged goods sector, according to the European Organisation for Packaging and the Environment (EUROPEN). It is feared that the Grenelle law could create new trade barriers in the EU internal market and EUROPEN has called on the European Commission to start EU Treaty infringement proceedings against France. Julian Carroll, EUROPEN’s managing director said: “We have asked the Commission to act promptly in this case to prevent any possible disruption to the internal market for packaging and packaged goods. Having a harmonised EU packaging law is essential to avoid the possibility that goods manufactured in one EU member state may be

prevented from being sold in another simply because of different rules about packaging.” The new law, which limits packaging requirements to those needed for product safety, hygiene and logistics, does not take consumer acceptance or convenience into account. Strict interpretation of the law could lead the French authorities to ban multi-packs; the system of grouping products using an extra layer of packaging to make it easier for consumers to handle the product. Carroll believes that if the law is zealously enforced it could cause a logistical marketing and distribution nightmare for companies which would be required to comply with one set of packaging rules within all EU member states except France where a different, more rigorous set of rules would apply.

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UPFRONT

COMPANY NEWS SLOW RECOVERY The European Union’s statistics office recently announced that France and Germany have emerged from recession following surprise figures that show that both the French and German economies grew by 0.3 percent in the

second quarter of 2009. This has prompted some economists to predict an end to the recession, but others warn that such optimism may be premature, especially in the case of the food and drink industry. Due to the global nature of the industry, senior economists at Wageningen University have warned that it may take longer to recover than other sectors. Experts have said that part of the reason for the encouraging figures is that the automotive industry has begun to show signs of recovery. Car sales are up – but this has been stimulated by government intervention, which the food industry has not experienced. For this reason analysts have predicted that the food and drink industry will emerge from recession some time in 2010.

EXPANDING WAISTLINES A recent German study has concluded that people in financial debt are more likely to suffer from obesity. The economic downturn has lead many households to tighten their belts as far is spending is concerned forcing people to change their dietary habits. The results of the study have added to concerns that healthier foods are more expensive than energy-dense foods of low nutritional value, which results in limited access to healthy, fresh foods for those who have less money. The researchers, led by Prof Eva Münster of the University of Mainz, found that on average individuals in a lot of debt were younger,

less-educated with lower incomes. The results showed that 25 percent of 949 study participants who were in debt were medically obese compared to 11 percent of the other 8318 study participants who weren't. The conclusions echo debate in the United States where unhealthy food is currently much cheaper and more affordable than healthy food. The same is true of water in comparison to sugary drinks. Obesity problems in the US are expected to rise as levels of debt increase. Lowering prices to increase the availability of healthy foods could be an effective public health strategy, the researchers suggested.

SUGAR CRISIS The EU in particular is beThe price of sugar on world markets has soared 80 percent this year coming increasingly reliant on imto its highest level since the early ported sugar as domestic 1980s, prompting a coalition of US producers have been given incenfood manufacturers to warn of a tives to cut production. As a result pending shortage and to ask the manufacturers in Europe are now US Agriculture Department to more directly affected by the world sugar price and will see their profits ease quotas on imports. The coalition compromises squeezed by the current hike in some of the biggest names in food prices. Sugar producers have vigorproduction, including Hershey Co., Kraft Foods Inc., Mars Inc. and ously defended attempts to Unilever United States Inc. and re- change the rules, claiming that increased quotas could cently penned a letter to US push prices below Agriculture Secretary the cost of proThomas Vilsack, The price duction and warning of “unof sugar on world markets has soared drive them out precedented shortof business. ages.” They claimed The impact that without higher this year on confectionery quotas on sugar immanufacturers will not ports, “consumers will pay be universal as their use of inhigher prices, food manufacturing jobs will be at risk and trading pat- gredients varies widely. Sugar prices may be soaring along with terns will be distorted.” Analysts have blamed the cocoa, but ingredients such as milk record prices on the late arrival of and peanuts are at low levels, which monsoons in India, investor may balance out the cost. Analysts have said that the speculation, and lack of investment. Increased demand has also gloomy outlook of big food combeen blamed on the fact that so panies is really part of a larger effort much sugar is going into ethanol to pressure the government into dismantling sugar trade barriers. production.

80%

FAST FACT Tesco employs

286,394 people in the UK, which is almost twice as many as the British Army (173,920)

Source: Tesco & Defence Analytical Services and Advice (DASA)

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UPFRONT COMPANY NEWS

THE “MILKY WAY”

FACTS & FIGURES

Danish company Poul Tarp A/S has been developing systems for milk collection tankers for 30 years. Today they deliver a range of tem. Identification of the farmer proven products – a complete is normally done via an elecconcept – which allow the dairy tronic key or via GPS. Thanks to the IT system – to monitor and control the entire “Milky Way” starting from called MTC – the person responsible for the milk collecthe storage of the milk in tion at the dairy has a the farm vat, to the lot of tools and milk collection and possibilities at transport, to the Poul Tarp A/S is their disposal. final delivery of Data can be the raw milk for committed to the listed, sorted further processfuture and to improvand transferred ing at the dairy. ing all aspects of milk collection to the payment A system on a program; the supplimilk tanker for meaer database can be mainsuring the amount of milk and collecting the data can be tained; routes for the trucks can quite simple. Firstly, installation be generated, maintained and of a flow metre and an air elimi- sent to the trucks via the key or nator is a step in the right direc- via GPRS. In other words you tion. Further to this equipment, can get an overview of your milk a computer for displaying the collection at every stage. During the collection of measured amount and a printer for printing receipts will normal- milk, a sample can be taken for ly be installed. The computer further testing at the laboratory. controls all data equipment on The sampler is automatic and takes a representative sample. the milk tanker. Poul Tarp A/S is 100 perThe next step is to transfer data electronically either via an cent committed to the future electronic key or via GPRS for and to improving all aspects of automatic transfer to an IT-sys- milk collection.

100%

1.02 billion people do not have enough to eat - more than the populations of the USA, Canada and the European Union

5,000 people die every day from hunger and related causes

For more information regarding Poul Tarp A/S visit www.tarp.dk

The number of undernourished people in the world increased by 75 million in 2007 and 40 million in 2008, largely due to higher food prices More than 60% of chronically hungry people are women

65% of the world’s hungry live in only seven countries: India, China, the Democratic Republic of Congo, Bangladesh, Indonesia, Pakistan and Ethiopia Source: FAO

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UPFRONT COMPANY INDEX

LISTERIA ON THE UP According to the UK’s Food Standards Agency, cases of listeria have doubled in the UK over the past nine years and much of the increase can be attributed to people over 60 years old. The food safety watchdog has claimed that elderly people are more susceptible to contracting the infection by eating foods that are past their ‘use by’ date. The potentially deadly bacteria claims the lives of one in three of those who get food poisoning from out of date food products. Listeria can live and grow in a wide range of food – chilled ready-to-eat food in particular – for example pâté, cooked sliced meats, certain soft cheeses

and smoked fish. The agency said it was particularly concerned that 40 percent of elderly people said they would eat dairy products up to three days past their ‘use by’ date. In June the FSA launched a campaign specifically targeted at older people as part of its annual Food Safety Week. Issues such as following storage instructions on food labels, ensuring fridge temperatures are between 0°C and 5°C and observing ‘use by’ dates were all key themes. FSA chief scientist Dr Andrew Wadge said: “The rise in listeria food poisoning among older people is worrying. Listeria can make people very ill and 95 percent of cases end up needing treatment in hospital.” The FSA’s concerns were echoed by Environment Minister Hilary Benn who warned that the current food labeling system is confusing and results in people throwing away more than half a million tonnes – worth €11.5 billion – of perfectly edible food every year. As part of his war on waste, Benn suggested revisions be made to the labeling system by potentially phasing out the display-until and sell-by dates, which often serve only to confuse consumers. The FSA said best-before and use-by dates were still required under European law but it too wanted to clarify the food labeling system for consumers.

DON’T MISS...

50 ADDED VALUE Maryse Hervé on the safety of food additives

COMPANY INDEX Q3 2009 Companies in this issue are indexed to the ﬁrst page of the article in which each is mentioned. 3S Packaging Technology GmbH 11 AcryliCon 134 Agriflex 2, 3 Arla Foods 40 Bayer Health 49 Biomin 106, 109 Bruker Optics13, 18 Bühler AG 4 Cadbury 32, 72, 140 Carrefour 136 Casino 136 CFS BV 124, 125 Coca Cola Enterprises 72 Confederation of the Food and Drinks Industries of the EU 72 Creation Flooring 135 Danone 72 DEFRA 72, 136 Delavel 77 Divine Chocolate 32 Domino’s Pizza 140 DSM Nutritional Products Ltd 16, 17 Dupont Qualicon 94, 95 Einar Willumsen 62 ELC 50 E.LeClerc 136 European Association for Animal Science 118 European Feed Manufacturers’ Federation 120

European Food Safety Authority 50, 58, 88 European Organisation for Packaging and the Environment 72, 136 Evonik Degussa GmbH 28, 82, 83 Fairtrade Foundation 32 Fiberstar Inc 145 Flavex 20, 21 Food Additives and Ingredients Association 58 Food and Drink Federation 72 Food Standards Agency 50, 58, 142 Fresh Del Monte Produce 114 Frost & Sullivan 123 GPAllied 126, 127 Heinz 72 Hipra 106, 110 Horphag Research 52, 53 International Dairy Foundation 78 International Federation for Animal Health 96 Intralox 128, 129 Jonge Poerink Conveyors BV 128, 131 Jungbunzlauer 70, 71 Kelloggs 72 Kraft 72 Lipid Nutrition 60, 61 Marks & Spencer 136 Mars 72, 140 McCain Foods 72 Munters Europe AB 98, 99

Nestlé 32, 72, 136 Novozymes 22, 23 Obipektin AG 62, 69 Poul Tarp A/S 30, 81 PepsiCo 140 Petro-Canada 54, 55 PPM Technologies UK 128, 133 Prattley 100, 101 Provimi IBC, 106, 112, 113 Raycome International Corp 86, 87 Sainsbury’s 72 SGS 39 Shell Lubricants 9, 56, 57 Smithfield Foods 44 Soil Association 142 Solanic 62, 67 Starbucks 32 Unilever 72 Tesco 136 The Solae Company 62, 64 Uncle Ted’s Organics Ltd 7, 84, 85 Walkers 72, 136 Walmart 136 Waters Corporation 92, 93, OBC World Organisation for Animal Health 96, 102

72 SUSTAINING THE FOOD CHAIN How the food and drink industry is stepping up to the challenge of sustainability

114 THE MAN FROM DEL MONTE Mohammad AbuGhazaleh on Del Monte’s continued success

COVER STORY With major companies like Starbucks and Cadbury now on board, the Fairtrade movement is gathering momentum. Huw Thomas asks if its commitment to social justice and sustainable development can survive a close relationship with big business.

eâ&#x20AC;&#x2122;re all socially responsible these days. Issues that were once purely the preserve of activist groups are now creeping inexorably into the mainstream. The challenges of climate change, barely acknowledged a few decades ago, are now a key priority for political and business leaders alike. As consumers we have become considerably more concerned about the origins of the products we buy. We want to know where things come from, how they are produced and whether or not they are sustainable. The Fairtrade movement has been at the forefront of this wave of ethical consumerism. Coalescing out of a collection of Non-Governmental Organisations (NGOs), it now encompasses 21 labelling initiatives across the world. These initiatives aim to provide shoppers with the reassurance that the money they spend on Fairtrade labelled products will actually benefit the people who produced them. The Fairtrade Foundation, the UK arm of Fairtrade Labelling Organisations International, describes its vision as: â&#x20AC;&#x153;To transform trading structures and practices in favour of the poor and disadvantaged. By facilitating trading partnerships based on equity and transparency, Fairtrade contributes to sustainable development for marginalised producers, workers and their communities. Th rough demonstration of alternatives to conventional trade and other forms of advocacy, the Fairtrade movement empowers citizens to campaign for an international trade system based on justice and fairness.â&#x20AC;? 32 www.nextgenerationfood.com

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GOING BANANAS

ananas have traditionally been a big Fairtrade product. Nonetheless, the decision by UK supermarket Sainsbury’s to use only Fairtrade sources for its supply was a bold one, and it certainly seems to have paid off for the retailer. Following the change, Sainsbury’s banana sales have risen by 10 percent. “That strikes me as a pretty strong commercial message that Fairtrade could work for the farmers, but it could also work for the companies,” says Harriet Lamb, Executive Director of the Fairtrade Foundation. “That’s because the public do embrace it and are ready in some cases to pay more, obviously for a more premium product. But in other cases, companies are seeing how they can make it completely mainstream and not pass the price increase on to the customer but take that hit themselves.” However, others arguee that the mutual benefits aren’t as clear cut ass n they can at first appear. “A lot of the burden ,” on Fairtrade is dumped on the poor farmer,” t’s says Trent University’s Gavin Fridell. “What’s happening is that for a few extra cents, farmers have to jump through more and more hoops for certification bodies for a relatively modest increase to their income. It might be a necessary increase in the sense that maybe otherwise they’d go bankrupt. But it’s not an increase that has given them a healthy, thriving life.” Fridell goes on to say that some Caribbean farmers he spoke to were actually getting paid less under Fairtrade than they were previously. He also shares a particularly worrying statistic about the current health of the industry. “In St. Vincent in the Grenadines, 90 percent of the farmers are certified Fairtrade,” he says. “But that’s only after 85 percent of them have gone bankrupt and left the industry. They’ve gone down from 7855 to 1151 banana farmers, a decline of 85 percent since the early 1990’s.”

It’s an ambitious philosophy. Even in an increasingly in ethical world where every organisation i has its own corporate social responsibility b strategy, it is still the bottom line that generally has the last word. Supportive statements come cheap. Any changes that might directly affect profitability remain subject to the strictest scrutiny. But perhaps we are approaching a point where the ambitions of Fairtrade campaigners and the corporate imperatives of big food producers fi nally dovetail. The growing commercial value of the Fairtrade brand and genuine concerns over the continuing sustainability of food supplies suggest that this might be the case. There is no denying that Fairtrade is on the rise. Cadbury’s announcement that it is to use only Fairtrade cocoa and sugar in the manufacture of its Dairy Milk chocolate is a clear validation of the value now placed upon the Fairtrade brand. The new ethically labelled bars hit shop shelves in July, increasing the total UK market for Fairtrade by 25 percent at a stroke. There can be little doubt that the move was made chiefly for business reasons. “Fairtrade as a consumer mark has very high levels of consumer awareness,” says Alex Cole, the chocolate maker’s Global Corporate Aff airs Director. “We would hope that through our involvement we will actually raise that awareness and we’ll also raise the understanding for Fairtrade.” For Harriet Lamb, Executive Director of the Fairtrade Foundation, the Cadbury decision is just the latest affi rmation of Fairtrade’s commercial worth. “I think it sends quite a powerful message that Fairtrade

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is clearly what the public are asking for,” she says. “A company like Cadbury would not be taking an interest in Fairtrade unless they were absolutely sure through extensive research, focus groups and consumer testimony that it was what the public wanted and indeed had been asking them to do for years now. They tested the concept with a wide spectrum of the public. Clearly they’re sure that it’s going to work with the public, but it’s also going to work with their brand values.” In addition to the goodwill generated by the Fairtrade label, Cadbury also has clear operational reasons for embracing the concept. “The original driver was around supply chain sustainability,” Cole explains. “If we don’t have the beans, we can’t make the bars, and there was for us a long-term view that we needed to invest more in our cocoa sustainability.” It’s a view that Lamb supports and something that ties into the long-term value that more ethical trading practices can bring for food producers. “What’s interesting about the Cadbury move is that they’ve been very clear from the beginning that it also works for them from a supply chain point of view,” she says. “I visited Ghana together with the Cadbury team, including CEO Todd Stitzer. We met cocoa farmers, and it was shocking to see the poverty of many of the farmers upon whom whole supply chains depend. They are worried that their sons don’t want to grow cocoa; that they’re leaving for the cities and drift ing around unemployed because they see no future in it. Obviously Cadbury depends on cocoa farmers to grow the cocoa to make the chocolate. So they also saw it as a sensible investment to make in the future of the company.” Cadbury is not the only major food producer moving towards Fairtrade. Last year Starbucks announced that all espresso coffee in its UK and Ireland stores will soon come from Fairtrade sources. By the end of 2009, its aim is to source all Starbucks coffee either through Fairtrade or the company’s own Shared Planet scheme. This forms part of a global plan that will see Starbucks become the biggest buyer of Fairtrade-certified coffee in the world, purchasing 40 million pounds annually.

Compromising situations On the face of things, more big corporations jumping into Fairtrade should be good news. Nonetheless, there are fears that the increasing involvement of big business might also have negative effects. Gavin Fridell, Politics Professor at Trent University, Ontario and author of Fair Trade Coffee: The Prospects and Pitfalls of Market-driven Social Justice, believes that the fundamental disconnect between the Fairtrade philosophy and the commercial ambitions of multinational enterprise could lead to big problems. “Fairtrade’s origins are in the NGO sector, and amongst development organisations, church groups, indigenous groups, peasant organisations and so on,” he says. “It’s not like a corporate top down initiative. But the bigger it’s becoming, the more it’s becoming a victim of its own success. The more that these corporations get on board, the more challenges that is raises for Fairtrade, because these corporations have fundamentally different visions of what Fairtrade is. They have a different objective for how they’re going to use Fairtrade than the conventional or historical partners that we might think of.” Harriet Lamb dismisses such concerns by pointing to her organisation’s stringent certification standards. “The reason the public can trust the Fairtrade mark is because we trust no one,” she says. “We will check. We check the producers, the big companies and the small companies.

TRADING UP Despite the global economic downturn, 2008 was an extremely good year for Fairtrade

% % Sales of Fairtrade tea grew by 112

percent, coffee by 14 percent and bananas by 28 percent Consumers spent roughly

€2.9 BILLION

on Fairtrade products worldwide Global sales increased by

Fairtrade coffee sales increased to

22 percent

66,000

overall

tonnes

Sales grew by at least

50 percent in seven countries, including Finland (57 percent), Germany (50 percent), Norway (73 percent) and Sweden (75 percent)

www.nextgenerationfood.com 35

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You have to work quite hard to achieve the Fairtrade mark. The public can trust it because there are clearly defi ned standards.”

Pretenders to the throne However, it can be possible to obey the letter of the law without necessarily embracing the spirit. Fridell is concerned that business sees Fairtrade as little more than a branding exercise and that it neglects the educational message at the heart of the movement. The term ‘ethical fig leaf’ is one that crops up fairly often, acknowledging that certain companies’ commitment to Fairtrade sourcing can seem a little lightweight once you start to peer behind the headlines. Nestlé, no stranger to criticism as a result of its sometimes controversial business practices, has its own brand of Fairtrade labelled coffee. While this can be seen as a step in the right direction, it is also possible to argue that the global giant is co-opting the goodwill engendered by Fairtrade to improve its image in a climate of growing socially conscious consumerism. This perception is only reinforced by the fact that the company actually sources less than one percent of its coffee from Fairtrade-approved suppliers. Fairtrade’s standards are undoubtedly solid and can make a huge difference to the lives of producers, but ques-

FAIRTRADE: KEY PRINCIPLES Minimum price This is the minimum price that a buyer must pay to a producer organisation for their product. It is not ﬁxed, but should be seen as the lowest possible starting point for price negotiations between producer and purchaser. It is set at a level, which ensures that producer organisations receive a price that covers the cost of sustainable production for their product. It also acts as a safety net for farmers at times when world markets fall below a sustainable level. However, when the market price is higher than the Fairtrade minimum, the buyer must pay the market price.

Premium The Fairtrade premium is a sum of money paid on top of the agreed Fairtrade price for investment in social, environmental or economic development projects, decided upon democratically by producers within the farmers’ organisation or by workers on a plantation. The premium fund is typically invested in education and healthcare, farm improvements to increase yield and quality, or processing facilities to increase income.

Standards To qualify for the Fairtrade mark, producers must satisfy a number of criteria. These include social, economic and environmental development benchmarks designed to protect farmers and the land they work on.

tions remain over who gets the most out of the relationship when global corporations with shaky ethical records are able to associate themselves with the brand, despite such fractional involvement. In fact, the combination of Fairtrade’s marketing success and its rigorous certification process might even account for a rash of imitators that have sprung up in its wake. Labelling initiatives like the Rainforest Alliance and numerous corporate buying programmes, such as Starbucks’ Coffee and Farmer Equity Practices (CAFE) guidelines, seek to tap into the growing ethical consumer market, but under their own terms. While Fairtrade’s principles grew from its focus on individuals and communities, these later programmes approach the issue from a very different direction. “The Rainforest Alliance has some interesting environmental standards,” says Gavin Fridell. “I don’t think these things need to be trashed, but at the same time, their labour standards and their social standards are very vague and unclear.” Rainforest Alliance certified coffee was developed in conjunction with Conservation International, a corporate-driven NGO that counts companies like Exxon, BP, Coca Cola and Rio Tinto among its backers. In place of the grassroots relationships with independent producers that Fairtrade cultivates, the Rainforest Alliance does much more business with plantation owners and industrial-scale farmers. Self-certification schemes such as Starbucks’ also pose problems. In 2006 the coffee giant self-certified 53 percent of its beans through the

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Over

7.5 million

people in 59 developing countries beneﬁt from Fairtrade

CAFE programme. It’s a headline-grabbing figure. In the eyes of casual observers it could appear that Starbucks’ system is a direct equivalent of the Fairtrade programme; however, closer examination reveals some major differences.“Fairtrade standards are minimums,” Fridell explains. “Everybody who is Fairtrade certified needs to meet all the basic criteria. With the Starbucks criteria you get an overall score, which means you don’t have to meet all the standards. The higher your score is, the closer you are to being a preferred supplier.” A more detailed look at the figures throws up some interesting facts. Of the 53 percent of farmers certified by CAFE only 19 percent were considered ‘strategic suppliers’, meaning that they scored 80 percent or higher. Twelve percent were ‘preferred suppliers’, with scores between 60 and 79 percent. The remaining 69 percent were designated ‘verified suppliers’. “All that we know about verified suppliers is that they scored less than 60 percent, but they have to obtain a 10 percent improvement next year,” Fridell continues. “At university, less than 60 percent is less than a C.” Because of the way the Starbucks scoring system is structured, it is possible for suppliers to become verified while almost completely ignoring certain key social indicators, such as freedom of association and collective bargaining, access to education, access to medical care, and worker safety and training. While it wouldn’t be fair to say that these more corporate responses to Fairtrade have no positive impacts for the producers involved in them,

there is the risk that so many competing ethical marketing initiatives could create confusion in the minds of consumers, to the detriment of true Fairtrade principles. Once again, Harriet Lamb expresses her confidence that the Fairtrade brand is strong enough to withstand these challenges. “If you compare the level of knowledge and recognition, the Fairtrade mark is head and shoulders above any other ethical label,” she explains. “What’s unique about Fairtrade is that there’s not only a level of consumer recognition, it’s also a people’s movement. People up and down the country are ready to knock on the doors of their supermarket and ask them to start Fairtrade. They talk about it in the local school or at their workplace or in the town hall.”

Real results Amid the to and fro on the fi ner details of Fairtrade, it is possible to lose sight of the concrete benefits it can bring when properly applied. Unlike its larger peer Cadbury, Divine Chocolate is 100 percent Fairtrade certified. In addition, the company is co-owned by Kuapa Kokoo, the Ghanaian cocoa growers’ collective that produces every bean used in its

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products. The nature of this relationship has led to significant advantages for both sides. “Being 100 percent Fairtrade is mainly a business advantage,” says Divine’s Head of Communications Charlotte Borger. “It emphasises the integrity of our business at a time when the companies behind brands are under more scrutiny than before. The fact that Divine is 45 percent owned by our Fairtrade cocoa suppliers is what truly sets us apart in our market. Consumers understand that there are much greater benefits to be had through company ownership than purely from receiving the Fairtrade deal. They like the idea of farmers being able to share in the wealth they’ve helped create.” The rewards for the 45,000 cocoa farmers who make up Kuapa Kokoo are impressive. They receive a minimum of €1134 per tonne of cocoa, supplemented with the Fairtrade premium of €106 per tonne, which they can invest in their own community projects. In addition, two percent of Divine’s turnover goes to Producer Support and Development (PS&D) to help with training, maintaining the cooperative’s principles and democratic processes. Finally, they get a distributable profit share for their 45 percent stake in the company. It all adds up. For 2007-2008 the premium totalled €179,779, PS&D came to €287,050 and profit share was €38,967. But it isn’t all about money. “Kuapa Kokoo has a very progressive programme of women’s empowerment,” says Borger. “Th is has led to women taking leading roles in their communities and being voted onto the National Executive, which is now comprised of more women than men for the first time. Company ownership has meant that farmers have learned much more about the industry future is one that really resonates. Perhaps they are part of. Many have been to visit it is the strength of emotion engendered the UK and US and have seen firsthand by these successes that makes the issue how popular their chocolate is. Th is news of increasing commercial involvement so has been fed back to the entire organisacontentious. As Fairtrade seeks ever larger tion, giving them a real pride in their trading partners to help spread its message, cocoa and their own company.” is that message going to be drowned out by It is results like this that are at the the noise of conventional capitalist imHarriet Lamb, Executive Director, heart of the Fairtrade philosophy. The peratives? “We’re not just consumers,” says Fairtrade Foundation image of people empowered with a real Gavin Fridell. “One of the major goals of stake in their own business and their own Fairtrade was not just to get people to buy the coffee but to actually say to them, look how unjust the coffee industry is. The new corporate partners don’t have that educational mission. In fact, I would argue they have the exact opposite mission, that they bring in often a token amount of Fairtrade, depending on the company we’re talking about, and use that as a marketing tool.” For Harriet Lamb though, any such concerns are outweighed by the positive impacts association with big corporations can bring. “We’ve shown that it can work,” she says. “It can work for producers and it can work for consumers. Therefore it can also work for companies. We now have to take it to volume if we’re going to really make a difference. The farmers are queuing up. I hope that companies across Europe will look at the successful start taken by both 100 percent Fairtrade companies like Divine and also organisations like Cadbury and Starbucks that have put their weight behind Fairtrade. I hope that this sends a very powerful message that it’s possible to do the right thing, but to do it in a way that works for their company too. We absolutely need to have more companies on board in order to meet the needs of the farmers overseas.”

“It can work for producers and it can work for consumers. Therefore it can also work for companies”

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FEATURE

t l i p S milk

The past year has been pretty tough for dairy giant Arla Foods. CEO Peder Tuborgh explains that rather than dwelling on past troubles, the company has its eyes ďŹ xed on better times to come.

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or Peder Tuborgh recent times have been unusually challenging. Earlier in 2009 he unveiled Arla Foods’ plan to

save €134 million – a restructuring exercise that will see it slash 250 jobs across its operations worldwide. The move followed the news that the company has been forced to drop its milk price amidst plummeting dairy consumption worldwide: “There’s nothing good to say about this,” admits Tuborgh. “It has to be done, unfortunately. It’s a very tough programme and we will be taking away a significant number of projects that are not commercially orientated in the short-term. We will achieve this by turning every stone in the company.” And there will be a lot of stones to turn. Arla Foods is one of the key players in the international dairy industry with production facilities in 12 countries and sales offices in 20 countries. Its products, which include major brands Lurpak, Anchor and Castello are distributed around the globe and its core markets include Denmark, Sweden, the UK, Finland, Germany and Poland. Focussing on short-term profit is the only way to prevent further deterioration of the company’s situation which saw it achieve profits that were €46 million below budget in 2008 – meaning the supplementary payment to Arla’s co-operative members has dropped to €0.003 per kilo of milk. The effect on them has, says Tuborgh, been the most difficult effect of the financial downturn for him to witness: “The worst part is the milk prices we are seeing. It’s very low, historically low, and I see that it’s hurting our farmers and they are struggling. To me that is the worst part.”

The bigger picture Despite the fact that 2008 ended on a sour note for the dairy giant, it still forged ahead with the its growth strategy, unveiled earlier in the year, which focuses on innovation, core markets in the North Hemisphere and expanding new markets in Russia, the US and China. As part of its strategy to grow market share in the core market of Northern Europe, the company is in the process of acquiring dairy products producer Fresh Nijkerk from Dutch rival FrieslandCampina. A 10-year licence agreement has also been signed for the use of the Friesche Vlag brand of products for 10 years in the Netherlands. The deal will significantly strengthen Arla Foods’ presence in Northern Europe, says Tuborgh: “This is a very important step for Arla Foods. It makes the Netherlands a core market for our company and we believe that we have a lot to offer the Dutch consumers. It’s perfectly in alignment with our strategy to become the preferred provider of dairy products,” he goes on to say. The deal includes the acquisition of the popular Fresh Nijkerk brands Breaker, Milk&Fruit, Kwarkyoghurt and Melkunie. Within its existing portfolio however, Arla plans to consolidate its products into three globally recognised brands, Castello, Lurpak and products branded under the Arla name itself. This strategy is aimed, says Tuborgh, at creating greater brand impact for the company’s products and strengthening its marketing activities: “We think that with those three brands we will be able to focus on marketing activities but also create a more visible and greater brand impact for the consumers where we choose to operate. We have numerous brands and I think too many times there is the spreading of marketing resources across the board.”

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Arla aims to slash carbon dioxide emissions by 25 percent by 2022

Arla Foods’ products are tested four times during the production process

The decision to market products under the Arla banner itself also reflects the company’s wish to strengthen its presence outside its established markets in Northern Europe, as Tuborgh explains: “We have done so [used Arla as the main brand] in Denmark and Sweden which are our two original markets. But outside of those markets, Arla has not had a dominant brand positioning – maybe apart from in Germany. But we are refocusing and reshaping the Arla brand. We have very good ideas of the values that we want to associate with the brand and the kinds of products that we want to deliver for consumers under that brand.”

Taking responsibility As part of its branding efforts and in a bid to persuade cash-strapped European consumers to spend more on higher quality dairy products, Arla

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Foods has launched its ‘Closer to Nature’ campaign. This is part of the company’s aim to become the world’s most natural dairy company, which will involve reducing its use of fossil fuels, using natural fertilisers, improving its animal husbandry practices and working to improve the sustainability of the company’s packaging: “We are focussing on Lurpak, Castello and Arla as brands with the headline ‘Closer to Nature’ which we think is the right position for our brand,” says Tuborgh. “It’s all about natural products and environmentally friendly procedures throughout our production and distribution processes. It’s a major programme that we are running at the moment in order to align and adjust our assortment [of products].” Describing how the company plans, in particular, to improve the sustainability of its operations, Tuborgh says: “We’re aiming to reduce our carbon dioxide emissions by 25

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Scenes from Arla Foods’ television advertisements

Since the damaging incident Arla has introduced new testing procedures at the facility where production of milk powder has resumed. Tuborgh says: “We [Arla Foods and Mengniu] were definitely hurt by the melamine scandal. I think we handled it correctly and ethically. We pulled back our products immediately and we’ve set up an extremely thorough testing procedure with our partners where we test our products four times throughout the entire production process. This happens when the milk arrives, whenever it is transferred through the dairies, when it goes through production and when it’s being prepared for distribution. We’re also labelling the products directly onto the packaging to inform customers that our products are tested and safe to consume.”

“The worst

part is the milk

prices we are seeing. It’s very low, historically low, and I see that it’s hurting our farmers and they are struggling” Peder Tuborgh Surviving controversy percent going up to 2022. That’s throughout the whole value chain. We are looking at transport, using biofuels and providing education for people driving the vans and collecting the milk. We are better planning our routes to minimise the distances driven and we are investing €25 million in environmentally friendly technology alone.” Arla foods’ increased focus on brand and reputation building follows a period of controversy for the company, during which it become embroiled in China’s melamine contamination scandal last year. At the time production at the factory of its Chinese joint venture partner Mengniu Dairy was stopped temporarily after milk powder produced there tested positive for melamine contamination.

Having survived the melamine crisis and, in 2006, a mass boycott of Arla Foods’ products across the Middle East, Peder Tuborgh has proven himself to be a CEO with the backbone to see his company through a crisis. The latest storm blowing Arla’s way could however prove to be the most challenging yet. Turborgh admits that this is a stressful and “emotional” time for him and his management team with some tough decisions to make. However, he says, seeing the impact his decisions make on the company he runs is one reason why, for now, he’s staying put no matter how tough things get: “The best part of the job for me is to be close to the impact of the decisions that I make or participate in making. And of course I have very good people around me which I enjoy every day.”

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IN FOCUS

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Prevention is obviously better than cure. Stacey Sheppard asks what needs to be done to prevent future outbreaks of zoonotic diseases such as swine ﬂu.

hen the World Health Organization (WHO) raised the pandemic alert to the maximum classification of phase 6, signalling that transmission of swine flu between humans had become widespread in at least two regions of the world, the questions on everyone’s lips were how to prevent further human-human transmission and how to treat those infected. However, as the old adage goes, prevention is better than cure, so the questions we should be asking are what actually caused the outbreak in the first place and how can future incidences be prevented? The emergence of the H1N1 virus in Mexico and the United States in March and early April of this year marked the first influenza pandemic of the 21st century as the virus rapidly swept through 177 countries (as of 21st August 2009). The first victims of the virus were inhabitants of a small Mexican village named La Gloria, in the state of Veracruz. Suddenly an accusatory finger was pointed at an industrial-scale swine facility situated near La Gloria, as the local residents expressed concerns over the operations of Smithfield Foods, an American firm and the world’s largest pig processor. When 60 percent of the town became ill in March with flu-like symptoms they blamed the pigs – something which Smithfield Foods was quick to deny. But as leading scientists, organisations and industry experts also attribute blame to factory farming, the argument has gained more credibility.

From farms to factories Animal agriculture has undergone dramatic change over the past few decades. Today’s industrial-scale factory farms aim to be more cost-efficient whilst growing more in less space and utilising technology in place of labour. Concentrated Animal Feeding Operations (CAFOs) have exploded in popularity throughout developed nations. With a food crisis looming and a burgeoning global population, which is set to peak at 9.2 billion by 2050, it is not difficult to understand why intensive farming has become so popular. There has been an astonishing transformation in the world’s meat-eating habits too, which has drastically increased demand for meat products. The population is now more carnivorous than ever before: the British now consume 50 percent more meat than 40 years ago, and Americans eat more meat products on a per capita basis than anywhere else in the world. However, the profound change that animal farming has undergone has brought with it risks and challenges that pose important threats to animal welfare. Over the past 60 years the distribution of pig production has become more clustered, resulting in highly concentrated swine populations. This increases the risk of transmission between farms. Many of these industrial farms are also sited close to local populations, which are adversely affected by the environmental problems caused.

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Most of the environmental impact of Industrial Farm Animal Production (IFAP) stems from the enormous quantities of animal waste. In such volumes the ability of the landscape to absorb nutrients and neutralise pathogens is severely compromised. Excess nutrients often find their way into the water system, and air quality degradation is also an issue due to the localised release of toxic gases and odorous substances. The severe overcrowding also has animal welfare implications. With the majority of US pig farms now confining up to 5000 animals, they become ideal incubators for disease in which pathogens can spread freely. This overcrowding leads to a highly stressful environment for the animals, which suffer from reduced immunity as a result. The high infectious disease rate associated with intensive farming, coupled with the reduced immunity of the animals, leads to what some would call a “promiscuous” use of antibiotics, where farm animals are given a constant flow of medicine to keep diseases at bay and to promote growth.

BETTER LATE THAN NEVER

However, rather than ameliorating the situation, vaccinations may actually exacerbate it by creating new, vaccine-resistant strains. In a study conducted by the Pew Commission on Industrial Farm Animal Production it was concluded that one of the most significant public health issues associated with IFAP is its contribution to the increasing crisis of anti-microbial resistance worldwide. Whilst the techniques used in industrial farming have increased the productivity of animal agriculture, they have also created a number of unintended consequences, most notably the growing concerns for public health.

Piggy in the middle From time immemorial animals have been the source of pathogens that cause disease in humans. According to the World Organisation for Animal Health (OIE) approximately 60 percent of existing human pathogens can be traced back to animals. Pigs in particular are uniquely susceptible to infection

Why was the Pew Commision report commissioned and what was the outcome? The Pew Trust board decided that they wanted to take a look at the impacts of intensive industrial farm animal production. It’s the ﬁrst and only comprehensive look at industrial farm animal production that I’m aware of. We developed 24 primary recommendations, 12 of those in the areas of public health. Our number one recommendation for public health was to ban the non-therapeutic use of giving healthy animals daily low levels of antibiotics to compensate for the poor waste management and overcrowding in the system.

Robert Martin, former Executive Director of the Pew Commission Industrial Farm Animal production

How was your report received? The report was very well received by the incoming Obama administration. It was sent to all state governors and leaders of all state legislatures in the United States. But I think changes come slowly. We didn’t really expect all that much movement in an election year. But we are pleased that people are ﬁnally paying attention to our report. It was frustrating from the standpoint that we had talked about this concern in April of 2008 and no one paid attention. The report was over a

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with flu viruses of human and bird origin. Often described as ideal “mixanimals from infection by confining them indoors. However, scientists ing vessels”, pigs can serve as intermediaries in the transmission of flu have shown that intensive farms actually increase the likelihood of virusviruses from birds to people. When avian viruses infect es spreading, mostly due to the sheer number of anipigs they become more efficient at infecting humans. mals involved and the fact that CAFOs are not But pigs can also act as hosts in which two or more inhermetically sealed environments and pathogens can “Scientists around fluenza viruses can undergo a genetic reassortment, creenter and exit in a number of ways. the world have ating a new type of influenza virus. The novel H1N1 Predictable pandemic? pandemic we are experiencing today is a triple hybrid voiced their For years now, leading scientists around the pig-human-bird influenza virus. concerns regarding world have voiced their concerns regarding the posOnce zoonotic diseases arise in industrial farming fathe possibility that sibility that these pathogens could easily infect hucilities they provide both occupational health risks and these pathogens mans and lead to a global pandemic. Evidence from community health implications. Local workers and local could easily infect previous outbreaks of swine flu and other virulent residents are susceptible to contracting viruses. zoonotic diseases led to concerns amongst the scienIt is often assumed that modern, intensive farming humans” tific community, which seem to have gone largely unpractices ensure high levels of bio-security, protecting heeded. “Classical” swine flu was discovered in 1931 as an H1N1 virus related to the avian flu virus, which infected a third of the world’s population and claimed the lives of approximately 50 million peoyear old before it got a lot of attention, but there has been a ple in the 1918 human influenza pandemic. We then passed this virus on renewed interest due to the flu pandemic. to pigs where it has continued to circulate. Then in 1998 a new virulent form of the flu virus was discovered on Do you think swine flu is the result of poor practices in the a pig farm in North Carolina. The triple reassortment virus now contained developing world? a mixture of pig, bird and human viruses. As near as we can tell, the way it got into the human population Scientists have known for some time that epizootic diseases are cawas in Mexico. But I think it’s actually a flu virus that started in the pable of jumping the species barrier, but this was considered a rarity until United States in 1998 when there was an outbreak in North recently. In 1986 BSE, commonly known as mad cow disease, was offiCarolina amongst workers at a Smithfield facility. It’s the style of cially recognised in the UK. It is presumed that the scrapie agent, which production that’s the problem. It’ll happen wherever it’s located, had been present in sheep for the past 200 years, jumped species and whether it’s the United States, Mexico or elsewhere. moved into cattle when sheep offal was included in protein supplements. In 2005 the H5N1 avian influenza virus hit causing widespread panic. Would a reduction in the number of intensive industrial farms help H5N1 infections in humans are generally caused by bird to human transto decrease the possibility of future outbreaks? mission of the virus via saliva, nasal secretions and faeces. Rather than decreasing the number of farms it is more likely to be Despite the evidence from past cases of zoonotic infections and the improvements in the way they are run. In the United States we warnings from industry experts, little notice seems to have been taken. are looking to change the way we produce food animals, Following the 1998 outbreak of swine flu in North Carolina, Dr. Robert following what the European Union has done by banning the Webster, one of the world’s leading experts in flu virus evolution, blamed routine use of antibiotics. They have, in Denmark in particular, the virus on “recently evolving intensive farming practices in the USA, of found that they can use dramatically lower amounts of raising pigs and poultry in adjacent sheds with the same staff,” a practice antibiotics if they clean the pens better and ventilate the barns he referred to as “unsound”. better and give the pigs a little bit more space so they’re not so over-crowded. www.nextgenerationfood.com 47

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A Belarussian veterinarian gives a vaccination to pigs at a hog farm 360km south-west of Minsk in the village of Vnuchki In 2003 virologists warned that swine flu was on “an evolutionary fast track, churning out variants every year”. Richard Webby, a molecular virologist at St. Jude Children’s Research Hospital in Memphis, Tennessee, said that the evolving swine flu “increases the likelihood that a novel virus will arise that is transmissible among humans”. In 2004 the American Public Health Association called for a moratorium on the construction of new industrial animal farms until more scientific data had been collected regarding the risks.

Guidelines for change However, these warnings have not come without advice on how to best address the conditions that allow pigs to become breeding grounds for infectious disease and how to prevent further swine flu outbreaks in the future. For the most part the advice offered involves more focus on preventing pathogens getting into the human population in the first place, and this means starting at the farm. Animal welfare starts with good husbandry practices. Farmers must ensure that there are optimum conditions for their livestock, which includes: temperature, humidity, clean air and bedding, light, clean water, adequate diet, and enough space for walking and resting. Many of these conditions are not met in the confined environment of industrial farming. Improvements also need to be made in bio-security to ensure that animals remain free of infectious disease. This not only involves awareness regarding the introduction of people, vehicles, pets and newly purchased animals, as well as issues such as waste management, but also awareness regarding the siting of IFAP facilities in order to protect the health of the animals and those who live near the facilities.

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The OIE has stressed the need to broaden the role of veterinary services to include areas of activity that focus on public health outcomes and the control of risks along the food chain, as well as the welfare of animals. It is necessary to improve the capacity of official veterinary services to rapidly detect, diagnose and control animal diseases. In its 2008 report, the Pew Commission on Industrial Farm Animal Production highlighted the need to reduce the non-therapeutic use of antibiotics in farm animals.

Nature bites back The recent crisis may have appeared to come from nowhere, but on closer examination it appears that swine flu was circulating for many years in the pig population before it was detected at the time of the outbreak. Industry experts had been expecting it, so why did it come as such a shock and why weren’t we ready for it? Many fingers have pointed at a lack of surveillance and monitoring. Despite widespread surveillance of influenza viruses in humans, there is a distinct lack of systematic swine surveillance, which allowed for the undetected persistence and evolution of this pandemic strain for many years. Man created the ideal conditions for the creation and spread of this virus, but nature has bitten back, and recent events demonstrate that good surveillance is needed in order to detect early on when new infectious agents have emerged. Unfortunately, however, conditions in many countries are not conducive to the required levels of surveillance. Take Mexico – a developing country that lacks the capacity, public health infrastructure and possibly political will to fully monitor and contain livestock diseases. The current swine flu pandemic may have originated in Mexico, but developing countries are merely jumping on the bandwagon, trying to follow developed nations into the age of industrialised farming.

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ADDITIVES

Maryse Hervé of the ELC talks to us about the safety of food additives, educating consumers and the role of science in regulatory procedures. Is a growing consumer interest in organic and more ‘natural’ food having an impact on the food additives space? Does the situation present particular challenges? Maryse Hervé. The lack of trust from consumers regarding food additives is rather contradictory. On the one hand, they expect convenient, appetising, tasty foods with long shelf lives, and on the other hand, they reluctantly accept that additives may be necessary to produce food that meets these criteria. Even with organic food, you must bear in mind that additives are used and this is allowed by organic legislation. A recent study by the FSA concluded that there are no important nutritional or dietary benefits in eating organic food. This is interesting, and if it helps to change the perceptions of consumers it will certainly be a benefit.

MH. It’s illogical, but for consumers E-numbers mean risk. When E-numbers were created, the initial intention was to demonstrate that substances marked with E-numbers were approved only after research and assessment. I believe that consumers have a clear understanding of the role played by additives and the main challenge is actually a marketing one. The question is how we reverse the poor image of food additives. I strongly believe that the current trend for clean label foods – those containing few E-numbers – is a very short-term view.

Do you think consumers have a clear enough understanding of the role played by additives in modern food production? What needs to be done to clearly communicate the beneﬁts that they bring?

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Do you think that producers and other stakeholders in the industry should come together and work collaboratively to change this image and educate consumers? MH. Absolutely. I see at least three levels of action to clearly communicate with consumers. Firstly we need to communicate very clearly that E-numbers are safe. The industry should not be left alone – there should be very strong support from the legislators. Secondly, the additive industry should not only communicate on a business-to-business level. We have to learn how to promote our food additives to consumers and decision-makers. Thirdly, I believe that the public authorities, the additive industry and the food industry as a whole should apply responsible marketing procedures regarding clean labels. When people see products labelled as without preservatives and additives this reinforces in their minds that additives are not healthy. It’s a vicious circle. Obviously safety is a big issue for people. So whenever new additives or preservatives do get released, they must undergo stringent checks.

years for approval. It's a very a long process, which is not very transparent and may appear cumbersome. What are your general impressions of the regulatory framework for additives and ingredients in Europe? Is there scope for improvement in any particular areas? MH. We have seen no significant improvement with the new regulations on food additives that were adopted on 31st December 2008. But the new system is expected to speed up the approvals for new additives, compared to the former one. There are great expectations from the food industry, because in formal legislation the European Parliament has to be consulted for approval of new additives and for use of permitted additives in new food applications. In this new procedure, the European Parliament will have very limited involvement.

“EFSA could become the bottleneck

this rapid procedure because without

While the safety of all food additives and ingredients is of paramount importance, do you believe the system for approving products is efﬁcient enough? MH. Generally speaking, I think it is, but it is a two-step process. Firstly, a risk assessment is carried out by the European Food Safety Authority (EFSA). This is science-based, independent and pretty credible. Secondly, risk management is carried out by the European Commission in cooperation with member states. The risk assessment requires a very comprehensive approach. There are guidelines for the risk assessments of food additives, and these guidelines are constantly reviewed to take account of state-of-the-art scientific assessments in the field. In addition, food additives are undergoing a re-evaluation. This started a few years ago with colours and it’s continuing with preservatives. This shows that there may be risk for consumers. In this case acceptable daily intake (ADI) may be reduced and conditions of use of an additive may be restricted. Some products may also be prohibited, as was the case in 2007 with the colour Red 2G. But I do believe that the system in place is efficient enough to guarantee safety.

conclusions on the safety

of an additive,

there is absolutely no way to progress with authorisations”

How long can it take, in your experience, to get something approved? MH. The last time that food additives were approved was in July 2006. In the meantime, there have been new additives, new authorisations and new conditions of use of permitted additives, which have been safety evaluated by EFSA and still there is nothing on the table except the proposal to have these new additives adopted soon, meaning that they could be on the market by end of this year or early next year. It can take three, four, or five

Finally, all future acts regarding additives will now be regulations, which means that they will have immediate effect in the 27 member states instead of having to be a directive, which requires transposition in all member states before the additives can be launched on a national market. There is definitely room for improvement regarding EFSA’s work. We are very concerned that EFSA will not cope with the new nine-month deadlines imposed by the legislation. As a result EFSA could become the bottleneck in this rapid procedure because without conclusions on the safety of an additive, there is absolutely no way to progress with authorisations. This is not a criticism of what EFSA is doing, but with such a large workload I think it might be hard for them to cope. The creation and production of additives is an extremely science-intensive process. Do you think that science is sufﬁciently employed by regulatory bodies when determining the safety of new products? MH. All risk assessments carried out by EFSA are science-based, but there is potential for politicisation of some risk management decisions. A good example is colours in the Southampton study. We were worried about it because the EFSA opinion stated very clearly that the study suffers from several scientific shortcomings and cannot be used as a basis for changing the ADI. This means that there is no scientific justification for a change of policy. Nevertheless, the risk manager decided to put warning labels on products that contained one of the six colours, as they may have an adverse effect on activity and attention in children. We thought that this undermined EFSA’s credibility because its conclusions were overlooked. That sets a very dangerous precedent. Maryse Hervé is Secretary General of the Federation of European Food Additives, Food Enzymes and Food Cultures Industries (ELC).

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Leading by example It’s up to trailblazing companies to set the food regulation agenda, says Victor Ferrari of Horphag Research.

n this day and age, regulation and research go hand and hand in the functional food sector. Without proprietary safety and scientific data, a company should be unable to market and sell a food and beverage ingredient. However, one would be surprised at the number of questionable ingredients that make it through the system just to be sent into exile years later from a lack of any real proven health benefits. It’s really up to individual companies to lead by example. The good news is a handful of companies represent the ‘gold standard’ in the food ingredient industry and set a stellar example with their sizeable portfolios of research and intellectual property. These companies are aided by stricter global regulations which positively benefit companies who focus intently on research, quality and safety data. To provide you with background on our company, Horphag Research is the exclusive worldwide supplier of Pycnogenol brand French maritime pine bark extract. Over the last forty years, we have invested in scientific research and today Pycnogenol is one of the most evidencebased health ingredients in the industry with over 230 scientific publications confirming its quality, safety, non toxicity and clinical efficacy. Pycnogenol research spans the fields of cardiovascular and circulatory health, inflammation, joint and skin benefits among others. With such

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versatile health benefits, it’s a priority for us to for us but for many other companies in this function within the global regulatory agency arena. However, there is a large and a very imguidelines framework and we have been proactive portant positive effect too. Products will be in initiating the steps to obtain affirmative health scrutinised for their quality and the value of claims in different geotheir provided research. graphic regions. Over the Keeping in line with our last 10 years we have seen commitment to science and steady double digit growth innovation, when you invest every year relating precisely heavily in research and proto our advancements in the vide consistent and transfield of published research. parent communication on It is fair to say that growth is your results, you establish generated by credible sciencredibility in the markettific data. place. This is true not only There are different sets of with our customers, but also legislative structures in the with consumers who we Victor Ferrari, Chief Executive Ofﬁcer of Horphag Research, countries we have a presence routinely reach out to with is responsible for overseeing worldwide operations and is in including the United States targeted educational caminstrumental in driving (FDA), Europe (EFSA), Korea paigns. Our goal is to congrowth and expansion of the company through their and Japan, and we comply vey research messages on ﬂagship ingredient, Pycnogenol. He continues the with each set of laws and file Pycnogenol to the press and company’s commitment to for a proprietary health claim public and raise awareness. science and innovation and recently was awarded Frost & when the opportunity arises. Through this process, we Sullivan’s North American Health Ingredients Excellence It’s important to note have won their confidence in Research Award. that EFSA is moving towards and established strong credtransparency and taking ibility of the Pycnogenol steps to issue revised technical guidelines to brand. In the future, we will continue to bridge apply for health claims under Article 14. The futhe gap between regulation and research and ture of many food products seems to be facing a see demand for Pycnogenol grow. Ultimately, challenge by the current health claim regulait will be the educated consumer who will seption. Obviously the challenge is huge, not only arate the wheat from the chaff.

Horphag AD.indd 1

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INDUSTRY INSIGHT

Food grade lubricants: they’ve come a long way Implementing food grade lubricants without sacriﬁcing performance or increasing operating costs. By Colleen Flanagan

n order to ensure food product safety, many food processors have adopted or are in the process of implementing the Hazard Analysis Critical Control Points (HACCP) system. The HACCP system requires that points where lubricants and food products could come in contact during various manufacturing processes must be analysed for potential hazards. For these processes, H1 food grade lubricants and greases should be used in equipment such as hydraulic systems, pumps, mixers, tanks, chain drives and even seaming units to reduce the risk of incidental contamination by nonfood grade lubricants. There are many misconceptions when it comes to food grade lubricants, including: • Food grade lubricants do not last as long as non-food grade lubricants; • Food grade lubricants do not protect equipment as well as non-food grade lubricants; • Using food grade lubricants adds significant costs to operations; • For tough applications, only non-food grade lubricants can be used; • All food grade lubricants are the same. Th is article will look at proper food grade lubricant selection and key criteria to consider during the selection process for major applications. These criteria can be evaluated using standardised laboratory tests.

Food grade hydraulic ﬂuids When selecting a food grade hydraulic fluid, here are three key properties to consider. Fluid Life – Oxidative & Thermal Stability: resistance to oxidative and thermal breakdown keeps systems free of sludge and varnish to ensure smooth and reliable operation of hy-

separators, as well as storage tank and lines, which ultimately lowers maintenance costs. Rust and Corrosion Protection: fluid that provides rust and corrosion protection can extend compressor life, resulting in reduced downtime and possible repair savings.

Food grade gear ﬂuids When selecting a food grade gear fluid, here are four key criteria to consider. Load Carrying Capability and Wear Protection: higher load carrying capability prevents seizure, scuffing and spalling, even under shock loading conditions. Life of the Fluid – Oxidative and Thermal Resistance: keeping gearboxes free of sludge and varnish results in longer fluid life and reduced downtime, even at high temperatures and in the presence of water and acidic contamination. Resistance to Foaming and Air Entrapment:

“There are many misconceptions when it comes to food grade lubricants” draulic valves and actuators. Wear Protection: a hydraulic fluid should protect metal pump parts from scuffi ng and scoring, and reduce overall maintenance costs by extending the life of the hydraulic system. Resistance to Foaming and Air Entrapment: a hydraulic fluid should prevent reservoir overflow and eliminate ‘sponginess’ from hydraulic systems and damage caused by pump cavitations.

Food grade compressor ﬂuids

When selecting a food grade compressor fluid, here are four key criteria to keep in mind. Fluid Life – Oxidative & Thermal Stability: for a compressor fluid, resistance to oxidative and thermal breakdown guards against oil thickening, and deposit and sludge formation. It also extends fluid life, which saves on costly change-outs, downtime and oil disposal costs. Wear Protection: protection Colleen Flanagan is Category Manager (Food Grade Lubricants) against wear will extend the at Petro-Canada. She has over 20 time between compressor years of experience in the oil and lubricants industry, the majority of overhauls and reduce overall which has been in the downstream sector with Petro-Canada. For maintenance costs. Low Oil more information please visit Volatility: lower oil carryover www.lubricants.petro-canada.ca also reduces sludging and deposit formation in air-oil

foaming and air entrapment resistance prevents reservoir overflow and gear damage caused by insufficient lubricant film due to aeration. Resistance to Contamination: a gear fluid should provide rapid separation from water.

Food grade greases When selecting food grade grease, there are four key criteria to keep in mind. Resistance to Lubricant Breakdown in Harsh Operating Environments: food grade grease should maintain consistency and lubrication in the presence of food acids, juices and by-products. Effectiveness Across a Wide Range of Temperatures: food grade grease should not run from bearings operating at high temperatures, yet should remain pumpable at low temperatures. Load Carrying Capability and Wear Protection: food grade grease should prevent seizure, scuffing and spalling under shock loading conditions. Rust and Corrosion Protection: food grade grease should prevent bearing, gear and equipment damage in moist or wet operating conditions. When selecting food grade lubricants, it is important to work with your lubricant supplier. Start by explaining your operating issues to fi nd a solution that will decrease your overall operating costs.

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PetroCanada.indd 54

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14/8/09 15:20:15

EXECUTIVE INTERVIEW

Smooth talking Eddy Stempfel of Shell Lubricants answers some frequently asked questions on food industry lubrication issues. What is the difference between H1 and H2 lubricants? Eddy Stempfel. Lubricants are mainly classified as either category H1 or H2 depending on their composition and intended application. Both categories must contain non-toxic ingredients and are designed to help food processors improve plant hygiene and food safety by reducing the risk of chemical contaminants. H1 lubricants are deemed suitable for incidental, technically unavoidable contact with food and beverage products. They must be developed using ingredients approved by the US Food and Drug Administration (FDA) in its 21 CFR 178.3570 or Generally Recognised As Safe (GRAS) guidelines, which includes polyalphaolefins, linear, random polyalkalene glycols and some synthetic base fluids like silicones and perfluoroalkylethers. H1 registration certifies lubricants as indirect food additives as long as they do not exceed the maximum permitted level of 10 parts per million (one ppm for silicone oils) in foodstuff. They are often applied throughout machinery components where there is a highrisk of lubricant contact with food including gearboxes, pumps, chains and conveyors. H2 lubricants are deemed fit for use in equipment and applications where there is no risk of lubricant contact with food or beverage. The lubricants do not need to include 21 CFR 178.3570 listed ingredients, but must comply with Section 5.1 of the NSF Registration Guidelines which prohibit the use of carcinogens, mineral acids, mutagens, odorous substances, teratogens and any intentionally added heavy metals. There is no global legislation covering the use of H1 and H2 lubricants, but it has become industry standard to promote their use as a minimum in the correct applications. Through our work with some of the sector’s leading original equipment manufacturers and customers around the globe, Shell Lubricants has noticed a growing trend of operators completely switching to H1 lubricants. This decision is being driven by two factors; a growing aware-

ness that it is almost impossible to guarantee incidental lubricant contact will not occur in supposedly lower-risk areas and the fact that the vast majority of synthetic H1 lubricants can significantly outperform their mineral oil based (or standard) H2 counterparts. To meet this market demand Shell Lubricants has developed its H1 approved synthetic food grade lubricant range, Shell Cassida. The lubricants are formulated using a range of synthetic additives and base fluids to ensure they are colourless, tasteless and odourless. As well as minimising the risk of food contamination (in accordance with the US FDA’s maximum permitted level for NSF H1 lubricant contact), Shell Cassida provides fit-for-purpose viscosity and oxidation at a range of high and low operating temperatures and loads. If a company is planning on upgrading to a higher performance lubricant, how can it ensure it gets the best from this new product given the extra initial expenditure? ES. Selecting the correct lubricant for an application and investing in a high performance product can go a long way to reducing these risks, but to ensure that the very best is achieved from the investment, a proactive and informed approach to lubrication management needs to be implemented. Once the correct lubricants are selected, Shell can help monitor the effectiveness of products and provide accurate and timely information on the condition of the oil and equipment using its Shell LubeAnalyst service. Focused on simplicity and a quick diagnosis, Shell LubeAnalyst involves the site operator taking oil samples and sending them off to a Shell laboratory for analysis where a detailed diagnostic report is produced. Regular oil analysis can save time and maintenance expense by highlighting the presence of contaminants or product degradation along with early signs of mechanical wear.

“There is no global legislation covering the use of H1 and H2 lubricants, but it has become industry standard to promote their use as a minimum in the correct applications”

Eddy Stempfel is Product Application Specialist and Local Research and Development Team Leader, Food and Beverage Sector, at Shell Lubricants.

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Shell.indd 56

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Shell Cassida value engineering + food safety =

How?

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Pieter van de Schepop Tel: + 31(0) 655 125 975 Email: pieter.vandeschepop@shell.com

DESIGNED TO MEET CHALLENGES

14/8/09 15:22:32

ADDITIVES

THE RIGHT

CHEMISTRY Richard Ratcliffe tells NGF about the challenges posed by legislation and the possibility of a global regulatory framework.

dditives are one of the most misunderstood elements of the food industry. Media panic over E-numbers and building public interest in ‘natural’ food obscure the fact that additives are an essential element in making the food we eat safe, palatable and affordable. For Richard Ratcliffe, Executive Director of the Food Additives and Ingredients Association, the confusion about the role of additives has big impacts both on how they are approached by regulators and consumers. The additives business is one that has to deal with a heavy and often changing legislative burden. Europe in particular provides a steady stream of new rules and regulations. “The most significant piece across the last couple of years is Food Improvement Agent Package (FIAP),” says Ratcliffe. “That bound together all the previous additive legislation,

the emulsifier legislation and enzyme legislation, flavour legislation into one package and updated a significant quantity of it in the process. All additives have to go through a 10-year cycle review session with the European Food Safety Agency. That all got wrapped up in it as well. But the FIAP was really a way of making it simpler.” While Ratcliffe emits a wry chuckle at the thought of this supposed simplification, he acknowledges that the legislation may have some lasting benefits. “I suppose in the long run it will do, in terms of making further changes down the road. But it was a significant piece of business for our members,” he continues. “The short term is a lot of work to get everything revamped and to comment on all the minor changes they’re making. But it will hopefully make it more expeditious for changes over coming years because of a simpler framework.” Asked about his general impressions of the regulatory framework in the European Union, Ratcliffe admits it is broadly effective, but not without its faults. “There’s got to be a system of course, and we strongly

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support that,” he says. “The system we’ve got in Europe now is as good as we could expect it to be. Of course with Europe you’ve got the European parliament and you’ve got the European commission to organize all the day-to-day stuff at the behest of their political masters. They’re like the civil service of the European government. In summary we’re probably as close to something workable as we’re ever going to get. We work with the framework. You can’t work against it.” A key concern for Ratcliffe, as for many in the additives business, is that decisions be taken based purely on science rather than by consulting the court of public opinion. “If you look at the situation which occurred with the colours in the so-called Southampton study a couple of years ago the Food Standards Agency took a very pro-consumer view after the consumers had been stirred up by sensationalist reports in the media,” he says. “The FSA then sort of went along with all that thinking and started beating the industry around the head over it, ignoring the fact that all of these additives had been tested for safety over many, many years. The whole thing got skewed in the wrong direction. So I think we could see a more supportive pro-industry stance from the Food Standards Agency.” Ratcliffe suggests that the FSA’s more consumer-focused attitude might be attributable to perceptions of its predecessor, the Ministry for Agriculture, Fisheries and Food (MAFF). “The old wisdom was that MAFF was too pro-industry,” he says. “That was always the view. I personally didn’t subscribe to that and thought they were generally very fair minded. But the consumers always felt that MAFF was in the industry’s pocket. I think that the FSA set its stall out to move away from that perception by the public.” The issue of regulation in a global market place is something that can cause a few headaches. Ratcliffe explains that European authorities are currently trying to move Europe’s regulatory system closer towards the international Codex Alimentarius standards, but that a world with one unified regulatory system remains fairly distant. “There’s about four or five major overlaying regulatory regimes of food ingredients and food additives,” he says. “In some cases there’s a 90 percent overlap in common ground, but it’s those funny 10 percent differences which have an impact on international trade. We’ve had all sorts of strange situations over the years with boatloads of biscuits being turned back from being sent to Japan because there was one impurity in one ingredient which the Japanese didn’t like. The utopia would be an international harmonisation, but I think we’re some way off that.”

GOING SOUTH

One of the most significant events to hit the additives industry in recent years, the 2007 Southampton University study into supposed links between certain food colourings and hyperactivity in children is still a source of controversy. The study took 153 three-year-olds and 144 eight-year-olds living in the city selected from the general population to represent the full range of behaviour, from normal through to hyperactive, and not for any previous behavioural problems or known sensitivities to particular foods. Over the course of six weeks the children were given one of two mixtures of food colours and benzoate preservative, or just fruit juice – with all the drinks looking and tasting identical. The children were then observed in a number of different ways to determine any changes in their behaviour. Research leader Professor Jim Stevenson said: “We now have clear evidence that mixtures of certain food colours and benzoate preservative can adversely influence the behaviour of children. There is some previous evidence that some children with behavioural disorders could benefit from the removal of certain food colours from their diet. We have now shown that for a large group of children in the general population, consumption of certain mixtures of artificial food colours and benzoate preservative can influence their hyperactive behaviour.” The study led the UK Food Standards Agency to recommend an EU ban for the additives. However, critics of the study dispute its findings pointing to shoddy reporting and a lack of transparency in exactly how the study was administered. According to David Pineda of the International Alliance of Dietary/ Food Supplement Associations: “While the Southampton study suggested links to hyperactivity in children, EFSA concluded that the study provided limited evidence and that the study’s findings could not be used as a basis for altering the acceptable daily intake (ADI) of the respective food colours.” Two years later, the debate rumbles on.

All additives have to go through a 10-year cycle review session with the European Food Safety Agency

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reported. Therefore it can be concluded that CLA has been on the EU market as a safe and suitable ingredient for more than a decade and before the entry into force of the EU Novel Food Regulation 258/97 on 15 May 1997.

“Clarinol CLA is safe for use as an ingredient at levels up to approximately three to six grams per day”

SEEKING APPROVAL Jaap Kluifhooft of Lipid Nutrition gives us an insight into the current regulatory position of clarinol CLA

overnmental bodies are, understandably, extremely cautious about allowing the inclusion of any kind of new ingredients in items meant for human consumption. The approval process is always a long one, even for products, which are 100 percent vegetable in origin, such as Clarinol CLA. Conjugated linoleic acid (CLA) is the term given to a group of positional and geometric isomers of octadecadienoic acid. The conjugated double bonds (i.e. the two double bonds are separated by one single bond) can be present in either the cis or trans configuration and are present predominantly in positions nine and 11 or 10 and 12. CLA-rich oil like Clarinol is a food-grade preparation derived from processed safflower oil and contains a 50:50 mixture of these two isomers. Clarinol CLA reduces body fat mass and increases lean body mass contributing to improved

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shape in specific regions of the body and thus enhancing weight control. The effective dose of CLA is 1.7 g -3.4g/active isomers CLA per day. In May 2007, a panel of qualified experts concluded, based on a critical evaluation of the scientific information, that Clarinol CLA is GRAS, when meeting appropriate food grade specifications and produced by consistent and current good manufacturing practice. Clarinol CLA is safe for use as an ingredient in certain foods within the general categories of soy milk beverages, meal replacement beverages, meal replacement bars, flavoured milk products, filled milk, yogurt products and fruit juice products at levels approximately up to three to six grams per day. The conclusion from the Expert Panel that Clarinol CLA is GRAS, was approved by the FDA in July 2008. Clarinol CLA has been commercially available on the food ingredients (supplement) market since 1996, with no adverse health effects

The publication of the General Food Law (178/2002) and the Food Supplements Directive (2002/46) in 2002 resulted in extensive discussions between EU Member States on the legal implications of the Food Supplements directive in relation with the Novel Food Regulation. This political discussion ended with an opinion of the EU Standing Committee on 14 February 2005 that the use of foods and/or food ingredients in the EU exclusively as, or in, food supplements would not be considered to be “a significant human consumption” within the meaning of the Novel Food Regulation. To clarify this uncertain regulatory situation in Europe for CLA, a novel food – registration would be necessary. For that reason a novel food file was submitted in 2007 in Ireland. In May 2008, the Irish FSAI delivered a positive opinion on Clarinol CLA. The Irish opinion has been sent to the European Commission and the other EU Member States and is currently being discussed in EFSA. A final conclusion by the European Commission and Member States will probably be reached in early 2010. Just like in the USA, this will enable existing and new product developments in Europe in this commercially interesting area

Jaap Kluifhooft is Director, Regulatory Affairs at Lipid Nutrition. He is a professional in regulatory affairs and has a broad knowledge of international food legislation and the politics behind these rules.

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the highest concentration of the two specific CLA isomers, c-9,t-11 and t-10,c-12, that have been identified as being helpful in: • Reducing the amount of body fat • Increasing lean muscle mass

Clarinol CLA can prevent absorption of fats from the bloodstream and enhance fat breakdown in muscle cells—leading to a reduction in body fat and an increase in lean muscle mass.

Additionally, Clarinol™ CLA has also been shown to reduce the side effects from a low calorie diet such as skin rashes, irritability, depression, and hair loss. Clarinol™ is a natural source of CLA and is ideal for your food products for many reasons:

• Clarinol™ CLA allows your company to incorporate a healthy fat and has been excluded from the definition of trans fatty acids by the U.S. FDA (68 FR 41461-41462, July 11, 2003) Discover the exciting potential of Clarinol™ and how this patented CLA can boost both your sales and your bottom line. For more information, please contact Lipid Nutrition at: +31.(0).75.629.2911.....................................Europe +1.815.730.5200.............................. North America +603.89.47.8888................................... Asia/Pacific or visit www.Clarinol.com and www.LipidNutrition.com

• Your choice of clear, golden oil or powder triglyceride forms specifically developed to function in taste-sensitive foods

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ROUNDTABLE

The

Essential Ingredients

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Consumers are showing increasing awareness regarding food safety and the importance of healthy eating. NGF talk to Jan Grøndal of Einar Willumsen, Michele Fite of Solae, Solanic’s Frank Goovaerts and Simon Cuthbert of Obipektin to ﬁnd out what role R&D plays and how it enables ingredient providers to react to market developments. The panel

Jan Grøndal has an MBA from AVT Business School, an MSc in Food Science and a PhD in Food Chemistry and Food Technology. In 2008 he was appointed CEO for the ﬂavour company Einar Willumsen. Prior to his current position he held various positions at Carlsberg, Lundbeck, Aqualon, Hercules Inc, CP Kelco ApS and Einar Willumsen. Dr. Grøndal is chairman for the Danish Flavour Organisation and a member of the IFT and several other professional organisations.

Simon Cuthbert is Managing Director of Obipektin AG. He has been involved in the food ingredients business for over 15 years in a number of operational and commercial roles. Prior to joining The Natraceutical Group, the parent company of Obipektin, he has worked internationally in both business-to-business and business-to-consumer food companies with products ranging from natural ﬂavour ingredients through to pickled onions.

Michele Fite is Vice President, Global Strategy and Marketing of Solae, LLC. She is currently a member of the Global Executive Leadership Team and provides leadership on the overall direction and global strategy of Solae. She holds a BA from the University of Oklahoma.

Frank Goovaerts holds a degree in Industrial Engineering and Agriculture and obtained an MBA from a US University. He has been employed by Unilever and has held a variety of positions in Marketing and Business Development. In 2006 he started at AVEBE as Director of Commerce of Solanic, a subsidiary of AVEBE. AVEBE is a world leader in the processing of potatoes for various types of potato starches. Solanic produces and markets potato proteins.

Any breaches in food safety can have grave effects, both for consumers and the businesses that supply them. What steps do you take to ensure that your products are free from any contamination? Jan Grøndal. All issues regarding food safety are handled in our Hazard Analysis and Critical Control Points (HACCP) and quality systems. We monitor our suppliers and require all necessary documentation from them. In addition, we take random samples for analysis to further ensure the quality and safety of our raw materials. This is to minimise the risk of contaminated material entering our factory. In the event this does happen, despite these precautions, we have a fully automatic traceability function in our ERP system and we have detailed recall procedures. For all lots produced in our plant, we can conduct forward and backward traceability analysis. In other words we can immediately find out which customers have received a specific batch produced by our company and we can, at the same time, immediately find out which specific lot numbers of raw materials have been used to manufacture the products. This forward and backward fully automatic traceability allows us to react very fast in certain situations and take the necessary actions – such as recall if needed. Michele Fite. Product quality is paramount to our customer’s success, and our promise to them. Research shows that end-consumers are concerned with the source of their food and manufacturing practices used in food processing. Traceability, Good Manufacturing Practices (GMP) and brand trust are some key areas for Solae. Solae sets the industry standard in traceability of its soy ingredients. We can tell you where our raw materials were grown and purchased. We can also provide documentation of every step our materials take through the manufacturing process, including the safety measures used throughout the value chain.

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Solae continually invests in programmes, equipment and expertise to strengthen and improve our overall quality and safety programmes. The single most critical danger to a brand’s success is poor quality. Solae believes that our customers can only build a trusted brand by using suppliers who have the same expectations of quality and product safety. Frank Goovaerts. Solanic is an ingredient supplier rather than end-product producer. Using a new process Solanic isolates potato protein out of raw potato fruit juice. The juice is obtained following starch extraction by parent company AVEBE. The process is exceptionally benign – no harsh chemical treatments are used, which all helps to conserve the high functionality and purity of the resulting isolates, which are typically 92-95 percent protein on dry matter.

“Research shows that end-consumers are concerned with the source of their food and manufacturing practices used in food processing” MICHELE FITE

Solanic has access to exclusive technology to maintain the finished ingredient specification. For consistent microbiology, pasteurisation is utilised and novel separation technology is deployed to ensure low glycoalkaloid levels, well below defined EU limits. Trace contamination also works in favour of product opportunities. From the end of 2010 EU wine producers will need to provide a label declaration for allergenic clarifying proteins such as fish, dairy or egg (and pork gelatin is unacceptable for halal or kosher reasons). Solanic proteins perform well in wine clarification – they are kosher approved and hypoallergenic so no label declaration is required. The principle of clarification similarly extends to fruit juices and beers. Simon Cuthbert. In addition to supplying ingredients to all of the world’s major food manufacturers, Obipektin is proud to be the first choice supplier of baby and toddler food ingredients for many of the world’s leading producers of infant nutrition products. Performing at a consistently high level in this arena is critical to our business and minimising food safety risk underpins everything that we do. Raw materials are critical to our success and through our network of direct, contracted growers and carefully selected processors we have established a very secure and reliable supply chain. We carry out our own surveillance audits on our raw material suppliers from around the world to ensure consistent high quality and traceability is maintained within our supply. Once the raw materials are in-house, as either fresh fruit, juice concentrate or puree, they are processed into our range of spray, drum or vacuum dried powders, with every step of the process carried out according to our Swiss quality philosophy. Furthermore, Obipektin AG meets all the requirements to sell its products in accordance with GMP and is constantly supervised by the Official Swiss Food authorities. We operate our own in-house analytical and micro-

biological laboratory which itself is externally accredited according to ISO 17025:2005. All products by Obipektin AG are produced based on a defined HACCP concept, which is standard with food ingredient manufacturers. Obipektin is accredited and certified by SQS in Switzerland to both the International Quality Management System ISO 9001:2000 and to The Food Safety Standard according to BRC at the highest grade achievable – grade ‘A’. We live in a world that changes rapidly. How important is it that ingredient providers are able to react quickly to developments in the market? MF. As a 50-year industry leader in science and technology innovation, Solae is committed to helping food manufacturers protect their brand by providing products and services that meet or exceed customer expectations. The company also invests in consumer surveys and market research in order to understand consumer likes and behaviour. This commitment to science and innovation has resulted in numerous new product concepts and over 100 patents, more than any other soy protein provider. Solae was the first to bring many innovative technologies that allowed food companies to use soy protein in their applications. There have been many groundbreaking milestones in Solae’s long history: we were the first to introduce isolated soy protein for infant formula and medical nutritional applications; the first to introduce soy fibre for nutritional beverage and bar applications; the first to introduce soy crisps enabling the slab form nutritional bar category; and we were first to understand the complex ingredient interactions in extruded products. FG. Food ingredient policy in mature markets is mediated largely by retailers – that means the person to whom you propose a new product line – and their ability to interpret corporate policy. In turn this demand has to be interpreted by producers in partnership with their ingredient suppliers. UK retailers are increasingly adopting a ‘kitchen cupboard’ approach to ingredients – if it’s not familiar to the stereotypical ‘housewife’ purchaser, then they prefer not to accept it. So ‘out’ go chemicals and E-numbers, which were originally designed to protect consumers by providing precision to the label identification system.

“The lifetime of consumer products continues to get shorter and the demand from retailers for new products continues to get higher” SIMON CUTHBERT

However, the present economic strain is softening this policy as low recipe cost becomes predominant for a time. But when the present stress is over and conditions improve, further ‘clean label’ progress is a given, which is still in premium products. Solanic’s contribution here is to provide an all-natural GM-free vegetal ingredient, sourced from potato, that is both hypo-allergenic and supports a

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‘clean label’ on-pack declaration. Consequently, Solanic proteins are ideal in functional applications for vegan and vegetarian products. SC. The lifetime of consumer products continues to get shorter and the demand from retailers for new products continues to get higher. Coupled with this pressure is a growing influence of world tastes having an influence on local markets, perhaps due to increased tourism or advertising. These factors necessitate that ingredient producers such as Obipektin AG are structured in such a manner that they are able to predict and respond to changing demands very quickly. Therefore, in addition to a culture of challenge and creativity, fast and effective communication between sales, marketing, purchasing and product development teams is considered a very important factor in our success at Obipektin AG. JG. As a supplier of taste it is critical always to be at the front end of any new development in the marketplace. This includes new taste trends, new health trends and of course the everlasting need for optimisation. This was always the case in the more than 100 years of history of Einar Willumsen, but it has become more and more evident in recent years. Everything happens faster than only ‘yesterday’ and a new trend in one part of the world translates to other parts in no time. Due to the internet, consumers are aware of such new, interesting trends and they expect accessibility to new products as a result. This is, on the one hand, a huge challenge, in particular for a regional company like Einar Willumsen, but on the other hand, provides a huge opportunity for new business – as it is always faster to turn a small ship than a super-tanker. There is a growing awareness of the importance of healthy eating. How do you ensure that your products live up to the requirements of consumers?

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“Consumers interested in healthy eating tend to focus on reducing calories with emphasis on lower fat intake, but they also demand natural ‘clean label’ ingredients” FRANK GOOVAERTS

FG. Consumers interested in healthy eating tend to focus on reducing calories with emphasis on lower fat intake, but they also demand natural ‘clean label’ ingredients. Product cost is also important during the present recession – and, in an ideal world, products shouldn’t appear any less indulgent. Solanic’s contribution as an ingredient supplier is to offer natural, vegetal emulsification based on an exclusive highly functional range of potato protein isolates. Typical applications comprise emulsified meats (e.g. pâté and Frankfurter) where it is possible to replace dairy or soy protein emulsifiers with allergen free Solanic proteins, which also combine gelation in addition to emulsification. This combination may provide a reduction in recipe costs since less material is required for the same textural properties – a solution which has the benefit of a clean label. Solanic is also ideal for vegan meat-free analogues to replace egg albumen binders. In typical dairy emulsions Solanic provides emulsification systems for non-dairy vegetal creams and ice-cream desserts with improved melt down resistance. Also in low pH mayonnaise, salad dressings and marinades Solanic is effective at low fat levels. In terms of functional ingredients – that is, looking for bio-activity beyond the simple food value on the plate – Solanic’s SATIS-Factor is a purified

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Solonic AD.indd 1

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isolate of known bio-activity, which has a role in assisting with food intake reduction. Health studies are underway. SC. Our core belief is that we should be ‘inspired by nature’ and by combining the best raw material that nature has to offer with gentle processes and techniques. We create truly wholesome ingredients – 100 percent pure and natural powders with no added carrier – that are unique in the industry. Due to the specific nature of our processing we are able to retain the inherent nutritional values and produce ingredients that can prove a valuable contribution to a consumer’s five-a-day intake of fresh fruit and vegetables. JG. As a flavour supplier our main concern is to make superior tasting products. We are here to please consumers with delicious tastes in all kinds of products and we do not judge what consumers should or should not eat. However, we strongly support the new health trends. We do this by developing flavours to ensure that low fat products are as tasty as their full-fat counterparts, to ensure that low calorie products are as tasty as their regular counterparts. In this sense we support the health trend by challenging the myth that things that taste good are not healthy and the more healthy the worse the taste, and by proving that healthy products and good taste can go very well hand in hand.

er a certain amount of texture and feeling in the mouth whilst still providing the full fresh taste of the respective natural ingredient. The target markets for these products are infant nutrition, cereal bars and snacks. JG. Innovation is one of our key competences. As the world is spinning faster, the demand for new, exciting and superior tasting products is constantly increasing. There was a time when a soft drink was a cola, orange or citrus lime type. Today you see all sorts of taste combinations, and in particular berry tastes are becoming increasingly popular – such as blueberry and cranberry. Being a regional flavour house located in the middle of the area where many fruits and berries grow naturally, Nordic fruit and berry tastes are at the core of our competences. Other areas of expertise come naturally from our regional location in Scandinavia and involve dairy flavours, cheese flavours, beer flavours and spice and herb extracts. However, the most recent innovation does not have its foundation in the company’s geographic location, as it is a brand new range of natural tea flavours coming out of the R&D department after several months of research. This range of natural tea flavours includes: white tea flavour, green tea flavour, oolong tea flavour, black tea flavour and rooibos tea flavour. The flavours can be used in beverages, but are also suitable for waters, sport and energy drinks, carbonated soft drinks, alcoholic drinks, ice-cream and savoury applications, and we have high expectations for this new range of natural tea flavours with authentic tastes.

“As the world is spinning faster, the demand for new, exciting and superior tasting products is constantly increasing”

MF. The investment in fundamental research to understand the health benefits of soy protein is a cornerstone of Solae’s business philosophy. Solae soy MF. In today’s market, consumers are drinking proteiningredients are used in many clinical research proenriched beverages to support their general health, welljects on soy protein and many of the studies supJAN GRØNDAL ness and fitness goals. porting the Food and Drug Administration (FDA) As manufacturers seek to meet consumer demand approved health claim are based on research using for high-protein beverages, we will launch, during FIE in Solae soy protein. November, the SUPRO XF soy protein isolate, an exciting patent-pending inSoy protein has proven heart health benefits and emerging research suggredient innovation from Solae for powder and ready-to-drink beverages. gests benefits in satiety and weight management, glycemic control and exThis product delivers exceptional flavour, low viscosity and high solubility ercise performance. In 1999, Solae pioneered the quest for soy’s heart versus existing technologies. health claim, working closely with researchers and regulators on clinical This new technology will permit us to address the ‘beany’ and sometimes proof. Currently, 11 countries have established similar cholesterol lower‘bitter’ taste of high protein level soy based beverages in the past. ing and/or heart health claims for soy protein. SUPRO XF is a high-quality, complete protein that can be used to reAnother good example of our concern for healthy eating is the results place up to 100 percent of high value dairy proteins such as caseinates and of the last study, supported by Solae, suggesting that the Eco-Atkins Diet milk protein isolates, while maintaining or improving the overall sensory may reduce heart disease risk factors. experience. SUPRO XF is the ideal choice for smooth, great-tasting bevOur goal is to provide solutions for today while innovating for toerages for the performance nutrition, clinical nutrition and weight manmorrow. agement segments. What role does research and development play in your business? Can you describe any recent innovations in your product lines? FG. Solanic’s ingredient range is based on a solid foundation of effective SC. Our in-house team of product developers and application scientists are R&D – there are two main aspects to this: expert process engineers who key to delivering the next generation of successful products and process techhave defined the separation technology to isolate and refine Solanic’s nologies to our business. They derive inspiration from market trends and range of proteins; and application technologists within the Solanic analysis, customer feedback, in-house innovation and creative purchasing. Institute who work on customer projects, for example a current target is The most recent innovation is the development and launch of a range of protein enhanced gluten free bread with a soft crumb texture that match‘crunchies’, which is a new physical form of our products, designed to delives regular white bread.

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Fruit and vegetable powders – created with Swiss innovation and developed to make the difference. • a first choice supplier to the baby-food industry • range of 100% pure powders • vacuum, drum dried and spray dried technologies • guaranteed Swiss quality

www.obipektin.com Part of the Natraceutical Group

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ASK THE EXPERT

A vital ingredient GdL, a natural and sodium-free leavening acid, opens up new opportunities, explains Raphael Singer.

lucono-delta-lactone (GdL) is the standard crystalline form of gluconic acid. When GdL is put in contact with water, it dissolves quickly and then hydrolyses progressively to gluconic acid, leading to a controlled acidification. In a dough mix containing GdL and bicarbonate, the gluconic acid produced through the addition of water reacts with the bicarbonate, providing a slow, continuous release of carbon dioxide over time, thus leavening the dough. Roughly two parts by weight of GdL are needed to neutralize one part by weight of sodium bicarbonate. The dough rate of reaction (DRR) of GdL goes from slow to fast, making it a versatile leavening acid that can substitute several types of leavening phosphates, from the slowest sodium acid pyrophosphate (SAPP) types to the fast monocalcium phosphate (MCP).

Organic growth Consumers are increasingly looking for products that are perceived to be natural, free from artificial preservatives, colours and flavours, and minimally processed. Organic and all-natural products have thus become one of the most dynamic areas of the food industry. The EU organic market is growing by 10-15 percent a year, five times faster than the general food market. In the bakery sector, product launches with the claim ‘all-natural’ or ‘organic’ climbed from five percent of all bakery product launches in the EU in 2005 to 10 percent in 2008. The organic approval of GdL is still strived for in Europe, but GdL has been allowed for use in organic products in the USA for several years already. While the organic field is extremely regulated, there is still no valid legal definition for the term ‘natural’. Therefore, it is somewhat subjective and open to individual interpretation. Jungbunzlauer considers its GdL as natu-

ral because its dissolved form, gluconic acid, occurs naturally in high concentrations in honey and noble wines; it is made from natural, renewable and non-GM carbohydrates as raw materials; and it is made by a natural process, i.e. a non-GM microbial fermentation.

“Consumers are increasingly looking for products that are perceived to be natural, free from artificial preservatives, colours and flavours, and minimally processed” Sodium and aluminium reduction Western consumers eat 3-5g of sodium (equivalent to 7.5-12.5g of salt) per day, well over the daily upper limit of 2.4g and 2.3g recommended by the UK Foods Standards Agency and the US Dietary Guidelines respectively, in order to avoid hypertension, cardiovascular diseases and stroke. In sweet baked goods, more than 95 percent of the sodium content comes from three sources: salt, sodium bicarbonate and SAPP. Salt is not easy to replace due to its taste and technological benefits. Sodium bicarbonate

may be replaced by potassium bicarbonate but due to its cost and taste this is not a real alternative. Replacing SAPP with the sodium-free GdL reduces the sodium content by 25-35 percent while improving product quality because the typical soapy off-taste caused by the use of SAPP does not occur when using the mild tasting GdL. It thus enables bakers to label their products with the nutrition claims ‘reduced sodium’ or ‘light in sodium’ under the EU Nutrition and Health Claims Regulation. The leavening acid sodium aluminium phosphate (SALP) is often preferred to SAPP in muffins in the USA and the UK because it produces better tasting and more appealing products than SAPP. SALP has however become a concern since Joint FAO/WHO Expert Committee on Food Additives (JECFA) and European Food Safety Authority (EFSA) reduced the Provisional Tolerable Weekly Intake of aluminium from 7 mg/kg bw to 1 mg/kg bw. As GdL offers the same benefits as SALP, it is a real alternative for bakers concerned by the aluminium content of their products. Use restrictions of phosphates in organic products, questions about their naturalness, their high sodium or aluminium content, changed economics, all speak in favour of GdL today. Indeed it offers a unique combination of benefits on the naturalness, healthiness, taste, appearance and shelf life of baked goods. This makes GdL more interesting than ever as a natural leavening acid, especially for muffins, cakes and pancakes in their organic, allnatural, sodium-reduced, aluminium-free and gluten-free variations.

Raphael Singer is Product Manager of Gluconates for Jungbunzlauer. His main responsibility is the sustainable growth of his product group.

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QualityChoices @Jungbunzlauer Glucono-delta-Lactone Uniqueness in acidification

• • • • • •

Natural leavening agent Allowed in organic products (USA) Better taste of the baked good Lighter crumb Sodium free Aluminium free

GdL – Jungbunzlauer’s natural way of leavening

www.jungbunzlauer.com Asia phone +65 6337 2300 Europe phone +41 61 2955 100 USA phone +1 617 969 0900

fax +65 6337 5900 fax +41 61 2955 108 fax +1 617 964 2921

QualityChoices@Jungbunzlauer.com

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SUSTAINABILITY

SUSTAINING THE

FOOD CHAIN

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As the largest manufacturing sector in the EU, the food and drink industry is taking a leading role in assuring the sustainability of the food supply chain. NGF takes a look at how some companies are tackling the challenges of sustainability whilst assuring their competitive edge.

ith a turnover of â&#x201A;Ź913 billion in 2007 and employing over 4.3 million people, the food and drink industry is the largest manufacturing industry in the EU, ahead of the automobile and chemical industries. This significant economic sector has flourished over the years, but its competitive position has been brought into question recently as the industry faces new risks and challenges. Food security and sustainability are two topics that are quickly moving higher up the agenda of European governments, international organisations and associations and which are now racing towards the top of the consumer agenda. The world is facing an unprecedented challenge brought about by a growing world population that is set to spiral towards 9.2 billion by 2050 and the global food crisis that has led to countries the world over being destabilised by food price inflation. We are now in a situation where we need to produce more food, but in a way that does not degrade the natural resources on which the food and drinks industry depends, and that decreases the food chainâ&#x20AC;&#x2122;s dependency on fossil fuels and reduces harmful emissions. Meeting this challenge will require a fundamental shift in thinking about food on the part of governments and consumers. The food and drinks industry is already proving itself to be proactive, forward-thinking and practical when it comes to addressing sustainability, which is a major concern at every stage of the food supply chain. From primary production to manufacturing, packaging, distribution, retail and consumption, there are worrying issues regarding the environmental performance of the sector.

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Waste not want not According to DEFRA’s Food Industry Sustainability Strategy (FISS) 6.7 million tonnes of food are sent to landfill from UK homes each year, that is enough to fill Wembley Stadium eight times over. Waste and Resources Action Programme (WRAP) confirms that the cost of food waste to UK consumers is about €11.4 billion per year, which equates to roughly €455 per household.

Primary production Primary production encompasses all agricultural food production and is one of the key threats to sustainability. Agriculture actually accounts for almost 50 percent of green house gas emissions created by the food supply chain. Nitrogen fertilizers cause water pollution and are the single largest cause of nitrous oxide emissions. Methane gas is 20 times more powerful than CO2 and every day Britain’s 10 million cows emit approximately 100-200 litres of methane each. It has been estimated that methane emitted from cattle in the UK could account for as much as three percent of the country’s total greenhouse gas emissions. However, food manufacturers are playing an increasingly active role in defining and disseminating best practices, a good example being the Sustainable Agriculture Initiative (SAI) Platform, which was founded by three leading food manufacturers – Nestlé, Unilever, Danone – in 2002 and today counts 24 members.

dustry is taking positive action to reduce its water consumption by engaging in best practices and by investing in more water-efficient technologies. On the 28 January 2008, the UK Food and Drink Federation (FDF) launched the Federation House Commitment (FHC) in conjunction with Envirowise. The initiative, which is part of a five-fold action plan, is designed to achieve a systematic improvement in water efficiency. Twenty-one FDF members with a combined turnover of £15 billion joined up when the initiative, which sets a target of a 20 percent reduction in water use by 2020 compared to 2007, was launched and a further 15 companies have joined since. Companies who have signed up to the FHC include international brands such as Unilever, Mars, Kelloggs, Kraft and Nestlé. The FHC 2009 progress report states that the initiative has the potential to save around 140 thousand cubic metres of water per day – the equivalent to 56 Olympicsize swimming pools – and a combined financial saving of around £60 million per year on water bills. In 2008, the total amount of water used (excluding that embedded in products), by signatories reduced by more than 476 thousand cubic metres compared with 2007, a reduction of 1.7 percent which, for the first year of the FHC, is an impressive first step towards the overall industry target of a 20 percent reduction by 2020.

“Businesses that recognise the opportunities that being sustainable represent will be best placed to succeed in the current economic climate, and in the future”

Water efﬁciency Water is used in huge amounts by the food and drinks industry. Christoph Tamandl, Director of Environmental Affairs at the Confederation of the Food and Drinks Industries of the EU (CIAA) says: “Water is a key issue for the food sector, it is used by our suppliers to grow our raw materials, to process our products, to ensure hygiene and for our consumers to prepare their meals. Above all, we have to look at agriculture, which consumes 70 percent of fresh water globally and 40 percent in Europe.” However, the food and drinks in-

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Waste management The production and disposal of all forms of waste including machinery, farm inputs, dead animals, crops, packaging and food waste hinder progress towards sustainability. One way that the sector is looking to reduce its environmental impact regarding waste is by diverting as much of it as possible away from landfill. David Bellamy, Sustainability Manager for FDF says: “We have a target to aspire to send zero food and packaging waste to landfill from

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UK food chain greenhouse gas emissions 2015. Part of what we have done is to set up a process to measure our member’s waste. Last year we published the results jointly with DEFRA and that showed something in the order of 17 percent of our member’s waste was going to landfill as of 2006. So a lot was already being diverted away from landfill at that time to other treatment options, but clearly we have some work to do to get from 17 percent to zero, which is what our ambition is.”

Packaging problems However food waste isn’t the only problem that the sector is facing. Pressure on packaging has dramatically increased in the past few years. Consumer perceptions, fuelled by media calls for more ‘sustainable’ packaging, are making life difficult for the industry. Packaging must meet a multitude of functional objectives whilst minimising its impact on the environment. However, the European Organisation for Packaging and the Environment (EUROPEN) believes that sustainable packaging is not as clearcut as it sounds as it plays such an important role in all stages of the food supply chain. In its 2009 report Packaging in the Sustainability Agenda EUROPEN states that a Western Europe without packaging would lead to a 15-fold rise in food waste. What is needed is an industry-wide re-evaluation of the role of packaging and its environmental impact. However, Tamandl believes the EU is already making good progress: “Recovery, including recycling, of used packaging is very successful in the EU. All recovery and recycling targets under EU waste legislation have been met. Continuous improvement lies ahead. This is a real success story.” Recent advances in technology have permitted the industry to explore ever more effective means of ensuring packaging is safer and more sustainable. The use of nanotechnology in food packaging is already a reality and some interesting advances are currently under development, for example, nanosensors in plastic packaging that can detect gases given off by food when it spoils and packaging that changes colour to alert consumers to food that has gone bad. These developments could help the industry prevent hundreds of thousands of tonnes of food waste every year, but the technology does give rise to new and unique safety issues.

Fertiliser/pesticide production 4%

Household cooking, refridgeration, waste etc. 15% Consumer food shopping 3%

Agriculture 48%

UK road freight 6% Catering 5% Retail 8% Manufacturing 11%

Transport modes in the UK food sector

UK food vehicle-kilometres by transport mode (2002) HGV UK 19% Sea, rail, air short haul, air long haul 0%

HGV UK to overseas 5% HGV overseas 7%

LGV UK 16% Car 48% LGV overseas 5%

Greener food transport Distribution and transportation are also under scrutiny for threatening efforts towards a more sustainable food chain. Carbon emissions and air pollution obviously pose the most significant risks during the distribution stage, but this does depend on the mode of freight chosen and the type of fuel used. Reducing food miles is something that is high on the agenda for the FDF and which forms part of its Five-fold Environmental Ambition. In July 2008, FDF launched its Checklist and Clause for Greener Food Transport. By achieving ‘fewer and friendlier’ food transport miles, FDF members will contribute to the challenge thrown down in the Food Industry Sustainability Strategy for the food chain to reduce the environmental and social impacts of its domestic food transport by 20 percent by 2012 compared to 2002. FDF members have also been working in close collaboration with the Institute of Grocery Distribution (IGD) and Efficient Consumer Response (ECR) in order to reduce the environmental impact of transportation. This involved sharing years of experience to encourage retailers and manufacturers to collaborate beyond the boundaries of traditional commercial relationships. The initiative aimed to identify opportunities for collaborative working

CO2 emissions associated with UK food transport (2002) Air long haul 10% HGV UK 33% Sea 12% Rail 0%

Car 13% LGV overseas 2%

HGV UK to overseas 12%

LGV UK 6%

Source: AEA Technology Environment

HGV overseas 12%

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What can be done about food waste? ◗ McCain Foods Managing food waste

Reduce

• Better planning • Stock rotation • Improved storage • Smaller portions • Intelligent packaging

Reuse

• Recipe ideas for leftovers

Recycle

• Composting • Segregated food waste

Source: IGD, 2007

across communities of retailers and suppliers and to encourage them to be more efficient by pooling space on sections of journeys where vehicles would otherwise be running empty. Collaboration across the participating organisations identified a potential reduction of between 10,000 and 15,000 loads or approximately two million miles per year. Such initiatives are proving extremely successful but the majority of food vehicle-kilometres in the UK are actually accounted for at the consumption stage of the chain by consumers. It has been estimated that one in 10 car journeys in the UK is for food shopping, which results in social costs of around £3.5 billion per year due to traffic emissions, noise, accidents and congestion. However this does not mean that consumers are producing the most CO2 emission on these journeys. Heavy goods vehicles are still responsible for the highest emissions so the sustainable distribution initiative should go a long way to helping the food and drink industry meet the 20 percent reduction by 2012.

Reducing energy consumption The food supply chain is obviously highly dependent on energy at all stages and currently this energy is mostly derived from fossil fuels. In fact the energy consumption of the food and drinks industry is already quite low compared to other sectors, but there are many ways in which the consumption can be lowered still. Again the FDF is encouraging its members to do what they can, which ranges from investing in new technologies, such as biomass boilers, wind turbines and combined heat and power units (CHP), using renewable energy sources where possible, and raising staff awareness. The current economic climate has served as a catalyst for lowering energy consumption, which is now a major priority for the industry as the price of energy continues to rise. The food and drinks industry is adopting measures that should help it not only in its mission to reduce its environmental footprint, but also to help it to cut costs and enhance its competitiveness. According to Toby Prickard, a Business Analyst in Market Intelligence at IGD, businesses that recognise the opportunities that being sustainable represent will be best placed to succeed in the current economic climate, and in the future. He points out that they clearly see the move to sustainability as a benefit to the environment, their consumers and their balance sheets – so fully incorporating the triple bottom line of sustainability.

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McCain has invested £15 million in three new wind turbines that will provide approximately 60 percent of the electricity required to operate the plant over the year. The turbines generate 26,000 MWh of electricity between them per year. McCain Foods investment plan also includes a new combined heat and power facility that will run on biogas (methane) generated by a new on-site waste water treatment.

◗ Walkers Between 2001 and 2007, Walkers reduced the water used to manufacture Walkers Crisps by 42 percent. For the Leicester site alone, this amounted to a saving of 700 million litres.

◗ Heinz The canned foods and pet foods industry in the UK is worth £3.7 billion and sells nearly five billion cans every year. WRAP teamed up with Heinz to reduce the amount of material used in its cans. New lightweight ends were trialled, which were 10 percent thinner than previous ends at just 0.18mm thick. Heinz has saved £404,000 and 1400 tonnes of steel each year by using lightweight ends and can now fit 18 percent more cans on each pallet. Each lorry load of filled cans with the new end weighs 83kg less, meaning improved fuel efficiency.

◗ Sainsbury’s Sainsbury’s has opened its new flagship green store in Dartmouth, Devon. The store has been specifically designed to reduce CO2 emissions. Forty percent of its overall CO2 emissions will be cut by using a ‘biomass boiler’ to heat the building and water. ‘Quiet revolution wind turbines’ power the checkouts, and contribute to cutting electricity usage (kWh) by a third. Rainwater is collected, and used to flush toilets and irrigate plants. The store will save over one million litres of mains water every year, and uses 60 percent less water overall.

◗ Cadbury Cadbury launched its environmental initiative Purple Goes Green back in July 2007. In February this year, following a review by the UK’s Carbon Trust, which stated that 60 percent of Cadbury’s carbon emissions came from milk, the makers of Dairy Milk, which claims to have a glass-and-ahalf of milk in every bar, decided to take action to reduce its environmental impact. The confectionary giant sent the Cadbury Guide to Low Carbon Dairy Farming to its dairy farmers in Selkley Vale in Wiltshire and Gloucestershire to provide them with practical advice for reducing emissions.

Delaval.indd 1

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EXPERT OPINION

THE

WHITE STUFF

Disease control, global demand and going green are all high on the International Dairy Federation’s agenda. Diana Milne meets president Jim Begg to ﬁnd out what’s currently on his to-do list.

NGF. What are your main responsibilities as president of the International Dairy Federation? Jim Begg. I get appointed for a period of time which in this case is four years. I also have a day job which is the Chief Executive of Dairy UK which is a political lobby organisation based in the UK in London so that’s what I do nine to five. The International Dairy Federation has fulltime staff and a secretary based in Brussels. My role is to manage the board and to try to make sure that it stays relevant to the change that is happening in the industry. The dairy industry is hugely dynamic. It is changing all the time and of course the work of the IDF changes with it. Four or five years ago when I started in the role the focus was on food law and on determining standards for the trade in international food. Now it’s moved on, and the main issues are nutrition, the environment, welfare and food safety. The organisation is constantly changing and I must steer that change and make sure the secretariat of that organisation delivers on the key issues of its members.

NGF: How does the IDF respond to the outbreak of diseases such as blue tongue or foot and mouth disease? JB. Our aims are to make sure that when we get problems the response is rapid and the consumers are informed of what is actually being done. And if there are any gaps in either the detection of these diseases or the way in which the industry controls them, we aim to get experts together quickly to fi nd methods of addressing the problem and then communicate these ideas. We’ve got about 1200 experts around the world that we can call on to address issues as they arise. That is the why organisations like the IDF are so important. We have a presence in 54 countries around the world and we have got something like 85 percent of the world’s milk production in our membership. So with that scale of coverage communication to organisations around the world becomes a lot more simple. And that’s what we do. We’re in the business of communicating best practice around the world, and where there are gaps, establishing best practice and communicating that as well.

NGF.What is the biggest priority of the International Dairy Federation? JB. Above all what we have to do and what the food industry is responsible for as its number one priority is to ensure that, around the world, food is safe. Th is applies to dairy just as much as anything else. The challenge that exists is the breakdown of traditional detective mechanisms that stop trade from moving around the world. There is a lot more trade in food and in dairy in particular. On top of that there is a general trend towards deregulation of dairy regimes. And when the movement of food is much greater then the whole business of the transfer of animal borne diseases beJim Begg comes of greater focus and the industry must pay absolute priority attention to that.The most recent issues have been foot and mouth disease and blue tongue. What we’re doing all the time is ensuring that best practice is communicated around the world so that the impact of these diseases is minimised, and we explain to people round the world how the industry addresses these issues.

NGF. How important are environmental concerns to the IDF? JB. It’s a huge issue. The whole business of the Kyoto agreement has brought the issue of environmental awareness right into the public arena. It has also presented problems for some of the countries which are the world’s biggest polluters but even in those countries the pressure from the marketplace and the pressure from consumers will progressively effect change. We have to make sure that in the dairy industry we’re proud of the credentials of our environmental practices and we must explain to people what we are doing. We’ve been unfairly lambasted as has the livestock sector around the world. There was an FAO report about three or four years ago which identified the dairy or the livestock industry as being responsible for 18 percent of greenhouse gas emissions around the world. But by the authors of the report’s own emission there was a massive degree of estimation in that and we suffered because of a lack of knowledge and statistics that were not available.

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NGF. What is the IDF actually doing to show that the industry is operating in an environmentally friendly way? JB. We’ve been addressing the various studies that have now been done to show that the dairy industry in particular has not been a major contributor to greenhouse gas emissions. Not only that but it is recording massive efforts by the industry to improve the situation. For example, in the UK we engaged in some research which generated a figure that was probably nearer to two percent than 18 percent. And in America one of the studies showed the emissions to be less than 0.5 percent. So we take a very different view and it beholds organisations like the IDF and everybody else in the dairy industry to communicate the environmental credentials that the industry actually has. We should be proud of our environmental credentials and what we’re doing about it rather than being on the defensive. The US dairy industry hosted a sustainability summit and the outcome of that was the setting up of an innovation centre. That is designed to develop initiatives right across the supply chain aimed at reducing greenhouse gas emissions from milk production to consumption. Part of the innovation center is the carbon council. And they’ve recently developed a roadmap which will be a specific action plan for the US dairy industry to reduce greenhouse gas emissions. The US ETA Greenpower Calculator indicated that if these mitigation strategies could be applied, they could

reduce greenhouse gas emissions by 52 percent. That would be equivalent to taking 1.5 million US cars off the road for a year. NGF. In what emerging markets is demand for dairy products currently growing and how does the IDF communicate best practice to producers in those countries? JB. Having such a large coverage of the dairy production industry we’re obviously very involved in the developing parts of the world. And the developing world is where the growth in demand for dairy products is greatest. It’s also the part of the world where balancing that demand with supply is the most difficult for obvious reasons. In places like China and India there is an urbanisation process which involves consumers going into the cities to work. That process increases their consumption of dairy products significantly and the industry has a challenge to catch up with that. Now we want to make sure that through publications like the

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IDF’s Good Welfare Practice guide and also the Good Farming Practice guide that the industries in these parts of the world can actually use the best practices that are employed elsewhere in the world in a way in which they are adapted to local situations and circumstances so that they can push production forward where the demand is greatest. Those particular documents or publications will be exensively circulated in the developing world. NGF. How is demand for dairy products affected by the global economic downturn? JB. There are a lot of positive market drivers at the momemt. We have an ongoing increase in demand for our products and that’s stimulated by population growth and income growth around the world. There’s a hiccup at the moment with the circumstances but the underlying factors are strong. Demand globally is positive. One issue is the balance between supply and demand and also the rise in the costs of feed. That has pushed the price of dairy products up and it pushed the price of all food prices up in order to maintain sustainability. That obviously has an impact in terms of national inflation rates and things like that. But this growth in food prices has followed 10 years of food price stagnation. So what’s been happening recently is that food prices and dairy prices have been catching up after a period of long-term stability. In terms of demand for dairy products, food is an important part of people’s expenditure and there is still huge demand for dairy products particularly in eastern parts of the world. For example, in China there is huge demand potential which would mean long term demand for dairy products. NGF. How has the removal of international trade barriers affected the cost of dairy products? JB. At the moment we are also seeing much less regulation around the world, even in the US and I expect to see that trend continue. When

About the International Dairy Federation (IDF) The IDF is the pre-eminent source of scientiﬁc and technical expertise for all stakeholders of the dairy chain. Membership covers 53 countries and is growing. The IDF accounts for about 82 percent of current total milk production worldwide. The mission of the IDF is to represent the dairy sector worldwide by providing the best global source of scientiﬁc expertise and knowledge in support of the development and promotion of quality milk and dairy products to deliver consumers with nutrition, health and well-being. It is the centre for dairy expertise and is involved in: • • • •

developing scientiﬁc knowledge, exchanging information, addressing global developments facilitating networking within and outside the sector.

“The growth in food prices has followed 10 years of food price stagnation” you remove these types of barriers, you get more exposed to volatility in market places. We expect to see much greater price volatility in the future because of the progressive removal of the regulatory systems and indeed we’ve seen this in the last two years, so that’s going to be a challenge. Competitiveness is going to be a challenge and you’re going to see a continuing rationalisation of dairy products around the world. Th is will result in a situation where there are fewer firms operating in international markets in a drive to reduce costs. NGF. What are the biggest challenges that the international dairy industry faces going forwards? JB. The biggest challenges will come from nutrition and environmental issues. But without any doubt the industry is readily prepared to innovate in both areas. And one of the innovations that I think you will see, is a greater move towards lower fat dairy products. That’s happening already and you’ll see a continuation of that. Generally we forsee continued demand for dairy products. The consumers around the world love milk so the future is bright for the industry. One challenge stemming from that will be the balance between supply and demand. In terms of the cost of feed, that is falling again. There has been a significant increase in farm costs around the world however the higher price has elicited a production response and feed prices are now falling.

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ASK THE EXPERT

FOOD FOR THOUGHT New feeding concepts are good news for both animals and the environment, says Mark Redshaw.

ealth and nutrition is essential for the well-being of Th is reduces the pressure on land use that has become critical in recent the human population. One important and direct years due to confl icts with alternative uses of land, such as urban and contributor to human health and nutrition is farm industrial use and more recently the production of biofuels. Increasing animals, providing protein for human nutrition pressure on land use leads to more marginal land being brought into in the form of meat, eggs and production, as well as contributing to destruction of milk. Healthy and safe animal production provides rainforests and other valuable natural resources. the basis for healthy and safe animal products for human consumption. The net energy concept The nutrition of farm animals has changed draUnderstanding the energy content of feed through matically over the last decades due to the use of innonet energy enables the value of raw materials to be vative feeding concepts, such as ideal protein, systems better understood and thus used in optimally contribfor measuring standardised ileal digestibility, as well uting to production of animal protein while limiting as net energy and phase feeding systems. Use of these production of unnecessary animal fat. innovative concepts has allowed both the efficiency of Phase feeding animal production to increase, as well as minimising In phase feeding systems diets are changed to meet the environmental impacts of increasing volume of the specific needs of the producing animal, week by production, whilst still providing the growing global week or day by day. Compared to traditional systems population with affordable protein. where feeds may only be infrequently changed over the Each of these concepts more accurately describes Mark Redshaw heads Animal whole production cycle this provides great potential to the provision of nutrients from the feed raw materials Nutrition Services within Evonikâ&#x20AC;&#x2122;s Business Unit Health & Nutrition. improve efficiency. and the requirements of the animals at any particular Early interest in agriculture and stage of its production to be better matched. Meeting nutrition was developed growing up on a family farm in the UK. He Ideal protein and standardised ileal the requirement that the animal has at all stages of subsequently studied agriculture at the University of Reading and digestibility life requires detailed understanding of metabolic and received a PhD in Animal Nutrition Protein concepts such as ideal protein and stanphysiological pathways and also insights into the anifrom the University of Nottingham. dardised ileal digestibility systems allow the valuable mals needs for maintenance, such as what it requires protein and the individual amino acids in feed to to maintain its bodily functions as well as that for be matched to the needs of the animal. Such matchproduction, be that meat, eggs or milk. ing increases the efficiency of protein utilisation as well as the amino Introduction of these concepts enables the feed conversion ratio acid utilisation in the animal, making sure that the animals extract the to be improved. Th is means less feed is needed to produce one kilo of maximum possible from the feed, preserving and making the best use of animal product or animal protein. Increasing efficiency means that less natural resources. cereals and vegetable protein sources such as soybeans need to be grown.

Consequences Innovation enables a typical pig to be fed protein levels at least two percent lower than that those used historically, while maintaining or even increasing performance. For each one percent of protein reduction a 10 percent reduction in the nitrogen excretion of the animal is also achieved. Th is in areas of high production intensity is critical to allow producers to maximise the utilisation of their available resources as well as minimising the environmental impact of high levels of protein excretion, and this in addition to the effects of reducing the use of limited resourses. Innovative feeding concepts contribute greatly to the sustainability of animal production both today and in the future. Â&#x201E;

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ASK THE EXPERT

Is organic the answer? By Bill Horner

recent report from the Food Standards Agency states that: “There is no evidence of additional health benefits from eating organic food.” It would be surprising if the nutritional value of organic food was significantly different from that of non-organic food. Logically, why should it be? What an organism grows into is determined by its genes, not what you feed it. Put all the horse muck you like on a rose. It will still smell like a rose. I am a food technologist who has learnt to cook and, these days, I use more of my own food from known-source raw ingredients, less red meat and more vegetables and fruits, especially those widely acknowledged as sources of free radical-absorbing/antioxidant substances. Just as I like to talk to the mechanic who services my car, I’d like to buy my food from the guy who grew it so I know how it was grown. We know from the news that there are still concerns amongst scientists and politicians about residues from artificial fertilisers and pesticides, from hormones, medicines and antibiotics in our food. Ask any farmer and they’ll tell you that the list of permitted substances they can use on their crops and animals diminishes year by year. Many are seriously concerned that banning a practice or substance they’ve been accustomed to using for decades seriously threatens the viability of their businesses. Yet nature herself unrelentingly presents us with answers to agricultural needs and it is down to the searches by organic farming suppliers like Uncle Ted’s Organics that many of these have been found and made available. Ideally, I’d like to make everything I eat entirely from the basic raw materials, not because it’s better nutritionally, but because it tastes better. I want to make sure that there is nothing in any ingredient I use that could do me any harm. Like nearly everyone else, however, I’m limited by availability and time. Buying genuinely certified organic ingredients, therefore, saves my time. The organic food lobby has been historically antagonistic to food technologists as the facilitators of the policy of successive governments to keep

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“Far from applying a brake to technological development, organic farming is sifting for nature-friendly answers through generations of collective wisdom” food cheap so pay can be kept low. Apart from imperilling our health in championing the use of food additives subsequently discovered to be injurious, they would point out that this perennial maxim has led to the iniquities of factory farming, monoculture and the degrading and polluting of our environment. For this, we have salmonella and antibiotics in poultry, E. coli in abattoirs and dairies, toxic algae on French beaches and the inexorable march towards genetically modified crops. A food technologist might reply that the pressure to feed a burgeoning world population, to give people attractive choices over what they consume and take away the drudgery of preparation are the real issues. Demonstrably the debate is vigorous, constantly using and challenging the results of research. Progress, if it can be judged to have occurred, is gradual. As the British balloonists forced to ditch into the Pacific philosophised: “We

haven’t failed, we’ve just discovered another way that we now know doesn’t work” (Andy Elsom) – this is the essence of 99.9 percent of research. Yet still the speed of change over this last century seems to be more than we can handle mentally or emotionally. We’re talking about GM and tailoring food to individual’s genetically determined pattern of requirements whilst we still haven’t learnt to wash our hands between touching raw and cooked meat. Far from applying a brake to technological development, organic farming is sifting for naturefriendly answers through generations of collective wisdom. In this way, it frequently comes up with solutions when the latest novel technology express hits the buffers at the end of a cul-de-sac. n Bill Horner, Technical Adviser for UT Environmental Products was born and brought up on a Yorkshire Dales farm, has an MA in Food Science and set up and directed the University of Hull Institute of Food Health Quality and the Yorkshire & Humber Regional Food Technopole.

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EXECUTIVE INTERVIEW

month was cut from time to market, a large saving in feed cost alone. The number of healthy offspring produced per sow was also impressive. The POD group produced 27.5 healthy offspring per sow per year, while the current toxin binder group produced 22.5 and the control group 18. This means that POD’s results are 22 percent higher than current toxin binders and 53 percent higher than the control group.

Pure science NGF speaks with Eric Chen of Raycome about the discovery of POD and asks what this powerful, new generation detoxifier means for the livestock feed industry. How many years have you spent in the discovery of polyelectrolyte oxygenic detoxifier? Eric Chen. Raycome started testing POD in 2003 at a small swine farm in a remote area of east Taiwan. After acquiring enough data from various animals and farms, we embarked on a series of combined R&D studies in 2005. POD first got international exposure in 2008 at the VIV Moscow, VIV China and VIV Thailand in 2009. What is the purpose of POD in feed and why is it considered new generation detoxifier? EC. Toxins are ubiquitous in feeds. Toxin binders like aluminum silicate-based products are commonly used to remove them. Usually toxinbinders are measured with CEC (cation exchange capacity), a gauge of toxin removal power. Major toxin binders have CEC less than 200 meq/100g, as compared to 1200 meq/100g for POD which is the highest found among natural organic substances. It is on the basis that it has six times the binding power of 99 percent of the toxin binders currently used in the livestock industry that we define it as a next generation product. Take the example of a cargo of feed shipped from the US to Taiwan

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which was found to have a high concentration of mycotoxins. After being mixed with POD and stored for another week, test showed nearly all toxins are gone.

“One major farm in Asia, which raises half a million pigs per year, found feed effectiveness increase by 50 percent” What is the nature of POD? Is it environmentally safe? EC. POD stands for polyelectrolyte oxygenic detoxifier. It is a natural organic substance derived from Canadian pine trees. It is 100 percent natural and mined in Alberta, Canada without any chemical deployment. It is mainly carbon hydrates with some trace minerals, free of toxic heavy metals and 100 percent bio-degradable. The toxicity studies conducted by Beijing Administration Office of Laboratory Animal (BAOLA) shows POD is a nontoxic substance even in extremely high dosages. The Food Industry Research & Development Institute in Taiwan found that it even shows some anti-oxidant properties. SGS reports also show it can carry more oxygen to the environment to let the surrounding areas have better bacteria flora.

What are the results for using feed mixed with POD? And what are the differences from that with current toxin binders? EC. Comprehensive research conducted by MAFIC (Ministry of Agriculture Feed Industry Center in China), ATIT (Animal Technology Institute Taiwan) and other prominent universities in Is POD very expensive? What Asia has reached similar concluis the economic value of Eric Chen received his Ph.D. in Agriculture in 1994 from Clemson sions. Benefits include a 100 perusing it? University in South Calina, USA. He cent survival rate for all growth EC. POD costs slightly more and his team have been involved in developing effective, nonstages of animals (compared to a than major toxin binders in the chemical and organic products in Asia for the past decade. control group average 80 percent), market. However, based on the ammonia content close to zero, scientific research reports of and feed conversion rate and imthe value of POD, it enables munity greatly increased. swine farmers to make at least 50 to 600 percent One major farm in Asia, which raises almore profits in Asia as a result of dramatically most half a million pigs per year, found feed efincreased survival rates, feed effectiveness, fectiveness increase by 50 percent while one labour costs and meat quality.

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ANDROULLA VASSILIOU:4August 26/08/2009 15:08 Page 88

FEATURE

“Given the size and diversity of food in Europe, things will go wrong. What matters is that we can identify problems and remove affected products from the market”

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Safety first Androulla Vassiliou, EU Commissioner for Health, outlines the law’s role in protecting the continent’s food supplies.

he evolution of European food law has been a continuous process. The solid foundations of the European Food Safety system were laid in the early years of this decade, under the previous Prodi Commission, which saw the introduction of a comprehensive reform package. This sought to replace a fragmented system with a modern and streamlined model – not least to rebuild public confidence in our food supply following a succession of food crises. The general food law, the establishment of an independent European Food Safety Authority and the introduction of the farm to fork principle to apply throughout the food chain were among the major factors establishing a new food safety system suitable for the demands of the 21st century. The current Commission has built on these foundations – filling in the gaps that remained and turning more attention to matters of food information.

Recent priorities BSE seems like a good place to start, as is it was this issue that triggered the fall in public confidence, perhaps more than anything else. For 20 years now, the European Commission, in close co-operation with the Member States, has taken a series of stringent measures to protect both human and animal health from the risk of BSE. The consistent fall in the number of BSE cases over recent years is testament to the efficacy of the measures put in place to tackle this disease. Another main source of public concern was a number of high profile contamination incidents. We recognise, given the sheer size and wide diversity of food in Europe, that from time to time things will go wrong. But what matters most is that we can identify problems and remove affected products from the market as quickly as possible. The traceability provisions built into our system, combined with a strengthened Rapid Alert System for Food and Feed (RASFF), enable us to take swift and effective action with the minimum of disruption of the food chain as a whole. Indeed, we have managed a series of food safety incidents originating both from within and outside the EU in the past couple of years. January 2006 marked a significant milestone for food safety in the EU, with the entry into force of a large updated body of food and feed legislation, agreed as part of the reform.

The Food ‘Hygiene Package’; the Regulation on microbiological criteria for foodstuffs; the Regulation on official feed and food controls; and the Feed Hygiene Regulation make up a complementary set of rules to tighten and harmonise EU food safety measures. These laws apply at every point in the food chain, in line with the ‘farm to fork’ approach. A key aspect of the new legislation is that all food and feed operators, from farmers and processors to retailers and caterers, have primary responsibility for ensuring that food put on the EU market meets the required safety standards. This set of legislation also offers benefits to food businesses by clarifying and simplifying the rules they must comply with and by providing appropriate flexibility to ensure the preservation of, in particular, traditional ways of food production. Pesticides are part of our holistic approach to food safety. The Commission launched, way back in 1992, a work programme on the Community-wide review process for all active ingredients used in plant protection products within the European Union. In this review process, each substance had to be evaluated as to whether it could be used safely with respect to human health and the environment. The programme started slowly, but work accelerated and 75 percent of the decisions have been taken in the last four years. This achievement has been possible due to the efforts not only of the Commission, but also the European Food Safety Authority, as well as the strong commitment of the experts of the Member States. The review of the ‘old’ pesticides has led to the removal from the market of pesticides that cannot be used safely. Even if we make sure that food is safe, we still cannot exclude that the materials which come into contact with food could undermine the safety of the food product. This is why the regulation on recycled plastics for use in food contact materials was adopted, which will ensure that food packaging made of recycled plastics is safe. It sets the conditions under which manufacturers of food contact materials can use recycled plastics and promotes the objectives of the strategies on the sustainable use of natural resources and the prevention and recycling of waste. Our proposal on Novel Foods has turned out more controversial than initially expected. One of the controversial elements has been the issue of

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As you will be aware, the European Food Safety Authority considers food and dairy products from cloned animals to be safe for human consumption. But we do have concerns about the health and welfare of such animals. Both the European Group of Ethics, and indeed many citizens, have expressed doubts on ethical grounds about the cloning of animals for food production. In January, I discussed this sensitive issue in the College of Commissioners. We decided to request further information from EFSA in order to help define future policy options.

Genetic issues

Better Training for Safer Food Legislation alone is not the solution; it has to be adequately applied. In order to contribute to an effective implementation of our legislation, we have developed the Better Training for Safer Food programme. This project provides training for Member States’ and third world countries’ control staff in EU food and feed law, animal health and welfare rules, and plant health rules. The training programmes cover a range of subjects and are held mainly in the EU and also in developing countries. Since its launch in 2006, Better Training for Safer Food has trained around 8000 people. The training brings participants up to date with EU standards so as to ensure effective, harmonised controls and to increase consumer and animal protection. Familiarising third world countries with EU standards better enables them to reach the required standards for exporting to the EU. An additional action entitled Better Training for Safer Food in Africa starts this year. It aims at providing capacity building for African countries on SPS issues.

food produced from cloned animals. The general question of cloning of animals for food production purposes has been high on the agenda of the European institutions and the discussions on the Novel Food proposal have provided a hook for further discussing the future of cloning in the EU. I consider that the Novel Food Regulation is not the most suitable instrument to manage all the issues of cloning. The regulation only deals with food safety and market authorisation. Therefore, the use of clones in breeding programmes, semen, embryos and ovae cannot be regulated under the Novel Food Regulation. Nor can issues linked to animal health and welfare be addressed here. The Commission asked for scientific opinions in relation to food safety and the health and welfare of animals in relation to this issue. We have also looked closely at the ethical concerns about the cloning of animals and sought the opinion of European citizens.

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Let me now come to another controversial subject: that of genetically modified organisms. Since the entry into force of Regulation 1829/2003, the Commission has done its best to honour and fulfil the responsibilities conferred upon it directly from the legislation. Despite the general lack of support of Member States and the strong resistance of part of the public, 13 authorisations have been granted to GM maize, sugar beet, soybeans, cotton for food and feed use. These authorisations have made access to raw materials easier for our industry at a time of strong economic pressure and instability in the global food market. I personally consider the protection of health and the environment to be a top priority and non-negotiable. For this reason, GM seed, food and feed are authorised only when they are considered safe by the European Food Safety Authority. Whenever a doubt exists, we have not hesitated to go back

“We have come a mighty long way in the past 10 years with the construction of a world-leading food safety system, which places consumer safety at the top of its priorities” to EFSA and ask for clarifications or further advice in order to resolve any questions of safety. Following the same line of action, we did not hesitate to take emergency measures to prevent US and Chinese rice products contaminated with unauthorised GMOs from entering the EU market. This shows once more our determination to uphold the EU food legislation without compromising the safety of European citizens. The final topic that I wish to mention is the issue of information to consumers. Our principal aim is to enable consumers to make an informed choice when purchasing food by providing them with the necessary information and by ensuring that information provided, notably on the packaging of food products, does not mislead. The labelling of food is an important means of consumer information. In this regard, the Commission proposed a regulation on the provision of food information to consumers, which is currently under consideration by the other European Institutions. I believe that this proposal marks a major step forward for both consumers and food business. It strikes the right balance by enhancing consumer information without adding unnecessary burden on food operators.

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Last year, important work started on the regulation of health claims made on foods. More than 44,000 health claims were collected by the Member States. These were compiled and consolidated by the Commission, and over 4000 were then sent to the European Food Safety Authority for scientific assessment – an immense task. Under the new regulation on nutrition and health claims, any claim made on a food label in the EU must be clear, accurate and substantiated by science. All together, these initiatives will help to ensure that food labelling information is relevant to consumers’ needs and that people are not misled. The concept of nutrient profiles was already agreed by the co-legislators, as part of the regulation on claims. This is now a technical task, on which extensive consultation with stakeholders and Member States was carried out in recent months. Given the numerous concerns raised by the food industry and some wild rumours in the press, let me clarify a few points. We do not intend to regulate food composition in Europe. No food will be banned on the Community market because of nutrient profiles. And these nutrient profiles will not have to be labelled or communicated to consumers. Nutrient profiles are simply a tool to ensure that nutrition or health claims, made on a voluntary basis, are not misleading. Claiming a health benefit for a food high in fat, salt or sugars may lead to the over consumption of such nutrients, whose excess is detrimental to health. To avoid this situation, our proposal sets conditions on food compositions that foods need to comply with in order to bear claims. EFSA identified

Androulla Vassiliou was conﬁrmed as European Commissioner for Health in March 2008. As Commissioner for Health, her portfolio covers three broad areas: public health, feed and food safety and animal health and welfare.

foods having a particular role in the diet, which should benefit from adapted nutrient profiles, while other foods would be subject to generic profiles. I believe that these nutrient profiles will deliver their objective of ensuring consumer protection and trust in the claims made on foods. And we should not forget that this trust is essential to ensure sustainable profits for the economic operators using nutrition and health claims. As Commissioner for Health, I am fully aware of the vital importance of Europe’s food industry. It is our largest manufacturing sector and employer – and, of course, a major exporter. We have come a mighty long way in the past 10 years with the construction of a world-leading food safety system, which places consumer safety at the top of its priorities. This has been achieved not only by legislators but also by the competent authorities in the Member States and, most importantly, by food operators themselves. It is to everyone’s credit that public confidence in our food supply has slowly but surely returned. It is our task to keep it there and to maintain the standards we have set whilst adapting to the changing demands and priorities of those who matter most – the consumers. n This article is based on a speech given at the 2009 European Food Law Conference in Brussles.

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Employing the latest technological advances to ensure the safety and nutritional quality of infant foods. By Paul Young

CHILD’S PLAY

trict criteria defi ning the minimum levels of nutrients presminants as a source of non-protein nitrogen. Independently, melamine ent in infant formula exist in most developed countries. Acand cyanuric acid are of low toxicity, however, co-ingestion can cause the cording to the US Federal, Food, Drug and Cosmetic Act, formation of insoluble melamine cyanurate crystals, leading to renal toxinfant formula may be deemed to be adulterated if it does not icity. In September 2008, approximately 300,000 infants in China were provide sufficient nutrients, meet required quality standards sickened by consumption of infant formula adulterated with melamine/ or comply with approved quality control procedures for processing. As cyanuric acid - six children reportedly died as a result. a consequence, infant formula manufacturers must strictly control the Investigators determined that melamine had been deliberately levels of nutrients in the end-product to satisfy regulatory standards. added to raw milk to boost the apparent protein content. In response Official methods of analysis exist for the determination of both to this health threat, many countries established regulatory thresholds water-soluble and fat-soluble classes of vitamins. However, each vitafor melamine in foods. Typically, thresholds are 1.0 ppm in infant formin requires a separate analysis, which consumes valuable laboratory mula and 2.5 ppm in other foods. China’s AQSIQ has since developed time. In addition, changes in product mandatory standards for manufacturmatrices have begun to erode method ers involved in the production of infant Paul Young BSc. PhD is Senior robustness. These factors, combined formula and other dairy products. Manager, Chemical Analysis Operations at Waters Corporation. with the need for higher throughput, These standards should be implementBefore joining the company in have necessitated the development of ed before the end of 2009 and mandate 2007, Young was employed in the Department of Agriculture for faster, multi-analyte methods. Increastesting of every product batch for a Northern Ireland for more than 25 years, involved in food safety ingly, manufacturers are relying on the range of analytes, including vitamins regulation. Young has acted as a utility and selectivity of tandem mass and melamine. consultant to the FAO advising developing countries on the spectrometric techniques, combined Scientists working for a major development and implementation of food safety control programmes. with ultra performance liquid chromamanufacturer of infant formula retography (UPLC) to achieve this goal. cently described a rapid, sensitive and In a recent article, scientists despecific method for the simultanescribe a Waters ACQUITY UPLC – TQD based method capable of quanous determination of melamine and cyanuric acid in infant formulas tifying seven water-soluble vitamins simultaneously and significantly and its ingredients using the ACQUITY UPLC - TQD. More than 100 improving sample turn-around times by combining five separate assays samples per day can be tested for melamine and cyanuric acid using into a single UPLC-MSMS analysis. A saving of US$200K per instrument. this simple method, allowing manufacturers to verify product quality was reported in the first year alone. on a batch-by-batch basis without disrupting supply. Late in 2008, as a case of what may be considered a more conventional Analytical methods developed for UPLC paired with tandem quatype of adulteration unfolded in China, infant formula manufacturers drupole mass spectrometry allow high-volume food safety laboratories began relying on the sensitivity and superior throughput of the ACQUITY to analyse for melamine and cyanuric acid or numerous classes of viUPLC to assure the nutritional quality and safety of each product batch. tamins simultaneously – the result is a substantial savings in time and Melamine is a nitrogen rich compound commonly used in the solvent costs. By improving the ability of manufacturers and regulators production of plastics. The closely related structural analogue, cyanuric to effectively evaluate food quality, Waters technologies are helping to acid, is used to produce disinfectants and may be added to the diet of rusafeguard the health of children around the world.

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What can food companies do to fight the growing threat of Campylobacter?

A GROWING

THREAT T

he infectious disease in humans called campylobacteriosis is a leading cause of gastroenteritis throughout the world. The disease is caused by Campylobacter bacteria, which can be carried in wild and domesticated birds, along with pigs, cattle and other animals, and are transmitted to humans via direct contact or consumption of contaminated food products. There are more than a dozen Campylobacter species, but the ones most frequently associated with infections in humans are C. jejuni, C. coli and C. lari. Food-borne campylobacteriosis is often due to raw or undercooked poultry and meat, raw milk and untreated water, although fish, mussels and fresh vegetables can also cause it. Symptoms typically include severe diarrhoea, abdominal pains, fever, headache and nausea, lasting from three to six days. The disease is rarely fatal, but complications include reactive arthritis and neurological disorders. C. jejuni is recognised as an antecedent cause of Guillain-Barré syndrome, which can lead to damaged respiratory and neurological functions and even death.

Campylobacter

Testing for Campylobacter in quality assurance laboratories

means to ensure the safety of their products. Detecting the presence of the pathogen is an important fi rst step. Many tests for pathogens exist in the food market today. When determining which method to use for detecting Campylobacter, quality control labs should consider several factors: • Accuracy – The testing method needs to be reliable and give reproducible results so that the time, cost and efforts of re-testing are minimised. Also, the ability to distinguish among species is important for making release decisions. • Fast results – Quicker answers allow faster release decisions, which in turn reduce inventory, refrigeration and storage costs and allow for more time on the retail shelf. • Accommodating the workflow in your lab – A smaller footprint conserves bench space, while automated systems minimise hands-on time and operator error. Results should be clear, with minimal need for interpretation, and throughput capabilities should be flexible. • Cost effectiveness – Total cost should factor in the shelf life, consistency and stability of kit components, along with the level and reliability of customer support available. • Credibility – Established history of success via third party certifications, international validations, and supplier recommendations. The BAX System from DuPont Qualicon is a turnkey solution that meets all of the above-mentioned criteria. The system offers advanced DNA-based detection for a broad range of sampling applications – from ingredients to end products – and provides differentiated, next-day results for three species of Campylobacter.

Faced with the growing issue of Campylobacter and foodborne pathogens in general, food producers and processors need effective

Quality control programs and trends in the EU

Magnitude of the issue A recent report from the European Food Safety Authority (EFSA) highlighted that campylobacteriosis in humans is a growing issue, with a 14 percent increase in 2007. Incidence rates vary by age group, with between 32 and 120 cases per 100,000. According to the report, Campylobacter were found in about 26 percent of broiler flocks in the EU, although this rate varied widely (0 to 86 percent) among member states. A closer examination shows that 46 percent of the Campylobacter isolated from fresh broiler meat were C. jejuni, 18 percent were C. coli, and 0.6 percent were C. lari. None of the reporting countries has seen a decrease in Campylobacter infections in recent years

Doris Engesser-Sudlow is Business Director for DuPont Qualicon EMEA, a world leader in providing innovative, science-based diagnostic products that can reduce the impact of pathogens and other unwelcome organisms in food. For more information, please visit www.qualicon.com.

The EFSA is completing a series of baseline surveys on the prevalence of Campylobacter. These studies will be used for identifying and ranking the possible control options within the production chain. As a result, the European Commission could update the regulation on microbiological criteria for foodstuffs to include reduction targets and limits for Campylobacter as for other pathogens such as Salmonella, Listeria, E.coli, Staphylococcal enterotoxins and Enterobacter sakazakii.

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ANIMAL HEALTH

The hot seat The issue of animal health is one that has spilled out of industry circles and onto the front pages. Foot and mouth, blue tongue, avian inﬂuenza and now the growing threat of swine ﬂu have all been sources of concern in recent memory. For Declan O’Brien, Managing Director of the International Federation for Animal Health Europe (IFAH-Europe), improving understanding of the value of good animal health policy is a full time job. Next Generation Food caught up with him to hear his opinions on some of the biggest issues currently affecting the space.

The resources devoted to animal health in Europe There aren’t enough resources devoted to animal health issues in Europe. It can always improve, but at the moment policy makers are having to look at new scenarios which require planning. They have seen what happens with the foot and mouth disease outbreak, with avian influenza and blue tongue in Europe. More planning and preparation is needed, which requires more funding. One example of good progress is the European Technology Platform for Global Animal Health (ETPGAH). Th is is a multiple stakeholder initiative to encourage and accelerate the development and distribution of effective tools to control major animal diseases. ETPGAH is funded by the European Commission, who are observers on the platform. The work done includes mapping the priority diseases and what the gaps are, so that the research can then focus on fi lling in these gaps. It would be great to have more efficiency within research and more funding for it. The need to prepare for more diseases coming our way is necessary. The contribution and participation of all stakeholders involved in the ETPGAH is commendable though. The Member States who are involved in an initiative to collaborate on research across borders are also to be greatly commended as their pooling of resources will make the research effort much more efficient.

The role animal health has to play in protecting the human population from diseases like swine flu First of all ‘swine flu’ is not the correct term to use for the current illness spreading among the human population. It isn’t swine flu. It is Influenza A H1N1, and it is a human illness, not an animal disease. The origin of the H1N1 influenza isn’t as yet clear, but in any case this is a reassortant virus and they are very difficult to prevent, even with vaccines in existence for other strains. Cases of zoonoses do happen however such as salmonella in eggs or rabies, where vaccination against rabies in animals has definitely reduced human mortality rates. There vaccination makes a clear difference. Another example is avian influenza. If it can be controlled in chickens then the risk diminishes of it mutating into a strain that will impact humans. There is a very clear connection that in diminishing diseases in animals, human health will benefit as well. In terms of H1N1 and animal health, all that can be done really is to work on biosecurity measures to minimise contact between humans and animals, and between different animal species. Issues will still remain, as with avian influenza and for instance wild birds which could still spread the disease, so we need to remain vigilant and realise we cannot control everything. We do need to plan as best as we can to prevent and cure diseases in animals, specifically zoonoses.

Consumer concerns over the use of antibiotics in animal production There are benefits to the use of these medicines in treating animals. Animal welfare mandates that sick animals are treated effectively and no matter how much we prevent disease, animals will get sick, just as children and adults get sick. And they do have a right to be treated to the best of our ability, rather than being allowed to suffer and die or have to be killed outright. The first step is of course good management, good biosecurity measures and a good vaccination programme. But of course medicines in general, and antibiotics specifically, need to be used responsibly and only if necessary and then it should only be the right product, in the right quantity. IFAH-Europe is also a founding member of EPRUMA, the European Platform for the Responsible Use of Medicines in Animals. The other stakeholders include representatives from among the veterinarians, farmers and feed manufacturers at European Level, as well as the European Initiative for Sustainable Development in Agriculture (EISA). EPRUMA has drawn up a framework regarding the responsible use of antibiotics in food-producing animals in which it lays down core concepts for a continued effective responsible use of antibiotics across the EU. In terms of alternatives to antibiotics, at the moment there aren’t any really. Several avenues are being looked in to, but none have been found or approved.

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The impact animal health has on the safety and security of food supplies Globally, the World Organisation for Animal Health (OIE) places production losses at more than 20 percent due to diseases in animals, on average. It is animal health products that prevent this figure from being much higher. With a more efficient use of them, the figure could go down in the future. Good examples are mastitis in cows that renders milk inedible. Cure the mastitis, and the milk is good for consumption. Another example is vaccination against E.coli in pullet flocks that has been shown to reduce the presence of salmonella in eggs. The connection between animal health and more secure, healthier, better food is therefore pretty clear.

The efficiency of the European regulatory framework Europe’s regulatory framework does need more work, and actually reviews are currently ongoing. At its recent annual conference, IFAH-Europe addressed this exact issue and presented its 1-1-1 concept: one dossier, one assessment, one decision. It’s all in aid of lowering the administrative burden for all those involved in the process of bringing veterinary medicines to market. The conference underlined the willingness from all those involved to make the process more efficient, including the European Commission, the European Parliament and the Heads of Medicine Agencies. One example is the data protection issue when a product is extended in its use from one species to another. Th is needs to be addressed in the review, as data protection is needed per species and not just per product. Otherwise medicines will not be made available for a range of species as the development work is very expensive and necessitates data protection to justify the investment. Th is is another issue the ETPGAH is looking at. The review would also need to tackle medicines’ availability, so the process is simpler, especially in cases of emergencies such as for instance with blue tongue. The option for an individual sheep is to get a vaccine or to risk becoming ill and die. But the current framework cannot deal with this type of emergency. At the moment Member States need to make these decisions, and weigh up the risks and benefits individually, rather than at a European level. So there is room for improvement, but this is currently underway and we as an industry are positive about the direction the debate is taking.

The challenges posed by rising consumer interest in ‘natural’ and organic forms of food There is an ongoing debate regarding the organic production food system and the more conventional one. In July there was a report issued by the Food Standards Agency in the UK stating that organic food ‘has no health beneﬁts and there is little difference in nutrional value’ compared to the more conventional production systems. There is clearly a market for both systems to exist though. However, in terms of animal health, there is no difference to whichever system is in use. Animal health remains a prime concern irrespective of whether the production system is organic or conventional. Our focus is on providing medicines to protect animal health and welfare regardless of the production system.

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HEALTHY BALANCE

Comfortable animals are productive animals

eed Conversion Ratio (FCR) is an important measure livestock farmers use to measure their business efficiency. FCR is the ration of the mass of feed the farmer fed an animal compared to the mass of body weight the animal has gained. A FCR of 2.3 would mean an animal has consumed 2.3kg of feed for every 1kg of body mass it has gained. Feed cost is the single biggest expense a farmer has in raising animals, typically this accounts for about 60 to 70 percent of total expenses. On the other hand selling live animals is his biggest source of income. Therefore FCR is essentially a comparison between the farmer’s biggest expense and biggest source of income. Needless to say, any profit minded farmer will strive to lower the FCR of the animals he is raising. There are several factors influencing FCR, but three of them tend to stand out. The first is the type of animal. Chickens have much lower FCR values than sheep; animals that are slaughtered at a younger age have lower FCR values and different breeds of cattle will have different FCR values. The second factor is the type of feed. Animals being raised on feed with a higher nutritional value will have lower FCR values.

The third factor is the environment within which the animals are kept. Animals placed in an environment which they perceive as being comfortable will have higher FCR values. As a point of reference, if all the factors mentioned above combine favourably, chickens will have FCR values in the range of 1.6 to 2; pigs in the range of 2 to 3; sheep in the range of 5 to 7; and cattle in the range of 6 to 10.

Environmental inﬂuences

different from the animal’s skin temperature, which results in a heat exchange between the animal’s skin and the environment. The magnitude and direction of this heat exchange is dependant on the magnitude of the temperature difference between the animal’s skin and the surrounding air temperature or the ΔT. A large ΔT will lead to a large heat loss, while a small ΔT will lead to a small heat loss. For survival it is of the utmost importance that the animal maintains a balance between its energy intake (feed consumption) and energy loss to the environment. Failing to do so will increase or decrease its core temperature which will negatively affect its physiological process and could ultimately lead to death. When animals sense a large heat loss to the environment (large ΔT) they respond by increasing energy intake (feed consumption). Sensing a low energy loss, the response is the opposite. These responses to environmental air temperature fluctuations are well developed natural defence mechanisms. However, the same is not true about the farmer’s profitability, which is dependant on the portion of metabolised energy that is available for growth. The larger the portion, the lower the FCR. Whenever the animal increases or decreases feed consumption in order to maintain an energy balance with the environmental air, the portion of energy available for growth is decreased. Within Munters we are extremely aware of this direct link between environmental air temperature and FCR and have therefore developed many different products and solutions that will enable farmers to keep control of the air temperature (as well as other envi-

The biggest factor amongst environmental influences is the environmental temperature. During the process of metabolism, the Wouter Claassens graduated as feed consumed by the animal an Agricultural Engineer from the University of Pretoria, South Africa, is converted into energy. Not in 1996. He joined Munters in 2001 and currently holds the position all the feed can be metabolised of Global Technical Manager, and consequently some of the managing the Engineering and R&D functions within the AgHort consumed energy is excreted. business area of Munters. Metabolism also generates heat, some of which the animal will use to maintain a body temperature in the region of 37°C to optimise ronmental factors) inside confi ned housing physiological processes. structures. Th is enables them to keep their The air temperature of the environment animals comfortable, lower the FCR and within which the animal is kept will mostly be maximise their profitability.

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14/8/09 15:19:05

EXECUTIVE INTERVIEW

injury or crushing of animals. The Prattley Autodraft systems use sensor technology on the back gate to prevent operator error. The autodrafter incorporates exact weigh readings and automatic draft exit for maximum efficiency. While the range of Prattley Cattle Managers incorporate silent safety ratchet features and fully immobilise cattle for handling and vet inspections.

On the move Graeme Ward explains how light-weight automated animal management equipment increases safety and efficiency. Livestock producers often have to operate in remote locations and difficult terrain. How important is it that animal management systems are portable, flexible and easy to operate? GW. A successful yard system is critical to producing a low stress environment for both the stock and animal handlers. Prattley’s mobile units on wheels offer the ability to move anywhere on the farm for on the spot animal management decisions. Farmers can then utilise existing fence lines, land layout, sun and wind direction to manage stock more effectively. Moving the mobile yards to stock eliminates stress and fatigue from herding and driving animals to permanent yards, this means less time off the feed and more time in the paddock putting on condition, therefore maximising stock condition and production. In what ways can your products be deployed to increase safety and efficiency? GW. The Prattley yarding and weighing systems are produced from high tensile alloy, which is a strong yet lightweight product used to avoid physical strain of the farm user. The yards and weighing/draft ing units can be easily and safely set up and operated by one person. The design of the yard allows some movement in the yarding pen to prevent

“We continue to research and develop our products in the farming community to keep one step ahead of current farming processes”

What role does technical innovation play in the development of effective animal management solutions? GW. Incorporating technology into animal management systems increases accuracy, time management and labour input on farms. An animal’s life data can now be accurately recorded and stored by a weigh indicator and analysed on a PC to give maximum returns on stock, show weight gain patterns, explore genetic/breeding dispositions and feed strategies. Technology has created the automation of manual tasks, such as draft ing, meaning greater time management and lower labour input in yards. How has your company evolved in response to the changing needs of the industry? Do you foresee any big new developments on the horizon? GW. We have seen the need for a complete on-farm solution to manage stock and we do this through our range of yards, handlers and weighing /draft ing equipment. We continue to research and develop our products in the farming community to keep one step ahead of current farming processes. Our products have evolved through our close relationship with farmers and their needs. The major development in the foreseeable future is the introduction of mandatory electronic identification, in which all animals will need to be life tagged to provide full traceability from the farm to the fork. Prattley works in conjunction with most major tag and weigh manufacturers to achieve this. Graeme Ward comes from a farming background, having operated his own mixed cropping and sheep farm for 25 years. He purchased Prattley industries Ltd in 1997, as an extension of his farming interests. Prattley sells high quality animal management systems both domestically in New Zealand and internationally through Prattley agents worldwide. The main export destinations include the UK, Scotland, Ireland and Australia with more recent distribution established throughout most of Europe including Estonia, Denmark and Germany.

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ANIMAL HEALTH

FIGHTING BACK 102 www.nextgenerationfood.com

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The on-going battle against disease outbreaks is a steep task facing animal health ofﬁcials. With climate change and increased international trade, disease control is a global issue that needs the cooperation of both developed and developing countries, says Bernard Vallat, Director General of the Paris-based World Organisation for Animal Health (OIE).

NGA. What is the economic and social impact of animal disease on the rural economy, and what strategies do both rich and poor economies need to employ to remain protected from risk? Bernard Vallat. The new context of globalisation and climate change leads to new threats for everybody. The scale of the movement of trade and people worldwide is unprecedented so this is an important factor in the spread of viruses and bacteria. We also have the threat of bio or agro-terrorism, which can use the flow of commodities and people to facilitate the spread of disease. All countries need to be ready to change their protection systems. Also, climate change allows some insects to recognise new territories with their pathogens. A good example of this is the West Nile virus which invaded the north part of the US in 10 years – probably thanks to a parrot imported in New York. So we have a multiplication of events in the world linked to globalisation and climate change. The world needs to be ready for these new threats and it is the responsibility of governments to update legislation and to ensure that this legislation is implemented correctly. They need to make sure there is no smuggling on the borders, for example, or that someone does not hide a disease because he is afraid of the consequences. Also, we must develop partnerships between the public and private sector – the veterinary services and the farmers. Th is is crucial. We think the best way is to have a triumvirate of veterinary officials, private veterinarians and farmers, which is a key element of new threats. Within this group we need a lot of flexibility, depending on the culture of a particular country, but this partnership has to exist. Training and awareness is one of the key components of this flow of information and activity between the three partners. NGA. How can OIE ensure that member countries implement its code and good governance when it comes to the control of zoonoses?

BV. There is a link between democracy and good practices. Countries where policy makers are elected are very reluctant to hide some situations because this is a great risk. We have some countries that are without democracy but the number of countries able to hide a situation is very, very low thanks to the media. The media is more interested in zoonoses but we hope that all diseases will be of interest. Everyday, we track information and rumours about the existence of diseases worldwide so when the governments do not broadcast a situation we can then speak with the media. In some cases we have rumours that are not based on true diagnostics so it is important to verify whether situations are true or not.

and the Middle East. We were then able to show governments that they were not ready and had to invest more in surveillance and prevention systems. But we have many resources at our disposal to raise awareness, especially in developing countries, and to help them to adapt their systems, and we created a lot of training programs for veterinary officials and farmers to cope with the problem. After four years of this crisis, which started in 2004, we can say that the majority of countries worldwide are able to control the disease when an outbreak occurs and are able to detect it early, which is crucial. If you don’t respond to early detection where the pathogen appears then the cost is exponential. You need a rapid response,

“Our priority is to convince all countries to update their legislation and to provide more resources for people who enforce the legislation in the field of animal health” NGA. The outbreak of the H5N1 bird ﬂu virus dominated industry discussion in 2007. Is the virus still a concern for animal health, and how is it being monitored? BV. Th is was an unprecedented crisis. It was the fi rst time that a new strain was able to cross three continents and infect millions of birds. Before the emergence of this new strain we knew that this virus was circulating without much damage. Th is low pathogenic strain in wild birds had, and still has, the potential to become high pathogenic and this is what happened in Asia more or less 10 years ago. Th is was able to escape and to reach Europe, Africa

using bio-security measures to block the spread. Although the majority of countries can contain an outbreak, this was not the case four years ago, but we still have countries that are not ready, such as Indonesia and Egypt. Because they are not able to control the situation the disease is endemic and there is a permanent threat of reemergence in other countries. So we have solved a lot of situations in four years and we now have to help just two or three countries. NGA. What particular challenges is the US agriculture industry currently facing with animal health and disease prevention?

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BV. Because of globalisation and climate change and the US’ involvement in the international exchange of commodities, this country is particularly exposed to threats linked with animal health. The US must be ready and must understand the need to adapt and amend its legislation and policies whilst maintaining its international trade. The solution is good governance and resources given to the people in charge of implementation of the legislation and improving the relationship with farmers.

for the whole world, not just the US. The US cannot escape from this new way of thinking when faced with new threats. NGA. What are your predictions for the future regarding animal health and battling disease? BV. Our priority is to convince all countries to update their legislation and to provide more resources for people who enforce the legislation in the field of animal health; this is

“There are 120 developing countries and OIE members who are not able to deal with a big crisis” NGA. Is there more that could be done here? BV. The animal disease situation in the US looks very good when you compare it to other countries. Although it is good, it is still important for us to be ready for new threats and to adapt the resources used by farmers, the government and veterinarians. It is not good enough just to use the same means – you have to permanently adapt to change, and this is

especially so with the poorer countries. There are 120 developing countries and OIE members who are not able to deal with a big crisis so we will continue to try to convince the developed countries to help eradicate animal diseases. Th is is one of our main challenges because this is mainly a problem of lobbying and convincing the international community to invest more in animal health systems and invest more in the training of farmers for a

The World Organization for Animal Health (OIE) has been in operation for over 80 years. Its mandates include ensuring the transparency in the global animal disease situation; the collection, analysis and dissemination of scientiﬁc veterinary information; the provision of expertise and the encouragement of international cooperation in the control of animal diseases; improving the legal framework and resources of national Veterinary Services; and safeguarding world trade in animals and animal products by publishing international health standards.

national prevention mechanism. When lobbying we use new arguments, such as demonstrating that food security is a upcoming problem for the planet. We know that demand for food from animal protein will increase by 50 percent by 2020. Also, the loss of animals linked with bad disease controls is more than 20 percent so we can save thousands of tons of animal protein by better disease control.

Feeding the world better by controlling animal diseases Bernard Vallat says the recent food riots in several developing countries serve as a painful reminder of current problems in matching food supply and demand worldwide.

ompetition for the use of agricultural land and forests is increasing in pace with the growth in the world’s human population: seven billion today, nine billion by 2050. Agricultural land and forests are threatened by urbanisation and public facilities such as roads and recreational parks, as well as by non-food crops used for biofuels or to produce textiles such as linen, cotton and jute, the latter competing with synthetic textiles that are often derived from petrochemicals. With regard to livestock production, world demand for animal protein (milk, eggs, meat) is expected to rise by 50 percent by 2020, even if the economic growth of recent years is now stabilising. In addition to the increase in the world’s human population (principally in developing countries), this growing demand will come from hundreds of millions of poor households in emerging countries joining the middle classes. These households are changing their dietary habits and will in future be eating three meals a day, with far more milk, eggs and meat than was previously the case.

Rising to the challenge The only way to meet this enormous worldwide demand for animal protein is by intensifying livestock production. This will lead

“World demand for animal protein is expected to rise by 50 percent by 2020” to increased sanitary and environmental risks, which cannot be effectively controlled without increasingly strict regulations and veterinary services that have the power to enforce them within their ﬁeld of competencies. It should also be noted that more than a billion people around the world currently meeting the criteria for poverty have an economic activity involving livestock. Animals provide them with food protein but they also provide work power (traction, ploughing, irrigation), a cash income and precious natural fertiliser. Animal diseases cost all these social groups dearly. Few studies are

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available, but it can be estimated that, at the worldwide level, average losses due to animal diseases are more than 20 percent. Reducing the incidence of these diseases is therefore one of the priorities to be considered in order to feed the world. This requires a clear political will, which the World Organisation for Animal Health (OIE) and its partners such as Food and Agriculture Organization (FAO) and World Health Organization (WHO) must encourage at a worldwide level. Indeed, access to an adequate supply of good quality food is not just an agricultural problem; it is also a worldwide public health problem and must also be approached from this point of view. Since providing everyone with access to animal protein could be greatly facilitated by reducing the losses caused by animal diseases, it is important to ensure that countries have good quality veterinary services capable of enforcing sanitary legislation in collaboration with livestock producers. For their part, producers must be covered by fast and equitable compensation mechanisms in the event of their animals having to be slaughtered for sanitary reasons, and they should receive appropriate training in animal disease control systems and be fully informed of the need to work hand in hand with veterinarians. To this effect, the OIE has adopted standards on the quality and effectiveness of veterinary services.

Potential dangers It should also be noted that in most countries sanitary controls on food products of animal origin and the prevention of related biological hazards (bacteria, viruses, parasites, toxins) are largely

under the responsibility of the Veterinary Services. A document prepared in collaboration with the other international organisations involved in this field was presented to, and adopted by, the national delegates of OIE Member Countries and Territories during the General Assembly in May 2008 (‘The role of Veterinary Services in Food Safety’). While it is true that we already have effective control methods to deal with a number of animal pathogens there is still much work to be done if we are to achieve a significant reduction in current animal production losses, notably by developing new vaccines, medicines and diagnostic tests. It is quite clear that public– private partnerships are indispensible in order to speed up research programmes to develop the tools needed to reduce losses from the various animal diseases, including those transmissible to humans. This research is in fact so expensive that even multinationals are unwilling to embark on developing the products we need. Public sector involvement in this field is both necessary and desirable, since this action clearly falls within the concept of a global public good. The OIE has a duty to support and even to promote these changes, but they will be greatly facilitated if – unencumbered by taboos, but with the appropriate precautions – they can take advantage of the incredible potential that biotechnologies have to offer, notably in the field of vaccinology. The OIE has already begun to address these topics, and right now our experts are drawing up the first recommendations for submission to our organisation’s Specialist Commissions and the General Assembly of National Delegates to the OIE.

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ROUNDTABLE

Ensuring animal health In light of the ongoing fears over swine flu and previous outbreaks of avian flu and foot and mouth, animal health remains in the headlines. NGF talks to Erich Erber of Biomin, Hipra’s Javier Sanz and Tom van der Laan of Provimi to find out what the main risks and challenges are concerning animal health and what animal producers can do to ensure that risks are kept to a minimum.

THE PANEL Erich Erber graduated from the College for Agriculture in Wieselburg and ventured out of Austria to explore agricultural practices around the globe. He later studied international business and export management in Vienna. After joining an Austrian feed additive company he met Dr. Herbert Egger who later became his mentor. In 1983 he resolved to supply the industry with premixes and feed additives that promoted the health of livestock – the natural way – and founded Biomin.

Javier Sanz obtained a Bachelor of Science in Veterinary Medicine from the University of Zaragoza (Spain) in 1988. He has 19 years experience in the animal health market, in several animal health laboratories, working both in commercial and marketing departments. He is currently the Marketing and Technical Services Director at HIPRA, managing a team of 32 people.

Ton van der Laan is currently Chairman and Chief Executive Ofﬁcer of Provimi SA. He was appointed COO of Provimi on 1 October 2005 and he previously worked for Unilever and Philips, where he held sales, marketing and general manager positions. He was SVP of Global Customer Development and member of the Unilever Foods Executive in his last position at Unilever.

How important is it for the overall wellbeing of the industry that companies like yours are able to respond quickly to emerging threats? Erich Erber: From the past to the present day the industry is facing different threats like avian influenza, salmonella, mycotoxins and now swine flu, which for sure won’t be the last one. BIOMIN has cared for health in animal nutrition for over 25 years and offers the industry successful solutions in the fields of mycotoxin risk management, natural growth promotion and gut health. Today BIOMIN works closely with its customers in order to identify their future needs and be able to offer the right solutions at the right time. We have been coping with these challenges for years now and we are confident that with a sustainable concept in animal production, the industry will overcome these threats. Javier Sanz: New human flu type A is a very important matter nowadays, as the worldwide pandemic demonstrates. Until recently new human flu type A has been a subject mainly related to human health. However, depending on the flu epidemic, we cannot exclude the possibility that other species, such as pigs, could be affected.

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In relation to swine flu, HIPRA is a member of ESNIP (European Surveillance Network for Influenza in Pigs), and we are prepared for this specific disease and can respond quickly if any emergency threat occurs in pigs. Tom van der Laan: Animal health is influenced by many factors, such as animal genetics, farm management conditions, breeding conditions and feed. In the latter, the animal nutrition industry certainly has a role to play to ensure that it supplies consistent quality animal feeds, which have shown their bio-efficacy. Quality standards and processes in the animal feed industry further help to keep that part of the value chain under control, to ensure no sub-standard materials ever leave the feedmills. For this, good raw materials control is crucial. What options are open to animal producers with regards to how they protect their stock? Are different delivery methods more suitable for different situations? JS: Prevention technologies will certainly increase in the coming years in order to confer better protection to animals. Such methods will include

â&#x20AC;&#x153;Prevention technologies will certainly increase in the coming years in order to confer better protection to animalsâ&#x20AC;? Javier Sanz improvements in nutrition, management, housing, production systems and vaccine methods, which should also take into account animal welfare. At HIPRA one of our goals is to develop good vaccines to be able to confer protection against diseases. Today, when developing new products or technologies, we must look and understand the needs of society and farmers. In this way, any delivery system that improves management of animals, reducing their stress, or improves handling and time of administration, reducing labour costs, must be fully taken into consideration.

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TvdL: Implementation of formal herd and flock health plans, developed in close collaboration with veterinary professionals, is integral to the prevention of disease on farms. These will usually specify suitable controls over the purchasing, storage and use of animal feedstuffs. EE: Farm Management Methods like ‘Closed Herd Systems’ or ‘All in - all out’ and Feed Management Methods like ‘One Finished Feed Supplier’ and a proper ‘Mycotoxin Risk Management’ are essential tools to protect herds or flocks. In addition to this, farmers have the means to protect the performance of the stock by providing the best nutrition possible. The use of antibiotic growth promoters, as has been the case in the past in the EU, and is still common in many markets, was or is one method of protection, but this has obviously created resistances that would reduce the efficacy when humans are treated with these antibiotics. Furthermore the sub-clinical level at which antibiotics are used in most cases, acts as a ‘mask’ for farm management mistakes. Nowadays producers switch to natural growth promoters such as acidifier, probiotics or phytogenic products, which show the same efficiency as the antibiotic growth promoter (AGP) but without side effects such as increased resistances.

“Implementation of formal herd and flock health plans, developed in close collaboration with veterinary professionals, is integral to the prevention of disease on farms” Ton van der Laan Worldwide we can see an increasing pressure from the consumer side for the reduction of AGP usage in feed formulations, such as lately in the US. BIOMIN’s strong focus on gut health and long history in natural growth promoters support the health of the animals and allow them to achieve top performance in all economic parameters. What are your key areas of focus at the moment? Are there particular health/nutrition challenges that you are currently devoting your energies towards? TvdL: We see gut health as integral to overall animal health – after all, the gut wall is the interface between the animal and the outside world. It is essential to minimise exposure of the gut to parasites such as coccidia and toxins such as feed-borne mycotoxins or, in the case of ruminants, bacterial endotoxins produced in a mismanaged rumen. We’re also working to improve the management of oxidative stress where the feed industry’s traditional reliance on a narrow range of few antioxidant nutrients is proving inadequate.

EE: The in-house BIOMIN R&D department develops effective and efficient solutions for the specific needs of our customers. BIOMIN is the world leading company in mycotoxin risk management and through the Mycofi x product line offers a very efficient and complete solution for different production requirements. BIOMIN also has a strong focus on gut health. The gut is the centre of the immune system and therefore having a healthy gut is key for top performance. Over 20 years’ experience in the field of natural growth promotion have resulted in groundbreaking innovations in the field of probiotics and phytogenics. BIOMIN also proves its innovation capability in the field of acidifiers with its new product line. The increasing consumer demands on food have given impetus to BIOMIN’s focus on the natural growth promoter concept and our striving for new challenges like coccidiostatica for instance. Another important focus of BIOMIN is the BRAIN Program (BIOMIN Research And Innovation Network), which brings together cooperation between more than 80 universities and research institutes worldwide. JS: HIPRA’s focus is not just improving animal health and welfare, but also all the aspects, which might affect human health. For instance, HIPRA is now highly involved in dairy cows’ mastitis prevention, due to the European launching of Startvac, the fi rst mastitis vaccine approved in Europe throughout a centralised procedure. The new vaccine is a very relevant tool for veterinarians and farmers, but is also an improvement in human food safety, due to the reduction of antibiotic use in dairy cows. In the few months since we registered the vaccine in the EU, we have been receiving extremely positive feedback from vets of different EU markets, who have already started to implement Startvac in their routine vaccination schedule. Reported data shows that Startvac is achieving a reduction in clinical mastitis and has a direct impact on milk yield. A marked reduction in antibiotic usage to treat clinical mastitis is being observed. Consequently, we are convinced that Startvac will shortly be recognised as a highly valuable product in the milk industry. How do you see the animal health/nutrition space developing over the coming years? Does a growing interest in organic farming pose a threat to both your business and general levels of animal health? EE: The animal health/nutrition business will grow in the near future and we will see an increase in the restrictive usage of antibiotics in feeds. Besides growing in size and volume, due to a growing world population, the demand for more effective solutions to specific challenges will become more demanding. Aside from commercial farming, the organic farm segment will grow too. But in this production system the challenge to overcome the infection risk, such as that of salmonella, is a question that will need to be resolved. There are challenges ahead but BIOMIN will deal with them and strive to bring new natural and innovative solutions for the animal industry. JS: Talking about animal health, the situation in the EU is really different from the rest of the world. Answering your question we should be able to distinguish between industrial farming and organic farming.

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The natural way.

Innovation for customer benefits I

Performance and efficiency P cares for health in animal nutrition.

International presence and research I

Sustainable output and results S BIOMIN GmbH Industriestrasse 21, 3130 Herzogenburg, Austria Tel: + 43 2782 803 0, Fax: +43 2782 803 30, e-Mail: office@biomin.net

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Organic farming production will progressively increase. Clearly, there is a place in our society for such product demand. Therefore, logically, more and more farmers will fi nd a place for organic farming. However, organic farming will not be able to supply all of the protein requested by our society. Obviously both types of production systems will have their place on the market. We do not see organic farming as a threat for the pharmaceutical industry. Moreover, this is an area of opportunities for us to offer our knowledge or products in any prophylactic programme if required. Referring to industrial farming, new EU regulations in terms of food safety or animal welfare are changing the microbial environment of these farms. For instance, in pig production, new EU animal welfare regulations to stall the sows in free-range systems will change the dynamic of infection of some pathogens, which were of minor importance or well controlled until today. For example, we are already observing that some enteric pathogens (virus, bacteria or parasites) are spread easier

within a herd and re-emerge. Of course, animal health companies must be capable of understanding this in order to adapt our strategies to these new situations and needs. TvdL: Clearly the challenge for the industry is to deliver, in an environmentally responsible way, more meat, milk and eggs to feed a growing world population. The focus for nutrition companies will be on providing feedstuffs that help animals grow well and be more productive, all the while ensuring that animal health is not compromised. The rise of organic farming is a very interesting development, as it shows the consumer’s needs and demands with respect to foodstuffs. However, the costs of organic farming, as well as the need for larger farmable land that it entails, will probably continue to make this more of a niche market as the set up is unlikely to deliver the required amount of meat, milk and eggs. Animal health control in an organic setting will also contribute to keep costs higher and hence may not be setting standards.

“Farmers have the means to protect the performance of the stock by providing the best nutrition possible” Erich Erber

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See the big picture.

Our world is a crowded place. By 2040, this planet will host about 9 billion people. As a world leader in animal nutrition solutions, it is our duty to give access to milk, eggs and meat products to as many people as possible. That’s why at Provimi we challenge 600 in-house scientists in 30 countries each day to come up with high-quality animal nutrition solutions. Worldwide, over 800 products have been developed so far. Ever since our beginning in 1927, we have been at the forefront of our industry. As we continue to shape tomorrow’s nutrition, we are committed to respecting the environment and animal welfare, and contributing to food safety – every second of the day. Learn more about Provimi at www.provimi.com.

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FEATURE

Monte The Man from

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Press scrutiny, economic gloom and tough competition have all failed to knock Fresh Del Monte off the top spot as one of the world’s leading food producers. Diana Milne meets the company’s Chairman and CEO Mohammad Abu-Ghazaleh to ﬁnd out what keeps his company going through the good and the bad times.

n today’s fiercely competitive food market, where brand recognition is a company’s most powerful weapon, Fresh Del Monte Produce has the edge. Its logo is instantly recognisable across the world, and its 1980s Man from Del Monte advertising campaign has stuck in the minds of today’s 30-something generation for ever more. But there’s a lot more to this company than good PR. As one of the world’s largest producers and distributors of fruit and vegetables, its reach extends to almost every corner of the world and it has successfully branched out as a producer of grains and poultry. Today, the company’s world domination in the fruit and vegetable production and distribution industries shows no sign of abating. While other companies are floundering against a backdrop of harsh economic conditions, Del Monte’s shares have recently risen in value by seven percent, and its revenue rose by 10 percent in the third quarter of 2008. At the time its results were announced, Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and CEO, said: “In contrast to the unprecedented volatility in the global economy and financial markets, the third quarter of 2008 was a period of steady growth and solid performance for Fresh Del Monte Produce. Our business continued to expand around the world, and consumers continued to purchase our fresh fruit and vegetables. These factors enabled us to deliver increases in net sales, gross profit and operation income; strong results in light of the uncertain global environment which prevailed in the third quarter and continue today.” He went on to say that he believes the key strengths of the company are its business strategies, management skills, balance sheet and the strength of the brand. Speaking to NGF at the company’s US headquarters in Florida, surrounded by familiar Del Monte logos, Abu-Ghazaleh reiterates that building brand strength remains a cornerstone of the company’s strategy: “Since 1892 the Del Monte brand has been recognised for quality, freshness and reliability. Over the years we have adjusted our product range and our communications to ensure that the brand remains relevant to today’s customers,” he says. The bulk of Del Monte’s revenue traditionally came from banana sales. Today, it has diversified its product range to such an extent that the majority of its sales are generated from other fresh produce, including melons, tomatoes and several non-tropical fruit

products. Its best selling range today is its speciality pineapple, the Del Monte Gold Extra Sweet. This product diversification is not done solely to keep customers happy. Del Monte’s ability to adapt to market conditions, its ambitious acquisition strategy and ruthlessness when it comes to discontinuing unprofitable operations have enabled the company to steer successfully through stormy business waters, time and time again. It experienced its most challenging year to date in 2006 when soaring energy prices led to higher costs for packing, plastics and logistics and the currencies in the company’s producing countries shot up in value. At the time the company reported a loss of US$83.6 million in the three months ending September 2008. Del Monte’s response was to swiftly shut down unprofitable potato and onion operations in North America and pineapple production facilities in Hawaii, cutting 551 jobs and sending shockwaves through the agricultural sector. However, says Abu-Ghazaleh, Del Monte is by no means immune to the economic woes facing other food producers – and he says the company has introduced a “cost-cutting initiative” to ensure it remains profitable: “Fresh Del Monte and the industry have faced a range of higher operating costs, including increased fruit procurement and logistics costs. Fresh Del Monte has an ongoing cost-saving initiative in place in company-owned production areas and throughout our entire organisation. During the first half of 2008 we were able to continue securing higher banana contract pricing in North America. We also set mandates to achieve higher price per unit sales prices on many of our other products, including DM Gold pineapples.” To cut costs, the company constantly expands its sources of fruit and vegetables around the world by acquiring smaller producers and distributors. Since 2002 it has acquired the likes of Fisher Foods in the UK; Envases Industriales in Costa Rica; Expans SP 2.0.0, a Poland-based distributor; Best Produce, a US east coast processor; and the Costa Rican banana and pineapple producer Caribana. Its biggest acquisition, however, was of Del Monte Foods Europe in 2004 – a producer of prepared fruit and vegetables, juices and deserts, which had originally been part of the same company until the Del Monte Corporation split into two separate entities in 1989. The acquisition added around US$370 million of sales potential and a range of new products to Fresh Del Monte’s existing

“I have faced many challenges over the years. We are a powerful company, holding leadership positions in several product categories”

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diversification, cost improvement and securing volumes to meet growing demand.”

Global ambitions

About Mohammad Abu-Ghazaleh: Mohammad Abu-Ghazaleh has served as Fresh Del Monte’s Chairman of the Board of Directors and CEO since December 1996. He is also the Chairman and CEO at IAT Group Inc, the parent company of Fresh Del Monte. Abu-Ghazaleh was President and CEO of United Trading Company from 1986 to 1996. Prior to this, he was Managing Director of Metico from 1976 to 1986.

portfolio. It also served to strengthen the company’s presence in Europe. Outlining the company’s strategy and its more recent acquisitions, AbuGhazaleh says: “I remain intently focused on extending and expanding our globally sourced product line as a means to reduce our dependence on a single region or product. In June 2008, we acquired a banana and gold pineapple production company in Costa Rica, significantly expanding our banana and gold pineapple production in this region. Recently we capitalised on an opportunity to strengthen our melon product line by acquiring two melon operations in Guatemala, with a focus on production

A Company History 1886 – First use of the Del Monte name on a food product. Del Monte coffee premieres as a premium blend of coffee packaged for the prestigious Hotel Del Monte in Monterey, CA. 1909 – Del Monte shield makes its ﬁrst appearance on a can label. 1920 – California Packing Corporation (CalPak) establishes stringent quality speciﬁcations for its premium brand, Del Monte. Early adverts assure customers ‘Not a label, but a guarantee’. 1929 – With prices plummeting and overflowing warehouses, CalPak is forced to tighten its belt. Always a premium product, Del Monte advertising differentiates itself from the many lowcost brands on the market and focuses on the value of dependable quality.

He is also keen to expand the company’s international operations. Fresh Del Monte’s last set of figures for sales show that the US represented 45 percent of earnings; Europe, 33 percent; Asia-Pacific, 11 percent; the Middle East seven percent; and other countries, three percent. He hopes to grow Del Monte’s operations in the Middle East in particular and to focus on the UAE, Jordan, Egypt and Saudi Arabia: “Since 1996 we have focused on extending our reach in our existing markets and on penetrating new markets as a means for driving growth and expanding our product sourcing. Today, we market and distribute our fresh products around the world. We are establishing a strong presence with our fresh and prepared products in emerging markets as well, including markets in the Middle East and Central and Eastern Europe, where our brand recognition is strong.” To date, in the Middle East, Del Monte has achieved great success in Jordan, where it owns National Poultry Company. Today it is the most successful poultry company in the country, with 800 employees, its own slaughterhouse, breeder and broiler farms, hatchery and feed mill and a distribution fleet covering all areas of Jordan: “We are expanding our product offerings as we enter emerging markets in the Middle East. We expanded our poultry products in Jordan by introducing other meat products. We are building state-of-the-art multi-purpose distribution centres in the Middle East to further introduce products, and we continue to develop juice and snack products that appeal to this market,” he says. Abu-Ghazaleh’s ambitious plans to expand his company internationally depend, however, only on factors he can control. And while global conditions place all food producers under considerable strain, this is not the only potential spanner in the works for Del Monte. Its business is heavily dependent on weather conditions and achieving successful harvests. “There are a number of challenges, including increased fuel and fruit procurement costs,” Abu-Ghazaleh comments. “But in this industry weather remains a major factor, as does securing volumes to meet increasing global demand for fresh products.” The effect of climatic conditions on the company’s operations was demonstrated all too well last July when flooding affected banana farms in Brazil and high winds in Guatemala significantly reduced the company’s banana outputs. Meanwhile, in the same period the company suffered disappointing harvests from its domestic melon operations in Arizona.

1942 – A persistent focus on quality helps lift CalPak out of a crunch. 1955 – Del Monte Pineapple Grapefruit drink is introduced. Del Monte Stewed Tomatoes becomes an instant classic. 1968 – Del Monte Corporation acquires West Indies Tropical Fruit Company of Coral Gables, FL. 1973 – Del Monte Corporation becomes the ﬁrst major food processor in the US to include nutrition labels on its products. 1979 – Del Monte Corporation shareholders agree to a merger with R. J. Reynolds Industries.

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Del Monte’s heavily agricultural operations, global processing plants and worldwide logistics network make it difficult for the company to meet the growing pressure on food producers to operate in a sustainable and environmentally friendly way. However, Abu-Ghazaleh is keen to stress its green credentials, outlining the efforts it is making to reduce air pollution and minimise water usage: “For many years now, we have been employing sustainable agricultural practices in all our farming operations. This benefits the environment by reducing air pollution, creating safer and more efficient use of water, and protecting local wildlife habitats and populations. We have also been utilising improved farming methods to protect vital topsoil, including tillage practices, improving ground coverings, and replenishing the soil with natural nutrients that enhance soil fertility. In each stage of the farming operation, we ensure that environmental protection is an essential part of the process.” He goes on to say that for Del Monte, creating sustainable agricultural methods also makes good business sense: “Sustainable agricultural practices, which have been an integral part of our corporate responsibility systems for more than a decade, ensure that the natural resources we utilise to produce our products are going to remain productive for many years to come. This not only makes good business sense but it is also the right thing to do for our employees, their communities and our customers worldwide.” The company’s environmental programmes have been certified under the ISO 14000 international standard for environmental protection and the EureGap protocol, the European food safety standard for good agricultural practices, worker health, safety and welfare and environmental protection. It also supports a number of charities, including Habitat for Humanity, The Make A Wish Foundation and the March of Dimes, and runs a scholarship program for high school students. “Our corporate responsibility is not a PR exercise but a disciplined management practice,” says Abu-Ghazaleh. However, Fresh Del Monte has also been dogged by bad press. In 2007 it was alleged by the US media that the company had been involved in payments

to illegal paramilitary groups in Colombia – a claim it emphatically denied. In July of the same year it was reported in the media that Fresh Del Monte’s Portland Oregon facility had been visited by US Immigration and Customs Enforcement officers to inspect the company’s labour force. In the previous year a lawsuit was brought against the company by several former indirect minority shareholders following its acquisition by the IAT Group in 1996. The plaintiffs later lost their case in court. For Abu-Ghazaleh, such bad press is part and parcel of running a company that, thanks to its own PR, remains consistently in the spotlight and ahead of the competition: “I have faced many challenges over the years. We are a powerful company, holding leadership positions in several product categories. We work to minimise our risk exposure, we have exceptional control over our business, and we have the most experienced management team in the industry.” And he says he has no intention of changing the strategy that has taken the business to where it is today: “As we move forward, we will continue to face the challenges that are part of the business. We have a strong balance sheet, and thus we will grow the business organically and through prudent acquisitions.”

1989 – Del Monte Corporation divides into two separate entities: Del Monte Tropical Fruit and Del Monte Foods.

2003 – FDP acquires Standard Fruit and Vegetable Co., Inc., a Dallas-based distributor of fresh fruit and vegetables.

1993 – The new owner of Del Monte Tropical Fruit changes its name to Fresh Del Monte Produce.

2004 – FDP acquires Del Monte Foods Europe, a leading producer and distributor of prepared fruit, vegetables and beverages in Europe, the Middle East and Africa.

“Fresh Del Monte and the industry have faced a range of higher operating costs, including increased fruit procurement and logistics costs”

1996 – Fresh Del Monte Produce is acquired by IAT Group. 1997 – Fresh Del Monte Produce, Inc. goes public on the NYSE trading as (FDP). 2002 – FDP acquires assets of UK-based Fisher Foods Limited’s chilled division, expanding in the fresh-cut category.

2008 – FDP acquires the Costa Rican group Caribana, substantially increasing Del Monte branded banana and Del Monte Gold Extra Sweet pineapple production from Central America.

ANIMAL WELFARE

NGF speaks to Andrea Rosati of the European Federation of Animal Science (EAAP) and hears about the importance of basing animal health decision ﬁrmly on the facts.

HEAD VERSUS HEART What kind of economic impacts can a failure to effectively address animal health issues have, for both producers and consumers? Andrea Rosati. The direct economic impacts are mainly for producers rather than for consumers. With the current fears over swine flu, people stop buying swine products. There is no reason for them to do this, but that is often the way that consumers react. They are worried about swine flu so they stop buying pork and instead buy beef, then in two years’ time we have a problem with beef and they go back to pork. Large numbers of consumers change their habits in response to these issues which can have a big impact on producers. A statistic stated that more French farmers were committing suicide as a result of the BSE crisis than people were actually killed by BSE which shows just how much producers can be impacted by animal health issues. Th is isn’t just the farmers, but processors and anybody else involved in the food production business. Do these animal health scares like swine ﬂu have a long-term impact or are they quickly forgotten about once the next problem comes along? AR. If we could see a graph of what happened to sales when we had BSE, foot-and-mouth disease and avian flu, or any of the other crises we’ve had to deal with, you would see a big drop in consumption of the affected product right at the beginning. Then, little by little, it would start to creep back up, but it never really reaches its original position. It’s always a little lower, but at the end it will come closer. The question was about swine flu. I think as with all the other times, people are already

starting to turn back to pig meat or swine products in general, and little by little we’re coming back to the original position. Do you think that the European governments and regulatory bodies do enough to promote the health and welfare of animals bred for food? AR. I think they do. It doesn’t mean they do everything right all the time, but it’s not an easy job. I’m quite positive about the fact that we should feel safe in this aspect. The European government and the European

“Sometimes we over-humanise animals. This can actually make things worse because animals behave differently from human beings and we shouldn’t pretend otherwise”

Union in general are doing really well, and compared with the rest of the world I Europe is the most effective continent in dealing with these issues. We could discuss forever and say that they could do this and that and other things, but there are many different opinions. As a citizen and a consumer in Europe I feel quite safe with what the European government and EU are doing.

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Do you think there is currently a correct balance between animal welfare considerations and commercial effectiveness? AR. I think there are two sides. There are emotional issues, people are trying to avoid the problems of animal suffering and are looking at the care of animals without approaching it on a sufficiently scientific basis. On the other side are industries, the big industries that are pushing to continue to produce and to grow in the market. As a consumer and as an individual citizen I think there should be a good balance of the two. I don’t want to be ruled only by emotional people, but on the other hand not even the free market is the best soEMOTIONAL PROBLEMS lution because that means the animals are suffering more. Sometimes you There is one personal criticism I have in response close one eye and sometimes even two to people’s ideas about animal welfare. This is eyes to animal health control. It should purely my own feeling nothing to the with the be a good balance as I say, but they are EAAP. It’s what I call the Disney problem: we not doing a bad job so far in Europe. grow up with the animals speaking like human beings, behaving like human beings and having What are EAAP’s key priorities going feelings like human beings, like in the Disney to be in the immediate future? cartoons. We all grew up more or less with that AR. This August we have our annual and we think it is like this. This might be a big meeting and we expect 1500 attendees mistake because sometimes we over-humanise to come to Barcelona where it will be animals. This can actually make things worse taking place. One of the big topics we because animals behave differently from human are going to be addressing is biodiverbeings and we shouldn’t pretend otherwise. sity and sustainable animal production This leads to very emotional responses systems, which is a really important to animal welfare issues, which can be issue for us. Of course we can talk inappropriate. On the other hand I think that If there is one thing that you think about protecting the environment, scientists in general haven’t really considered could be improved or could be but the real major challenge is around this issue enough. This has been a big mistake changed that you’d like to see, what sustainability. It is my favourite issue from the scientist’s point of view, and it all comes would that be? because without a move towards susdown to a failure in communication. In general AR. I would better check imported prodtainable animal farming for animal scientists are very reluctant to disseminate their ucts from other continents, for many production in Europe, we soon wont ﬁndings and they don’t give enough importance different reasons. Sometimes there’s lack have any animal farming on the conto that. That’s why the public perception of many of control. It’s just different and we can’t tinent. Above all else, a farmer is a things that should be based on science is instead assume that the rest of the world is like person who has a business and if we more emotional. So it’s mainly our fault that Europe, such as cattle identification for don’t take care of the sustainability of things like this are going on. instance. In Europe there are national his business, he will not be farming. databases that log every cow that is born. This will create problems for him but It doesn’t mean that the database works also for the market across Europe. perfectly, but we are close. However we import a large amount of beef Today we pay about 50 percent in relative terms of what we used to pay for cattle, mainly from the southern hemisphere, and over there identificameat 30 or 40 years ago. That’s because farmers are producing much more tion is just not the same. A lot less attention is paid to it and tracing the efficiently than they were before. origins of a product is very difficult. However these more efficient methods of farming are creating Th is might create trouble if we need to trace back because of probtrouble for the environment, because the farmers are not taking care lems with animal or animal products arriving from outside Europe. On of the countryside, especially in marginal areas. If this continues then the other hand it’s not very fair that European producers have to expend those places could become abandoned. Environmentally speaking that’s energy and expense to ensure traceability while foreign producers don’t. a problem. Also thinking about social problems, there are still millions I know that the European Union is working to improve the traceability of people in Europe making a living out of animal farming. If they aren’t of foreign food, but I also know that, especially in southern hemisphere able to remain economically sustainable they will not continue in the countries, it is one thing to say we want to do something and quite anbusiness and that could lead to many people becoming unemployed. other to really do it. With the economic crisis we have right now, it’s not what we want.

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INDUSTRY FOCUS

The

Feed Chain In recent years, the proportion of genetically modiﬁed crops being used for animal feed has risen sharply. Tony Bell of the European Feed Manufacturers’ Federation looks at the links between GM and food safety.

ince the growing of GM crops started back in 1996, most of the feed are growing GM varieties believe there are many benefits. If you speak to industry has given the choice to customers as to whether they want them, they cite environmental benefits such as fewer pesticides and herbicides to exclude GM soybean meal or maize gluten, or pay the additional and less soil erosion. Europeans also focus on the environment, but their concost for non-GM. The majority of feed – over 85 percent – does concerns are mainly over potential problems rather than the benefits of growing tain GM raw materials like GM soya, or in the past, GM maize gluten. GM varieties. Going forward, there is concern about the supply, particularly of nonThere is sometimes a blockage with GM, as people have an emotional reGM soya, because the major soya producers such as the US and Argentina sponse rather than looking at the science. This is the danger if we don’t look are now producing over 95 percent GM. In Brazil, at it rationally. Consumers say they don’t it’s over 50 percent, and the Brazilian soya industry want GM, but they also say they want The European Feed Manufacturers' has said that it will produce 80 percent GM within value for money and safe food. Whilst the Federation (FEFAC) was founded in 1959 the next two years. The quantity of non-GM soya is rest of the world is adopting GM technolby ﬁve national compound feed therefore falling sharply and in the next two years it ogy, Europe is standing by for political and associations from France, Belgium, will decrease by more than half. emotional reasons, not wanting to move Germany, Italy and the Netherlands. If this happens, supply of non-GM will be inforward. FEFAC is the only independent of the sufficient and what there is will need to be rationed, The feed industry uses processed raw European Compound Feed Industry at the which is normally achieved through price. materials that are grown in other parts of level of the European Institutions. Previously there was a two or three percent premithe world. There is debate about the growMembership consists of national um when buying non-GM soya and today it’s ing of GM crops in Europe, and this is associations from EU member states as around 10 to 15 percent. We can expect this premilikely to be an extended discussion. The full members and of an increasing um to increase sharply over the next three years befeed industry is looking to have a competnumber of observer members from noncause there physically won’t be enough non-GM itive livestock industry, but GM issues EU countries. material available. could turn into a competitive disadvanFarmers in America, Argentina and Brazil who

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Going global Alexander Döring, Secretary General of the European Feed Manufacturers’ Federation, talks about contamination risks and the possibility of a global regulatory framework. NGF: The safety and security of animal food supplies is of paramount importance. What measures do European feed producers take to ensure against the risks of contamination? AD: Our members in the UK and the Netherlands were pioneers in this area. We developed our first European-wide guidelines for good manufacturing about a decade ago using the existing codes in the Netherlands and the UK as a baseline. In 2007, the European Commission assessed our European Feed Manufacturing Guide positively and it has since been adopted by 20 of our national associations. Today, an estimated 90 percent, if not more, of compound feed is produced in the EU according to the guidelines developed here by our professional experts. This approach has gradually been taken up by our whole supply community. Farmers and home-mixers, who produce their own feed, are also developing adapted codes for their own operations. NGF: What are the contamination risks that the feed industry has to deal with on an annual basis? AD: A couple of years ago the sector entered the EU-wide rapid alert system and 2002 was the first year that feed-related incidents were recorded. There have been very positive developments since, if you compare it on an annual basis. Feed alerts compared with total food alerts account for around six percent, which clearly demonstrates good results. There are classic risks known for food, which for years have been linked to micro-organisms – Salmonella in particular – in imported but also home-produced products. We also see a number of alerts linked to contaminants such as mycotoxins and dioxins. The other alert regards unauthorised GM turning up in the system. As a result of the BSE heritage there are still alerts related to the presence of animal protein residues in some consignments of vegetable products. These are very well-known risks and going forward we are awaiting the enforcement of our metrics and guidelines. Recently our focus is turning to what we call ‘emerging risks’ – things that you do not necessarily expect to be in your feed, but which may turn up because of changes in food processing technology of our suppliers or, related to downright fraud, such as the recent melamine contamination in China. NGF: We live in a global marketplace. Can regulations that cover individual nations or regions be sufficient, or is a global regulatory framework required to address issues of safety and security? What are the challenges of creating such a framework? AD: We are still at fairly early stages concerning international harmonisation, but we strongly promote the idea. We are a member of the International Feed Industry Federation and together we have been promoting the harmonisation of feed safety standards for a couple of years, ever since we entered the CODEX Alimentarius system as observers. The first CODEX task force on

animal feed safety adopted a global code of practice for animal feeding in 2005, which not only covered industrial feed, but also home-mixing and grazing. So there are all-encompassing guidelines for safe feed production. To support this work, the FAO will shortly produce a joint manual with the International Feed Industry Federation to actually facilitate the employment of these codes at a national level and mainly in developing countries. CODEX also just established a second electronic working group to examine references for a future task force on animal feed safety. This was done on the recommendation of the previous FAO/WHO expert group on feed safety, and feed safety impacts on food safety. What we really welcome is the growing worldwide consensus on the importance of feed safety and the importance of developing international feed safety standards – there is the recognition of a need to move in that direction. It’s going to be a rather long haul and we don’t expect a global regulatory framework to appear overnight. In collaboration with our international partners, we organise annual feed regulator conferences to help the process along and to tackle some of the obstacles that stand in the way of a more comprehensive, global feed safety regulatory framework. NGF: Is there a timetable for when you might achieve a global framework? AD: One of the key problems – going back to science, which is hopefully always the basis for any regulatory decision – is that we currently do not have an accepted international guideline on feed safety risk assessment. If countries are performing risk assessments on feed safety differently, this results in different risk management decisions, which are hampering trade in feedstuffs. There is a big gap here and we hope that science, through stimulation by CODEX, can fill this gap. If a generally accepted risk assessment guideline can be introduced, things could develop rather quickly. NGF: What is going to be your main area of interest in the next few years and what big projects are you currently working on? AD: As an organisation we really favour the establishment of a new CODEX task force on animal feed safety, which will hopefully be decided next year by CODEX and which we will definitely support with our expertise. At the European level, we have more or less closed the cycle of modernising and harmonising European feed legislation. An area where we will be very actively involved is the newly adopted regulation on the marketing and use of feed. We are currently awaiting its publication in the official journal. We are also looking to additional self-regulation tools – including a code of practice for good labelling – which can facilitate the process further and help to establish a common set of rules, not just in Europe, but also on a worldwide level.

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THE FEED INDUSTRY IN FIGURES

processed into 150 million tonnes of compound feed

150 million tonnes of feed materials by 110,000 people

working in 4500 feed units located in rural areas

for a total value of €40 billion

which, on top of 230 million tonnes of forages and 110 million tonnes of feed materials directly used by livestock farmers

enable to safely feed every year: • 6 billion broilers, • 370 million laying hens, • 260 million pigs, • 90 million bovines and • 100 million sheep and goats to provide the 490 million EU citizens with: • 130 million hectolitres of safe milk • 45 million tonnes of safe meat and • 6 million tonnes of safe eggs

restricted. What we don’t want to see is the EU livestock industry being exported and then we actually end up importing livestock products that have been fed GM raw materials, which are not available to the EU market. The feed industry is already suffering due to the current economic downturn: this year it will probably be down by about five percent or six million tons. The sector being hit hardest is the dairy industry, which is not making sufficient returns and therefore a large number of farmers are exiting the industry. In the UK we are losing approximately a thousand dairy farmers a year. In terms of pork production, the industry is also suffering and EU pork orders are down. Poultry production is probably resisting the economic downturn, as consumers are showing a preference for cheaper protein sources. The longer-term effects of new GM varieties being introduced in the US and South America, but which are not yet approved in Europe, would have a major impact on the industry. We wouldn’t be able to import protein sources, particularly soybean meal, due to the EU policy of zero tolerance for their presence in any imported feed materials.

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This is an important issue at the moment; we now have a situation where the shipping companies are asking if it is worth the risk to import soybean meal from America if minute traces of a GM variety not approved by the EU will be found in it. The indroduction of many new GM varieties is planned for the next few years, with benefits claimed in yield and drought resistance, plus nutritional benefits such as fatty acid profiles and vitamin content. Safety is an issue that we take very seriously and the feed industry is clearly at the forefront in developing comprehensive feed safety assurance guidance. In the UK for example, we’ve developed FEMAS and everyone involved in the feed supply chain is independently audited, whether that be a Brazilian processor of soya, a shipper out of Brazil, a storekeeper or hauliers in the UK or the commercial feed mills – they are all independently audited to assure standards. n Tony Bell is a member of the FEFAC Industrial Compound Feed Committee and AIC Feed Executive Committe Chairman.

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EXECUTIVE INTERVIEW

The total package A modern packaging solution needs to incorporate a wide range of features, says Brian McCluskie. How have pressures, challenges or aims within the industry changed the needs of companies when it comes to their processing and packaging lines? Brian McCluskie. There are a number of factors that drive or influence the challenges our customers are facing. These include market sector, geography, their customers’ demands, and above all, raw material prices. In general, common themes are the need to reduce labour, the flexibility to rapidly change product lines, improved hygiene and the ability to perform cleaning quickly. A space-efficient footprint is also important as most customers are under financial pressure to use ex-

“As a supplier, we have to be extremely flexible in the most cost effective way” isting buildings, and do not have the luxury of starting up new lines in parallel or developing greenfield sites. Innovation is another driver, as customers look for a technology supplier that listens to their needs and delivers the means to improve performance. In contrast to the past, when it was enough to supply a machine that performed a specific function, we now have to demonstrate how we can reduce the total cost of ownership. Payback time is as important as packages per minute.

Competition is incredibly high in this difﬁcult economic climate. What role can an effective production line have in building efﬁciency and profitability? BM. The main costs for our customers are materials, labour, utilities, packaging, logistics and fixed overhead. What we must provide are efficient, reliable and flexible processes that use less energy, deliver higher throughput and yield, have lower running costs and offer greater flexibility with additional levels of automation. And of course, all this at a lower price! Total cost of ownership is becoming a hot topic with conversations around more intelligent machines that measure Overall Equipment Effectiveness (OEE), calculate losses and translate them into unit costs. For example, we have software that provides real time performance feedback that empowers operators to continually optimise a machine’s effectiveness. Aftermarket service and costs are also high priorities for customers and by keeping these costs low and predictable, we make it easier to forecast profitability. Our equipment and customer support strive to provide all of the above. How important is it that packaging solutions can be tailored to the spe-

Food safety is an issue with potentially far-reaching consequences for producers. What can packaging solution providers do to limit the possibility of problems in this area? BM. The growing emphasis on food safety in packaging equipment is reflected in the toughening of international standards. Complying with these regulations is a given. But we believe that we can do more to minimise the potential risks to customers than simply meeting standards and using food-compliant materials. So we have implemented a rigid design process and constantly validate our hygienic design and cleaning effectiveness. This has led to many improvements, such as the elimination of crevices that could hide problem, and the use of inclined surfaces for better rinse off. In addition, we help customers with their sanitation procedures. Again, hygienic design plays a role – such as simplified access for cleaning and inspection and an open frame. Our machines are regularly audited by independent bodies on their compliance with hygiene design criteria and have gained AMI awards in the USA.

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cific needs of individual customers? What challenges does this present from the provider’s perspective? BM. Packaging solutions are almost always tailored to meet specific needs. But these needs can rapidly change as consumer trends or customer demands necessitate using a different package, size or material for launching a new product. This means that we as a supplier, have to be extremely flexible in the solution we provide, but be able to do this in a cost effective way. Customisation and flexibility are given requirements. We meet this challenge by providing high levels of customisation from building blocks of standard modules, re-useable engineering and software. n Brian McCluskie is Chief Executive Officer of CFS, a leading manufacturer of food processing, slicing and packaging equipment and solutions. CFS serves the meat, poultry, fish, seafood and cheese industries, and has manufacturing plants in the Netherlands, Germany, Denmark and the USA. CFS supports the performance of its customers throughout the lifecycle of the equipment by helping them improve output and reduce operating costs.

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INDUSTRY INSIGHT

Dirk DeNutte explains why predictive maintenance is the most effective way of detecting equipment problems earlier and keeping costs down.

Ahead of the game

nless you’ve been living on another planet for the last 50 years, you already know that the case for doing preventive maintenance is watertight. Done right, preventive maintenance will preserve, protect and extend the life of your equipment – and boost overall return on assets. However, most maintenance and reliability professionals are unhappy with their PM program, as they believe it consumes too many resources and is simply bigger than it should be. They feel like they don’t have enough manpower to manage all of their PMs along with the other important maintenance work. Despite all of the time and money being spent on preventive maintenance, there are still far too many unexpected equipment failures. For example during a recent chemical plant tour, the frustrated maintenance manager said, “We just PM’d that machine, and it failed a short time later anyway. So why didn’t we catch the problem with the PM?” Why indeed? In a nutshell, the problem with preventive maintenance is that it takes too much time and produces too few results. By defi nition, all PM’s are time-based. That means that either calendar time or operating time dictates when an asset should be inspected, cleaned, adjusted, replaced or reconditioned. But is there really a direct relationship between the time equipment spends in service and the likelihood it will fail? In short, the answer is no. In fact, for complex systems, the majority of failures will occur at random. The reality is that 89 percent of equipment failures are not agerelated. Therefore, there’s no amount of time-based preventive maintenance that can manage these failures effectively. That’s why using time as the primary basis for your maintenance strategy is inherently flawed. It will have very little impact on overall reliability. From a risk standpoint, it’s much safer to assume that equipment failures can happen at any time. Despite what you may have heard, the basic maintenance process is really simple: detect problems; plan and schedule repairs; make repairs. The secret to good maintenance is in the first step. There is a direct correlation between early detection and maintenance costs. Simply put, the

earlier you can detect problems, the faster, cheaper and easier it is to make repairs. Emergency repairs can be astronomic. There is a huge difference between emergency maintenance and planned, proactive maintenance. The fact is that problems start small and get worse with time. It’s important to realise that the equipment will send off early warning signals along the way. These early warning signs might be slight changes in temperature, vibration or sound. Not all of these changes can be detected by human senses, but they can be picked up with special equipment designed for that purpose. And that’s what the whole field of condition monitoring and predictive maintenance is about. With advanced technologies in vibration analysis, infrared, ultrasound, oil analysis, motor current analysis and non-destructive testing, trained technicians can routinely monitor and inspect equipment and detect these early warning signals. The difference between the time taken for a predictive or condition monitoring specialist to detect a problem and for an operator to detect one is huge. Remember, detection time equals money. Big money! In spite of the evidence, the reality is that most asset-dependent companies are not doing nearly enough predictive maintenance. Even though predictive maintenance has been around for over 40 years, it is still “new” to some organisations. That leads to late detections, emergency maintenance, and all the painful costs that come with it. In summary predictive maintenance should be an integral part of your reliability strategy – and account for at least 50 percent of your maintenance work.

“Most failures are developed over a period of weeks, months or years”

For more information on predictive maintenance contact g to www.gpallied.com

Dirk DeNutte became the Managing Director of GPAllied, LLC in March 2009 after the joint merger of General Physics and Allied Reliability. Previously, he was in charge of Allied Reliability’s European consulting business. DeNutte has over 24 years of experience in the marine and industry maintenance sector.

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ROUNDTABLE

IN THE

PROCESS The panel

For processing companies the key issues are maximising proďŹ tability, decreasing downtime and increasing safety and hygiene standards. We ask Mark Drapanas of Intralox, Arthur Oude Roelink of Jonge Poerink Conveyors and Trevor Howard of PPM Technologies UK what they are doing to help clients meet these challenges. How have pressures, challenges or aims within the industry changed the needs of companies when it comes to their processing and packaging lines? Mark Drapanas. Increasing food safety standards is key in todayâ&#x20AC;&#x2122;s meat processing environments. As governments and regulatory bodies worldwide seek to restore consumer confidence after recent product recalls, hygiene standards are on the rise. At the same time, demand for high-quality, safe food products has never been greater. The challenge of maintaining a profitable balance between the two can be daunting. In meat processing, we have learned that installing hygienic, easy-to-clean conveyor belting is key to maintaining superior standards of hygiene. Rather than responding as problems arise, meat processors are taking proactive measures to ensure that their operations are at an optimal level of hygiene from start-up.

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Mark Drapanas works for Intralox, LLC as manager of its global Meat, Poultry and Seafood Industry Group and has been with the company 21 years.

Arthur Oude Roelink is marketing manager of Jonge Poerink Conveyors in Enschede, the Netherlands. He has extensive experience in marketing and sales in the belting and conveying industries.

Trevor Howard is the Managing Director and Sales Director for PPM Technologies UK including the Wright Machinery and PPM AB business units responsible for EMEA. With 40 years experience in the food industry he is an expert in thermal processing and distribution techniques.

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Food processors need simple ways to solve problems and save money. Intralox ThermoDrive and Activated Roller Belt technologies are both easy and cost-effective to implement and have proven immediate impact on plant operating costs. Call us today! Speak to a customer service representative who specializes in your industry: Europe +800.4444.4600, US/Canada 1.888.387.2358, or www.intralox.com.

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Likewise, demand for broad product capability and diverse packaging is driving processors to streamline their back end operations. More and more processors are gaining greater flexibility and increased operational savings by introducing automation into their plant layouts. Arthur Oude Roelink. Competition between the manufacturers has intensified worldwide, which results in extra pressure on prices in the market. To stay profitable, manufacturers are looking for ways to improve the efficiency of their production processes. Their main goal is to gain uptime. In most cases this means that servicing and maintenance must be done in less time, while demands on the reliability of the conveyors increase. Hygiene has always been important for food processors. In this highly competitive marketplace, manufacturers seek advanced sanitation solutions that require a minimum of downtime. We pay a lot of attention to the reliability of our conveyors. Most Jonge Poerink conveyors are lubricated for life. What little maintenance is needed can be done easily – due to the open design of the conveyors, all parts are very easily accessible and easy to clean.

circumstances and needs of your clients. On the one hand, we add flexibility through the modular setup and very small turn ratios of our conveyors. This makes them easy to fit into any plant design. On the other hand, the accumulating facilities of our conveyors offer our clients extra opportunities to make the best of every situation. TH. The number one cost of a conveyor is if it breaks down during production causing the entire plant to become idle. We have developed a range of vibratory conveyors that are the most reliable in the industry. From our VF range of electromagnetic conveyors, which have no moving parts, to the BL conveyors commonly found in sweet corn plants feeding 20,000kg per hour to the cutters over a three-month season. Recurring costs spent on distribution systems make a big difference to the bottom line of food production plants. The largest ongoing cost to operate a distribution system is the employee’s time to clean each conveyor. As production facilities strive to become more flexible the number of line product changes has increased. Vibratory conveyors can be cleaned faster and more effectively than belt conveyors. The design of our entire range of conveyors has taken this into consideration, such as the LT conveyor, which has been optimised for snack food applications, uses a smooth stainless steel product contact surface to reduce the risk that allergens from different powder flavours can contaminate other products. The VF Advance conveyor has a totally enclosed drive and does not utilise leaf springs, eliminating areas that are hard to clean, and has consequently won favour as the conveyor of choice for the frozen poultry industry.

“Rather than responding as problems arise, meat processors are taking proactive measures to ensure that their operations are at an optimal level of hygiene from start-up” MARK DRAPANAS

Trevor Howard. We have seen increasing demand for more sophisticated control systems. This added control gives data for management to better optimise and balance production. For example, the PPM Technologies Libra Mass Flow system controls and regulates the product mass flow. This has been used in a wide variety of applications, such as seafood and vegetable applications, to regulate the line flow to more evenly feed processing machines and improve the quality of the final products. We have implemented the same Libra technology for blending applications in the cereal, frozen vegetable, and snack industries. By blending with Libra systems as opposed to on the multihead weigh scales the plant production can have a much more flexible range of recipes without comprising quality. Finally the Libra and Weigh Wright systems have been used extensively for flavouring applications to accurately weigh and control the application of oil, powder or slurry to food products. Improving proﬁtability is an ongoing aim for businesses in general, and especially so in this competitive market. How can the right conveyor technologies help companies to achieve that? AOR. Conveyors are a key factor in determining the processing speed of a production plant. When a conveyor breaks down, the entire production line comes to a halt. To prevent unscheduled downtime, we pay a lot of attention to robustness when designing a conveyor. The design also minimises scheduled downtime. Most models do not require lubrication and all our conveyors are easy to clean. Another key factor in improving profitability is optimal flexibility. The more flexible you are, the easier it is to adapt to the changing

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MD. Conveyor belts can actually be a source of profit. Many solutions are relatively cost effective to implement and have immediate impact on operating costs, be it through elimination of labour and product waste, an increase in production throughput and uptime, a reduction in maintenance, or savings in energy, water, and chemical usage. There are several solutions available in the market today that effectively deliver these results, so much so that payback is often received in a matter of months. Processors should get a thorough payback analysis before a purchase is made so that they know exactly when they will receive a return on their investment. In what ways have new technologies been incorporated into the operation and management of conveyor lines, and what advantages has that brought? TH. We have introduced a number of new technologies to improve packaging operations. The gateless proportional distribution system from Wright Machinery increases weigher efficiency well above 99 percent, which allows our customers to get more packaging out of the same machines. This technology also reduces product degradation by virtually eliminating drop heights. Finally the gateless design makes cleaning this distribution system fast, which reduces operating costs and leaves time to increase production capacity. The proportional feed system also improves product flow consistency making it an ideal choice for on-head flavouring applications. Consistent product flow will improve the consistency of flavouring coverage and reduce the costs associated with over flavouring the product.

SE R VIC E N

Jonge AD.indd 1

Innovators of efficiency

D ED

BEST

SERVI

Jonge Poerink Conveyors builds its business around your needs. For all food applications, we have the conveyor to improve your yield and help your business to grow. Based on 75 years of experience, Jonge Poerink successfully continues to develop and improve conveyors. Our curves became a world wide standard for conveying equipments.

Ideal for all food applications: •

High-speed conveying

•

Maximum reliability

•

Optimal hygiene

•

Flexible

cooling – baking – accumulating bottling – canning – packaging 75 YEARS INNOVATORS OF EFFICIENCY

Jonge Poerink Conveyors BV | Industriestraat 6b P.O. Box 4 | 7620 AA Borne | The Netherlands Tel: +31 (0)74 255 7430 | www.jpconveyors.com 14/8/09 15:18:03

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to upgrade their conveyor lines. What measures has your company taken to meet these ever changing demands? MD. The challenge of maintaining superior sanitation while increasing operational efficiency is a cornerstone of our company’s dedication to helping our customers. In order to tackle this issue head on, we recently expanded our comprehensive line of hygienic conveyance solutions to become the exclusive provider of ThermoDrive conveyor belting. ThermoDrive belts are especially suited for hygienic applications as they feature both the benefits of positive drive, zero back tension belting with a continuous, easy to clean surface. As a result, customers benefit from the best of both worlds: dramatically improved food safety and quality assurance combined with reliable operation and minimised maintenance requirements. By using ThermoDrive belting, meat processors have been able to achieve extremely high levels of food safety and have reported consistently low swab counts and reduced allergen cross-contamination. AOR. The demands on our customers are changing constantly as market circumstances get tougher. We consider it a challenge to keep meeting these demands and look to the future with confidence. I believe that the product developments that we have made in recent years fit perfectly with the needs of today’s clients. For instance, the modular setup of our conveyors helps to reduce downtime. A new or modified production line is set up in no time. For food applications, our hygienic design and the use of FDA-approved materials help to keep downtime to a minimum. We make reliability a top priority for all our conveyors in order to reduce unscheduled downtime to an absolute minimum. Furthermore, our motto ‘The best service is no service needed’ says it all. We focus on maximising uptime, which helps to meet the challenges that confront our customers.

“In this highly competitive marketplace, manufacturers seek advanced sanitation solutions that require a minimum of downtime” ARTHUR OUDE ROELINK

MD. The most significant, process-changing technology is in package handling automation. That’s what is so exciting about our Activated Roller Belt or ARB – technology. With ARB technology, processors are enabled to make critical improvements using automation where it was previously considered too costly or complex. On an ARB-equipped conveyor, the product rests on free-spinning belt rollers and can be moved selectively in order to change direction, alignment, location and speed of an item without using TREVOR HOWARD complicated controls. For meat processors, this means savings of hundreds of thousands of dollars annually by eliminating line stoppages caused by case jams, sorting errors, and other case handling challenges. TH. The recently developed magnetic slide gate is a revolutionary technology Customers have reported that through implementation of ARB technology, that allows a slide gate to be removed for cleaning without the use of tools. they can now accommodate all package types, lower system ownership and This solution is sweeping the industry as cleaning times are drastically relife cycle costs, increase throughput capacity, use less floor space and elimiduced and the risk of allergen contaminants is virtually eliminated. This technate the need for safety protection. nology can be retrofitted without the capital expenditure of replacing an

“The number one cost of a conveyor is if it breaks down during production causing the entire plant to become idle”

AOR. We are always searching for ways to optimise our products. We select the best materials with proven robustness and we use proven technologies to construct our conveyors. This results in strong and easy to handle products, which are frequently updated, such as the new belt design that we have recently incorporated in the Jonge Poerink Cobra. This is a curve conveyor with a full stainless-steel belt, which makes it easy to clean. Cobra curves are often used in bakeries, the cooling industry and the drying and packing industry. The need to reduce downtime and increase sanitation and hygiene standards – while improving line efﬁciency – have caused many companies

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existing distribution system. PPM and Wright have also developed several change parts to give our customers the option to change certain parts so the line can be cleaned while the factory continues to produce. This includes the PPM Technologies Mini VF conveyor with quick removable pan. This is an ideal scale feeder with 14kg pan that can be removed for cleaning. The Wright Machinery removable OMS drum is a plastic drum specially developed for on head flavouring. This drum has an optimal flight design to ensure product is constantly tumbled it has uses in industries from potato chips flavouring to frozen vegetable mixing. The drum can be changed in less then five minutes to give the line optimal flexibility.

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EXECUTIVE INTERVIEW

come brittle and porous as UV light, water, chemicals and air strip them of their plasticisers. Standard acrylics become spongy and porous and their compressive strengths actually reduce. All of the resins become hard to clean, impossible to repair effectively and eventually need replacing, this can be within a timeframe of as little as two to five years. Due to AcryliCon’s unique chemical construction, we can show you floors from 1978 that are still functioning – still easy to clean, good to look at and still protecting the substrate. Everything we say, we can prove in real life with references.

GROUND FORCE A safe and hygienic ﬂoor is a key building block of any food processing operation. NGF spoke with Bjørn Hegstad to get the lowdown. Hygiene is of paramount importance in the food industry.What features should a ﬂoor possess to help safeguard against contamination? BH. The floor must be non-porous and free of pinholes, and be capable of withstanding the chemical abuse caused by spillages and cleaning. If the surface breaks down, delaminates or becomes porous the outcome can be slippery or uneven areas, with added hygiene hazards. The floor system must retain its cleanability for life, not just for the first year or two. AcryliCon is a 100 percent solid, resin saturated flooring system. The nonporous, monolithic and impervious AcryliCon surface does not allow penetration by liquids and dirt, or the proliferation of fungi or bacteria. AcryliCon Systems are highly resistant to chemical attack, cleaning agents, liquids and foodstuffs. We can further enhance this protection with the addition of Microban incorporated into the AcryliCon floor. This is an efficient, non-poiso-

nous agent that inhibits the growth of bacteria. Microban gives the floor invisible and ‘eternal’ protection against bacteria, because it mirrors the longevity of the floor. AcryliCon with Microban is the perfect floor for the food processing industry.

“The non-porous AcryliCon surface does not allow penetration by liquids and dirt, or the proliferation of fungi or bacteria”

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What is it about your product that sets you apart from the competition? Are there particular technologies or techniques that are unique to you? BH. AcryliCon resins are completely unique within the market place. The formulation of these resins is a closely guarded secret, known by only a few people and completely unchanged since its invention over 30 years ago. AcryliConSystem Industrial flooring has a high compressive strength, is non-porous, nontoxic and has an exceptional longevity. Our long term performance comes from the ability to stay chemically intact over time. Unlike other traditional resins, AcryliCon resins do not chemically degrade. Polyurethanes and epoxies be-

In the current business climate any downtime in a factory or processing plant has to be avoided. Is it possible to install a durable and effective industrial ﬂoor while minimising any disruption? BH. The ability to maintain and repair the floors has taken on more significance due to current working practices of modern factories. With efficient factories working 24/7 the inability to shut down production areas to allow essential maintenance can leave floors looking unsightly and unhygienic. In this regard the ability to carry out maintenance quickly and easily is of great importance when choosing a floor surface – even when specifying new build greenfield sites. When a conventional resin system becomes ready for overhauling it is necessary to completely remove it from the substrate before starting again, creating disruption, noise and dust and that with some systems can be highly dangerous to health. AcryliCon is a special thermo-elastic resin that ensures each layer chemically fuses to the previous one, no matter how old. It is not possible to separate the individual layers that make up the system. Allied to a cure time of just two hours, this ensures that maintenance work is both more economic and less disruptive than is the case with other systems. These factors make AcryliCon the cheapest floor you can buy for money. It lasts longer than any other floor in the market place.

Bjørn Hegstad is a chemical engineer and President of AcryliCon. With over 30 years of experience he has developed AcryliCon to tackle the challenges of industrial ﬂooring in Norway, Sweden, Finland, England, Ireland, the Middle East, Canada and the USA.

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SUSTAINABLE PACKAGING

ITâ&#x20AC;&#x2122;S A WRAP

With increasing pressure to meet sustainability goals, we ask Julian Carroll, Managing Director of EUROPEN, to explain the risks, challenges and achievements of the packaging industry.

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he European Organisation for Packaging and the talking about ‘sustainable’ packaging as this is only one area that can Environment (EUROPEN) likes to think of itself as help companies meet corporate sustainability goals. Packaging cannot “The Voice of Industry for Packaging and the Envibe an end in itself. “You can’t make any judgements on the packaging ronment”. As an industry and trade organisation, alone,” says Carroll. “Any evaluation of packaging and its environmental Europen is open to any company with an economic performance has to be done in conjunction with an evaluation of what interest in packaging and packaged products. job the packaging must perform,” he explains. The membership of EUROPEN is made up of companies from all He goes on to explain that any company involved in selling prodareas of the packaging chain including the producers of packaging ucts needs the packaging to deliver goods to the end user with the least materials, packaging designers, packaging manufacturers, companies environmental impact, at an economically advantageous price and in involved in distribution and retail and national organisations. Compadoing so, add some kind of social value. Packaging can therefore help nies who join EUROPEN do so in order to support a united trade and contribute to achieving social sustainability goals by being part of an industry organisation that is dedicated to resolving the environmental integrated lifecycle based product system. It can also contribute by reucchallenges facing the packaging chain. ing resources used for packaging. Th is is an area that is becoming increasingly important as sustainTwo further ways that Carroll suggests packaging can do this is by ability moves up the agenda for governments, policy makers and conmeeting consumer expectations of product protection, safety and inforsumers alike. Having a dedicated organisation that can provide support, mation as well as saving costs in distribution and merchandising. He information and guidance is a key benefit for the members, who are unfirmly believes that if every corporation works to achieve these goals, doubtedly faced with meeting ever more stringent sustainability goals. then collectively progress is being made towards achieving the European Packaging in particular has been highlighted as an important area where Union sustainability goals. im imp mp p improvements can be made. Meeting consumer expectations is a contentious matter however. JJulian Carroll is Managing Director EUROPEN, a position he has Ju Numerous studies have been conducted which emphasise the new conh held since 1993. Before assuming responsibilities at the organisation, sumer trend towards increased sensibility regarding the sustainable C Carroll was director of corporate affairs Europe credentials of packaging. But Carroll seems scepfor Lawson Mardon Group, a Canadian company tical. “I’m not so sure that consumers are really now part of Alcan Packaging. He was responthat interested in the environmental impacts of sible for group corporate environment policy packaging. The number of people who take this and it was during this period that the idea for seriously is still a small percentage of the total Europen was conceived. population,” he says. “The idea started back in the late 1980s when “I think people would always say they are it was obvious that legislation affecting INCPEN concerned when stopped on the street or if (The Industry Council for Packaging and the subject to a survey, but at point of sale I’m not Environment) would come from Brussels,” says so sure these loft y ideals translate into action. I Carroll. Accompanied by several other industry think that the sustainability of food packaging executives Carroll headed off to Brussels and is just one part of the total corporate USP, the Strasbourg to get a better idea of what was hapselling proposition and the corporate image,” pening there. “I came back firmly convinced that asserts Carroll. what we needed was something like INCPEN When asked if he believes whether the sustain“Any evaluation of packaging in Brussels. Somebody said ‘Yes, you’re right. ability of food packaging really affects the choices and its environmental We need a kind of EUROPEN.’ And the rest is that consumers make, his answer is very clear. history,” he explains. So in 1990 EUROPEN was performance has to be done “Not directly, but subliminally and collectively in in conjunction with an founded and in 1993 Carroll took the reins. conjunction with all the other issues, yes.” EUROPEN is now a major catalyst of stake- evaluation of what job the He is certain however, that companies cannot holder dialogue and helps to promote greater ignore these corporate social responsibilities and packaging must perform” understanding and acceptance of the function that they do so at their peril. “Companies have and vital contribution of packaging to resource to be seen to be doing something and they must efficiency and sustainable development. But as back this up with facts.” Carroll explains, EUROPEN is actually quite a unique organisation in But the key factor has to be communication, both at a regulatory and Brussels in the fact that out of hundreds of trade associations, EUROPEN a corporate level. “My view is that if we aren’t successful in communicatis the only one that deals uniquely with packaging and its environmental ing the right message to consumers we are going to fi nd ourselves in a implications. The second unique feature is that it brings all of the differsituation where there is utter consumer confusion followed very quickly ent actors in the supply chain together around one table. by consumer disconnection from the issue and a lack of trust in both the However, when it comes to sustainability, EUROPEN has a very regulator, who is trying to do something in this area, and the corporaclear vision regarding sustainable packaging. To start with they avoid tion,” he explains.

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In his opinion we have reached a point where inaction Carbon Labels is a serious risk because there is so much happening in this The use of carbon labels on products to show the area right now. He cites a number of cases across Europe environmental impact throughout the product’s that may be leading to further confusion. For example at lifecycle has been in discussion for some time now. the regulatory level the French government has already In May 2007 the UK government, in conjunction passed a law called Grenelle One and now another entitled with the Carbon Trust, BSI British Standards and Grenelle Two, which is aimed at giving more information DEFRA, launched a carbon calculator initiative aimed to consumers about products and packaging. In Germany at introducing carbon labelling for all products. UK and Sweden industry is also working with government retailers such as Tesco, Marks and Spencer and Walkers along the same lines. Even the European Commission has were all quick to adopt carbon labelling and now over 60 its sustainable consumption and production action plan. companies have signed up to the scheme. The latest example at a corporate level comes from More recently the French government has followed suit Walmart, who recently announced plans to develop a with a progressive introduction of carbon labelling for products, worldwide sustainable product index requiring their which will become obligatory as of 2011 as a result of the Grenelle 2 law. 100,000 suppliers to provide detailed information regardCarbon labelling was debated during the “Grenelle de l’environnement” ing their green credentials. think-tank, which focussed on environmental issues and took place between Carroll stresses the importance of getting this right July and October 2007. in order to prevent complete confusion and disinterest on Private companies have been acting on their own initiative however, the part of consumers. However he is quick to note that on before such schemes were introduced by governments. In France, both a corporate level progress is already being made towards Casino and Leclerc introduced their own eco-labels in 2008. a European or even global framework and that there has been a meeting of minds on what the key principles and objectives are. The challenge that now remains is how to of this is that we were ending up with different demands for packaging, communicate this to less informed consumers. for the same product, from end users. The eco-efficiencies and economic There is however an element of competition that Carroll believes enters efficiencies in the supply chain that we fought so hard for were at risk.” into the equation at the stage when companies and suppliers have agreed k p In producing this guide, EUROPEN have furthered progress towards thee key principals. He has witnessed a certain one-upmanship amongst companies who struggle s a global approach. But other developments have also helped champion the companies to outdo each other in terms of the green credencan off ffer. h noticed that this is particularly prevalent in the cause. The Global CEO Forum was a platform which brought together the tials they can er. He has g CEOs from the biggest branded goods companies in the world, principally retail industry where green consumerism is seen as a competitive tool. But ut aat the ssame time he believes there is now a greater understanding in fast moving consumer goods, and the biggest retailers in the world, such as Tesco, Walmart and Carrefour. Carroll explains that the Global CEO between busine businesses that using green credentials in this way is actually a stree and that companies are now starting to move beyond this. Forum, having seen the work that EUROPEN was involved with, decided dead-end street Work towards a global framework in is the offi ng, but one of the that something similar was needed on a global level. major obstacles to this is the current lack of a clear-cut defi nition of what In response to this, the Global CEO Forum has merged with CIES, actual the pre-eminent food and consumer goods industry body, and the Global actually constitutes sustainable. EUROPEN are on the case though and recen Commerce Initiative (GCI), a global retailer and manufacturer collabrecently published a guidance document aimed at corporate decision orative platform. The new entity, which has a mandate to work on the makers which is designed to achieve a common understanding of susprincipals of sustainable packaging, common defi nitions and a common tainability principles among packaging supply chain stakeholders. understanding, is named the Consumer Goods Forum. The main participants include EUROPEN, The Brand of Goods Association (AIM), “If we aren’t successful in communicating The Grocery Manufacturers of America (GMA), the Food Marketing the right message to consumers we are Institute (FMI) and The Sustainable Packaging Coalition in the USA are going to find ourselves elv in a situation where also involved as experts on the packaging side. But it doesn’t stop there. Something else on EUROPEN’S agenda is there is utter consumer sumer conf confusion” ISO Standards and making the European CEN standards global. They ment entitled Packaging ackag are already in discussions with China, Japan and the US and ISO has The guidance document in the Sustainability porate Decision Mak ers, w already taken a vote to create a working group to take on this task. Agenda: A Guide for Corporate Makers, was co-chaired by Tesco he importance ance of sup So the coming months appear to be a very busy time for EUROPEN and Nestlé and stressed the supply chain partners, from the h to waste managem in their fight for a global packaging framework. But Carroll seems sure design stage right through management, all working together. that if all companies at every stage of the packaging supply chain work to “The reason we did this project was b because we saw different actors reta achieve the sustainability goals, then collectively progress can be made in the supply chain, particularly retailers, going off with different anronouncements in policy,” says Carroll. “The danger towards a global framework. nouncements and pronouncements

100g CO2

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26/8/09 15:16:08

IN THE BACK 140

SOCIAL MEDIA

Taking it to the Tweets!

Social media is gradually creeping into the corporate sphere and whilst some are quick to embrace it others are ﬁnding it a real challenge.

ocial media is rapidly changing the way that brands are interacting with consumers. With Forrester Research expecting the number of people using the web to increase 45 percent to 2.2 billion by 2013 it is advisable that businesses engage online with potential customers. Facebook registered 108.3 million users globally in December 2008 – a 168 percent increase in a year. LinkedIn saw a 137 percent increase and had 15 million users while microblogging site Twitter is also seeing extraordinary growth, with recent figures putting annual increases in UK traffic at 3000 percent. For many organisations, coping with the implications of social media remains a challenge as Web 2.0 has been flying underneath the corporate radar. However, experts have advised that the risks involved in embracing social media are outweighed by the benefits. So it is easy to see why so many brands are jumping on the social media bandwagon. Firstly, the social media phenomenon provides businesses with powerful new communication tools, enabling them to engage more directly with their customer base, who can now provide feedback, give praise and voice complaints in a manner that can have real impact immediately. Thanks to sites like Digg, Twitter, Facebook and YouTube, users are increasingly communicating about brand experiences, products and services, both positively and negatively. The way brands operate is changing rapidly due to the increase of consumer control. Consumers can now openly challenge brands in cyberspace. A clear example of this was Cadbury’s decision in 2007 to revive its Wispa bar, which was taken out of production in 2003 after sales

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fell. The Wispa was reintroduced for a seven-week trial period following demand from bloggers and campaigns on Facebook and MySpace. Sales during the trial reached an impressive 20 million bars, which convinced the confectioner to bow to public pressure. A similar campaign was launched on Facebook to bring back the Cadbury’s Wispa Gold, which will hit shelves as a limited edition in September this year. Secondly, social media provides companies with a perfect platform for market research. Traditionally companies have invested vast amounts of time and money painstakingly canvassing consumer’s opinions, but social media allows consumers to tell manufacturers and marketers exactly what they think of new products almost instantaneously. However, the views voiced by consumers are not always positive and companies need to know how to react to criticism and more importantly how to learn from it. The Tropicana debacle is a good case in point and shows that consumers are not slow to share their views and companies are proving increasingly quick to act on them. Following the launch of new packaging for Tropicana in January this year, outraged Tropicana loyalists flooded blogs to protest the brand’s lacklustre redesign, which replaced the orange skewered by a drinking straw with a simple glass of juice, thereby forcing PepsiCo execs to concede defeat. Within just eight weeks, a remarkably short lifespan given the $35 million investment in the product’s redesign, the company dropped the new packaging and reverted to the old cartons. Perhaps if PepsiCo had done their market research using social media channels before investing in a redesign, they would have seen that consumers were quite happy with the brand’s image as it was.

26/8/09 15:22:45

IN THE BACK SOCIAL MEDIA

Th irdly, social media has also become an essential part of successful marketing and branding strategies for many companies. Businesses and strategists agree that promoting a business, product or service through social media networks such as Twitter and Facebook helps to raise awareness regarding the existence of products and services. Social networking tools enable faceless corporations to develop relationships with customers and create greater brand loyalty. Some companies have benefited to great effect from the free publicity that is often created through social media by consumers themselves. Again Cadbury’s comes up trumps here with its gorilla advert for Dairy Milk. The ad went viral with over 1000 user-generated mixes on YouTube, all of which was publicity that the brand didn’t pay for. Another brand that has whole-heartedly embraced social media as a marketing tool is Skittles. In March this year the homepage on the Skittles website was replaced with some-

Top 5 virals for 2008 as compiled by www.web-strategist.com based on compiling numbers of views from YouTube, Dailymotion, Metacafe, Break and Vimeo. R0naldinho: Touch of Gold More than 50 million views globally Kylie Minogue: Agent Provocateur commercial Kylie Minogue rides a velvet bucking bronco wearing nothing but lingerie from Agent Provocateur John West Salmon A John West employee fights a grizzly bear off to land a fish Quicksilver: Dynamite Surfing How to go surf in a country without waves: a group of young men throw a bundle of dynamite into an urban lake Big Ad: Carlton Draught The Carlton Draught Big Ad is an award-winning advertisement for Carlton Draught, which used viral marketing techniques before being released on television. Big Ad, filmed in New Zeland, with over 300 extra

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Gorilla advert for Cadbury’s Dairy Milk

thing that combined pages from Twitter, Flickr, Wikipedia, YouTube and Facebook all featuring user-generated content focussed on Skittles. In one of the boldest campaigns yet involving a global brand getting into bed with social media, Skittles recorded a 1332 percent jump in traffic to their website on the first day. Skittles has literally done what social media experts are urging: follow the critical mass and go where the people are. Many companies appear to have learnt how to market their products online and now they must understand that when a crisis erupts, it may be necessary to go online to protect their brand. Domino’s Pizza learnt this the hard way when a prank video was posted on YouTube showing two employees defacing food that was destined for customers. In a matter of days, thanks to Twitter and other viral social media, the clip had been viewed more than a million times and Domino’s had an instant crisis on its hands. On realising that the blogosphere was ablaze, the company responded with a viral video of its own featuring an apology from the company president. It asked employees with Twitter accounts to tweet a link to it and it also created its own Twitter account to reassure consumers. All of this is classic crisis management, but on a whole new level – one which experts are labelling Digital Crisis Communication. Domino’s understood the importance of reaching out to a target audience on its own terms and in its own preferred space. This crisis occurred online so it had to be resolved online. All of the case studies discussed here show that social media can have real business benefits and brands that ignore them do so at their peril. However, the vast potential of social media tools also carries a considerable threat. Businesses need to be careful not to hand too much control over to consumers. For every consumer who hated the new Tropicana packaging, there may have been thousands who liked it. Was the evidence really strong enough to warrant Tropicana’s u-turn? As social media becomes ever more influential, it will become even more important for companies not to act on the whims of a vocal minority located somewhere in cyber space, without first ensuring that their decision makes good business sense.

26/8/09 15:23:10

IN THE BACK

FINAL WORD

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Is organic a write off?

Organic food faces a new setback following claims that it is no more nutritious than conventional food. But does this mean we should write it off completely?

year long report commissioned by Britain’s Food Standards Agency (FSA) and carried out by The London School of Hygiene and Tropical Medicine (LSHTM) – a leader in sciencebased nutrition education – was published in July and has caused outrage amongst the champions of organic farming, including the Soil Association. The report, which has cost the taxpayer more than €140,000, took the form of a systematic review of all papers published over the past 50 years – a total of 52,000 – which relate to the nutrient content and health differences between organic and conventional food. The findings of the report, which were published in the American Journal of Clinical Nutrition, conclude that there are no important differences in the nutrition content, or any additional health benefits, of organic food when compared with conventionally produced food. This controversial outcome has incensed advocates of organic food production who claim that the focus of the FSA study was far too narrow and failed to take into account other important benefits offered by organic produce. The results are a kick in the teeth for the €2.4 billion organic food sector, which has previously enjoyed extraordinary growth of

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26 percent per year on average. The sector is already reported to be struggling during the economic downturn as prudent consumers shy away from more expensive organic options. Organics typically cost 60 percent more than their non-organic counterparts, according to a study conducted by Which? Magazine. Amidst fierce criticism, the FSA insists that it is neither pro nor anti-organic food and that it does recognise the other benefits offered by organic farming. The findings have touched a raw nerve with organic food campaigners who say the report failed to take fertiliser and pesticide residues into account. The Soil Association has hit back saying that consumers who opt to buy organic produce do not do so purely for nutritional reasons. It highlights recent EU research that has found that regular buyers of organic food (who buy about 80 percent of all organic products) have a much more sophisticated understanding of the range of benefits that organic farming and food deliver. In buying organic they are supporting a system that has the highest welfare standards for animals, bans routine use of antibiotics and increases wildlife on farms. These are all valid points and, quite frankly, given the current crises surrounding food safety, can we really afford to ignore the

benefits offered by organic farming – even if these may not be nutritional? The current outbreak of the novel H1N1 virus, commonly known as swine flu, has called industrial scale farming into question, largely for the potential it has created for breeding and spreading diseases amongst animals – diseases that can then be spread to humans. Other animal welfare issues have also been highlighted by the pandemic, such as the possible over-use of antibiotics in livestock, which can lead to antimicrobial resistance. Both of these issues can largely be avoided through organic farming practices. The Soil Association has also pointed out that organic farming goes a long way to improving the sustainability and security of food production. The majority of the UK’s harmful emissions are composed of nitrous oxide, the main source of which is artificial nitrogen fertiliser, upon which non-organic farming in the UK is dependent. Whether organic food is more nutritious or not is of course important to consumers, but surely we need to look at the bigger picture. Organic farming may (or may not) produce more nutritional food, but the benefits it offers should certainly not be ignored and given the current challenges that the food industry is facing can we really afford to write organic off ?

26/8/09 15:08:02

IN THE BACK IN REVIEW

143

Food for thought Next Gen Food takes a look at some of the books currently clamouring for space on your shelf.

Waste Uncovering the Global Food Scandal, by Tristram Stuart If scare stories are to be believed, the world is on the verge of a food crisis. The reality is that this is only partially true. In the West, supermarkets and consumers discard up to half of their food, enough to feed the world’s hungry three times over. While we create mountains of waste and generate huge amounts of greenhouse gas on produce that will never be eaten, crops in the developing world rot because local farmers lack the resources to process, store and transport them to market. Stuart travels the world to witness what we are doing wrong and fi nd out what can be done to make things better. Next Generation Food says: An eye opening examination of the developed world’s profl igate attitude to food waste. Will make you think twice about what you throw away.

Corporate Power in Global Agrifood Governance by Jennifer Clapp and Doris Fuchs In today’s globally integrated food system, events in one part of the world can have multiple and wideranging effects. This book examines how trans-national companies exercise power over global food and agriculture governance and what the consequences are for the sustainability of the global food system. Examining the nature of corporate power in cases ranging from ‘green’ food certification in Southeast Asia,to governance in the seed industry and international food safety standards, the authors raise crucial questions about how to achieve participation, transparency, and accountability in food governance. Next Generation Food says: An exhaustive and wide-ranging investigation of the driving forces behind the global food system.

Innocent Building a Brand From Nothing But Fruit, by John Simmons

Founded in 1998 by three college friends, Innocent Drinks has become a business phenomenon. So successful has it become as a brand that it is looked upon by the marketing world with a mixture of awe, affection and even envy. Simmons tells the story behind the rise of the company – a tale that will resonate with budding entrepreneurs, marketing professionals or anybody who has enjoyed an Innocent smoothie. Next Generation Food says: Considerably more readable than many business books, Simmons deft ly tells Innocent’s story, revealing some of the secrets behind its success along the way.

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26/8/09 15:05:18

IN THE BACK 144

PHOTO FINISH

Tempers ďŹ&#x201A;are over reluctance to buy French A protester sets tyres on ďŹ re next to a pile of peaches dumped by fruit growers on July 31, 2009, in Perpignan, southern France. Growers set up the barrage to block access to the Saint-Charles food market in a symbolic action to protest at French wholesalers and distributors who this year have not bought French produce as a priority.

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