Meat Packing Journal, Jul-Aug 2018, iss 4, vol 5 by Reby Media

Meat global

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July~August 2018 Volume 5, issue 4 ISSN 2054-4685

analysis

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p a c k i n g

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J o u r n a l

pig lawsuit

Where ever you are in the world, this will affect YOU!

24 | holy cow â&#x20AC;&#x201C; how india became No. 1 in exports

38 | it's summertime and the storms are vicious

54 | vege burgers that taste like the real deal

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le ad e r

Time to circle the wagons

was in the Tribeca-area of New York City the other week. Around 35-years ago when I lived in the Big Apple – back in the ‘Bad-Old-Days’ – I doubt few of us would have predicted how up-market the area would become. Even the South Bronx, which in my days resembled Berlin during the final days of WWII, is now being marketed as up and coming “SoBro”.

At a Hudson Street bar/restaurant, my wife and I had

sourdough blueberry pancakes, two cups of average coffee, and I splurged on four slices of apple-wood smoked bacon. Reviewers claimed these were the best sourdough pancakes in the City. The damage? Seventy dollars – including tip. I really and truly wish I was making

editor's choice

this up but I’m not. The scary thing is, however, after being in NYC for two weeks, the price didn’t startle us. While we were eating, I was watching the restaurant receive a wholesale order, which consisted of around

Besides the BIG ISSUE, which explains the North Carolina lawsuit, it has to be India – world leader in beef production

25-30 cardboard boxes containing everything from paper towels to eggs to vegetables. The boxes went from the delivery truck, onto a small lift, and lowered into the restaurant’s basement. Outside of myself, nobody else seemed to pay any attention to this; they had New York City big deals, big plans, and big dreams to worry about. Where their food came from was not part of this, just as long as it was there. I don’t think anyone will ever confuse New York City

made a fortune.” And then there was the scooper. A commercial photographer buddy of mine called me up one afternoon and asked me if I wanted some ice cream leftover from a shoot. For a new ice cream, a

with the rest of the United States. Careers and situations

company had sent over around five cases of ice cream

happen there that don’t anywhere else. I remember

packed in dry ice.

during a gas crisis in the early 1980s, tempers flared at

Bryan told me that there was a woman in NYC who

a Brooklyn gas station after a car cut into a long line of

made a good living doing nothing but making perfect

waiting drivers. The end result was: a professional disco

scoops of ice cream for photographers – if you bought

dancer shot and killed a professional coffee taster. Where

any carton ice cream in the States during the 1980s,

else but New York.

chances are she made that scoop on the cover. Bryan

A very high-paid lawyer on our NYC softball team

helped the delivery guy unload the cases, thinking that

told me that all his company did was study tax laws from

this was definitely a case of overkill – and that’s when he

around the world looking for loopholes to exploit. He was

called me.

proud of finding one that involved the Swedish barge

But, as he watched her make scoop after scoop after

industry, which was going to make his company “millions”.

scoop – none quite right – he was beginning to think five

I asked John if more jobs were being created; would the

cases wasn’t enough. She suddenly shouted: “Shoot!”

lives of Swedish barge workers be somehow improved?

and the picture was taken. Bryan said all the previous 50+

He looked at me like I was crazy. “No, a course not. They’ll

scoops looked the same to him but he was, after all, not a

probably have to lay people off to cover this cost, but we

professional scooper.

meatpacking.info

July~August 2018

le ad e r

I had to wonder back then if all of these jobs

The award is up for appeal, but I’ll be surprised if the

disappeared, would anyone notice? I’m still wondering

plaintiffs don’t walk with fat wallets. I’ll be even more

that today.

surprised if law firms in all 50 states aren’t watching this

Some of the jobs that do matter are the ones you’re

case very, very closely. Lawyers see this as a bellwether

doing out there in the agriculture and processing industry,

case. A bellwether is a lead sheep in a flock with a bell

putting food on the table for people around the world.

around its neck, so in the legal circle it means something

But, in the USA your jobs are under attack like never

that leads or indicates a trend. If a judge/jury decide one

before in the history of the industry.

way on a case, this can then be used as a precedent in

In North Carolina recently, a jury deliberated for less than two days before awarding 10 plaintiffs $50 million

other similar cases. Already, at least a half-dozen more trials related to

in a hog nuisance lawsuit against Chinese-owned

nuisances from industrialized hog farms are scheduled in

Murphy-Brown/Smithfield Foods, the world’s largest pork

North Carolina this coming autumn. In Iowa, a lawsuit has

producer.

been filed to demand the state to regulate confinement

For more on the case, go to the BIG ISSUE interview

hog operations. In Arizona, more than a dozen residents

in this issue but in a nutshell, a jury unanimously agreed

have filed a nuisance suit against egg producer Hickman

that Murphy-Brown, which owns the hogs at Kinlaw

Family farms which houses 4 million birds, alleging the

Farms, “substantially and unreasonably interfered with the

ammonia smell and profusion of flies resulting from the

plaintiff’s use and enjoyment of their property.” The jury

farm’s operations damages their quality of life.

awarded each of the plaintiffs $75,000 on those grounds.

What can you do to protect yourself, be you a chicken

But the jury also had the latitude to award punitive

farmer in Iowa, a sheep farmer in California, a Texan cattle

damages. They did so: $5 million for each plaintiff. In sum,

rancher, a pig farmer in the South, or a Pacific geoduck

the plaintiffs, ranging in age from their teens to 85, were

farmer in Washington State? I’ll be honest with you, I don’t

awarded a total of $50.7 million.

know except to tell you to batten down the hatches and

Hogs have been farmed in North Carolina since the very first days of European settlers, some 350 years.

wait for it to be your turn in the barrel. For years, the meat/poultry industry has been trying

Excuse my bluntness here, but hog shit stinks and this

to educate consumers, trying to convince them that their

should be of no surprise to anyone living in eastern North

food doesn’t originate in a freezer case or a Whole Foods

Carolina. Like living next to an airport, you have to expect

shelf. For the amount of money spent on marketing,

noise, live anywhere near a hog farm and you have to

however, I question how successful these campaigns

expect occasional smell.

have been.

My house in Greece is in a rural area. Goats and sheep

One of the problems is that all focus always seems

sometimes get into my yard. When shepherds bring them

to be on the consumers. This, though, could be a losing

up or down the mountains depending on the season, the

battle. It’s not that the majority are after our industry, it’s

sheep leave behind a trail of sheep dropping on the road

just as long as supermarket shelves are full, prices aren’t

right next to me – are they ever NOT crapping.

sky-high, and restaurants are serving up meals, most

I hear roosters every morning. The sound of chain saws

consumers don’t care where their food comes from or

and gas-powered weed skimmers in the olive orchards

how it gets on their plate. So maybe the time has come

can be heard six days a week. The sounds and smells

that we look from within for strength.

come with the territory and it’s a price I’m willing to pay to live part of the year in paradise. How did this case come about in North Carolina? A team of out-of-state lawyers cold-knocked on doors and

While on the NYC trip, I picked up a car in Queens, my wife and I drove north to Massachusetts and then out to Cape Cod. At a diner where we stopped for clam chowder, the

told local residents they stood to gain big-time in a no-

joint had the sweetest onion rings I’ve ever eaten. I asked

fee lawsuit against the hog farm. Let me repeat this; the

the waiter where they were from. Not only did he tell me

lawsuit did not start with the residents, it started with an

the variety of onion, but which local farm had produced

army of invading lawyers.

them. “Out here on the Cape we all have to support each

What I don’t understand is since the farms were obeying all federal, state, and local regulations, shouldn’t

other, it’s the way it’s always been.” It’s the same way it should be with all of us. An attack

the residents then be going after the US Department

on a New Zealand sheep farm should bring a protest

of Agriculture and the North Carolina Department

from a North Carolina pig farm. If we just roll over and let

of Agriculture and Consumer Services? But I guess

them win, introduce your kids to vegan burgers today

Smithfield Farms has deeper pockets than the Tar Heel

because that’s all their future will hold, with meat just a

State and I’ve never known a lawyer yet who can’t smell-

distant memory.

out where the real money lies.

July~August 2018

Velo Mitrovich, Editor

Meat Packing Journal

co ntac t s

contacts Velo Mitrovich Editor velo@rebymedia.com +44 (0)1442 780 591 Jim Robertson Head of sales jim@rebymedia.com +44 (0)1442 780 593 Josh Henderson Sales executive josh@rebymedia.com +44 (0)1442 780 594 Jon Young Publisher jon@rebymedia.com Reby Media 42 Crouchfield, Hemel Hempstead, Herts, HP1 1PA, UK

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July~August 2018

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Meat Packing Journal 13/06/2018 11.39.19

co nte nt s

contents 24

54 65

COVER: NC decision sends shockwaves 20 - All we can do is shake our heads. A jury decision against a major North Carolina pork producer is causing lawyers to smell blood. No matter where you are in the world, expect the worse

world's strictist law on ballot

how to crack the German market

9 - If you thought California's Prop 2 was insane, you haven't seen anything yet

44 - Sounds like shipping coals to Newcastle? You can sell processing equipment in Germany.

amazon changing us shoppers

time to plan now for iffa

10 - More and more US shoppers are choosing to shop with a keyboard and not trolly

Mpj turns five! 16 - Your favourite B2B magazine is celebrating a birthday. You're invited to more great stories

india's potential 24 - Why many are touting India has the next big thing, but why we have our doubts

holy cow

48 - Next year will see IFFA return to Frankfurt. Join the world at this massive show

africa's safter bet follow-up 51 - We told you to look into Ghana. MPJ gives you another reason

vege burgers that taste good 54 - The impossible has happened â&#x20AC;&#x201C; plantbased burgers now taste like the real thing

pest management

28 -How the country that reveres the cow has turned into the world's largest beef exporter

65 - How to safely keep rats, birds, flies and roaches out of your plant

Getting ready for storm season

Whole foods? No worries

38 - Last year in the US and across Europe warm weather storms devastated businesses.

70 - Marketing columnist Elliot Begoun talks about why you should stop losing sleep

meatpacking.info

July~August 2018

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n e ws

World’s strictest animal rights bill on California ballot this fall

s predicted in November last year by MPJ, Prevent

the bill. It’s reasoning, however, is that the bill doesn’t do

Cruelty California will be on the 2018 November

enough nor does it fast enough.

California the world’s strictest animal welfare laws.

the price of eggs up, creating confusion with Californians

ballot in the Golden State. The bill, if passed, will give The measure, sponsored by the Humane Society US,

The last time a similar bill passed in California, it drove who seemed unable to see the connection between

Mercy for Animals, Animal Legal Defense Fund, Animal

what they voted for and what was happening at the

Equality, and 16 other organizations, will require improved

supermarket.

cage space and cage-free housing for pigs, veal calves, and laying hens. Like a previous measure which increased cage space

According to Prevent Cruelty California: "It’s cruel and inhumane to lock animals in tiny cages for their whole lives. Such confinement causes extreme suffering and

for egg-laying hens, this bill will require that anyone who

increases food safety risks. Farm animals and California

sells meat and eggs to California will have to comply.

consumers deserve protection from such inhumane

In other words, if you’re an Iowa pig farmer and sell

and substandard products in the marketplace. Many

bacon to California, your farm will have to comply with

other states and food retailers have adopted cage-free

California’s regulations. Needless to say, American meat,

standards – it’s time for California to follow suit and

egg, and poultry groups are united against the bill, which

become a leader with cage-free standards."

they say is once again California trying to dictate to America’s farmers how to do their jobs. Oddly enough, animal rights group Peta is also against

Time to invest in USA plants

he producers of a free e-book on tax reform and capital investment in the food industry say that now

is the time in the United States to invest in your plant. This

For more on California’s influence on the USA’s livestock industry, listen to Meat Talk, Episode 13, California: the tail that wags the dog, at meattalk.reby.media

7-day truck strike leads to massive culls

razil’s truck strike – lasting a week before a deal was struck – has left 120,000 metric tons of chicken

is great news if you are either a plant owner or if you sell

and pork not being exported, according to the Brazilian

equipment to US processing plants.

Association of Animal Protein (APBA). In addition, around

Published by engineering company Stellar, the resource explains how food manufacturers can take

70 million chickens were culled. The APBA had warned that about 1 billion chickens and

advantage of benefits and incentives in the Tax Cuts and

20 million pigs were at further risk of dying due to the lack

Jobs Act of 2017

of feed, while some livestock could resort to cannibalism.

The e-book, titled “Cuts, Credits and Write-offs: How Food and Beverage Manufacturers Can Leverage the Tax Cuts and Jobs Act of 2017,” explores why now is

About 150 poultry and pork plants had to close, with more than 220,000 workers suspended. The strike affected almost all of Brazil. Many

an ideal time for these companies to invest in capital

businesses were left without vital supplies and most gas

improvements.

stations in the country ran dry. The military in the end

“This is truly a unique time in the food and beverage

had to be called in to help clear roads that the strikers

industry,” said Todd Allsup, Vice President of Sales for

had blocked. Out of Brazil’s 26 states, truckers blocked

Stellar’s Food Group. “Speed-to-market is more important

highways in 24, along with the Federal District.

than ever, consumer demand is ever-evolving, mergers

According to the Wall Street Journal, the strike was

and acquisitions are on the rise, and disruptive innovation

centered on the rising cost of diesel fuel and a toll on

is changing the industry landscape. This e-book is a great

rear axles which the truckers wanted lifted if their trucks

tool for helping companies take advantage of this ideal

were not in use. Once again it seems, just as strong

time for capital investment.”

opportunities open for Brazil's meat industry, it manages

The e-book is available on Stellar’s website.

meatpacking.info

to shoot itself in the foot.

July~August 2018

n e ws

Amazon continues shake-up more supermarkets follow L

ast year MPJ said Amazon’s purchase of Whole Foods would radically change forever the way US

consumers shop for food. We were right. “The deal has been shaking up the food industry from top to bottom,” says Angela Spivey, a food-and-beverage attorney at McGuireWoods LLP, who is advising clients on how to quickly change their packaging and marketing to sell at Amazon and Whole Foods. “Don’t be surprised if the milk and cereal just shows up at your door based on your usual eating habits.” Food retailers, manufacturers, and other suppliers

it first, there has been resistance in the States with this same approach for supermarkets. Some consumers balk

have begun to make fundamental changes to their selling

at the idea of a store employee picking out their fruit

strategies, driven partly by stronger sales and delivery

or meat. But, once consumers start getting spoiled by

from Whole Foods stores since the acquisition, says the

Amazon Prime and its fast delivery system, they want

Wall Street Journal.

more.

Last August, Amazon’s $13.7 billion deal to buy Whole

Despite what supermarket companies might want us

Foods went through. However, with Amazon’s stock

to believe, for the majority of shoppers, supermarkets are

rise immediately after announcing the buyout, in theory

not a pleasant experience. Parking lots are crowded with

Amazon CEO Jeff Bezos got Whole Foods for free.

aggressive drivers, shopping carts jam supermarket rows,

Before the acquisition, buying food online in the States,

kids are yelling, and some old person insists of pushing

especially from supermarkets, was close to being a Stone

their cart in the middle of the row, marveling at each and

Age operation. While in Europe, the majority of all major

every product like they’ve never been to a store in their

supermarkets provide delivery service – often at a slight

lives. Even if it costs for delivery, most consumers are way

loss to themselves – in the USA consumers would often

ahead on time and stress saved.

have to go through third-party buyers, who would then go

Dozens of supermarkets have now struck deals with

to the store, do the shopping like an average joe, bag it,

Instacart, an online grocery-delivery service that has

put it in their car, and then deliver it, an order at a time.

expanded to more than 200 retailers from 30 before

In the meantime, at the UK’s Tesco, Sainsbury’s, Asda,

Amazon’s deal. Kroger, Walmart, and Target Stores have

Morrisons, and others, teams of store shoppers with

all stepped up e-commerce acquisitions, with more

special carts fan out through-out the stores like Formula

technology investment expected. Those chains have

One drivers, racing up and down the aisles filling online

slowed store growth to deploy millions of dollars of

orders, with an iPad (or similar) telling them exactly where

capital for technology.

each item is located. Depending on the store and time,

“We are continuing to look across the US and the

you can see more store shoppers than regular. Multiple

world for potential partnerships,” Kroger CEO Rodney

orders are placed in delivery trucks and within an hour,

McMullen said in an interview after the company said it

consumers are greeting the driver at their door.

would take a $250 million stake in British online grocer

While before, UK companies would be extremely

Ocado Group last month.

concerned about its packaging, shelf placement, and

Pricing surveys show Whole Foods’ prices still average

how to make their product eye-catching, that doesn’t

higher than many competitors, but they have come down.

matter as much anymore. And indeed with Ocado, there

The chain has focused on getting competitive on staples,

are no Ocado supermarket for consumers to wander

says Guillaume Bacuvier, chief executive of Dunnhumby,

through, having instead warehouse/delivery points that

an international retail consulting and technology firm that

only its employees have access to, like Amazon. Now, the

Whole Foods hired to help improve consumer analytics.

most important thing for companies is getting placement on store’s websites to get spontaneous purchases. Like with Amazon and how at first people questioned the idea of purchasing a book without actually seeing

July~August 2018

Now, it’s the anticipation of what Amazon will do next is keeping supermarket owners awake at night. Expect many more delivery trucks out there as more consumers ditch the shopping cart for the keyboard.

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n e ws

Aftershocks from listeria continue in south africa W

hile it appears that the deaths and illnesses caused by the world’s largest known outbreak of

“Many didn’t even know to be asking patients about the meat,” Dr. Louise Ivers, an associate global health

listeria have stopped in South Africa, people’s faith in the

professor at Harvard, told BBC. “Surveillance is a critical

country’s heath agencies has been shattered.

but neglected piece of health systems. Without the

Since January of last year, at least 208 people have

resources and lab infrastructure, [African] countries

died and 1,038 were infected by the pathogen. The

are left reacting: reacting to cholera, reacting to Ebola,

outbreak was traced to a ready-to-eat, highly processed

reacting to listeria.”

meat product, locally known as “polony”, and famed for its florescent artificial color. Tiger Brands Ltd, the country’s biggest food producer,

Richard Spoor, a lawyer in South Africa, has filed a $2 billion lawsuit against Tiger Brands. So far around 70 victims and family members are part of the suit, according

closed factories for cleaning and has recalled and

to William D. Marler, a Seattle-based food safety lawyer

incinerated more than 4,000 metric tons of products. It

who is a consultant on the case.

said in May the plants will probably stay shut most of the rest of the year. In a meeting in parliament, South Africa’s Department

What has shocked many people was the snail-like pace of the South African authorities in their investigation of the outbreak and the denials from Tiger Brands –

of Trade & Industry said preliminary research shows that

despite almost all evidence from the beginning pointing

the pork industry has been the hardest hit following the

in their direction. This slowed down a recall from taking

outbreak.

place which could have saved lives.

“The demand for processed meat has dropped by 75

Polony is often consumed in low-income South African

percent and the demand for pork cold cuts by 50 percent,

communities and sold by street vendors. Many wonder

with an estimated decline in profits of 40 percent,” the

if the outbreak was in a high-income community, would

department said in an emailed statement that contained

officials and Tiger Brands acted faster?

responses to questions in parliament. According to data

According to the Centers for Disease Control and

from the Pork Producer’s Organization, two plants and

Prevention, the flulike symptoms of listeriosis – fevers,

one abattoir have closed down.

vomiting and diarrhea — most often affect the elderly,

Doctors in South Africa were not required to report

immune-compromised individuals, and pregnant women

cases of listeriosis to the Ministry of Health until last

who can pass it on to their fetuses. Pregnant women

December. Patient records were vague and often lacked

are 10 times more likely than other people to become

the contact information for follow-up, said Dr. Peter K. Ben

infected. About 42 percent of the cases in this outbreak

Embarek, a food safety expert at the WHO.

were newborns infected during gestation.

Tyson goes organic

more influence with buyers across its existing distribution network.

oultry and meat packing giant Tyson continues to hedge it bets. Along with investing in plant-based

burgers, it’s now going organic. Tyson has bought Nebraska-based Tecumseh Poultry and its Smart Chicken brand. According to Tyson, Smart Chicken will operate as a wholly-owned subsidiary but have access to Tyson’s expansive supply chain, including

No strike in US ports

new deal with US longshoremen should ensure no chance of strikes for at least six years along the US

East and Gulf Coasts. Several years ago strikes along the US West coast

its reach into grocery stores and restaurants. Organic

paralyzed pork shipments to Asia and cost the industry

chicken sales increased nearly 12 percent to $333 million

millions.

last year, while conventional chicken sales grew 3 percent

The new contract on the East and Gulf Coasts carries

to $7.7 billion in that time. According to the Wall Street

workers at ports from Maine to Texas through mid-2024,

Journal, owning a piece of the market will give Tyson

while the West Coast labor agreement goes to 2022.

July~August 2018

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A third eating less meat since scandals

series of recent food safety scares in

company’s 200 palettes of meat inspected did not

slaughterhouses has prompted more than a third of

conform to food safety standards. The company has since

people in Belgium to eat less meat, according to a new survey of Belgian eating habits, reports The Bulletin. The poll of 1,000 Belgians aged 20-64 commissioned

had its license revoked. Nearly half of respondents in the Moustique study said the quality of food in Belgian supermarkets was getting

by Moustique magazine found 36 percent of respondents

worse. However, a strong majority said their top priority

had reduced their meat consumption in recent months.

when choosing which food to buy was the price.

In March it emerged that a meat producer in Wallonia

Three-quarters of people surveyed said better controls

– Veviba – had been delivering sub-standard and even

and spot checks were needed to ensure safety in the

inedible meat to grocery stores. Veviba was responsible

food chain. The study found that a quarter of people

for about a third of the Belgian meat market.

consume organic produce at least once a week - but

Veviba’s practices were discovered during an inspection in February that found that 133 of the

Trade war brings nothing but uncertainty

a whopping 80 percent of respondents said it was too expensive to go organic despite the desire to..

in a recent Twitter post. “Big trade barriers against US farmers, and other businesses, will finally be broken. Massive trade deficits no longer!”

n a story which moves at a pace almost too difficult to report, the US seems hell-bent on having a trade war.

With the pending US trade war with Canada, it’s difficult for even Canadians to defend their own country’s

With who, however, that’s the question. This uncertainty

polices. While Canadian producers seek opportunities

will cause foreign buyers to find other sources and make

for exports, they block any access to Canada’s supply-

it difficult for US meat producers to regain the markets

managed sectors – chicken, eggs, and dairy. Trump was

once the trade disputes are resolved.

not exaggerating when he said Canada imposed nearly

Despite China offering concessions, they’re not enough, according to US President Donald Trump. In the meantime, relations with Canada and Mexico are getting further strained. Mexico has imposed tariffs on major US exports such as pork and cheese. US livestock and grain producers have already been losing sales to China, and some pork shippers say their

300 percent tariffs on foreign dairy.

Mexican elections help NAFTA

he recent presidential election in Mexico by leftist Andres Manuel Lopez Obrador (known by his initials

AMLO) may put NAFTA (North American Free Trade

prices have been tumbling since China levied new duties

Agreement) back on the front burner, according to the

in April. According to the Wall Street Journal, in Missouri

Wall Street Journal.

some ranchers are shrinking herds, fearing tariffs could

US President Donald Trump had said he was waiting

further pressure sliding cattle prices, and dairy producers

for the outcome of the Mexican election before pushing

fear they are losing a chance to grow their business in

for NAFTA reform again.

Mexico.

While some US businesses are uneasy with a left-

Analysts say China could target other crops and products after Trump administration officials last week outlined potential tariffs on $50 billion worth of Chinese goods.

leaning Mexican goverment, polices and desires of both the US and Mexican president are closer than apart. Lopez-Obrador has said that he is in favour of raising labor standards and wages in Mexico, which Trump is

The rapid-fire exchange of tariffs and trade threats

in favor of as well. If Mexican workers were paid more,

leaves US farmers and agricultural groups fearing tougher

there would less of a rush of US companies to shift some

sells in their most important overseas markets, with duties

operations south of the border.

adding to the cost of US goods in markets that imported

After decades of export-focued industrialization, about

$70 billion worth of US farm products last year, according

half of Mexicans remain poor. Combine this was a very

to the US Department of Agriculture.

corrupt government and an out-of-control naro-gang war

President Donald Trump has accused Mexico, Canada,

which has killed over 150,000 during the last 12-years and

China and other countries of treating US farmers unfairly.

has left an estimated 10,000 – 20,000 missing, AMLO has

“By the time I finish trade talks, that will change,” he said

his work cut out..

July~August 2018

Meat Packing Journal

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m e at

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j o u r n a l

5 th

anniversary

for the love of meat: a five-year journey The staff of MPJ would like to thank our readers, advertisers, and supporters as we celebrate our first significant birthday. Editor Velo Mitrovich reports

apologies, which almost all find refreshing. Our thoughts are this: ‘No steer leaves a processing plant as a steer. They leave as a steak.’ We know you believe the same. When Jon and his backers first came up with the idea of MPJ, there was no question in their minds that this would be an international magazine with an international

by velo mitrovich

focus. As editor, to me this means that we don’t see borders, we see only opportunities. This simple fact is what sets us apart from everyone else out there. US pork,

Brazilian chicken, New Zealand lamb, and Australian beef

he other month when I was working on

travel the world. To understand the industry, shouldn’t

Indonesia’s country profile, MPJ’s publisher

your favorite publication's team have more stamps in their

called me to check on a fact I had written.

passport than a cut of meat?

“You list what the per capita consumption

of meat is in Indonesia,” said Jon Young.

Why the international focus? Trust me on this, it would be so much easier to focus on one country or region. But

“Yeah,” I replied.

our views and why this should be important to you can

“You don’t mention what the per capita is based on. Is

be summed up here. Some years ago I worked for an

this each person’s weekly or monthly consumption?” “Neither. It’s their yearly, per capita is always yearly unless stated.” There was a long, long, long pause. Jon finally broke

international commercial fishing magazine and a sister publication which covered the aquaculture industry. At a trade show in Scotland I was talking to a New Zealand fisherman who told me how much he got out

the silence. “You know, their yearly consumption is pretty

of an article on the North Sea cod fishery I had written,

much our daily in this house.”

which at the time the EU was thinking about closing to

To say we love our meat at MPJ is an understatement, much like our passion in helping your business grow. From the start, it was decided that MPJ would present

rebuild stocks. “Why? You’re in New Zealand, about 12,000 miles and 12 time zones away. You can’t be physically any further

an honest view of the meat industry from slaughterhouse

away from this fishery if you tried. Why do you care?” I

to supermarket shelf, which our covers and features have

said.

shown over and over again. While some processors or

“Ah, but new laws and regulations affecting fisherman

B2B magazines like to use the term ‘harvest’ to describe

in the North Sea today, will affect me tomorrow in New

the slaughtering of an animal, we call it like it is without

Zealand. For better or worse, we’re all connected now, no

July~August 2018

Meat Packing Journal

m e at

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5 th

one is in isolation,” he replied. “Tate Nets comes up with a new, lighter trawl net in Nova Scotia, I need to know about

anniversary

industry changing on a near daily basis. Environmental laws will get tougher and more lawsuits

that. Environmental groups start targeting boats in Japan

will be filed against the industry. If you think for one

over a certain size, I need to know about that as well.”

second that the recent lawsuit in North Carolina won’t

His words came back to me a few years later when

be affecting you because you process lamb in Mongolia,

at an aquaculture trade show in Texas I was talking to a

think again. This will be more far reaching than any of us

couple of Arkansas catfish farmers. I asked them if they

can imagine. As you can see from this issue, we’ll keep

read Fish Farming International?

you up to date.

“No, why should we?” one said, flicking through the

Each day lab-based meats and plant-based meats are

magazine. “I don’t see a single story about Arkansas

getting cheaper and tastier. This could ultimately become

catfish in here.”

a major game changer. All of this year we’re giving you

“But there’s some stories about Vietnamese catfish, they’re producing fish like you wouldn’t believe.” “But this isn’t Vietnam,” the other replied. The two

future proteins and how we rate their chance for success. Over the next 20-40 years the world will be going through a huge transition phase as a shift in world

catfish farmers gave an all-knowing smirk, handed me

population takes place. Established markets will be

back the copies of the magazine, and walked away.

changing, with new ones rising. In each issue we’re giving

I have to wonder if those two farmers survived the onslaught of much cheaper Vietnamese catfish (basa/

you a future market and outline where profit is to be made and the pitfalls to avoid.

tra) when it hit the USA. I doubt it. To understand the small

As we’ve been with you for the last five-years,

picture in your own backyard you need to understand the

informing and entertaining you with the best written

big picture out there as well.

articles in any B2B publication out there, we will continue

While in some ways the meat industry has changed little since the pig was first domesticated, fattened, and whacked on the head. In other ways, however, the

to do so. Again, thank you for your support. We would not be here today without you.

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July~August 2018

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Successful lawsuit means open season on US producers If for any reason you have not followed the developments in North Carolina involving hog producer Murphy-Brown, or want a non-confusing, non-biased explanation as to what has happened, you need to read this. If you’re not in the USA and feeling smug, don’t be. The outcome of this case will send a tsunami of litigation around the world of meat/ poultry production. MPJ has turned to Clayton Bailey, a trial and appellate lawyer and name partner in Dallas’ Bailey Brauer PLLC. He has practiced law in Texas and throughout the United States in both federal and state courts for more than 20 years. His firm represents a variety of agribusiness clients, including companies in the swine, poultry, and beef production industries.

In a nutshell, could you give our readers what this case is about? In large part, this case is about the fact that Americans have forgotten where their food comes from and how it gets on their plate. It’s easy to forget what is involved when you can readily purchase food from grocery stores, convenience stores, fast food chains, restaurants or food trucks, or have Amazon hand-deliver it to your home. With that in mind, a jury of North Carolina residents was presented with the question of whether a hog production company — as opposed to the actual hog farmer — should be held responsible for annoyances, physical discomfort or injuries to surrounding neighbours’ health or property. In short, was the hog farm a nuisance? Unsurprisingly, the jury said “Yes.” And not only “Yes,” but “Hell Yes!” because they awarded each of the 10 plaintiffs $5 million in punitive damages on top of $75,000 in actual damages. In addition to the sociological and legal aspects of this case, there will likely be a ripple effect from the verdict that will threaten not only the meat industry, but potentially other industries involved in manufacturing.

by Velo Mitrovich

You’re not directly involved in the case; what is your interest?

Correct me if I’m wrong, but this started in 2013 when a group of out-of-state lawyers fanned out throughout North Carolina’s hog country, coldknocking on doors, and asking residents if nearby hog farms were affecting their health and quality of life?

Clayton Bailey: I first became interested in the MurphyBrown case based on the potential impact for my current

That’s what was reported. But, at the end of the day, it is

and potential clients. I’ve tracked the case through court

important to remember that 500 plaintiffs signed up and

filings and media reports to better understand the details

10 of them were allowed to present their complaints to a

and how the facts were presented by both sides.

jury of their peers and won a huge verdict with different

While the final impact of the initial verdict won’t be

lawyers, including lawyers based in North Carolina. The

known until the other trials against Murphy-Brown are

focus should be less about where the lawyers were from,

decided and the appeals process runs its course, it is

and more about the result. From my experience, local

important for someone in my position to have a firm grasp

lawyers often will not get involved in a case involving a

of the issues because of the possibility that one or more

large company serving the surrounding area because

of my clients may face similar claims.

they hope to provide legal services for that company.

July~August 2018

Meat Packing Journal

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But, the case continued? In a sense. The case in Wake County ultimately was dismissed and refiled by different attorneys in Judge Britt’s court. In the U.S., we have two court systems — a state court system and a federal court system. Because the case pitted North Carolina plaintiffs against a company based in a different state, the plaintiffs were able to file the case in federal court.

I’ve been to pig farms, I’ve been stuck behind a slow-moving tractor pulling a massive load of pig manure on a hot summer’s day in a car without air conditioning – I’ll admit, the smell is a bit strong. But Murphy-Brown was – and is – breaking no laws. Their farms are all complying with existing laws and regulations. Why weren’t the lawsuits, then, seen as being groundless? That’s an interesting aspect of this case, but one that does not decide the outcome. Allegedly, the hog farm complied with laws regulating its operations, but the problem concerned the impact of that operation on the neighbours and whether the neighbours’ rights were

Clayton Bailey, a named partner in Dallas' law office Bailey Barucer. Mr Bailey is an agribusiness specialist

infringed. The crux of the lawsuit boiled down to whether the hog farm’s operations substantially and unreasonably interfered with the neighbours’ use and enjoyment of their property.

How many residents signed up?

If anyone should be getting sued, shouldn’t it be the State of North Carolina?

There are 26 lawsuits with over 500 plaintiffs.

It is difficult to sue the government because they are a sovereign party under US law. Unless an exception is

Why did a Wake Country judge eject these lawyers from the case?

adopted by the state through legislation that is enacted into law, states are immune from being sued. With that said, there is a strong possibility that the

The Wake County judge in North Carolina state court

North Carolina state legislature will consider legislation,

actually ejected a different group of lawyers from those

as they did in the recent past, to limit this type of lawsuit

that eventually tried the case. The recent case was

from being filed in the future.

overseen by a different judge in a different court, Judge Britt of the U.S. District Court for the Eastern District of North Carolina. The original lawyers were removed from the case because they did not have law licenses issued by the state of North Carolina. Those attorneys were allegedly recruiting North Carolina residents to become

In North Carolina, farmers have been raising hogs since settlers first went into the territory. Today, there is something like 9 million hogs on nearly 2,300 farms in the state. If you live in the country, surely part of country living consists of animal sounds and smells?

plaintiffs and requesting that they sign contracts requiring them to pay hundreds of dollars an hour for work

You are exactly right. When you move into a rural area,

performed on their behalf even if the attorneys decided to

you have to anticipate animal sounds and smells. It’s like

drop the case.

electing to live in Manhattan, New York, and becoming

July~August 2018

Meat Packing Journal

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offended by hearing sirens, honking horns, and smelling

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concerned.

car exhaust — what did you expect? That said, hog farms need to be good neighbours by taking reasonable steps to mitigate against sounds and

Is this type of lawsuit just a one-off or are you seeing more like it around the USA?

smells. For instance, existing hog farm operations should: (1) create and maintain buffers surrounding their property

This is certainly not a one-off. Nuisance cases have been

lines by installing trees, etc.;

filed and litigated against hog farms for quite some time.

(2) institute and maintain sound farm-management

This case is something of an outlier, however, due to the

practices, such as quickly removing and disposing

size of the verdict. The plaintiffs’ success in this case could

dead hogs, ensuring proper ventilation and exhaust-

catapult similar lawsuits, not only against companies

fan management, ensuring adequate environmental

involved in hog production, but other industries.

management, and keeping hogs as comfortable and healthy as possible;

Were you surprised by the verdict?

(3) research and implement new technologies where feasible and effective; and

Unfortunately, I was not surprised by the jury’s award. I

(4) know and comply with all applicable federal, state,

am familiar with the plaintiffs’ attorneys, their tactics, and

and local laws and regulations.

how good they are in the courtroom. I also know how

Other ways to be a good neighbour are to

difficult it can be to represent a large agriculture company.

communicate, be proactive, and address complaints.

When you couple those facts with some of the pre-trial

Based on my experience, problems like the one in North

decisions by the court, it was clear there was a potential

Carolina, including litigation, can be avoided if there is

for a verdict with relatively low actual damages and large

good communication because the offended party is more

punitive damages.

likely to want to work with the farmer/company than to get involved in a legal fight.

There has been a racial element to this case, with some saying that they stick pig farms only next to black people.

If the appeal is turned down, does this mean it will be open season on America’s livestock farmers? The next step is for Murphy-Brown to file court motions challenging the jury’s verdict. The company already has successfully attacked the jury’s award of $50 million in

I can’t comment on your question because I haven’t

punitive damages with motions arguing that the judge

had access to the transcript of the case since it has not

should decrease the amount from $5 million per plaintiff

yet been published by the court. However, from what

to roughly $250,000 per plaintiff ($2.5 million total).

I have seen, it appears that the biggest racial element

Murphy-Brown’s argument is based on a statute adopted

in this case were the plaintiffs’ constant attempts to tie

by the North Carolina legislature capping such awards at

Murphy-Brown to Chinese ownership, and the inference

three times compensatory damages (in this case, $75,000

that communists run the company. In fact, the plaintiffs’

per plaintiff) or $250,000, whichever is greater. Within

allegations were so outrageous that Judge Britt ordered

less than two weeks after the verdict was announced,

that certain allegations in their lawsuit be stricken.

the district court agreed with Murphy-Brown’s position and slashed the verdict to a total of $2.5 million for all 10

Financially, what could this ruling mean for MurphyBrown and for the rest of North Carolina’s hog farmers?

plaintiffs. The court now will have an opportunity to affirm

It’s important to remember the jury’s verdict only relates

Brown and the plaintiffs, if necessary, will have an

to 10 of nearly 500 plaintiffs’ claims filed against Murphy-

opportunity to appeal.

or alter other aspects of the jury’s verdict based on posttrial rulings in response to other motions. Depending on the district court’s rulings, Murphy-

Brown. That means that there are 490 other plaintiffs

Given my experience, I believe there is a strong potential

who could recover a similar award at trial. While I doubt

that copycat lawsuits will be filed given the jury’s verdict.

that will happen because nuisance cases, by definition,

These claims likely will resemble those made against

are highly individualized, the truth is that any company

Murphy-Brown, and they could be filed against a host of

confronting this sort of exposure will and should be

industries in and outside of the agribusiness area.

meatpacking.info

July~August 2018

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Can India live up to its potential? In the famous Dancing Shiva statute, the god in one hand holds a small drum to show our mortality – beat, beat, beat. In another, the god displays a flame in the palm of his hand, symbolizing eternity. Another way to look at this would be potential and reality, which summarizes India to a ‘T’.

of Indians are illiterate, allowing them to be swayed easily by mob rule. And indeed, sexual violence is a major issue as well, with the country actually losing money due to women – who could be in the work force – having to take extreme steps to protect themselves and female children. This affects women of all classes and castes. And, while it’s the world’s largest democracy, older Indians have complained to MPJ that they wish the British Raj was back running the country. As a country, India is larger than Europe, with 26 official languages – which is why English is seen as a unifier in

by velo mitrovich

the country. With people living in 28-states and seven union territories, it is extremely difficult to make sweeping

generalizations and create for a marketing strategy a

ndia is truly one gigantic contradiction. It has a space agency and has successfully launched

‘typical’ Indian. Yet, according to Keith Warburton of Global Business

satellites. It even has plans for the development

Culture, India presents a massive market opportunity,

of a reusable launch vehicle, human spaceflight,

with the region tipped to be the second or third largest

and a controlled soft lunar landing. It also has

economy in the next 20 years – it is already the third

the world’s second largest population, which half still defecate outdoors. It’s the world’s largest exporter of beef, yet last year

largest economy by GDP purchasing power parity. This thought is echoed by the TMF Group which says that “not only is India one of the fastest growing

India’s government tried to push a religious policy which

countries in the world, it is also going through a period of

would have hindered – and possibly even killed off this

unprecedented economic liberation, granting overseas

industry.

investors more access to its vast and varied market

With such a huge population and cheap labor costs,

than ever. A large, young population and strong export

robotics in processing plants would seem to be the last

sector await expanding businesses, with a potential

thing the country needs. However, poultry processing

consumer base that far outstrips most other nations in the

equipment manufacturers have told MPJ that there is a

developed and developing world.”

huge interest, mainly in the effort to make a more sanitary product by removing human contact on the line. So advanced are India’s universities in IT that many see their graduates as the fuel behind the fire of Microsoft, Apple, and Silicon Valley. Yet, a surprising large number

July~August 2018

A major trade deal which should get signed this November could be a big factor in kick-starting India’s economy to a major-player level and much sooner than 20-years. The Regional Comprehensive Economic Partnership,

Meat Packing Journal

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also known as RCEP is a mega trade-block which is being negotiated between the ten members of the ASEAN

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landholdings might suffer under the RCEP agreement. The deal could allow the Indian market to be flooded

(Association of Southeast Asian Nations) group and

with agricultural products from other nations which

six other nations: South Korea, Australia, China, Japan,

are comparatively cheaper and have a more efficient

New Zealand and India. This free trade deal will include

agricultural sector. As a harbinger of things to come, an

goods and services, investments, intellectual property

already negotiated trade deal with ASEAN has hurt the

rights, economic and technical cooperation, and dispute

interests of some Indian farming industries such as rubber

settlement.

plantations and palm oil production. Sectors such as the

If negotiated and enforced, it will be one of the largest

dairy industry in India, which still is not at a mature stage,

trading blocs of the world, with a combined Gross

could face stiff competition from countries like New

Domestic Product of almost $17 trillion and covering more

Zealand which have a very strong dairy industry.

than 40 percent of the world’s trade. It will also cover more than 3 billion people. For India, which is not a part of the other major

Already India has been taken to the courts of the WTO on behalf of US poultry producers who were earlier prevented from exporting chicken legs to India. The

trade blocs of the world, such as Asia Pacific Economic

country’s domestic industry claimed that US chicken

Cooperation (APEC) or off-on-again Trans Pacific

legs would only cost consumers half the price of locally

Partnership (TPP), this deal would prove to be of a strong

produced chicken. Not only would American chicken

advantage for India.

meat flood the local market and hurt Indian businesses,

The agricultural sector of India, however, which

global chains operating in India, such as McDonald’s and

already faces issues such as a lack of investment, low

KFC, would opt for the much cheaper American products.

productivity, obsolete technology, and fragmented

meatpacking.info

Although the WTO ruled in favor of the USA, with a

July~August 2018

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100% basic customs duty on chicken legs, the Indian

immense potential for food processing and value

government made sure local producers would not be

addition, especially in niche areas such as organic and

affected that much.

fortified foods. According to Modi, increasing urbanization and a

Looking for you

growing middle class are resulting in an ever-growing demand for wholesome, processed food. Citing an example, he said over a million passengers

peaking at a food processing conference Prime

have a meal on a train in India, every single day. "Each one

Minister Narendra Modi claims that starting a

of them is a potential customer for the food processing

business in India is easier than ever before as

industry. Such is the scale of opportunity that is waiting to

procedures have been simplified, archaic laws repealed and compliance requirements reduced. The reforms

be tapped," the prime minister says. On initiatives for farmer welfare, the prime minister

initiated by the government in the last four years have

says the government is targeting doubling farm income

helped India jump 30 places since last year in the World

within five-years.

Bank's Ease of Doing Business ranking to break into the top 100-nation club last year. "This is the highest ever improvement for India, and

The recently-launched national level program, the Pradhan Mantri Kisan Sampada Yojana – with an aim to create world-class food processing infrastructure –

the highest jump for any country this year. From a rank of

expects to leverage investment of $5 billion, benefit two

142 in 2014, we have now reached the top 100," he says.

million farmers and generate more than half a million jobs

He adds that the introduction of Goods and Services Tax

over the next three-years. Creation of mega food parks,

from 1 July 2017 has eliminated the multiplicity of taxes,

using digital technology to improve last-mile delivery and

simplifying taxes for businesses.

simplifying processes and procedures are all aimed at

In discussing the food processing sector, Modi invites

stimulating investments, he says

investment in India's food processing sector and promises

Meat overview

full support. “Come. Invest in India," he says. "The place with unlimited opportunity from farm to fork. The place to produce, process, and prosper. For India, and for the world."

A Kochewad, in writing for the International Journal of Animal and Veterinary Sciences, says the global

The prime minister listed out "transformational

demand for livestock products is an opportunity

initiatives" of the government in the food processing

for India to increase its exports. “India has a good

sector, namely allowing 100 percent foreign direct

potential for meat production because of large livestock

investment (FDI) in trading, including through

population, with the largest being poultry, followed by

e-commerce, of food products manufactured or

bovines, goat, and sheep.”

produced, single-window facilitation cell, attractive fiscal incentives and easy credit. "Today, our strong agricultural base provides us a solid

As it is now, production of meat is largely an unorganized activity in India with the lack of appropriate slaughtering facilities leading to unnecessary losses

launch pad to create a vibrant food processing sector. Our

of meat as well as valuable by-products. The major

vast consumer base, rising incomes, favorable investment

constraints in hygienic meat production are lack of

climate and a government dedicated to ease of doing

hygienic facilities in slaughter houses, poor transport and

business, all make India 'the place to be' for the global

cold storage facilities, ignorance about hygiene at butcher

food processing fraternity," he says.

level, and religious taboo.

While private sector participation has been increasing

Kochewad claims that meat exported from India is:

in many segments of the value chain, more investment

“Risk-free, lean, nutritious and competitively priced meat.

is required in contract farming, raw material sourcing and

It has resulted in consistent, high compound growth rate

creating agriculture linkages, says Modi.

in the export volumes.”

"Many international companies in India have taken

He says that measures should be taken to increase the

a lead in contract farming initiatives. This is a clear

meat production efficiency of different species of animals

opportunity for global supermarket chains considering

using the improved management practices. There is

India as a major outsourcing hub," he says. Detailing

huge potential in this sector for economic development

investment opportunities, he says post-harvest

of country through increasing exports so the policy

management like primary processing and storage,

makers should adopt critical measures at every stage to

preservation infrastructure, cold chain, and refrigerated

encourage and support this vital segment of the Indian

transportation offer much potential. Also, there is

agriculture.

July~August 2018

Meat Packing Journal

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HOLY COW! It seems ironic that in a country where cows are revered and considered sacred, it can also lead the world in beef exports. But, as Indian Prime Minister Narendra Modi and the BJP party continue to throw gas onto the fire of Hindu nationalism, the question is: For how much longer will exports continue? MPJ editor Velo Mitrovich reports

culture and traditions. But like everything in India, it’s complicated, with even trying to define what is considered beef a challenge, with a small farmer perhaps having both zebu cows (Bos Indicus or Bos Taurus) and water buffalos (Bubalus bubalis). Does it matter? With 80% of its massive 1.324 billion population Hindu and who – in theory – see the cow as being sacred, it matters greatly to some, especially politicians seeking election who want to stir up the electorate. Can a

by velo mitrovich

slaughtered cow be considered beef or can only a water buffalo? Check which way the wind is blowing before you answer because the definition seems to change just as

often, with murderous, mob-driven repercussions if you

been a tenet of the religions in the Asian subcontinent

to yield nourishment for his people. The Earth assumed the

–understandable since abstaining from beef started

form of a cow and begged him to spare her life: she then

becoming a practice throughout India among Buddhists,

allowed him to milk her for all that the people needed.

very country in the world – except for maybe

get it wrong.

tiny Lichtenstein – has it quirks, foibles, and

It was in the Sanskrit epic the Mahabharata, written

paradoxes. India is no exception and indeed,

somewhere around 2,500 years ago, that explained why

it’s probably close to the top of the list. Case

cows weren’t to be eaten:

in point, its cattle industry.

While many assume that vegetarianism has always

Jains, and Hindus around 400BCE to 400CE – many

Once, when there was a great famine, King Prithu took up his bow and arrow and pursued the Earth to force her

According to Wendy Doniger, professor of the

Hindus continued to eat beef, especially those of lower

History of Religions at the University of Chicago, this

castes. This continues today – as well as the eating of

myth imagines a transition from hunting wild cattle to

other non-plant proteins – and for India’s substantial

preserving their lives, domesticating them and breeding

Muslim population – larger than neighboring Pakistan

them for milk, a transition to agriculture and pastoral life. It

– and Christians, beef eating is firmly engrained in their

visualizes the cow as the paradigmatic animal that yields

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Chicken Chicken

SWOT Analysis

Beef Beef Pork 2016

Pork

2009

Sheep Sheep Goat Goat Fish

Strength Booming private sector High tech professionals World’s largest democracy Weakness Overstaffed and under-motivated bureaucracy Illiteracy rate of around 25% Poor sanitation – close to half of the population defecates in the open Poor internal financial policies

Fish 01

000000

2000000

3000000 4000000 5000000

protein production in million tonnes

foods without being killed.

Opportunities Robotics in food industry Poultry industry needs to modernize Rising middle class Dairy still low-yield

Others, however, disagree and say that in the epic sagas, the gods themselves ate beef and it wasn’t until India’s late medieval era that Hindus stopped eating beef – or at least zebu cows. When modern India’s constitution was being written, some Hindus called for a ban on cow slaughter. Surprisingly, it was passionate vegetarian Mahatma Gandhi who opposed this, wanting a secular state where everyone would have exactly the same rights. The days

Threats Each year sets new climate temperature highs Cannot meet future electricity demands Many cities lack safe, ample water supplies Has ‘hot’ border regions with Pakistan and China

of tolerance seem to have passed in India and today the slaughtering of cows is prohibited by law in 24 of India’s 29 states, with many believing these laws are aimed right at India’s Muslim population. Those passing the laws, however, seemed to have forgotten that the dairy industry – loved by the Hindus – is

thinks for one minute that these animals are being put out in retirement cow shelters (which actually exist). Whatever type of bovine they’re eating, India ranks

a double-edge sword and to produce milk, cows must

as 5th in the world in beef consumption, eating in 2016

be bred. This basic fact MPJ has discovered that some

3 million metric tons (MT). It’s estimated that nearly 64

modern Hindus are not aware of and others refuse to

million Indian Muslims eat beef, followed by 13 million

believe. How big is India’s dairy industry? It’s ranked as the

Hindus, and 6.5 million Christians. While these numbers

world’s largest milk producer, with around 76 million cows

all seem large, when looking at India’s total population,

producing 160 million MT of milk a year. That’s a lot of

it still means only one out of 13 Indians eat some sort of

cows breeding every year.

beef. However, a sizeable proportion of these non-beef

This huge milk production figure is achieved through

eaters eat lamb, goat, camel, and poultry.

thousands and thousands of small low input/low output

a lot of water buffalo

farms consisting of less than five cows or water buffalos. Throughout India, dairy is a self-contained industry, with both dairy imports and exports at a small to insignificant level. While it’s been legal to slaughter and export buffalo meat and indeed, India’s beef industry claims that all the beef comes from buffaloes, what about all the excess bull calves and non-producing dairy cows? Only the naivest

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ccording to India’s Agricultural and Processed Food Products Export Development Authority (APEDA), in 2016-17, India exported 1.3 million MT

of buffalo meat, at slight downturn from 1.5 million MT the year before.

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“India has 115 million buffaloes [305 million head of

for slaughter. While zebu cows are also used for dairy,

cattle total], more than half of the world’s population,”

throughout most of India it is illegal to slaughter them so

says Santosh Sarangi, chairman of APEDA. He says that

a small impoverished farmer could be stuck with non-

the reason for the high demand of Indian buffalo meat

revenue producing cows.

is because they are fed on natural pastures and not pumped with growth hormones. Most others would say the high demand is brought about by the very low prices, especially when compared to Australian, US, or Brazilian beef. Worth around $4.3 billion, the major export destinations are Vietnam, Malaysia, Egypt, Indonesia, and Saudi Arabia, with all total 65 countries receiving Indian

Dairy farmers generally sell water buffaloes for slaughter to traders, who in turn are paid by slaughter houses based on carcass weight of the animal. According to industry sources, current prevailing price for adult water buffalo is around INR 150-160 ($2.19-2.34) per kg and INR 130-140 ($$1.90-2.05) per kg for water buffalo male calves. Another source of animals for slaughter are weekly

beef. Of the top five, Vietnam imports 662,450 MT, with

livestock markets. Such markets are either owned by

Malaysia next at 112,620 MT.

private or local government bodies and are intended to

Carabeef production is mainly concentrated in the states of Uttar Pradesh, Andhra Pradesh, Maharashtra,

facilitate sale of animals by dairy farmers. The suppliers to domestic markets are largely

and Punjab, with Uttar Pradesh having the country’s

unorganized; they include some 3,600 slaughterhouses

largest water buffalo population.

and some 25,000 unregistered, small-scale retail shops.

According to the US Department of Agriculture (USDA),

Conditions at local slaughter houses producing meat for

the water buffalo population will likely remain strong over

the domestic market often lack sufficient infrastructure

the next decade due to strong growth in the dairy sector:

necessary for hygienic production and there seems to be

more than 50 percent of India’s milk production is sourced

no desire or opportunity to modernize these plants.

from water buffaloes – the milk has more fat – and the meat sector primarily uses spent dairy water buffaloes

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Municipal slaughter houses only provide slaughtering services; no chilling or further processing is done. Traders

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INDIA SURVIVAL TIPS Visa requirement Pretty much everyone needs to apply for a visa before entering India. Over 100 nationalities can obtain a 30-day e-Tourist visa/Visa on Arrival, by applying online. Business visas have, however, strict conditions and you will need one if you’re making sales or establishing contacts on behalf of a non-Indian company. When to go The official high season is from December to March. The low season is from April to June when temperatures are scorching. From June through September the monsoon sweeps south to north when it can rain every day. While not great to do business in, the monsoon has a real romantic, sensuous quality to it. Many flights You will have no problem finding a flight to India from either Europe or North America. Internally it is served by a number of budget airlines. Indian airlines have a good safety record. English illusion While India has 26 major languages, English is what ties the country together. All good then? No. The fact that you and your host are speaking English might give the illusion of understanding. You speak English and think western; your host speaks English and thinks Indian. Take time to develop an understanding. One of many The Australia India Institute points out that the world is knocking on India’s door. Even if you represent a major company, you are not that important. While you’ll be under pressure from the head office to close a deal, your Indian counterpart isn’t and can walk away at any time. Who is in charge? Good question; good luck answering it. While in the West we come from a culture of the individual, in India it’s the opposite. This will be become obvious to you when you sit in a meeting and instead of one person, there are five. The Indian leader might say only a few words or none at all, letting a subordinate do the talking while they evaluate.

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Show no irritation You think that the manager is meeting only with you; think again. During the meeting, there might be a constant stream of people entering the room and asking the manager questions, getting approvals, etc. Do not lose your cool; it’s just the way business is done. Health woes The good news is, most cities have decent health clinics and some specialize in helping visitors. The bad news is, you might be needing one. Do not drink the water, have ice in your drink, or have fruit juice from a stall. During your first two weeks, you have between a 30-70% chance of getting diarrhea. On another note, avoid petting stray dogs, rabies is a real problem. While yellow fever is the only required jab; WHO recommends 10 more. It’s the heat It takes most travelers about two weeks to get use to the heat and humidity. How bad is it? After you return, Huston in mid-July will feel like a winter’s day. Heat stroke can be a real issue, take it slow and easy. Nobody but Kipling’s ghost and mad dogs will be impressed with your going out in the midday sun. Pay or you’ll pay Due to the heat, humidity, crowds, pollution, poverty, crowded roads, change in your diet, etc, do not cut corners with your hotel or transportation. It’s much better to pay with your credit card than to pay with your health and peace of mind. A wonderful hotel will be your oasis of calm at the end of a tiring day. Culture overload TMF Group warns that India is a cultural hotbed, and business is more about building relations than presenting figures and sums. The polychronic culture can be difficult to adapt to for outsiders, and due diligence into the destination is important before travelling. AIR MASK! According to WHO, 14 of the world’s most polluted cities can be found in India. Air pollution is a real problem and has been declared a national health crisis. Bring eye drops and consider buying a breathing mask.

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A short history of India The Indus Valley civilization, one of the world's oldest, flourished during the 3rd and 2nd millennia BCE and extended into northwestern India. Aryan tribes from the northwest infiltrated the Indian subcontinent about 1500 BCE; their merger with the earlier Dravidian inhabitants created the classical Indian culture. The Maurya Empire of the 4th and 3rd centuries BCE – which reached its zenith under Ashoka – united much of South Asia. The Golden Age ushered in by the Gupta dynasty (4th to 6th centuries AD) saw a flowering of Indian science, art, and culture. Islam spread across the subcontinent over a period of 700 years. In the 10th and 11th centuries, Turks and Afghans invaded India and established the Delhi Sultanate. In the early 16th century, the Emperor Babur established the Mughal Dynasty, which ruled India for more than three centuries. European explorers began establishing footholds in India during the 16th century. By the 19th century, Great Britain had become the dominant political power on the subcontinent. The British Indian Army played a vital role in both World Wars. Years of nonviolent

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resistance to British rule, led by Mohandas Gandhi and Jawaharlal Nehru, eventually resulted in Indian independence, which was granted in 1947. Large-scale communal violence took place before and after the subcontinent partition into two separate states – India and Pakistan. The neighboring nations have fought three wars since independence, the last of which was in 1971 and resulted in East Pakistan becoming the separate nation of Bangladesh. Due to the British partition being rushed and not completely though out, there are areas such as Kashmir and some high mountain peaks which remain in dispute and military flare-ups happen much more often than the western press reports. India's nuclear weapons tests in 1998 emboldened Pakistan to conduct its own tests that same year. In 2008, terrorists originating from Pakistan conducted a series of attacks in Mumbai, India's financial capital. Despite pressing problems such as overpopulation, environmental degradation, poverty, and widespread corruption, economic growth following the launch of economic reforms in 1991 and a massive youthful population are driving India's emergence as a regional and global power.

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distribute whole carcasses from these slaughter facilities to various wholesale and retail points within the city. Local butchers then make required cuts to supply the meat to

Indian numbering system

retail and institutional buyers. By contrast, the export trade is supplied almost exclusively by large-scale slaughter houses with modern processing facilities. Such businesses are approved and regulated by the Food Safety and Standards Authority of India within the Ministry of Health and APEDA. According to APEDA statistics, there are 77 approved complexes having abattoirs with meat processing facilities as well as 32 separate meat processing facilities. APEDA provides technical support to help the industry improve sanitation and hygienic practices for exported meat products. According to industry sources, India’s total buffalo meat processing capacity is around 3 million MT per year. The processing facilities are located mostly in the states of Uttar Pradesh, Andhra Pradesh, Maharashtra, and Punjab. The Ministry of Food Processing Industries also implements various schemes to help modernize or improve abattoirs, cold chain operations, and food surveillance.

A lot of problems

ast summer the Indian government, which has more than a strong Hindu nationalist bent under Prime Minister Narendra Modi, suddenly issued

tough new rules to suppress the sale of aged cattle for slaughter at any of the country’s livestock markets. When vegetarian Modi first took office, in a surprising move he took a secular approach to cattle saying he would not suppress the rights of Muslim or Christian Indians. However, last year he said that India’s cattle industry as “horrific” and would be stopped.

As the Indian economy becomes more globalized, Indians hear millions and billions on TV, online, and newspapers on a daily basis. But if you’re going to read Indian company reports, accounting data, or any local information using large numbers, you need to become familiarized with its numbering system. Used in India, Pakistan, Nepal, Bangladesh, and Sri Lanka, it’s based on the Vedic numbering system in which numbers over 9,999 are in two-digit groups (or a mix of two and three digit groups) rather than the three-digit groups that most of us are familiar with. For example, 500,000 becomes 5,00,000. A number such as 7,000,000,000 becomes 7,00,00,00,000. To make it even more of a challenge, the terms lakh (100,000 or 1,00,000 in the Indian system) and crore (10,000,000 or 1,00,00,000 in the Indian system) are used. For example, 150,000 rupees becomes 1.5 lakh rupees, while 30,000,000 rupees becomes 3 crore rupees. Why won’t India change to match the rest of the world? The vast majority of Indians don’t have to interact with people outside of India so the system works well internally – much like the USA and its insistence of using the Imperial system of measurement and Fahrenheit.

Along with this ban was strict documentation requirements for any sale and purchase of bovines. While in the past a farmer would sell on a cow or buffalo which no longer produced milk for meat/leather slaughter, now if sold the farmer and buyer would have to show that the cow was not to be slaughtered. Who in their right mind

population

would buy such an animal? Sagari Ramdas, who has studied India’s dairy and livestock industries for the Food Sovereignty Alliance, told the Financial Times that the measures were a de facto “countrywide ban on the slaughter of cattle and buffalo, and the consumption of beef.” In addition, the new rules would further marginalize the

Age structure 0-14 years: 27.34% 15-24 years: 17.9% 25-54 years: 41% 55-64 years: 7.45% 65 years and older: 6.24%

many mostly Muslim rural livestock traders, who buy and transport unwanted or unproductive bovines from rural villages to larger livestock markets, where the animals

Urbanization Urban population: 33.5% to total population

either find new owners, or are purchased for slaughter. The new restrictions would apply not just to cows —

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whose slaughter is already illegal in most Indian states — but all bovines, including the buffaloes that provide more than half of India’s fresh milk.

entire region.”

Chicken is best for investors

“The rural economy is going to be smashed,” Ramdas said. “This will be the total collapse of the livestock economy, unless it goes underground. The beef economy, the dairy economy, and the leather economy will all be completely destroyed.” Although cooler heads prevailed immediately and the

hile not as intriguing or complex as beef, poultry is one of the fastest growing segments of the agricultural sector in India

today, according to the Economic Research Service of the

Indian Supreme Court suspended the ban, try telling that

USDA. If you’re tempted in investing in India, this is your

to the average man. Muslims, suspected of either eating

safest option.

or butchering cows, have been lynched by mobs. Even

The production of eggs and broilers in India has been

after DNA tests have showed that the meat in question

rising at a rate of 8 to 10% per year. As a result, India is now

was goat or lamb, the attitude of the mobs seems to be:

the world's fifth largest egg producer and the eighteenth

Don’t confuse us with the facts.

largest producer of broilers.

India already has an estimated 5.2 million stray cattle,

India’s potential in the sector is due to a combination

many wandering urban areas. This will only compound

of factors – growth in per capita income, a growing urban

the problem as owners abandon their cattle due to

population and falling real poultry prices. Poultry meat is

owners feeling it no longer makes any sense to feed

the fastest growing component of global meat demand,

them, but who cannot find a market for them.

and India, the world's second largest developing country,

Waiting in the wings are new laws regarding animal rights, which sees slaughter as a form of cruelty. Besides

is experiencing rapid growth in its poultry sector. In India, poultry sector growth is being driven by

cattle, these laws will be applied to all other livestock,

rising incomes and a rapidly expanding middle class,

including poultry.

together with the emergence of vertically integrated

“Beef is just a symbol of a larger transition,” says

poultry producers that have reduced consumer prices

columnist and TV presenter Vir Sanghvi. “This is

by lowering production and marketing costs. Integrated

much more than a war on meat. This is a great liberal

production, market transition from live birds to chilled

democracy going through the process of redefining itself

and frozen products, and policies that ensure supplies

(against the expressed wishes of its founders) as a Hindu

of competitively priced corn and soybeans are keys to

nation that has no time for the liberal tradition.

future poultry industry growth in India.

“This is a much more fundamental change in India’s

There are number of small poultry dressing plants

national identity than the world has realised. And this

in the country. These plants are producing dressed

just the beginning. The transformation will continue, with

chickens. In addition to these plants, there are five

profound consequences, not just for India but for the

modern integrated poultry processing plants producing

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dressed chicken, chicken cut parts and other chicken products. These plants manufacture egg powder and frozen egg-yolk for export.

Growth drivers

confidence and risk index Business Climate Trade deals

vailable data indicate that, since the early 1990s, poultry meat has been the fastest growing sector

Political system

of animal product production and consumption

in India. Factors driving the industryâ&#x20AC;&#x2122;s expansion include

Coruption

quickening growth in per capita incomes, a young and increasingly urban population, and declining real poultry

International support

prices. In addition, many young Indians have either gone to

Agricultural resources

university in the USA or UK, and/or have worked overseas in sectors such as IT. After being exposed to western-

Poverty

style supermarkets, there is little inclination to go back to outdoor wet markets.

Education system

With recent studies suggesting that most Indians do not have strict vegetarian dietary preferences, income

GDP growth

and price are likely to continue to influence rising demand.

Infrastructure

The expanding role of poultry integrators, primarily in south and west India, has contributed to declining poultry

Infrastructure development

prices. Integration, typically encompassing enterprises ranging from breeding, feed milling, and contract growing

International logistics

to wholesale and retail marketing, appears to have increased production efficiency and significantly reduced

Government transparency

marketing margins and consumer prices. Future industry expansion may depend on the pace at

Budget deficit

which integrated poultry operations spread in the west, east, and, particularly, the affluent northern part of the

Starting a business

nation. Manufacturers have told MPJ that despite the

Enforcing contracts

huge labor pool in India, finding qualified workers for a processing plants is a challenge and they are looking to

Paying taxes

incorporate robotics as much as possible. In addition, they see robotics as a much more sanitary way of processing

Legal rights

chicken. Expansion of poultry sector integration, in turn,

Construction permits

may depend on the pace of transition in Indiaâ&#x20AC;&#x2122;s poultry sector from a live-bird market to a chilled/frozen-

Buying property

product market. Live-bird sales still dominate the market, preventing exploitation of regional comparative advantages in production, or the use of storage, domestic product movements, and international trade to stabilize

Source: Reby Research, Coface, World Bank

supplies and prices, says the USDA. A shift to mechanical, and more hygienic, processing that would be an integral part of a transition to a chilled/ frozen-product market may also have public health benefits, although there is little evidence that current practices are creating health problems.

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Competitive producer

Policies needed

in other Asian countries and the United States.

and consumers, potential public health concerns

ata from the USDA also suggests that India is an internationally competitive producer of poultry meat. Producer prices of whole birds in India,

while higher than in Brazil, compare favorably with those Poultry production in India benefits from improved

ith the expansion of Indiaâ&#x20AC;&#x2122;s poultry industry, the countryâ&#x20AC;&#x2122;s government must address a number of new issues, including economic

tradeoffs between poultry producers, feed producers, associated with traditional slaughter and marketing

management practices and the availability of local

practices, and appropriate tariff and nontariff policies for

supplies of corn and soybean meal at internationally

imports of poultry and industry inputs, says the USDA.

competitive prices. Competitive local prices, combined

Although government policy has traditionally given

with high tariffs, poorly defined phytosanitary

priority to promoting self-reliance in agricultural products,

requirements, and a limited market for frozen poultry, are

it is unclear how future policy will weigh the competing

constraints to significant poultry meat imports in the near

interests of, among others, poultry and egg producers,

term.

consumers, and feed producers.

If recent trends in poultry and egg production in India

Poultry sector integration can yield substantial benefits

are sustained, growth in demand for corn and soybean

for the sector and, particularly, consumers of poultry

meal is likely to outpace gains in domestic production. For

meat. Feed shortages, however, can have significant

corn, variable domestic production, expanding feed use,

adverse effects on producers and consumers of poultry

and tariff and quota restrictions on corn imports could

meat and, particularly, eggs.

combine to constrain growth in both the poultry and egg

Although Indian corn producers may gain from

industries, raising production costs and consumer prices

higher prices associated with import restrictions, these

and slowing consumption.

gains must be weighed against losses to producers and

Two-years-ago extreme high heat destroyed some

consumers of poultry meat and eggs, as well as to the

of Indiaâ&#x20AC;&#x2122;s corn crop which in turn drove up prices of feed.

potential international competitiveness of Indian poultry

Unless India relaxes corn imports, this will stay a continual

production, which as is too expensive.

problem for years to come.. For soybean meal, the poultry and egg industries

Development and adoption of technology that can improve the competitiveness of domestic feed

benefit from local surpluses and ready availability,

production would allow all producers and consumers to

although rising internal demand may erode exports.

benefit from poultry sector expansion.

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i n s i g ht

disaster

recovery

Hurricanes: How to Prepare for and Respond to a Storm

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Meat Packing Journal

disaster

recovery

i n s i g ht

For those of you who have not experience the ‘day after’ a devastating storm has moved through an area, it’s hard to believe the amount of damage that takes place and the length of time involved in the clean-up. It’s time now to prepare your facility and develop an emergency response plan. Stellar engineers Joseph Bove, PE, and Johnny Johnson report for MPJ

to be happening now once-a-year. In the States , the National Oceanic and Atmospheric Administration (NOAA) has already predicted a near-or above-normal hurricane season this year, so it’s time to start planning. When preparing your plant for a hurricane threat, it’s critical to establish an emergency plan to protect

by Joseph Bove & johnny johnson

against potential losses, such as: Flooding due to a tidal surge — In the USA, check

your area Federal Emergency Management Agency

he 2017 hurricane season was the most

(FEMA) flood map to see if you are located in an area

expensive in US history, with more than

vulnerable to tidal surges and flooding. Tidal surge

$200 billion worth of damage from 17

flooding should also be factored into evacuation routes

named storms. Pigs drowned or were

and timing. Many other countries have something

stranded in North Carolina, poultry farms

similar, such as the UK’s Environment Agency Flood

were destroyed in the South, and cattle took a beating in Texas and elsewhere. It’s just not the US, however, that gets hit with

Risk interactive map. Freshwater flooding from torrential rainfall — Again, check your FEMA flood map (or local country) to

devastating warm weather storms. The United Kingdom,

determine areas vulnerable to freshwater flooding. Just

Germany, and France have had their shares of recent

like with tidal surges, flooding due to rain should be

floods due to torrential thunderstorms which can drop a

factored into evacuation procedures.

month’s amount of rain in only a few hours. On the other

Wind damage — High wind speeds can cause

side of the globe, Korea, China, Taiwan, the Philippines,

significant damage. A category 1 hurricane (the weakest

and Japan have taken a beating.

category) has wind speeds of 74-95 mph, while a

Many of these summer storms were either

category 5 hurricane (the strongest category) has wind

unexpected or considered once-a-century. However,

speeds over 157 mph. Power outages are likely (due to

as we all know from the media, once-a-century seems

downed power poles and blown transformers) and must

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i n s i g ht

disaster

recovery

be planned for accordingly. You should also recognize the difference between a hurricane watch and a hurricane warning: A hurricane watch means sustained wind speeds of at least 74 mph

able to handle water. Investing in waterproof motors not only makes for easier cleaning, but it reduces your risk of damage during a flood. Also, chart out the plant areas that would be impacted

are possible. It is issued 48 hours in advance of the storm.

by a power outage, processes that may be shut down if

A hurricane warning indicates sustained wind speeds

rooftop equipment is lost, and key areas that should be

of at least 74 mph are expected. It is issued 36 hours in

protected from water damage.

advance of the storm.

It’s important to appoint a response team who understands all of your plant’s systems and how

Employees

those systems can be safely shut down in the event of a disaster. In case of a fire, how do you secure your ammonia or refrigeration systems to prevent a release?

he purpose of an emergency response plan

Who is responsible for safely engaging the system

is to protect your most important assets: your

shutdown?

employees. What’s your plan to evacuate the

Ammonia releases

building immediately and efficiently, and how will you account for all employees? A thorough plan will include: an evacuation plan and route; provisions for data backup; alternate communications and power; and a list of vendors and contractors to provide disaster recovery services. Identify leaders with the authority and skills to direct

mmonia systems are important to secure in the event of a hurricane, as an ammonia release could be very harmful. One standard operating

procedure may include pumping down the system

others during an emergency. Emergency leaders should

and ensuring it is secured. To verify all roof-mounted

be high-performing employees who are confident and

equipment is as structurally sound as it was when it was

cross-trained among divisions. During a hurricane, they

newly constructed, inspect elements such as pipe stands,

will execute evacuation plans and provide instructions.

condensers, valve groups, roof penetrations, rooftop units

Access to safety equipment is also critical. Again, plan for the unexpected. Ask yourself the following: Can employees easily locate and access emergency equipment in the dark?

(RTUs) and refrigerated makeup air units (RMAUs). Minimize flood risks with redundant systems One key way to reduce the risk of flooding ahead of time is to establish redundant systems for your site

Is that equipment accessible along evacuation routes?

drainage. If your primary system fails or gets backed up,

Does your supply include face shields, respirators,

an extra pipe and/or an alternate path to divert water can

safety glasses, hard hats, earplugs, and personal

prevent major flooding. Designing this resiliency into your

protective equipment for each employee?

facility may cost more upfront, but it’s nothing compared

Do you regularly audit your emergency equipment

to the costs associated with catastrophic flood damage.

supply to ensure personal protective equipment will be

Commercial generators

available when needed? Industry groups and government regulatory agencies provide requirements and recommendations to follow in developing a plan. For example, check out the Department of Labor’s OSHA Hurricane Preparedness and Response guide. The information provided inside applies to any country.

Equipment

n 2017, Hurricane Irma triggered record-breaking power outages and left 4.4 million people without electricity across the state of Florida. Major storms

often mean widespread power loss, so it can be helpful to have a diesel generator on site. Industrial generators can cost up to $750,000, so instead of buying one, many plant owners opt to rent one in case of an emergency. Make sure, however, that you have a signed contract to

our equipment and machinery are some of

be able to access the generator in the event of a disaster.

your most valuable investments. To prevent

You won’t be the only one looking for a generator.

damage and loss from heavy winds, ensure that

You can save yourself a headache by prepping your

your exterior mechanical equipment has tie-downs or

electrical work to receive that generator power properly,

permanent anchorage to secure it.

even if you don’t buy it. Installing proper wiring and

When it comes to flooding, most processing equipment is washdown capable so motors should be

July~August 2018

disconnect switches for a future generator can cost about $50,000 upfront, but that investment can be the

Meat Packing Journal

disaster

recovery

i n s i g ht

difference in it taking a few hours to hook up a generator

u Bracing and shoring

versus a few days.

u If there is significant structural damage, bracing walls and shoring floors will help stabilize your facility’s

After the storm

structure. These are highly technical processes and should be handled by experienced professionals.

fter a storm blows over, it’s time for catastrophe

Otherwise, you may expose personnel to a hazardous situation.

response. Facilities damaged by high winds and exposure to water and/or debris are very

Many companies offer bracing and shoring services, as

dangerous sites. Often people want to rush into the

it’s typical for new construction; however, they may not be

remains to help those who may be in danger. However, it

experienced in the techniques for emergency situations.

is important to assess the damage before initiating rescue

For your facility’s safety, enlist structural engineers with

efforts or else you might require rescuing as well.

experience in bracing and shoring following disasters.

While restoring a facility to safe operating condition

Another consideration when analyzing damage is

is the ultimate goal, safety is the priority – both in terms

the facility’s roof. In high winds, the roof is often partially

of food safety and the wellbeing of the people inside the

removed or worse. A tornado once damaged the roof

buildings and structures.

of an ongoing project. We visited the jobsite as soon as

The first step is ensuring the structure is safe before

possible, pumped out the ammonia refrigeration and

crews can enter to begin the recovery and restoration

analyzed the roof to make sure it didn’t collapse while

process. This includes confirming structural integrity,

product was being removed.

testing for possible ammonia leaks, checking for any

Before a severe weather event, doors and windows

unsafe electrical exposure, and clearing any debris or

may be locked or boarded up to prevent damage. It’s

leftover sandbags.

critical to remove these temporary measures and ensure

Before sending in the clean-up crew, stop and answer

exits aren’t obstructed so that personnel can exit safely

the following to determine the building’s structural

in the event of a fire, ammonia leak or other emergency

integrity:

during clean-up.

u What’s required to stabilize the structure?

Remember: No priority is greater than the safety of

u How do we restrict access to dangerous parts of the

your personnel and the crews working to restore your

plant?

plant.

u How do we conduct demolition without causing

Once preliminary safety measures are accounted for,

further damage to the facility?

we analyze, troubleshoot and help restore electrical,

u Are there gas leaks?

water and refrigeration systems. Stellar helps customers

u Have you shut down power and evaluated electrical

work with utility companies to get the facility back up and

hazards prior to exposing personnel to possible

running after a storm, so the recovery process can begin

electrical dangers?

before power is restored.

meatpacking.info

July~August 2018

i n s i g ht

disaster

recovery

We bring in temporary generators, analyze the as-

a long-time Stellar customer in New Jersey. In addition

is condition of the plant and begin establishing clear

to helping the client properly prepare for the storm,

pathways for workers and fork trucks. In the past, we’ve

our team provided timely on-site services to restore

brought in temporary batteries to power fork trucks so

water-damaged areas of the facility as well as re-roof

that they can begin removing any spoiled product from

the building after the hurricane passed. This allowed

the facility.

the client to get the facility up and running as quickly as

If the building is structurally safe and if you have a skilled staff that understands the hazards, the sooner you can get in the facility and start the process, the better. If your facility experiences flooding, you must evaluate

possible. Many of Stellar’s projects across the US and in the Bahamas have been affected by hurricanes during construction. Due to good planning and by securing

your floor. Non-destructive testing can determine the

job sites from wind and water damage, we’ve avoided

condition of insulation and soil beneath the slab. If water

significant losses other than workdays.

penetrates through the flooring, insulation can become

Don’t put it off: Ensure you have an emergency

saturated. These materials must be dried out as quickly

preparedness plan in place so your facility can be ready

and as thoroughly as possible to avoid mold growth.

for any storm that may come its way.

Flooding can also damage and move walls and

Joseph Bove is VP of business development and Johnny

columns, which can create structural integrity issues. This

Johnson is Vice President of field services at Stellar, a

is one of the main issues we look for when analyzing a

firm that provides design, engineering, construction and

facility after major flooding.

mechanical services for food processing plants around the

In 2012, Hurricane Sandy caused serious damage to

July~August 2018

world. jbove@stellar.net and jjohnson@stellar.net

Meat Packing Journal

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e s ta b li s h e d

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germany

Change strategy to succeed in germany What do you do when all competing companies are near-mirror images of each other, you stop competing and start creating. MPJ reports

companies selling meat widgets and feel that’s what they have to sell in Germany as well – it has to be a good idea, everyone else is doing it. But, back to the peach stand analogy, if everyone else is selling peaches, maybe you should be selling apricots. Professors W Chan Kim and Renée Mauborgne,

by velo mitrovich

authors of the international bestselling business book Blue Ocean Strategy, say: “The best way to beat the

competition is to stop trying to beat the competition.”

is like entering a bloody red ocean, a sea full of sharks

with similar companies. The strategy represents the

all battling it out for diminishing scraps of meat. The

simultaneous pursuit of high product differentiation and

competition from within is fierce.

low cost, thereby making competition irrelevant.

ou want to sell your meat, poultry, or

Going-to-head in a mature market like Germany is like

processing equipment in Germany. Who

dipping into a red ocean – you’ll have to fight off the

wouldn’t? The country has Europe’s

sharks unless you have a clear differentiation strategy.

most vibrant economy and this shows throughout the country.

However, to enter and compete in this mature market

Indeed, at the last IFFA show in Frankfurt, MPJ talked

The blue ocean strategy is a business theory that suggests companies are better off searching for ways to gain "uncontested market space" than competing

"Our study shows that blue ocean strategy is

to some US company reps doing a walk throughout

particularly needed when supply exceeds demand in

the halls, seeing how they would stack up against the

a market," Kim explained in an article in Forbes. "This

competition if they brought their product over.

situation is applying to more and more industries today

Most told MPJ they would leave the German market for someone a bit braver to try. However, in talking with

and will be even more prevalent in the future." According to Kim, on the one hand, globalized

them you had to wonder if the problem wasn’t the tough

production, international flows of information, and

German market, but their approach to it.

technology innovations have improved industrial

If a dozen roadside stands were all selling peaches,

productivity, permitting suppliers to produce an

with many of these stands having been around for years

unprecedented array of products and services. On the

with established customers, would it make any sense

other hand, there is little evidence of a significant increase

to add a 13th peach stand? A course not, how could you

in demand.

compete. However, this is the opposite view companies have who want to enter the German market. They see German

July~August 2018

Many industries are suffering from hastened commoditization of products and services, intensified price wars and contracting markets. Competing

Meat Packing Journal

germany

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Red Ocean Strategy

Blue Ocean Strategy

Compete in existing market place

Creat uncontested market place

Beat the competition

Make the competition irrelevant

Exploit existing demand

Create and capture new demand

Make the value-cost trade-off

Breat the value-cost trade-off

Align the whole system of a firm's activities with its strategic choice of differentiation or low cost

Align the whole system of a firm's activities in pursuit of differentiation and low cost

head-on in these markets results in nothing but a bloody “red ocean” of rivals fighting over a shrinking profit pool. “For companies in both developed and emerging

SWOT Analysis: GERMANY

economies, the growth issue has become increasingly salient. It is more imperative than ever for companies to move from red oceans of bloody competition to blue oceans of profitable growth,” says Kim. When Amazon first started out, everyone said it would

Strength Efficient and educated work force Largest European economy Centrally located

fail. Nobody would buy a book without seeing it first. Now, with so many copycats following Amazon’s example, the company is branching off into other areas ranging from food to shipping. And perhaps the greatest example of Amazon leading from the blue ocean, in New York City

Weakness High tax rates Slow negotiations Demanding employees

and elsewhere, Amazon has opened brick and mortar book stores. Exactly the same type of stores that it drove out of business.

German powerhouse facts

Opportunities Even Germans see their products as overpriced/0ver-engineered Younger Germans more open to imports Family owned companies looking to increase production

ermany has the largest economy in Europe, accounting for 22 percent of the Eurozone’s GDP, and ranks fourth in the world, with a GDP

of $3.467 trillion in 2016. The country also has the largest population in Europe, and ranks 17th in the world, with 82.67 million.

Threats Mature market German competition German processors not willing to take a chance

The country, however, has had for numerous years more deaths than live births which is one reasons why, when compared to the rest of Europe and competing countries such as Japan, it has a more liberal immigration policy. Indeed, during the current immigration crisis, Germany has accepted nearly 1.8 million applications. No other EU country comes even close to this figure. The immigrants will ensure that German companies

WORLD DEVELOPMENT INDICATORS 2017

have the work force to continue to ship over 78% of all engineered products out of the country – meat processing equipment exports are at 84%. For German manufacturers of food processing machines and packaging machines this past year was

Population: 82.67 million GDP: $3.467 trillion Trade balance: $276.6 billion Unemployment rate: 3.6%

successful, with production rising by 4.8 percent to more than 14 billion euros ($16.38 billion).

meatpacking.info

July~August 2018

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germany

pharmaceutical products. In particular, demand from the

top 10 import markets

US and Russia – due to increased investment activity – is viewed positively. This is also confirmed by the order intake in the first quarter of 2018: it increased by a total of

The following product groups represent the highest dollar value in Germany’s import purchases during 2017.

20 percent compared to the same period of the previous year. "The increase in incoming orders in the first quarter added to those orders dating from 2017 which will be

1. Machinery including computers: US$148.5 billion (12.7% of total imports) 2. Electrical machinery, equipment: $145.7 billion (12.5%) 3. Vehicles : $123.2 billion (10.5%) 4. Mineral fuels including oil: $96.2 billion (8.2%) 5. Pharmaceuticals: $53.6 billion (4.6%) 6. Plastics, plastic articles: $44.4 billion (3.8%) 7. Optical, technical, medical apparatus: $40.3 billion (3.4%) 8. Organic chemicals: $34.1 billion (2.9%) 9. Iron, steel: $29 billion (2.5%) 10. Articles of iron or steel: $23.3 billion (2%)

delivered this year due to the longer throughput times, will gradually become sales – both will ensure that sales will increase by 5 to 6 percent in 2018," predicts Clemens.

Right place

hat helps is that German economic and political policies strongly support a unified and integrated European Union as important

to the region’s stability. Germany shares borders with every major economy in central Europe, providing access to both eastern and western European markets with over 454 million customers. In fact, German standards (testing and certification) are especially relevant to US exporters because European Union standards are often based on German standards.

Growing over the 7-year period were German trade surpluses with United States (up 109.3%), United Kingdom (up 92.4%), Sweden (up 46%), United Arab Emirates (up 21.4%) and France (up 20.5%).

These assets make Germany a good candidate for setting up shop in Europe or investing in companies already located in Germany. Germany has a highly sophisticated infrastructure; motorways, railways, and a state-of-the-art telecommunications network ensure that goods

Germany’s positive net exports declined at the fastest pace with Italy (down -44.7%), Poland (down -24.8%), Switzerland (down -23.4%) and Spain (down -20.1%).

and information technology services are quickly and dependably delivered. Productivity has risen by more than 30 percent in the past five years. Also, Germany is the most innovative nation in Europe: more than 20 percent of European patents (and the majority of biotech patents) are held by Germans, internationally recognized high-tech clusters are located throughout the country, and four of the world’s 10 most

"Not only have we achieved a new record in machine

innovative companies are German. Germany leads the

production, we have also moved up from rank five to

world in trade in research-intensive goods, along with

four in the ranking of the 34 mechanical engineering

the United States. It is the world’s second-largest hub for

branches," says Richard Clemens, managing director of

research investments by multinational enterprises, with

the VDMA Food Processing and Packaging Machinery

annual investments of 12.1 billion euros.

Association. Packaging machinery production grew by 3 percent

Germany’s professional training, universities, and research and development rank highly in international

to 6.6 billion euros ($7.72 billion). In food machinery,

comparisons, and the country is home to more

the individual subsectors showed different dynamics.

universities than any other country in Europe. The

The largest sector, meat processing machines, grew

educational system promotes cultural diversity and

by 1.6 percent reaching 1.1 billion euros ($1.29 billion),

international student exchange programs, and English is

superseding the already high level of the previous year.

widely spoken throughout the population.

The prospects for 2018 are good. The industry

The country possesses one of the highest Internet

continues to benefit from the growing global demand

access rates in the European Union, and inhabitants are

for processed and packaged food and beverages and

responsive to the innovation and high technology evident

July~August 2018

Meat Packing Journal

germany

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top 10 export markets In 2017, Germany generated a robust surplus subtotal worth $247.2 billion with the following 10 trading partners.

in US products such as computers, computer software, electronic components, health care and medical devices, synthetic materials, and automotive technology.

1. United States: US$57 billion (Up 109.3% since 2010) 2. United Kingdom: $53.3 billion (Up 92.4%) 3. France: $46.2 billion (Up 20.5%) 4. Austria: $24.2 billion (Down -6.8%) 5. Spain: $12.8 billion (Down -20.1%) 6. Sweden: $12.4 billion (Up 46%) 7. United Arab Emirates: $11.4 billion (Up 21.4%) 8. Italy: $10.9 billion (Down -44.7%) 9. Poland: $9.6 billion (Down -24.8%) 10. Switzerland: $9.4 (Down -23.4%)

Small and mid-sized business are regarded as the backbone of the German economy. Often family owned, these firms employ no more than 499 people, and generate annual revenues of less than 50 million euros. The country, however, is not a panacea of setting up shop. German government regulation is complex and protective of established local suppliers, especially regarding safety or environmental standards. US and other firms can overcome local competition by offering high-quality products and services at competitive prices, and locally based aftersales support. Also, for investors, Germanyâ&#x20AC;&#x2122;s relatively high marginal tax rates and complicated tax laws may constitute an obstacle for many, although deductions, allowances, and write-

Growing over the 7-year period were German trade surpluses with United States (up 109.3%), United Kingdom (up 92.4%), Sweden (up 46%), United Arab Emirates (up 21.4%) and France (up 20.5%).

offs help to move effective tax rates to internationally competitive levels. According to Cedric Le Rouge, president of Adexma management consulting firm, Germany has great potential for foreign entrepreneurs and investors, distinguishing itself with its educated labor force, human

Germanyâ&#x20AC;&#x2122;s positive net exports declined at the fastest pace with Italy (down -44.7%), Poland (down -24.8%), Switzerland (down -23.4%) and Spain (down -20.1%).

capital, and corporate R&D. The country has a regulatory, political, and economic foothold on the European Union, which makes accessing the market even more lucrative. However, there are added burdens associated with starting and running a business, including complicated procedures.

meatpacking.info

July~August 2018

e s ta b li s h e d

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World’s largest meat show If you want to understand the German market and its potential, you need to go to IFFA. MPJ reports

players in the international meat industry. It is the sector’s global platform for innovation. Only at IFFA can visitors get experience of the entire meat-processing chain, which is responsible for one of our most valuable foodstuffs." The new Exhibition Hall 12 will be used for the first

by velo mitrovich

time to house IFFA 2019. The hall provides 33,600 square meters of exhibition space over two levels and embodies

the very latest standards. As a result, IFFA will be bigger,

lthough it’s 10 months to go, you should be

more modern and more clearly laid out – with a circuit

making plans now to attend IFFA 2019, held

that offers less far to walk and a rapid overview of the

next 4-9 May in Frankfurt am Main. With

entire range of products and services on offer. Exhibitors

the opening of the new Exhibition Hall 12

and products are arranged in accordance with the

and the improved layout at the Exhibition

key stages in the meat industry’s process chain, from

Centre, the show – held every three years – will now be

slaughter and cutting to processing, packaging and

bigger, more modern, and more compact.

selling, including finished meat products.

Exhibition space equivalent to 95 percent of that

The last edition of IFFA in 2016 confirmed its leading

available at the previous event has already been booked

position within the sector. Over 63,000 visitors from 143

and numerous well-known companies from all over the

countries attended the trade fair. With a figure around 66

world have indicated their intention to attend.

percent, IFFA achieved its highest number of international

Wolfgang Marzin, president and CEO of Messe

visitors ever. The top 10 visitor nations outside Germany

Frankfurt, says: “We are delighted by this strong support

included the Russian Federation, Spain, Poland, Italy, the

from the sector for its leading trade fair and are working

Netherlands, China, USA, Austria, Australia and Ukraine.

flat out on IFFA 2019, which is on course to break all

In terms of exhibitors, too, IFFA 2016 reported a record

records and to set the trends for the coming years. The

level of participation, with 1,027 companies attending.

entire spectrum of the meat industry exhibits here, from

These firms came from 51 countries and presented their

manufacturing to high-tech.

innovations over an exhibition area of 110,000 square

"On a three-yearly cycle, IFFA brings together all the

July~August 2018

meters. Wear your walking shoes.

Meat Packing Journal

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case

study

g ha n a

fo llow u p

Aglow Farms aims at a market change In the March/April 2018 issue of MPJ was a feature on investing in Nigeria. MPJ cautioned against the African giant and instead suggested you look into Ghana. This is a follow up to that feature. MPJ and Marel Poultry report

to process 1,000 bph (birds per hour), should help bring this about, as he announces Aglow Farm’s entry into large-scale poultry market. “We decided to enter the broiler processing market, because there is a big market out there, which until now has been completely dominated by low-priced imported products,” says Kofi Brobbey Kyei. “Although Ghanaian consumers much prefer the look and taste of homegrown chicken meat, the market is flooded with cheap

by velo mitrovich

foreign products. “It won’t be easy to compete with the low prices of

imports; we will, however, find a way of changing the

ofi Brobbey Kyei, founder of Aglow Farms,

market by letting the consumer know the difference. Our

wants to see changes in the local poultry

poultry meat is locally produced, very fresh and totally

market in Ghana. He would like to see

different from imported products, which will have been

consumers move away from imported

frozen and stored for a long time abroad,” he says.

frozen foodstuffs and go back to tasty

fresh, locally produced chicken meat. His recently built greenfield plant in Accra, able initially

meatpacking.info

“By showing these differences, we hope to move the consumers towards our products. If we can achieve the volumes, with time we can compete. If we succeed in

July~August 2018

g ha n a

fo llow u p

case

study

Manual evisceration

till hanging from the overhead conveyor system, products automatically enter the evisceration department. This ensures an ergonomic operating

environment for workers, who do all cutting and drawing operations by hand, using a manual vent gun, opening scissors and evisceration forks. Hearts, livers, gizzards, and necks are also harvested manually, after which a lung suction gun is used to remove the lungs. Each product is cleaned by a Stork outside washer before it passes the leg cutter, which cuts off the feet, dropping the whole products into the screw chiller. Products are cut-up manually using the Stork MC300 portion cutter. Aglow Farms produces thighs, wings, breasts, and legs. “We have gone into cut-up chicken because in our market, not too many people can afford a whole chicken. It’s too expensive and too much for them. Chicken cuts are therefore becoming increasingly important here; we want to offer our clients the complete range,” says Kofi Brobbey Kyei. “We are aiming to cut 80-90% of our production. In Ghana, there’s a big market for thighs and wings and we want to open up the niche market for breasts. We’re targeting those intermediate distributors who until now

Kofi Brobbey Kyei, founder of Aglow Farms

have been importing products. We are trying to convince them to buy and sell products grown at home. They have all shown great interest in doing so and we are eager to

winning just 10% of this market, we will have to run our

see the results.”

plant throughout the whole year.” Kofi Brobbey Kyei explains why he found Marel Poultry to be a good partner in building the processing plant. “Both my daughter and I were investigating our options for choosing an equipment partner and the name Marel Poultry kept coming up. The two of us came to the same conclusion at the same time; that Marel Poultry could offer what we were looking for. We are very satisfied with the way the company reacts to our requests; they always keep their promises. Whenever we want

+4,000 +4000

something special, Marel Poultry responds very positively. We feel comfortable with this relationship.”

In the brand new Aglow Farms greenfield plant, a

BUYERS

Stork heavy-duty overhead conveyor, spanning over

80 meters (262 ft) of length, is the heart of the process.

Hanging in the shackles, broilers pass through the Stork water bath stunner, which delivers an effective, reliable

buyers

electrical stun. After killing and bleeding out, products are conveyed to the Stork scalder. This immersion scalder has low energy and water consumption, a big benefit in African conditions. Products are then thoroughly defeathered in the Stork plucker, after which the Stork

head puller does automatically what is a hard, manual job.

July~August 2018

Meat Packing Journal

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f utu r e

prote i n

burgers

I can’t get no plantbased satisfaction Once upon a time, the only alternative to a meat burger were vegan versions that were as close to burgers as moon pies are to the Apollo landings. But now with Impossible Burger and Beyond Burger, there are some real alternatives – available worldwide in more and more cities – which can tempt the most confirmed carnivore. Should meat producers start quivering in their hoofs? Editor Velo Mitrovich reports

commercial veggie burgers originated from a lifelong vegetarian who was unfamiliar with the real thing. It should be of no surprise then that they tasted like anything but meat. Gregory Sams and his brother Craig were running a vegetarian restaurant in London for decades. Gregory came up with the VegeBurger in 1982, mostly as a way of bailing the restaurant out of a financial bind. Made from flour-based seitan which he made himself over his kitchen sink, he flavored it with tamari, mixed in aduki beans and oak flakes, and formed a patty out of it. “I was creating the VegeBurger with this image of what a burger should be like, there was a lot of trial and error,” Sams tells Smithsonian. “It was a big moment for me when my long-suffering wife asked for a second bite.”

by velo mitrovich

Others then jumped on the bandwagon; in the USA two big players were Gardenburger and Boca Burger. By

2002 Boca, which had been bought by Kraft Foods, was

mericans love their burgers, eating around 50 billion a year, which works out to an

bringing in $70 million annually. However, there were several problems with most

average of three a week for each person.

of the Johnny-come-lately creations. Although Sams

While these billions include chicken, turkey,

and the early vegan burger pioneers were producing

ostrich, kangaroo, bison, and even salmon,

some bland tasting creations, they used healthy, natural

the clear majority are beef. But, thrown into this mix are

ingredients and kept them simple. However, once

some new offerings that look and taste pretty much like

big business realized these aging hippies were on to

the real deal, but whose ingredients have never seen a

something, the game changed significantly. A look at the

feedlot or slaughterhouse.

long list of ingredients – typical of vegetarian products

While the Rolling Stones during their heyday would

from companies such Kellogg’s Morning Star Farms

have found it hard to get fake meat satisfaction, today

– makes you wonder why anyone ever sees this as a

it’s a different story and they’ll need to change the

healthy opinion. Many brands, too, are high in fats, which

words to ‘Satisfaction’. What some still find hard to

adds needed flavor but also calories.

believe is the modern vegan burger is pulling in huge,

And the biggest problem all have, they don’t have the

massive investments – drawing big, big backers – and

flavor of meat. They’re great for self-righteous vegans and

the consumer demand for it is real. This is after vegan

vegetarians who want to loudly tell all that they’re saving

burgers were for so many years on the outer fringe of

the planet, but they’re not an option for a meat eater. That

taste and seen more as a leftover from the Hippy era than

is, until now.

something edible.

California rumble

For those too young to remember – or who have suppressed the memories – there were some horrible concoctions in the 1980s that tried to pass themselves off as a hamburger alternative. But, perhaps some pity should be given to these early vegan burgers for in examining their history, the vegan burger had threestrikes against it before even getting up to bat. The first

July~August 2018

ike boxing legends Muhammad Ali and Joe Frazier, there are two main players in the pseudo-meat range punching it out for the heavy weight crown,

with both having heavy-hitting investors in their corners

Meat Packing Journal

burgers

Above: Available in US restaurants and supermarkets next to the real. It will be in Europe by September

meatpacking.info

f utu r e

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Below: Impossible Burger; sold in restaurants in the USA and Asia

July~August 2018

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burgers

and plans for the world title. Wearing red trunks is Los Angeles-based Beyond Meat, founded by Ethan Brown who is its President and CEO. Wearing blue is Silicon Valley-based Impossible Foods, founded by Stanford biochemistry professor Patrick Brown who is its CEO. Beyond Meat’s burger is all plant-based but looks and tastes like meat. Impossible Food’s Impossible Burger is all plant-based but looks and tastes like meat. Vegans and most vegetarians reject both, saying that while they’re not meat, by imitating meat they’re not following the spirit of the movement. That’s fine for both Impossible and Beyond. Both burgers were created with the meat-eater in mind, aiming to give people the taste and nutritional benefits of meat, without the perceived negative health and environmental impacts of meat production. In the States, meatless vegetarians and

Don Lee Farms burgers. Today's plant-based burgers are a far cry from yesterday's vegan burgers

vegans make up somewhere between two to five percent of the population, meaning at least 95% of the population eats meat at least once a week. According to research, around one-third of Americans are looking for meat alternatives for at least some of their weekly meals, with this market expected to be worth $5.2

SWOT Analysis

billion in two years. Suddenly, it’s all making sense. For investors, however in both companies, they will

Strength Some brands can compete against beef with flavor Appeals to meat eaters Supermarkets are supporting Major meat players are investors

need to be patient. “Eating patterns shift like tectonic plates: very slowly,” said Darren Seifer, food and beverage industry analyst for research company NPD Group. “It usually takes five to 10 years before consumers develop new behavior.” At this point you’re wondering, are there any differences between Impossible and Beyond? Despite all

Weakness Price is higher than beef Although lumped together, there is a difference in brands Has a ‘Whole Foods’ image to overcome Not yet a ‘finished’ product – more tweaking required

the similarities, not all is the same. One difference is internal appearance due to different key ingredients. Impossible Burgers ‘bleed’ and Beyond Meat’s do not. Considering the fact, however, that most burger eaters don’t stop in mid-bite and admire their burger’s dripping blood, this difference seems small to MPJ. The other difference, however, is significant. For the time being, Impossible Burgers can only be found in

Opportunities Massive growth predicted Around third meat eaters looking to reduce meat Becoming more accessible Threats Safety issues involving heme Labelling laws might challenge use of words ‘burgers’, ‘sausage’, etc Competitors reverse engineer and make cheaper versions Costs are unable to get down to meat level

restaurants while Beyond Meats – which are also found in restaurants – can be bought uncooked in the meat section of numerous supermarkets. Bring Beyond home and you can feed a family of four with what you would pay for one restaurant Impossible Burger.

Impossible foods

t’s hard to believe but just seven years ago Impossible Foods raised its first $7 million from Khosla Ventures. Since then it’s raised another $389

million. Backers include: Bill Gates, Google, Viking Global Investors, Temasek, Li Ka-shing’s Horizon, and the

July~August 2018

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Chinese investment fund Sailing Capital, a state-owned investment fund. This funding has allowed Impossible to build a full-

what's in the burger

fledged production facility in Oakland, California, which will be producing 2.5 million pounds a month by the end of the year. This will help bring Impossible to Asia, as well as continue to feed into over 1,000 US restaurants. One of its earliest successes was with Umani Burger which sold more than 200,000 Impossible Burgers last year. According to Umami Burger CEO Daniel del Olmo, the burger chain is seeing a 38% increase in traffic leading to 18% sales growth since Umami started selling Impossible Burger. What sets Impossible apart is its use of a yeast-grown heme molecule. Heme is present in most living things, is the molecule that gives meat its flavor. The company says that it’s the presence of the heme molecule in muscle that makes meat taste like meat. Impossible Foods engineers and ferments yeast to produce that heme protein naturally found in plants, called soy leghemoglobin. This is its key ingredient.

Impossible Burger Serving size3oz (85g) Calories per serving 220 Total fat 13g Saturated fat 10g Trans fat 0g Cholesterol 0g Sodium 430mg Protein 20g Full ingredient list: Water, Textured Wheat Protein, Coconut Oil, Potato Protein, Natural Flavors. Contains 2% or less of: Leghemoglobin (Soy), Yeast Extract, Salt, Konjac Gum, Xanthan Gum, Soy Protein Isolate, Vitamin E, Vitamin C, Thiamin (Vitamin B1), Zinc, Niacin, Vitamin B6, Riboflavin (Vitamin B2), Vitamin B12

“It’s the iron-containing molecule that carries oxygen in the blood…what makes meat red or pink…. It’s essential for every living cell on earth,” says Brown. “The thing that we discovered was that pretty much the entire flavor experience of meat that distinguishes it from all other foods is due to heme. Heme transforms fatty acids into the bloody flavored odorant molecules, and when you cook meat, the protein that holds the meat at a certain temperature unfolds and lets loose.” Brown says Impossible Foods can make fish, chicken, and pork flavors, but is going to stick to ground beef for the foreseeable future. “The company’s mission is to completely replace animals in the food system by 2035,” says Brown. “The only way to do it is to do a better job than any animal at producing the most nutritious, delicious, affordable, and versatile foods.”

Beyond meat

Beyond Burger Serving Size 40z (113g) Calories per serving 270 Total fat 20g Saturated fat 5g Cholesterol 0g Sodium 380 mg Protein 20g Full ingredient list: Water, Pea Protein Isolate, Expeller-Pressed Canola Oil, Refined Coconut Oil. Contains 2% or less of: Cellulose from Bamboo, Methylcellulose, Potato Starch, Natural Flavor, Maltodextrin, Yeast Extract, Salt, Sunflower Oil, Vegetable Glycerin, Dried Yeast, Gum Arabic, Citrus Extract (to protect quality), Ascorbic Acid (to maintain color), Beet Juice Extract (for color), Acetic Acid, Succinic Acid, Modified Food Starch, Annatto (for color).

hile Beyond Meat can beat Impossible on several fronts, fundraising isn’t one of them, having raised around $75 million. Financial

backers include: Cleveland Avenue LLC (the venture capital firm founded by Don Thompson, former CEO of McDonald’s Corporation), Bill Gates (hedging his bets), Leonardo Di Caprio, Twitter co-founders Biz Stone & Evan Williams, Tyson Foods, Seth Goldman (now executive chairman of Beyond), Candice Bergen, and controversial Jack and Suzy Welch.

Jack in Box beef patty Serving size 4oz (113g) Calories per serving 230 Total fat 19g Saturated fat 7g Cholesterol 40mg Sodium 135mg Protein 16g Full ingredients list: Beef

Beyond Meat uses pea protein, beetroot juice, coconut oil, non-GMO canola oil, and bamboo fiber, mixed

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Clockwise: Juha-Pekka Pitkanen, technology director; Pasi Vainikka, CEO; and protein powder created from only air and electricity.

Protein from air It sounds impossible. It sounds like snake oil. But Finnish company Solar Foods Oy says it can produce an entirely new kind of nutrient-rich protein using only air and electricity as the main resources. The goal of the company is to start commercial production of the environmentally revolutionary protein in 2020. “We are starting test production in Finland this year, and are applying to the European Food Authority for approval as a novel food whose testing will take a few years. At the same time, we will begin testing the production of consumer products with our partners,” says company founder and technology director, D.Sc. (Tech.) Juha-Pekka Pitkänen. “Our goal is to develop the protein into a highquality product whose environmental impact will be 10-100 times smaller than those of meat products or their substitutes currently in the

July~August 2018

market,” says D.Sc. (Tech.) Pasi Vainikka, the company’s incoming CEO. Solar Foods’ concept redefines the basics of food production, as it is not dependent on agriculture, the weather, or the climate. The price of the protein product is also competitive compared to sources such as soy protein. According to Solar Foods’, the single-cell protein can be used as a protein-rich food ingredient applicable in various food products. As such, the material looks and tastes like wheat flour, but contains 50% protein, claims the company. The amino acid composition of Solar Foods protein is comparable to soy providing all the amino acids for human diet The company’s production method is based on the research projects of the VTT Technical Research Centre of Finland and the Lappeenranta University of Technology (LUT) that proved the viability of the production concept for extremely protein-rich food. The

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together so that the fats are broken up and connect with

through Authentic Food Company. Tesco supermarket

proteins. Beyond says its extrusion process – using heat

chain is hoping to be the first in the UK to sell Beyond

and pressure to bind ingredients together like in animal

Burgers.

feed productions – is used to create a meat texture and

The company has just announced a deal with A&W

taste, and to make it more appealing to mainstream

Canada which should be available before this issue is in

consumers looking for meatless options.

your hands.

CEO Ethan Brown’s goal is to have Beyond Meat’s

“We are a burger loving company with a lot of firsts, but

products be indistinguishable from the real thing. Besides

this is the fastest new-product launch in our history,” says

burgers, there are three types of sausage, three types of

Susan Senecal, A&W Canada’s CEO, in a press release.

faux chicken strips and two types of faux ground beef.

“When we tried the Beyond Meat Burger, we knew we

“We want the vegan and vegetarian to feel they can choose us, but if it means sacrificing that customer to be

had to the be the first national burger chain to bring it to Canadians across the country.”

satisfying to 95 per cent of the population that isn’t vegan

Burger throw-down

or vegetarian, that is the choice we’ll make,” says Seth Goldman. “We’ll always choose the opportunity to bring this to scale versus making it relevant only to the purists. It may not be a diplomatic answer, but that is how we think about it.” Besides being sold in more than 25,000 grocery stores and restaurants in the USA, including TGI Friday,

ut which is better, Impossible or Beyond? That is a question many are asking and the subject of numerous taste trials around the world.

Vegetarians seem to prefer Impossible Burger while

Bareburger, and BOA Steakhouse, it has recently

meat eaters prefer the taste of Beyond Burger, but this

announced its entry into the European market through a

isn’t a 100% of the time.

German distributor. “Over many months, we have been working hard to

In Hong Kong, where both Beyond and Impossible now have a presence, the stakes were raised by having

select a strategic partner for our international expansion. I

Beyond go head-to-head against an Australian beef

am very pleased that with the PHW Group we have found

burger.

a long-term partner who has extensive expertise in the

South China Morning Post reporter and noted Hong

European market with regard to distribution, logistics, and

Kong food writer Bernice Chan reported on the fight – but

costumer and consumer engagement,” says Brown.

not who won.

In August, Beyond Burgers will be distributed in the UK

When asked by MPJ, Chan tactfully replied: “They are different in terms of taste – of course if you like meat then you will prefer the meat burger. The Beyond Meat one is a good alternative.”

results of these research projects have attracted a lot of international attention. Solar Foods process is a fermentation process similar to the production of yeast or lactic acid bacteria. Instead of sugars or other chemical sources of energy, clean electricity is the energy source. The organism used in the process creates all amino acids, proteins, carbohydrates, lipids, and vitamins. Solar Foods’ round of investment was led by Lifeline Ventures. The other investors were VTT Ventures Oy and Green Campus Innovations Oy. In addition to capital investment, the company was granted a development and piloting loan by Business Finland. All total, it’s received around 2 million euros in startup funding. “Solar Foods will take the environmental requirements of food production to an entirely new level, and can do it in a way that is competitive in terms of cost and can be sized to a large scale,” says Lifeline's Juha Lindfors.

meatpacking.info

But between Beyond and Impossible, Chan had a clear favorite. “Impossible burgers are mushy, and really have a strong wheat taste that throws me off. That said, when it’s in chili fries, it makes no difference. “Apparently both sales are doing very well. not only in burger joints but also retail. The owner of Butcher’s Club Burger in Hong Kong that sells Beyond Meat burgers says his sales overall have increased because he’s getting a new demographic into his restaurants – vegetarians/ vegans – that he would have never gotten before. So now vegans/vegetarians can eat in his restaurant with meat eaters and not be stuck eating salad. “Impossible has teamed up with two popular chefs in Hong Kong to push its product. I don’t know if celebrity power will push the product, but it doesn’t hurt that these two chefs are really passionate about being sustainable and this offers an alternative for them to keep in line with their philosophy of eating less meat, helping the environment, etc,” says Chan. In a test-off held by the staff of website and publication CookingLight, Beyond Burgers came out on top, although

July~August 2018

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GRAS complaint is much ado about nothing Last summer a surprisingly odd mixture of bedfellows took aim at Impossible Burger, including Friends of the Earth, the New York Times, and Modern Farmer magazine, implying strongly that the makers of Impossible Burger were knowingly putting out an unsafe product. The news stayed a hot topic for about a month and then disappeared. Their focus of concern centered on Impossible Foods, maker of Impossible Burger, use of a plant-based heme ingredient that the US Food & Drug Administration has ruled to be GRAS – Generally Regarded as Safe. Use of GRAS allows a company to get a product out faster and with less expense, but with some watchdog groups GRAS flags up of questions of whitewashing potential hazards. According to release by Friends of the Earth, Impossible Foods was told by FDA officials that it hadn’t provided adequate proof of safety for a genetically engineered protein that gives the burger its meat-like taste and color. “Impossible Foods put the genetically engineered product on the market for public consumption even though the company privately admitted to the FDA that it had not conducted or designed safety tests. The Freedom of Information Act-produced documents state that the ‘FDA believes that the arguments presented, individually and collectively, do not establish the safety of SLH for consumption, nor do they point to a general recognition of safety’,” states Friends of the Earth. “The FDA told Impossible Foods that its burger was not going to meet government safety standards, and the company admitted it didn’t know all of its constituents. Yet it sold it anyway to thousands of unwitting consumers. Responsible food companies don’t treat customers this way,” says Jim Thomas of ETC Group. “Impossible Foods should pull the burgers from the market unless and until safety can be established by the FDA and apologize to those whose safety it may have risked.” ETC Group says in its mission statement that it “...works to address the socioeconomic and ecological issues surrounding new technologies that could have an impact on the world’s poorest

July~August 2018

and most vulnerable people.” With Impossible Foods having no current plans to ship out cases of Impossible Burger to the Central African Republic, Impossible seems like an odd target for ETC Group. While Impossible’s key ingredient soy leghemoglobin, which gives its burger the sizzle, smell, and taste of real meat, is considered GRAS, the different groups are demanding that further testing should be done. Biochemist Patrick Brown, founder of Impossible Foods, says that those who claim heme causes cancer are using “garbage science” to prove their point. Like the problems that AquaBounty is having with its GMO salmon in the States (see last month’s MPJ), Brown’s problems started when he went to the FDA for further approval – which he did not require – after being given GRAS status. His reasoning was he wanted complete transparency, again, like AquaBounty. What the opposition seemed to forget is that leghemoglobin being used by Impossible for its “blood” is not a genetically modified organism (GMO), it’s not an organism at all, it’s a protein produced by genetically modified yeast cells [see last month’s MPJ for insight into the difference]. While this might seem like splitting hairs, it’s an awfully big hair and some of those opposing Impossible should have done their homework a bit better before hitting the GMOfear button. So now it’s with the FDA. There are two things the FDA is famed for: always wanting more data and doing nothing fast. Despite Brown submitting over 1,000 pages of test data, the FDA says that it is still evaluating. In the meantime, rumors abound with most following the logic that if Impossible’s most important ingredient hasn’t been given FDA approval – ignoring GRAS – then there is a potential for an unsafe product. And, if this potential is there, then it shouldn’t be sold. Again, while some see GRAS as nothing more but smoke and mirrors for companies trying to get one over on the public, the FDA officially lists over 680 compounds it considers GRAS, and this list does not include every GRAS substance which number in the thousands. Most GRAS products are flavoring and coloring agents (natural and artificial) and stabilizers used to bind food together.

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Omnipork is going to be big

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Whole Foods, and Walmart. British company Moving Mountains has teamed up with vegetarian and vegan restaurant Mildreds, in London,

were a bit “greasy” (something MPJ has noted as well).

to launch the B12 burger, otherwise known as the “raw

Meat eaters liked Beyond and gave it high marks as being

‘bleeding’ burger”.

close to in taste and appearance to the real thing. It was

The patty has been made using peas, potatoes, wheat

so close to real meat, however, that vegetarians and

and soy proteins, beetroot juice to make the burger

vegans on staff said, “never again.”

‘bleed’, coconut oil, vitamin B12 and an oyster mushroom

Perhaps what sums it up best is a quote from Anthony

base. With 20g of protein per serving, the B12 burger

Roman, marketing coordinator for Bareburger which sells

rivals a classic beef patty in the muscle-building stakes

both.

too, claims the company

“The biggest differences of the Impossible and

The one to watch

Beyond Burgers is simply in the form the raw product arrives in,” says Roman. “Impossible is like raw ground beef and Beyond is like a fully formed raw beef patty. Other than that, both deliver a shockingly similar cooking and eating experience to a real beef burger.” In other words, there isn’t much difference.

Other players include

hile everyone loves a beef burger, pork is the world’s most consumed meat. The first product under Right Treat is Omnipork – a

game changer for Asia and the world, according to David Yeung, a global environmental advocate and the founder

on Lee Farms of Los Angeles is producing a

of Green Monday, Green Common, and now Right Treat Omnipork is made of shiitake mushroom, non-GMO

plant-based burger which cooks up frozen. In

soy protein, pea protein, and a mixture of rice. Yeung will

less than 60-days, the company sold more than

not say exactly how much he has invested, only to say it’s

a million through Costco. In taste tests, meat eaters said

in the seven-digit range in US dollars. The plant-based

Don Lee Farms burgers would not fool any carnivore and

“pork” is being produced in a factory in Thailand.

gave it low marks in looks, tastes, and texture. However, vegetarians thought they were delicious. “The fact that our organic plant-based burger is made

Bernice Chan of Hong Kong says: “We tried it at the Chinese restaurant in the JW Marriott and overall it was pretty good. The “pork” can be used for frying, steaming,

with plants and not with science has resonated with

deep-frying, boiling. In its raw form, it looks like minced

people. No one wants to eat a burger hidden with artificial

pork.

or modified ingredients if they have the choice,” says

“The only downfall is that this “pork” absorbs a lot of

Danny Goodman of Don Lee Farms. “They want natural.

water so when the chef tried to make siu long bao or

They want organic. They want real.”

xiaolongbao (Shanghainese steamed pork dumpling) it

In the USA, Don Lee Farms sells through Costco,

meatpacking.info

was pretty dry inside."

July~August 2018

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Process considerations for plant-based meat

Meat alternatives

egetable-based meat analogues are available in

One thing that all the plant-based companies have in common is that they are extremely tight-lipped when it comes to production techniques. To get insight into production, MPJ has turned to Natasa Taseki, process technologist for Wenger Manufacturing

various sizes and textures and exist in two main categories; as a dry product to be re-hydrated

prior to utilization, or in a more recent development, as a â&#x20AC;&#x153;freshâ&#x20AC;? ready-to-cook version, called high moisture meat analogue (HMMA). A high moisture meat analogue is a product that mimics the properties of whole muscle meat, with a layered fibrous structure and moisture, protein, and fat content similar to whole muscle meat products. HMMA changes the game when it comes to providing

by Natasa Taseki

consumers with a product that is both aesthetically appealing as well as satisfying the textural, flavor and mouthfeel preferences of meat lovers.

t is no longer just vegan and vegetarian diets

Texturizing technologies

that call for alternative sources of protein. A rising number of health studies, developments in nutrition, documentaries, and media influencers promoting healthy living are driving the movement

towards healthy, sustainable, and ethical nutrition. When looking for alternative foods that can meet all

roteins can be manipulated and texturized into a fibrous meat-like texture with the right technology. Which technology is preferable depends on the

our nutritional and ethical requirements, the focus is not

application, available raw materials and desired final

only on the nutrient composition, but also color, flavor,

product attributes. There are two possible processing

and texture. We want it all. For meat lovers who want

technologies for production of HMMA; high moisture

to eat better, reduce the amount of animal proteins in

extrusion cooking or the new thermal PowerHeater

their diet, or be more conscious of their footprint, it is

technology.

becoming increasingly popular to get equivalent nutrition and texture without the meat. Alternative sources of protein can be transformed into textured products with a meat-like mouthfeel and appearance, and even optimized nutritional composition.

July~August 2018

Extrusion cooking is a continuous High Temperature/ Short Time process, utilizing both mechanical and thermal energy for heating and texturizing raw materials to create a wide range of intermediate and finished products. In addition to vegetable-based products, the

Meat Packing Journal

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PowerHeater can also be utilized for non-vegetable applications â&#x20AC;&#x201C; making it possible to texturize even raw materials with limited functionality into textured, fibrous products with a bite and natural meat-like appearance. The PowerHeater primarily relies on indirect thermal energy to cook and texturize the materials. It is possible to convert even an emulsion/ground meat to a texturized meat to create a variety of shapes and sizes such as crumbles, strips, cubes, kebab strips, and even jerky and snacks.

Ingredient choices

xtrusion processing utilizes a range of raw materials to create a product with the desired characteristics. Whether you want to create a beef,

pork, chicken or seafood analog product it is possible

Natasa Taseki, process technologist

to do so with extrusion. Texture, bite, and a fibrous meat-like appearance can be manipulated by varying

and tubers (wheat gluten, rice, oats, potato, etc.) and

the processing parameters and modifying the recipe/

including, but not limited to mycoprotein (fungal proteins).

formulation. Typical ingredients which can be used to produce

Additives such as pH modifiers, emulsifiers, color, flavor enhancers, dried vegetable powders, and other

texturized vegetable meat analogues include proteins

functional ingredients can be used to modify the texture

derived from pulses and oilseeds such as soy, peas,

of the meat analogue, and add value to the ingredient

beans, chickpeas, lentils, and lupins, or from cereals

label.

meatpacking.info

July~August 2018

y b e R

Food The

Business

The podcast for the food and drink industry From Reby Media, we bring you The Food Business. If you’re in the industry, or just super interested in all-things foodie, then this is right up your alley. Our informative and entertaining fortnightly episodes will keep you in the know. We’re a British-focused show, bringing you the best stories from the industry featuring authentic, and sometimes candid inter-

views. You’ll hear personal stories about big successes, failures, and lessons learnt from industry heavyweights and successful startups. We’ll be investigating the biggest trends, developments in technology and food science. Experienced journalist, editor, and host to The Brewers Lectures, Rhian Owen, co-hosts The Food Business alongside producer and journalist Bernadette Ballantyne.

Listen at: foodbusiness.reby.media

pest

control

fo cu s

Modern technology to tackle ancient problem There is a war being fought 24/7 with an enemy that is relentless, that probes your processing plant’s defenses constantly from top to bottom, looking for the smallest crack or hole for entry. If none is found, they’ll go with the obvious, flying in through the loading dock, hiding in a pallet, or crawling on the floor. But they can be stopped. MPJ reports

meatpacking.info

ince humans first started on the agriculture journey, we’ve been trying to mitigate the destruction caused by pests to our harvest. It’s been recorded that as early as 2500 BCE, Sumerians used sulfur compounds to

control insects and mites. In 13 BCE, the Roman architect Marcus Pollio built the first rat-proof granary. As Pollio would have attested to, when pest control is a management priority, pests are kept under control. When it’s not, pests can abound with catastrophic results. About 10-years-ago in the USA, nine Americans died,

July~August 2018

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pest

control

there were somewhere between 11,000-20,000 cases

While PCA was used as an example due the severity of

of people becoming ill – some requiring hospital stays

the outbreak and the final outcome, the meat industry is

and/or resulting in long-term health damage – and there

far from immune in pest investigations.

was a recall of 4,000 products costing millions due to a

In January 2014 one of the largest Foster Farms plants

massive distribution of Salmonella-contaminated peanuts

in California was ordered to suspend poultry processing

by the Peanut Corporation of America (PCA).

after US Department of Agriculture inspectors cited it for

Hiding behind this patriotic-sounding name was a

“egregious insanitary conditions.” For Fosters this came

company that cut every corner it could. Its headquarters

at a particularly bad time due to a national Salmonella

was a small office behind a parent’s house, it owned two

outbreak happening co-currently, which put focus on

peanut factories in dire need of repairs, had a workforce

Foster and its operations.

of minimum-wage employees who were unmotivated,

According to renrejkjkj, the federal agency’s notice of

and was run by a company president who cared more

suspension stated that the plant in Livingston, CA, posed

about profits than about the safety of his customers. Pest

a public health threat because it was infested with live

control and sanitation didn’t even focus at the bottom of

cockroaches.

his priority list. Testimony during the trial of Stuart Parnell, PCA’s CEO,

USDA Food Safety and Inspection Service officials had reportedly cited the Livingston plant for roaches

showed that the owner knew about the contaminated

several times in late 2013. Roaches were seen near the

peanut shipment, and gave orders to "just ship it." In

processing line at the plant while “exposed product” was

addition to poor oversight, the company's plants were

on the slaughterhouse floor, the notice of suspension

breeding grounds for health and safety concerns.

continued, and the live insects were also observed on

According to former employees, the Georgia plant where

other occasions during production.

the outbreak originated from was contaminated by living

“These recent findings of egregious insanitary

and dead rodents, roaches, mold, dirt, pigeons, and had a

conditions related to a cockroach infestation in your

permanently flooded basement and a leaky roof which all

facility indicate that your establishment is not being

have contributed to the presence of Salmonella or at the

operated and maintained in sanitary condition, or in a

least, helped in the transmission of the pathogen.

manner to ensure that product is not adulterated,” the

A federal jury convicted Parnell of 72 criminal counts

notice stated. “Poorly maintained facilities and equipment

after prosecutors introduced evidence to show PCA

that are not maintained to prevent entrance of pests,

executives mislead investigators and customers about

such as cockroaches, rats and flies, can and do harbor

the presence of Salmonella, and fabricated documents

food borne pathogens, which can then multiply and be

that declared the products were free of pathogens when

dispersed throughout the food processing environment,

they either hadn’t been tested or results revealed the

increasing the chances of product contamination

food was tainted. He could have been sentenced to

rendering the product unsafe.”

800-years in jail; he was sentenced to 28-years. Although

This last November “unspecified” pests prompted JBS

this sentence was too short for the relatives of the victims

USA to halt production temporarily at a Pennsylvania beef

and nobody expects Parnell to serve his full sentence,

processing plant that accounts for about two percent of

never before in the States has a CEO done time for food

US daily cattle slaughter.

safety violations. Michael Parnell, Stuart Parnell’s brother who worked

JBS, one of the largest beef producers in the United States, said it would take steps to control the pests and

as a food broker on behalf of PCA, was sentenced to

conduct repairs at the plant in Pennsylvania, according to

serve 20 years behind bars. Former PCA executive Mary

the company.

Wilkerson received the lightest sentence of the three defendants: five years in prison. "To be sure, the long sentences handed down will

“The decision to temporarily halt production was based on sightings of pests around the perimeter of the facility,” said Al Almanza, global head of food safety and quality

not bring back the nine Americans who died after

assurance. He did not specify what kind of pests were

eating contaminated peanut products that Parnell and

seen at the plant, adding that beef produced there was

his co-defendants knowingly marketed, nor will they

not affected.

retroactively undo the sicknesses and hospitalizations of

The challenge

those who survived," says David Plunkett, senior foodsafety attorney for the Center for Science in the Public Interest (CSPI), in a statement. "But they will send a very strong signal to food manufacturers that pursuing profits at the expense of food safety can bring the most severe of consequences."

July~August 2018

eat industry operators worldwide face a challenge from pest infestations which have the potential to deal a devastating blow to the

Meat Packing Journal

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control

fo cu s

core of business operations – hitting finances, safety, and corporate reputation. But despite the impact infestations can bring, pest control can sometimes be misjudged as a purchasing procedure, rather than an integral part of the technical

as well as price when hiring your trusted pest controller, particularly as fines around the world can hit meat packagers hard.” A search online brings up organization after

production strategy – resulting in a greater risk to the

organization fined for pest activity in their business –

company.

leaving a lasting, unwelcome impression that can be

Dee Ward-Thompson, technical Manager of the British Pest Control Association (BPCA), tells MPJ that a joined-

difficult to move away from, says Ward-Thompson. It’s not just the costs of fines which need to be

up approach is key to protect companies, employees

absorbed. Corporate reputation can also be affected,

and environments, and avoid the costly and damaging

particularly with the power of digital and social media

after-effects of when things go wrong. It’s more important

which can make stories hit harder and faster.

than ever to be protected professionally when it comes to pest management. “That message has been amplified to us in the UK in

“No-one wants to read about their supply chain having rodent or insect infestations on their premises,” she says. “It’s easy to focus on reputation damage, but there’s

recent months in line with the launch of a recent study

also productivity, safety and public health to consider.

by the University of Reading – commissioned by the

Rodents can carry a variety of diseases, chew through

Campaign for Responsible Rodenticide Use – which

electricity and plant cables – and if left untreated,

revealed the presence of a new generation of rats

represent a severe fire hazard causing significant

carrying a genetic mutation, making them resistant to

downtime from damaged machinery.”

conventional poison,” says Ward-Thompson. “With their numbers expanding, there could be a significant risk to

Integrated pest management

public health if their population is left unchecked, in both urban and rural environments.” According to Ward-Thompson, it is thought that the spread has been accelerated by the application of first generation rodenticides, most likely by amateurs carrying out treatments themselves, or even employing an unqualified individual to try to resolve the problem. “As a result, we feel it is more important than ever that the meat packaging and wider food manufacturing sector is ‘pest aware’ and has a grasp of the key issues to work together with their pest management company,” she says. “There’s often a price to pay if effective compliance

large part of pest prevention is thinking ahead and identifying potential causes and entry points before infestations occur; proofing. As

a result, more companies are delivering Integrated Pest Management (IPM) services and working more collaboratively as opposed to in isolation to achieve good practice. IPM builds a complete picture of effective preventative methods which can be delivered by a variety of agents, including inspecting premises on a routine basis and

is not adhered to. Therefore, at the British Pest Control

reporting on the status of pest infestations, organizing

Association we strongly urge readers to consider quality

and undertaking a program of treatments, as well as

meatpacking.info

July~August 2018

fo cu s

pest

control

Rentokil Lumnia LED fly control unit

Stop them

using pest control equipment or chemicals to control and eliminate target pests, says Ward-Thompson. This means greater control is afforded by taking pest control away from the more typical reactive situation into a core operational element of a meat packaging business. Good practice also represents fewer products being

aking control of your building by proofing it against pests is the most important step you can take, says Evans. “You need to patch all holes and

used, and the adoption of resilient preventative methods

cracks – a mouse can squeeze through a space only ½

and practices – and peace of mind that environments are

inch high. You need to keep all doors closed and if those

pest free.

that you have to leave open for part of the day, such as in

When IPM was first developed in 1972 and made a US national policy by President Richard Nixon, it was looked

the loading dock, have fly screens installed. “Work hand and hand with housekeeping to minimize

at as a farm pest control. In the past, a farmer might

food on the floor – a mouse can survive on three grams,”

drench his fields with the strongest poison available at the

he says.

sight on just one pest. Going by a pure IPM philosophy there are acceptable pest levels, with the emphasis on control, not eradication. Unfortunately for the meat industry, there is no acceptable level of mice, rats, roaches, or other pests in a meat processing plant. MPJ has found most companies

Evans says that it is important to take a close look at what you’re storing immediately outside of your plant. “I’m not going to mention their name but one processor stored a lot of ofal outdoors in bins. They would get a huge number of gulls and flies.” According to Rentokil, rats are the most destructive of

and organizations – including the BPCA – believe in a

all pests, with the real problem being the damage they

modified approach to IPM within the meat industry that

cause to electrical equipment. Over a quarter of those

uses a zero approach to infestation.

surveyed reported damage to electrical equipment from

“Any food plant is at risk. A fly in a farm is not a

rats. As a consequence, rats are also the most likely

problem; a fly in a processing plant is. You need to

pest to cause production downtime, with food-focused

have a zero approach,” Berwyn Evans, with international

businesses losing an average of eight working days a year

pest company Rentokil, tells MPJ. “Our integrated pest

due to rat infestations.

management approach is based on four principles that

“We’re in the 21st century when it comes to rodent

we call ERDM – Exclusion, Restriction, Destruction, and

control,” says Evans. “There is no more laying out poison

Monitoring.”

or spring-loaded traps. We have a system, RADAR mouse

According to Evans, exclusion refers to preventing

capture, that uses places traps alongside the interior wall.

pests for gaining access to a processing plan by sealing

The trap uses infra-red to detect the rodent, the cage

areas and proofing buildings; restriction is stopping pests

doors slam shut trapping the rodent, and the mouse is

from spreading if they have gained access and removing

killed with CO2.

food and harborage; destruction consists of using control

“With our PestConnect system, a message is sent

measures to kill the pest, including non-toxic solutions;

and received by us 24/7 and we deal with the problem,

and monitoring is ensuring that protection measures are

which will entail figuring out how the rodent entered your

working, and that they continue to work even after control

premise.”

has been achieved.

July~August 2018

What MPJ finds interesting about this is that it takes

Meat Packing Journal

pest

control

fo cu s

away the need for someone to check the traps, which

activity undertaken by a professional pest controller, says

going by some blogs is very time consuming.

Ward-Thompson. Through the development of a routine maintenance

For flies and other flying insects, Evans speaks highly of Rentokil’s Insect Light Traps that are designed

cycle program, a complete picture of effective

to attract, kill, and encapsulate insects hygienically,

preventative controls can be built, and relevant actions

eliminating the risk of contamination.

introduced, she says. This will include inspecting premises and reporting on

“These traps use LED technology that has a high attraction rate but a lower power requirement – a lot of

a routine basis, organizing and undertaking a program

units out there use a lot of electricity,” he says.

of proofing measures and treatments, as well as using relevant products and expertise to eliminate issues if the

Depending on the plant’s requirements, Rentokil

worst was to happen.

usually goes in once a quarter to monitor these traps,

A maintenance cycle program is downloadable on

which entails seeing what types of insects are being

BPCA’s Pest Aware blog, alongside useful articles and

caught. “This can tell us a lot,” says Evans. “For example, if there is a high number of months, that will lead us to believe

resources as well as a pestwatch calendar and A to Z of pests directory. In the USA, Purdue University’s Extension has

that at night, somebody is leaving a door open.”

an excellent guide “A Pest Control Program,” and in

Take control

Australia – which has more deadly pests than the rest of us can imagine – has the Australian Environmental Pest Managers’ Association guidelines posted as well.

he most effective method to ensure protection and

On commercial sites, Rentokil has excellent information

compliance is to introduce a pest management

which is less slanted towards their business than

maintenance cycle program, with regular, targeted

expected.

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BARCELONA 08-11 MAY

Hall 4 Booth 239

July~August 2018

CO M M ENT

Stop Worrying About Whole Foods I

effective way around, over, or under that wall.

term, trying to foretell what Amazon has planned. Others

How about building a regional strategy around strong

lament the fact that it has become all but impossible

independents? You could develop a plan to hit alternative

for local brands to find their way to the shelf. Existing

channels such as Barnes & Noble college bookstores, or

brands and brokers are freaked out about the edict on

Hudson News airport locations. Either of those represents

merchandising and the plan to bring that "in-house". Of

significantly more doors than Whole Foods. What about

course, there is the ever-moving review schedule and the

convenience and drug stores who are beginning to look

whole global versus regional submission question.

for better-for-you options, do your products fit there? What

t's dominating almost every conversation. What's happening with Whole Foods? Some focus on the long-

My advice? Stop worrying about it! You are wasting precious time and focus. Yes, Whole Foods is an important outlet. They offer a path to reach important consumers,

What are your plans for conventional grocery?

about e-commerce platforms such as Amazon, Jet, and Thrive? You get the point. There is nothing you can do to answer

velocity is usually decent, and it comes with some

or solve all the questions that surround the future of Whole

panache that adds to brand credibility. I get all of that. But,

Foods. The only action you can and should take is to move

that does not justify the wasted time asking the "what if"

forward. It's not only your competition that is doing that, it's

and "how come" questions.

your customers. Chains are trying to figure out how to fill

It's important to have some perspective. Whole Foods

the current void in the market. Kroger, Sprouts, Publix, and

has less than 500 outlets. There are over 38,000 grocery

others are trying to grow their local programs. Help them

stores in the US. Additionally, if you consider the potential

do that with your products.

to sell your brand in other channels such as drug and

While the topic of Whole Foods is fodder for some great

convenience or alternative channels such as corporate

conversation, contemplation, and even bold predictions, it

feeders, airports, and college bookstores, you will quickly

does little to help you grow your business. In fact, I could

recognize that Whole Foods represents an infinitesimally

argue that it hinders your ability to grow because it keeps

small percentage of the total opportunity.

your focus too narrow.

I am going to break it to you gently, it is time to move

Stop worrying about Whole Foods and instead use that

on, to let go. I am not suggesting you forgo your current

mental energy to plan and execute a strategy that will get

business at Whole Foods or remove them from your target

you on more shelves and into more carts.

list. No, what I am suggesting is that you see it for what it is, a very small piece of a very large pie. Successful brands are not the ones that repetitively run

Elliot Begoun is the Principal of The Intertwine Group, a practice focused on helping emerging food and beverage brands grow. He works with clients to design and execute

headlong into a brick wall with the hopes of eventually

customized route-to-market and go-to-market strategies

smashing through. Instead, the brands that win are those

that build velocity, gain distribution, and win share of

that see the obstacle and find the quickest and most

stomach. His articles appear in numerous publications.

July~August 2018

Meat Packing Journal

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