AgriBusiness & Food Industry- July 2013 by Media Today Pvt. Ltd.

AgriBusiness & Food Industry w July 2013

inside...

Cover Story

...12

Indian

Pasta Market

Booming!

Pasta Makers & Machinery Suppliers Eyeing Vast Land of Surplus Wheat Anwar Huda

Extruded Products

pasta offer attractive Investment like

Opportunity in Indian Food Market Vijay Sardana

EDITORIAL

Food preservation

Theory

and Principle of Refrigeration Cycle

– Suresh Bhise and Amarjeet Kaur

EVENT REPORT

CII & NAFTC Seminar

Doubling Food Production in 5 Years An Indo-Dutch Approach – Anwar Huda

FOOD CAMPAIGN

Two

Strokes One Goal

Curbing Food wastage – T V Satyanarayanan

40 retail NEWS l Spencer’s Retail to invest Rs. 600-cr to open 12 hyper stores 41 corporate NEWS l ITC overtakes Hindustan Unilever in branded F&B sales

ONE-ON-ONE

The

43 food & beverages NEWS l Food security law will improve PDS system: K. V. Thomas

– Neelkant Bakshi, MD, Packolabel Systems Pvt. Ltd.

45 health & nutrition NEWS l American F&B Brands Cut 1.5 Trillion Calories to arrest obesity

agri affairs

issue is not Price but Service & Support

Indian

Agriculture Needs an Integrated Approach

46 commodity NEWS l J&K to launch Walnut Board

– Sanjeev Chopra

USDA MEAT INDUSTRY REPORT India to continue as top Beef Exporter

48 dairy NEWS l Panel recommends another 1-year ban on China’s milk & milk products

AgriBusiness & Food Industry w July 2013

Marine NEWS l West Bengal to import Hilsa from Burma

AgriBusiness & Food Industry w July 2013

orial Edit

Chief Editor S. Jafar Naqvi Consulting Editors T.V. Satyanarayanan Vijay Sardana Chief Co-ordinator M.B. Naqvi Editorial Co-ordinator Syed M K News Editor Anwar Huda Layout & Design Faiyaz Ahmad Mohd. Iqbal

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Printed, published and owned by M.B. Naqvi, Printed at Everest Press, E-49/8, Okhla Industrial Area Ph-II, New Delhi - 110 020 and Published from E-11/47 A, New Colony, Hauz Rani, Malviya Nagar, New Delhi-110017 (INDIA) Editor : S. Jafar Naqvi Vol 10....... Issue 7 ...... July 2013

esearch has played a crucial role in the transformation of agriculture in the last four decades and more. Although India has become one of the leading producers of many major crops, in terms of yield levels, it lags behind in the global ranking of many crops. Studies show that yield gaps persist within the country itself, region-wise and state-wise. To achieve the Twelfth Plan’s targeted four per cent annual growth rate of agriculture and allied sectors, as also to meet the multifarious challenges facing this sector, the country will have to invest heavily on farm research. Some details of research planning, activities and initiatives under the Indian Council of Agricultural Research (ICAR) system to take Indian agriculture forward on a sustained basis are outlined in the latest annual report of the Department of Agricultural Research and Education. In the last fiscal (2012-13), ICAR took steps to establish Indian Institute of Agricultural Biotechnology in Ranchi and National Biotic Stress Management Institute in Raipur. Besides setting up five new Krishi Vigyan Kendras (KVKs) –one each in Andhra Pradesh, Odisha, Rajasthan, Karnataka and Maharashtra – raising the number of KVKs to 631 across the country, a proposal was initiated for the establishment of a Central Agricultural University for Bundelkhand Region. One of the focus activities of farm scientists is raising the productivity of soil and water. Under this programme, an innovative model of ground water sharing has been evolved for the Ranga Reddy district of Andhra Pradesh. This model helps not only to avoid competitive digging of bore wells by local farmers, but also to improve cropping intensity (150 per cent) and water productivity, besides ensuring judicious use of ground water. Equally interesting is the designing of an Integrated Farming System (IFS) model for resource-poor farmers of western Uttar Pradesh. Through cultivation of cereals, pulses, oilseeds and pulses and practicing supplementary activities like horticulture, the IFS model showed that a net return of one lakh rupees could be realized from 0.7 hectare of land. During the year, the Council released a new rice variety, CSR 43, for sodic soils of Uttar Pradesh. Besides withstanding the sodic nature of the soil and saving irrigation water, this variety has the yield potential of 3.5 to 4 tonnes per hectare. In the field of crop management, over 90 new varieties and hybrids of crops were released for different agro-climatic regions. They included 25 rice varieties and hybrids and nine wheat varieties for cultivation in varied production conditions. Under the National Initiative on Climatic Resilient Agriculture, scientists took up technology demonstrations in 100 vulnerable districts in the country, thereby helping farmers to cope with climate variability. In all these village clusters, farmers were aided in timely completion of farm operations during delayed monsoon. A notable achievement in livestock improvement during the year was the production of a cattle calf for the first time in India by using Ovum Pick-up technique. The female Sahiwal calf, born in March last year with normal birth weight, was named ‘Holi’. This technology will be useful in harnessing valuable germplasm from infertile and aged dairy cattle. Since mechanization of Indian farms increases production and productivity, besides reducing drudgery, the scientists have been working on developing improved machines and equipment for farm operations. One such development is a self-propelled hydraulically hoisted platform for orchard management. Powered by a petrol engine, the platform is capable of keeping the operator at various heights while harvesting mango, oranges, oil palm and the like. Safety attachment to the currently available Chemperi model palm-climbing device is the latest offer by researchers. The attachment provides full safety to the climber during the cleaning and harvesting operations. The list of research achievements is indeed long. The challenges facing the development of agriculture and allied sectors are also many. Surely, there is a strong case for increasing public and private investments in farm research from the present level of mere 0.7 per cent of Agriculture GDP to at least one per cent in the near future. Comments are welcome at: mediatodaymails@gmail.com Views expressed by individuals and contributors in the magazine are their own and do not necessarily represent the views of “AgriBusiness & Food Industry” editorial board. AgriBusiness & Food Industry does not accept any responsibility of any direct, indirect or consequential damage caused to any party due to views expressed by any one or more persons in the trade. All disputes are to be referred to Delhi Jurisdiction only. .....Editor

AgriBusiness & Food Industry w July 2013

Cover Story

In urban India, the demand for prepared and convenience food is increasing at a dazzling speed due to fast lifestyle, working couples having not much time for cooking at home, increased purchasing power, healthconsciousness, and consumersâ&#x20AC;&#x2122; changing taste preferences. Opportunities for pasta, dried pasta, and fresh/chilled pasta are expected to experience continued growth in a country which is witnessing a fast rural-to-urban migration

Indian Pasta Market Booming! Pasta Makers & Machinery Suppliers Eyeing Vast Land of Surplus Wheat Anwar Huda

asta, though considered as a niche market in India, is one of the fastest growing categories in the packaged food market. The growth of this market is mainly attributed to increasing exposure to foreign cuisines in on-trade outlets. The growth is mainly in urban areas where

AgriBusiness & Food Industry w July 2013

people have higher disposable income and dine out more often. Italian food has, in the process, become one of the favourites. Pasta has firmly entered the Indian kitchen along with olive oil and balsamic vinegar, displacing those ubiquitous instant noodles in the larder. Indian consumersâ&#x20AC;&#x2122; taste buds seem to respond well to

Italian cuisine. Even until a few years ago, commercially produced pasta in India was basically macaroni and nothing else. This is surprising, considering that back in 1884 there were at least nine varieties made in Meerut, in a small plant which was imported from Italy. The spaghetti, vermicelli and macaroni, along with

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Industry Viewpoints

“The instant pasta market is at the kind of stage that the instant noodles market was years ago. We are seeing our sales of this product grow by between 35-40%”.

“The instant pasta category will be a roaring success with the opening up of a number of Italian restaurants. Also, many players are positioning it as a health product”.

Chitaranjan Dar

Shripad Nadkarni

CEO, Foods division, ITC

Founder-Director, MarketGate Consulting

six other pasta varieties, were consumed mainly by European residents in north India, Calcutta and Bombay. Increasing popularity of Italian on-trade outlets will drive retail sales of pasta in India soaring. Italian cuisine has become so popular in the Indian market that quick service restaurants such as Domino’s and Pizza Hut have also gone beyond pizza to offer pasta dishes, which is a further indication of the rise in the popularity of this category. Many international chains are planning to enter the Indian market. Ci Gusta Italian food restaurants owned by Happy Time Solutions, has signed a joint venture agreement to enter the Indian market. AmRest Holdings SE also plans to invest Rs 5 billion in India to set up Italian restaurant chain La Tagliatella.

“With more women picking up jobs, sale of convenience food would only grow. And since there are many established players in pasta, the early entrants will have an advantage”.

“The most important markets for Turkish pasta products are Africa and Asia, especially Japan and China, though EU is the largest market for export-oriented Turkey”.

Saloni Nangia

Murat Bozkurt

President, Technopak Advisers

These factors will further drive the sales of pasta. Global Pasta Production & consumption Currently the global pasta production stands at 13.6 million tonnes. Italy is the largest producer, consumer and exporter of pasta with over 3 million tonnes output and occupying 25% share in the global market. Italy is followed by USA (16% share in global markets), Brazil (10%), Russia (7%), and Turkey (6%). In consumption too, Italy is at to with 26 Kg per capita figure, followed by Venezuela (12.3 Kg), Tunisia (11.9 Kg). Turkey’s per capita consumption stands at 6.6 Kg. Pasta: the Italian Origin Pasta, which originated in Italy, is a type of noodle and is a staple food of traditional

President, Pasta Industrialists Association of Turkey

Italian cuisine, with the first reference dating to 1154 A.D. in Sicily. It is also commonly used to refer to the variety of pasta dishes. Typically pasta is made from an unleavened dough of a durum wheat flour mixed with water and formed into sheets or various shapes, then cooked and served in any number of dishes. It can be made with flour from other cereals or grains, and eggs may be used instead of water. Pastas may be divided into two broad categories, dried (pasta secca) and fresh (pasta fresca). Chicken eggs frequently dominate as the source of the liquid component in fresh pasta. No one has taken pasta as seriously as the Italians. They now have hundreds of types of pasta, some of which names are known only locally. Generally named after the

“In order to be successful, it is essential to deeply know the local region where the business is based and perfectly know the flavours and taste of potential buyers”. Giacomo Deon

President of Confartigianato Imprese Alimentazione, Italy

shape, like Bumbola (bumble bee) or Dente di Cavallo (horse’s teeth), these can be long noodle-like pastas such as Capellini, Fusilli Bucati and Pici, short-cut extruded hollow pastas like Cannelloni, Rigatoni and Penne, flat ribbon like pastas for example Fettucine, Linguine and Papardelle, and fancy shapes like Farfalle (fan-shaped), Orichiete (ear-shaped) and Conchiglie (shell-shaped). While commercially made pasta of Durum wheat is standard fare, fresh pasta is made at least once a week in Italian homes. Arab Connection Italy may not claim pasta as quite its own invention; the Arabs seem to have used a dried noodle called ‘itriyah’ years before it appeared in Sicily. This they reconstituted

AgriBusiness & Food Industry w July 2013

Cover Story into a satisfying meal by boiling. Fresh pasta was known in Aramaic as ‘laksha’. PASTA VARITIES Dried Pasta Dried pasta is readily available in many sizes and shapes. It is factory made and fully dried before it is packaged. It rarely contains eggs, so it has a long shelf life requiring no refrigeration or freezing. Its firmness also allows it to be stored easily without damage. Most consumers prefer dried pasta with no added Global Pasta Production (Countrywise) 2011 Country Italy USA Brazil Russia Turkey India Total World

Tons 3,350,000 2,000,000 1,300,000 1,080,000 8,50,000 1,00,000 1,36,30,000

Fig. Report by International Pasta Organisation

flavour, although coloured dried pasta seasoned with spinach, beetroot or tomato is also popular. Traditional varieties such as spaghetti, rigatoni and macaroni, are the most popular forms. Product innovation, valueadded product and low cost will contribute to positive growth for dried pasta. Chilled/Fresh Pasta Fresh pasta is available in a variety of sizes and shapes, but not to the extent of dried pasta. It does, however, come in a greater variety of Global Pasta Consumption (Countrywise) Country USA Italy Brazil Russia Germany France Turkey

Tons 2,700,000 1550,000 1195,000 1128,000 650,000 513,000 448,000

Report by IDMA &PastaTrend, Istanbul, 2013

flavors. Fresh pasta most often contains eggs and has high water content, making refrigeration or freezing necessary to keep it from spoiling. Canned Pasta Canned pasta often suffers from negative consumer perceptions and is competing with an increasing number of fresh pasta varieties. Despite declines, canned pasta is still perceived as offering a heartier meal than dried pasta. Canned pasta is also thought to offer more convenience than dried pasta, due to its ability to be cooked in three to four minutes. PASTA IN INDIA In urban India, the demand for prepared and convenience food is increasing at a dazzling speed due to fast lifestyle, working couples having not much

time for cooking at home, increased purchasing power, health-consciousness, and consumers’ changing taste preferences. Opportunities for pasta, dried pasta, and fresh/ chilled pasta are expected to experience continued growth in a country which is witnessing a fast rural-tourban migration. GROWTH FACTORS The advantages of fresh pasta are that it is quick to cook and is often made from original recipes that combine authenticity, tradition, and regional origin. There are other factors as well, as listed below. Convenience is the king Several factors boosted pasta sales in recent years. Consumers are moving to cooking and entertaining at home to save money, thereby presenting an opportunity for

Turkey’s “Bread Waste Prevention Campaign” inspires the world

r. M. Mehdi Eker, the Minister of Agriculture, Food and Livestock of the Republic of Turkey, has recently said that the mission of Turkey is ‘Zero Waste’. The

Agriculture Ministry of Turkey has, in January, launched “Bread Waste Prevention Campaign” within Turkish Grain Board to save the huge wastage of wheat. Talking about the overall national resources’ damage, the Minister said, “By the waste of the bread, labour, raw material, natural resources, energy and national wealth spent in all processes from the growing of wheat to the reaching of bread to our meals are also wasted. It should also not be forgotten that starving people around the world have a right on every slice of bread that we waste”.

AgriBusiness & Food Industry w July 2013

The step was taken after the Ministry of Agriculture submitted “New Flour Communiqué” to the Prime Minister. The main target of the programme is to inspire Turkish people to have a healthy diet and achieve zero waste goal. According to an estimate, Turkey wastes 542 thousand tons of wheat/bread annually while around 870 million people worldwide malnourish. So prevention of bread wastage becomes imperative. Eker said, “Waste of food has reached an alarming point in the world. According to FAO, foods worth US$ 1 trillion are wasted annually. Even the

prevention of one fourth of waste will be enough to meet the need of 870 million malnourished people. As the food prices are increasing in the world, we wanted to attract attention to this social phenomenon”. The campaign was launched, on January 17 this year, under Prime Minister Recep Tayyip Erdogan. The mission is quite inspiring for the world, especially India which wastes around 30% of its foods and foodgrain due to improper handling, lack of cold chain, etc. n

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pasta meals. Convenience and ease of preparation are the main features of many pasta products. Many efforts by manufacturers, like inventing new recipes and packaging formats for chilled/fresh products and the continued introduction of value added product formulations in dried pasta also create demand. Efforts of manufacturers In India, value-added products, such as chilled/ fresh pasta, are expected to continue to appeal to consumers, and will benefit from further efforts by manufacturers to provide new recipes and new packaging formats for pre-packaged products. The value share of stuffed pasta is expected to rise sharply, given the considerable potential for innovation in this area and the innovation already initiated by manufacturers. In general, increasing numbers of singleperson households will boost sales of value-added chilled/ fresh products, and canned products. Among urban Indian consumers, eating habits are changing to emphasize convenience, freshness and variety, all of which are offered by pasta. This trend is expected to boost sales in

coming years as well. Health-conscious eating habits The health-conscious eating trend has also affected sales of pasta, with increased demand for whole grain pasta and pasta made with fresh ingredients. In recent years, filled and flavoured concepts have fuelled the development of new pasta varieties, and manufacturers are exploring such options as organic, fortified and enriched pasta. Industry According to an Ernst & Young report, the instant noodles and pasta market in India would be worth Rs 1,500 crore in the next four years. Retail outlets like Reliance, Bharti Wal Mart’s Easy Day, Aditya Birla’s More or the new SPAR Hypermarkets will make it possible for Italian pasta producers to build their brands through promotional activities in organised food retail outlets. The SPAR group has already shown very keen interest to tie up with Italian pasta producers and the Italian Trade Commission to organise tastings and promotion activities in their new hypermarket stores. Italian pasta brands in India Italian food & beverage

events, like the “Festa Italiana” organised every year by the Indio-Italian Chamber of Commerce will further increase the awareness of the quality of Italian pasta and its brands. The major Italian pasta brands in India are currently Barilla, Buitoni and Agnesi. But there are many more pasta producers in Italy keen to explore the Indian market. At the same time Indian companies are looking for setting up new pasta production plants with Italian Joint Venture partners in India. Other major Brands Nestle, ITC, HUL, Future, Bambino are the main pasta makers in India. Bambino Agro Industries Ltd remains a major player in pasta with a retail value share of 47% in 2012. The company’s flagship brand Bambino was priced competitively against similar products in the market, which helped to enhance its presence and penetration. It also benefited from a national distribution network. The company also has strong presence in the foodservice channel where it supplies wheat pasta to Domino's Pizza in India. The instant pasta market is booming with the aggressive

advertising by the Indian arm of the world’s largest foods company Nestle and tobacco giant ITC. Sunfeast from ITC and Maggi Pazzta are reaping the returns of a rapid doubledigit growth rate in sales as customers increasingly add this to their portfolio of snacks they consume at home. Industry experts said the entry of more firms into this market such as HUL’s Knorr soupy pasta, Future Group’s Tasty Treat, Bambino Agro Industries’ instant pasta and their marketing efforts has resulted in greater penetration and consumer awareness. “The instant pasta market is at the kind of stage that the instant noodles market was years ago. We are seeing our sales of this product grow by between 35-40 per cent,” Chitaranjan Dar, CEO, Foods division at ITC, said. According to data from market research firm Nielsen, Nestle and ITC control the majority share of the fast growing instant pasta market. The ready-to-eat Sunfeast pasta is positioned as a healthy product, as it is made of whole wheat. It is available in multiple flavours: masala, tomato cheese, cheese, sour cream, pizza style, chicken and tangy tomato. “The instant pasta category will be a roaring

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“We believe that the new generation’s love for pasta is increasing not only in Turkey, but in most of the countries. The realization of pasta as a healthy diet is also a reason behind this positive growth”. Mehmet Karakus, Member of Pasta Industrialists Association of Turkey

success with the opening up of a number of Italian restaurants. Also, many players are positioning it as a health product,” said Shripad Nadkarni, founder director at MarketGate Consulting. Nestle India sells, under the Maggi brand, two flavours — masala penne and cheese macaroni. Positioned as a healthy product, the Maggi Nutrilicious Pazzta is made up of semolina. “With more women picking up jobs, sale of convenience food would only grow. And since there are many established players in pasta, the early entrants will have an advantage,” said Saloni Nangia, president at consultancy firm Technopak Advisers. Universal grain shortage & wheat-surplus India In a time when the world is facing grain shortage and battling adverse climate conditions like drought and high temperature to ensure food security, India is fortunate to have so much surplus wheat that it struggles

for ways to empty its silos in order to refill them with fresh produce. According to IFPRI (International Food Policy Research Institute— Washington), in 2050, environment conditions may lead to a 25% decrease in current wheat production with obvious effects on the pasta supply chain and its consumers. For most countries, while the population growth rate is over 2.5%, their respective food production growth rates fall below 1.5%. This means that countries are not producing enough food for their people. According to the UN Agency Food and Agriculture Organization (FAO) statistics, 70% more food is required to be produced to feed the world population by 2050. More food will be consumed over the next half century than that has been overall consumed by human beings since the down of the history. In 2010 FAO estimated that poorly developed systems for handling, storage, packaging, transportation result in post harvest losses ranging from 15% to a staggering 50%. Investment in food infrastructure and better handling could reduce losses and improve food safety. India’s wheat success story offers a glimmer of hope for the processed wheat products makers. But it has to invest massively in infrastructure development to protect foodgrain from getting spoiled. Nonetheless, India will most likely attract large investments in pasta segment by indigenous pasta makers as well as foreign machinery suppliers. They can make good use of surplus durum wheat.

AgriBusiness & Food Industry w July 2013

Durum/macaroni wheat: Best for Pasta Also spelled as Durhum, Durum is a Latin word which means "hard", and the species is the hardest of all wheat varieties (not suitable for chapati- making). It has high protein content and its strength makes it good for special uses, the most wellknown being pasta which in Italy is exclusively made from durum wheat. In India, M.P. is the biggest producer of durum wheat. Pasta makers and machinery suppliers surely find India a good market to boost their sales. The market is indeed growing. EU: the biggest market for pasta According to Market Indicator Report, prepared by Agriculture and agri-Food Canada, with a combined population of over 500 million, the European Union (E.U.) accounts for one-fifth of the world’s trade and is the top exporter and secondlargest importer of pasta goods in the world. Quality, freshness, price and taste are important to E.U. consumers. Fresh foods & produce and wheat products are common in E.U. diets. The total E.U. pasta market was worth US $8.4 billion in 2008, and the total market was forecast to grow at an average annual rate of 4% from 2008 to 2013. The E.U. accounted for 37% of global pasta value sales in 2008, down from 49% in 2003. In comparison with other types of pasta, the chilled/ fresh format benefited from positive consumer perceptions of its high quality taste and health value, combined with ease of preparation. Consumer willingness to pay premium

prices for such products boosted sales in key markets such as Italy, Germany and the United Kingdom (U.K.) In the U.K., the world’s largest market for canned pasta, sales value has steadily declined since 2005, as overcrowding on the shelves hurt certain licensed pasta brands featuring characters popular with children. Children are not brand-loyal and the consumer decisionmaking process is being complicated by parental influences. The abundance of licensed brands available within canned pasta is likely to mean poor sales for products associated with those characters whose popularity is waning with children. Major Pasta brands in EU The supremacy of Barilla in pasta is indisputable in Western Europe, where its share of 14% is three times larger than that of the second-largest player, Nestlé. However, the competition pattern in Eastern Europe is totally different. Pasta is often dominated on a regional level by local companies. Pasta is a highly fragmented sector in Italy, with the presence of many different manufacturers whose share differs from region to region. Despite a slight share decrease, Barilla remained the leading player. The second-largest player is Pastificio Rana, which specialises in chilled fresh pasta. The pasta environment in Germany continues to be dominated by the manufacturers of dried pasta, since this is by far the largest niche. The leader is Birkel/3 Glocken Teigwaren GmbH with a value share of almost 16%, achieved through the

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According to latest market reports, Turkey is becoming more and more important globally for dry pasta production, but Italy is still the leading country both for machineries/technology and the superior quality of pasta. But as to fresh pasta, even if Italians are still the masters, in future Turkey may represent a strategic area for business development for Asian markets. Both countries are keen to capture these markets by their competitive products and state-of-the-art machinery/technology brands Birkel, with around 9% of value, and 3 Glocken, with around 7%. Panzani SA continued to lead the pasta sector in France. The company led sales in dried pasta with its Panzani brand and in chilled/fresh pasta with the Lustucru and Giovanni Panzani brands. In the U.K., Heinz Co Ltd was a strong leader and accounted for 24% value share in 2008. The company benefits from a wide range of canned/ preserved pasta, including Heinz Spaghetti, Heinz Pasta Hoops and Heinz Macaroni and Cheese. Comercial Gallo continued to lead sales of pasta in Spain accounting for a 35% share of value sales. Its biggest stronghold is in dried pasta, where it achieved a 41% share. Local companies Evroinvest AD and Makaronena Fabrica Dobrich AD, are leading the pasta industry in Bulgaria.

Evroinvest has a slightly bigger share but, in general, each company accounts for around 20% of sales. Poland’s Lubella SA maintained its leadership in pasta. The strengthening of Lubella’s position can be attributed to intensified marketing activity and the introduction of new products. Italy: the Pasta Godfather Italy is the largest pasta producer, consumer and exporter with over 3 million tonnes output and occupying 25% share in the global market. Its pasta products reach 160 countries. The per capita consumption in Italy stands at 26 Kg. According to latest market reports, Turkey is becoming more and more important globally for dry pasta production, but Italy is still the leading country both for machineries and technology and the superior quality of its final pasta

products. But as to fresh pasta, even if Italians are still the masters, in future Turkey may represent a strategic area for business development for Asian markets. Both countries are keen to capture Asian markets by their pasta products and machinery. At the IDMA pasta conference, Giacomo Deon, the Italian President of Confartigianato Imprese Alimentazione, spoke about the advantages of the investments in Asia. “The fresh pasta sector is a lively market in Italy with approximately 4,500 small businesses that work for the industry, ensuring the most varied and inventive productions, and account for 5% of the companies working in the Italian food production sector,” said Deon. Deon added that in order to be successful, it is essential to deeply know the local

region where the business is based and perfectly know the flavours and taste of potential buyers. Turkey: Emerging Player Although Italy remains the most famous as pasta/pasta technology and machinery making country, Turkey is too aggressively exploring vast international markets to supply its pasta products and machinery. Currently it is 5th largest pasta producer in the world. Its gathering mass was felt at an exclusive conference on pasta held on the sidelines of IDMA 2013 in Istanbul. In Turkey, the average annual pasta consumption per capita is over 6.6 Kg. It was just 1.2 Kg in 1962. It is likely to reach 8 to 10 Kg in a few years. The average growth rate in pasta consumption is 3.5%. For internal markets, the share of dried pasta is 83% while share of fresh pasta is 12%. The total pasta

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production in Turkey was 1 million tonnes in 2012. It was done by 21 pasta producers with an overall capacity of 2 million tonnes. Out of produced pasta, 509 thousand tonnes were exported. Talking about the phenomenal growth in pasta consumption, Mehmet Karakus, the Member of Pasta Industrialists Association of Turkey, said, “We believe that the new generation’s love for pasta is increasing not only

in Turkey, but in most of the countries. The realization of pasta as a healthy diet is also a reason behind this positive growth”. Combining pasta with Turkish flavours is a gamechanger, he added. At the conference “Recent Development in the World Pasta Market”, Murat Bozkurt, the President of Pasta Industrialists Association of Turkey (Tmsd) drew the attention of the participants

AgriBusiness & Food Industry w July 2013

on the dry pasta market, the most popular sizes as well as consumption preferences. “The most important markets for us are Africa and Asia, especially Japan and China,” said Bozkurt. Bozkurt who is also the supply Chain Director for Barilla in Turkey, Middle East and Africa underlined that his country is forced to “import raw materials in order to improve pasta quality” despite being the

3rd biggest durum wheat producer. This news augurs well for India which produces great quantity of durum wheat, especially in states like M.P. Bozkurt added that EU is the largest market for export-oriented Turkey. But the processing industry is hindered by market prices and taxes. “This is the reason why the most important markets for us are Africa and Asia”. n

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IBEF Study 2013

Booming Indian food processing sector spiraling machinery demands

ccording to Indian Brand Equity Foundation - IBEF study on Food Processing March 2013, the market size of the Indian food processing industry is expected to be around $330 billion by 201415, according to a study by the Italian Trade Commission. This growth in the Indian food processing industry is spiralling the demand for more sophisticated machinery and equipment. From vegetable and fruits to meat and poultry sectors, processing machinery and equipment are needed in every phase involved in the processing of food from farm to fork, as the total domestic spending on food in India will be around $318 billion by 2020. The trend and growth of processing machinery and equipment industry will be influenced by the growth in the food processing industry and the recent trends show that this is going to be strong. Government of India expects investments of $21.9 billion by 2015 in food processing infrastructure. Categories The categories in which the equipment and machinery are more required may differ given the demand by the consumers of the processed food but certainly with the government becoming strict in recent times regarding health and hygiene practices, food processors are updating themselves with the latest in the market. The growth in the main sub-categories in the processing industry could be described under fruit

with the food processing retailing opportunities. Still a large number of specialised equipments are being imported. Here there is hardly any specialised manufacture unlike in Western countries, where they do a lot of research on each of the machinery and equipment.

and vegetable processing (20%), milk and dairy (15%), vegetable oil and oil seed processing, grains (wheat, rice, corn, lintels), meat and poultry (10%), alcoholic beverage, non-alcoholic beverages and ready-to-eat. And the industry is growing at an average of 16%, even passing 30% for fruit and juice segment. Driven by growth The demand is driven by the rapid economic growth this region attained in last one decade alone with countries like India having one of the highest numbers of young consumers liking the quick food. Also, the varieties now available with the companies experimenting by making the food a blend of international look and ethnic taste is helping them sail through. And with so much intense competition, pricing, capabilities, quality, flexibility, automation features, and after-sales service and support will decide the future of the players manufacturing food

processing machinery and equipment. Small, marginal players In India, however, the market of food processing industries lies with the small and marginal players. Experts say that 85% of the market share is with small players while 8-9% is with medium and only 5% is with big players. While the medium and big players mostly have imported critical component required by the processing industry, the small players due to their inability to pay huge bills prefer locally fabricated machines and equipment. Indian food processing industry is still in infancy. A lot of hard work is to be done. Nobody is denying the fact that there is a huge opportunity lying but a focussed approach is needed to tap it. According to market experts, the processing equipment manufacturing technology is not developed in India in accordance

Requirement possibilities And India is expected to witness growth in packaged food, aerated soft drink, packaged drinking water and alcoholic beverage. So there would be a lot of requirement of equipments and machinery, according to an expert. In FY2010, the total output of processed food and beverage was $93.1 billion while the sector growth was at 14% in FY12. Also the export figures were encouraging with an average growth of around 14% per annum (source: IBEF report 2013). India Foodex 2013 To showcase Indiaâ&#x20AC;&#x2122;s prowess in the food sector, and to open the sea of opportunities for overseas food technology manufacturers, Media Today Group is proud to announce the 5th India Foodex 2013, an International Exhibition on Food Products, Processing & Packaging Machinery and Allied Industries, scheduled to be held from 23 to 25 August, 2013, at Bangalore International Exhibition Centre (BIEC), Bangalore, India. The International mega food show of India is, this year too, going to witness huge global participation. n

AgriBusiness & Food Industry w July 2013

changing dynamics

Extruded Products like

pasta

offer attractive Investment Opportunity in Indian Food Market Vijay Sardana

onvenience, proper nutrition, saving of time and energy are the major drivers for the growth of food processing industry world over. Pasta and other extruded products are very much addressing these pressing needs of the modern society. In Indian society, pasta and extruded foods are well established since ages. Some of the prominent examples are sewain, bhujia and many regional extruded snack products that are very common in Indian kitchens. These products are served at all occasions. Extruded products Extruded products, like pasta or macaroni, are defined as the class of food prepared by drying formed units of dough made from semolina, durum flour, farina, flour, or any combination of those ingredients with water. Within this category, various optional ingredients may also be used within specified ranges, including egg white, frozen egg white or dried egg white alone or in

any combination; disodium phosphate; onions, celery, garlic or bay leaf, alone or in any combination; salt; gum gluten; and concentrated glycerylmonostearate. Specific dimensions are given for the shapes named macaroni, spaghetti and vermicelli. Convenience and versatility make extruded products attractive Extruded products like Pasta are generally a simple dish, but come in large varieties because it is a versatile food item. Some pasta dishes are served as a first course because the portion sizes are small and simple. The servings are usually accompanied by a side dish which can be vegetarian

or non-vegetarian. Pasta is also prepared in light lunches, such as salads or large portion sizes for dinner. It can be prepared by hand or food processor and served hot or cold. These products can be served with sauce or curries as well. Pasta sauces vary in taste, color and texture. This adds to palatability of the extruded products. Time to upgrade the presentation of traditional extruded products Taste, recipes and packaging play very important role in the marketing of convenience products. Indian extruded product industry can learn a lot from global pasta industry.

Indian Extruded Food Industry must adopt the next technologies to improve the product quality and packaging formats. In modern retail environment, presentation of product and range of products is very essential to get due attention of consumers

AgriBusiness & Food Industry w July 2013

The new technologies, new packaging formats and new shapes can add to the reach of Indian extruded products. Globally, these extruded products are made of many ingredients and in many shapes. These can be classified into following categories to attract the customers as per their nutrition needs while offering convenience: Enriched products â&#x20AC;&#x201C; largely the same as pasta products except that each such food must contain vitamins and minerals with specified limits. Additional optional ingredients that may be added include defatted wheat germ, dried yeast, partly defatted wheat germ, or enriched flour. Enriched products with fortified proteinâ&#x20AC;&#x201C;similar to enriched products with the addition of other ingredients to meet specific protein requirements. Edible protein sources that may be used include food grade flours or protein meals from non-wheat cereals or oilseeds. Milk based products â&#x20AC;&#x201C; the same as products except that milk or a specified milk product is used as the sole

changing dynamics

moistening ingredient in preparing the dough. Other than milk, allowed milk products include concentrated milk, evaporated milk, dried milk, and a mixture of butter with skim, concentrated skim, evaporated skim, or nonfat dry milk, in any combination, with the limitation on the amount of milk solids relative to amount of milk fat. Nonfat milk products – the same as products except that nonfat dry milk or concentrated skim milk is used in preparing the dough. The finished extruded product must contain between 12 and 25 percent milk solidsnot-fat. Carrageenan or carrageenan salts may be added in specified amounts. The use of egg whites, disodium phosphate and gum gluten optionally allowed for macaroni products is not

permitted for this category. Enriched nonfat milk products – similar to nonfat milk products with added requirements that products in this category contain vitamin and minerals all within specified ranges. Vegetable products – begin as extruded products except that tomato (of any red variety), artichoke, beet, carrot, parsley or spinach is added in a quantity such that the solids of the added component are at least 3 percent by weight of the finished macaroni product. The vegetable additions may be in the form of fresh, canned, dried or a puree or paste. Enriched vegetable macaroni products – the same as vegetable products with the added requirement for nutrient content specified for enriched products. Whole wheat extruded

products – similar to products except that only whole wheat flour or whole wheat durum flour, or both, may be used as the wheat ingredient. Wheat and soy products – begin as products with the addition of at least 12.5 percent of soy flour as a fraction of the total soy and wheat flour used. Other Extruded products – are the class of food that is prepared by drying units of dough made from semolina, durum flour, farina, flour, alone or in any combination with liquid eggs, frozen eggs, dried eggs, egg yolks, frozen yolks, dried yolks, alone or in any combination, with or without water. Optional ingredients that may be added in allowed amounts are onions, celery, garlic, and bay leaf; salt; gum gluten; and concentrated

glycerylmonostearate. The way forward Indian Extruded Food Industry must adopt the next technologies to improve the product quality and packaging formats. In modern retail environment, presentation of product and range of products is very essential to get due attention of consumers. Pasta, Macaroni, Noodles, Sewien, Bhujia, etc. – all will continue to evolve and wide range of varieties will continue to attract the consumers of modern age because of its convenience and nutrition value. If you are planning to invest in food industry, think about this sector. For any help in this regard, you can contact the publisher or author. n

AgriBusiness & Food Industry w July 2013

food preservation

Theory and Principle of Refrigeration Cycle Suresh Bhise and Amarjeet Kaur

efrigeration is the science of producing and maintaining temperatures below that of the surrounding atmosphere. It means the removal of the heat from a substance to be cooled. Major uses 1) The largest application of refrigeration, which is the process of cooling, is for air conditioning. 2) Refrigeration embraces industrial refrigeration, including the processing and preservation of food particularly in dairy and meat processing industry. 3) Removing heat from substances in chemical, petroleum and

petrochemical plants. 4) Numerous special applications such as those in the manufacturing and construction industries. 5) Air conditioning of medium-sized and large buildings. Principle of refrigeration Principle of refrigeration works on reverse of second law of thermodynamics. The second law of thermodynamics states that heat flows only in the direction of decreasing temperature. A refrigeration system may be considered as a pump that conveys heat from a region of low temperature to another region that is at a high

temperature. Maintaining a high and a low temperature in a refrigeration system is made possible by the use of a refrigerant fluid which is continuously recirculated through the system. A liquid’s boiling or condensation temperature is a function of the absolute pressure. By reducing the pressure, a low boiling temperature is made possible, allowing for absorption of heat in the form of the heat of the refrigerant’s vaporization as it is vaporized at the low pressure and temperature. The Refrigeration Cycle: Parts of refrigeration 1) Compressor 2) Condenser 3) Evaporator 4) Expansion valve l Compressor - A machine used for increasing the pressure of a gas or vapor. The compressor does work on the system increasing the pressure from the existing evaporator and to that existing in the condenser (Fig. 1). l Condenser - A heat transfer device that reduces a thermodynamic fluid from its vapor phase to its liquid phases. The high pressure, high temperature vapor that enters the condenser has heat removed from it and as a result it is condensed back in a liquid phase. It is where the refrigerant is liquefied

AgriBusiness & Food Industry w July 2013

and discharges its heat to the environment. l Evaporator – Any devices in which liquid is changed to the vapor state by the addition of heat, for example, distiller, still, dryer, water purifier, or refrigeration system element where evaporation proceeds at low pressure and consequent low temperature. Heat is absorbed to boil the liquid at a low temperature; therefore a low pressure must be maintained in this section. l Throttle valve – A choking device to regulate flow of a liquid, for example, in a pipeline, to an engine or turbine, from a pump or compressor. The high pressure liquid from the condenser is expanded through this valve, allowing its pressure to drop to that existing in the evaporator. Schematic of the cycle Refrigerants It is the substance used for heat transfer in a refrigerating system. It sucks up heat by evaporating at a low temperature and pressure and gives up this heat by condensing at a higher temperature and pressure. What is Freon? 1) It is a group of organic compounds used as refrigerants. Freon is DuPont’s trade name for its chlorofluorocarbon and hydro chlorofluorocarbon refrigerants, used in air conditioning and

food preservation

(32 째F) in one day.

Fig. 1: Typical single stage vapour compression refrigeration

refrigeration systems. Freons are colorless, odorless, nonflammable, noncorrosive gases or liquids. 2) Freons are colorless, odorless, nonflammable, noncorrosive gases or liquids. Unit of refrigeration The units of refrigeration

are always a unit of power. Domestic and commercial refrigerators may be rated in kJ/s, or Btu/h of cooling. Typically, commercial and industrial refrigeration systems are rated in tons of refrigeration (TR). Historically, one TR was defined as the energy removal rate that will freeze one short ton of water at 0 째C

One ton of refrigeration The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE): is the transfer of 200 Btu/min, or 12,000 Btu/hr. It is the basis of all refrigeration calculations, whether for cold storage, air conditioning, ice making, or ice-cream manufacture. The latent heat of ice is 334.9 kJ/Kg and one hour tons equals to 907.18 kg therefore 1 ton of refrigeration equals to 1 TR = (334.9 x 907.18) / (24 x 3600) = 3.516 kW . Or Is the equivalent to the amount of heat it takes to melt one ton of ice in 24 hrs. Thus, the latent heat of ice equal to 144 Btu/lb, this requires 288,000 Btu in 24 hr or 12,000 Btu/hr or 200 Btu/ min.

Refrigerant: The working substance used in refrigeration equipment is known as refrigerant. Some desirable properties of refrigerants are listed below: 1) High latent heat of evaporation and low specific volume. 2) Good thermal conductivity for rapid heat transfer. 3) Non-toxic, non-flammable and non-corrosive. 4) Low saturation pressure. 5) Reasonable cost and should be available easily. 6) Stable and should decompose under any condition. 7) Commonly used refrigerants are NH3, CO2, water and air. (Authors are from the Department of Food Science and Technology, Punjab Agricultural University, Ludhiana)

AgriBusiness & Food Industry w July 2013

event report

CII & NAFTC Seminar

Doubling Food Production in 5 Years An Indo-Dutch Approach

Anwar Huda

Institutes, farmers, agri-business industry representatives, academia and embassy officials. Pawanexh Kohli, Chief Advisor to NCCD, and Dr. L. S. Brar, Director, Horticulture, and Mission Director, NHM, Punjab, were also present. A visitor called the seminar ‘the need of the time and futuristic’.

“

This seminar is actually more about how to double farmers’ income which is necessary to double food production in the country. So, it is imperative that any initiative taken in farm sector must help our farmers first,” said Sanjeev Chopra, Joint Secretary & Mission Director, National Horticulture Mission (NHM) & National Mission on Micro Irrigation, Ministry of Agriculture, Government of India while delivering ‘special address’ to a seminar on “How to Double Food Production in Five Years--An Indo-Dutch Approach”, held recently in New Delhi. He appreciated the setting of Centres of Excellence (COEs)—(see box)---in several states of India under the IndoDutch collaboration, and said, “Such COEs are a welcome step and it compels us to think big and scale up certain milestones”.

Celebrated Speakers The seminar, jointly organized by the Confederation of Indian Industry (CII) and the Netherlands Agro, Food & Technology Centre (NAFTC), also saw the presence of a plethora of guest speakers from India and Holland, who along with all the visitors braved the iconic boiling May-sun of Delhi to reach the chilled venue on time. The list included HE Alphonsus Stoelinga, the Netherlands Ambassador, Anuradha Prasad, Joint Secretary, Ministry of Food Processing Industries (MoFPI), Rajni Sekri Sibal, Joint Secretary, Animal Husbandry, Ministry of Agriculture, Sara Knijff, Deputy Director, Ministry of economic Affairs, the Netherlands, Salil Singhal, Chairman, CII National Council of Agriculture & Chairman, PI Industries,

AgriBusiness & Food Industry w July 2013

Jan Hak, Chairman, the Netherlands Agro Food & Technology Center (NAFTC), Arie Veldhuizen, Counselor for Agriculture, Nature & Food Quality, and Embassy of the Netherlands. Later in the post-inaugural session, experts from Indian and Holland agriculture and food industry also addressed the audience. The Seminar marked the presence of eminent speakers from ICAR, National Horticulture Mission and Dutch institutes and companies. Mission-bound audience The seminar was attended by over 150 delegates from all over India, which included government officials from states like Maharashtra, Karnataka, Gujarat, Punjab, West Bengal and Kerala, representatives from Indian and Dutch agriculture

Welcome Address In his welcome address, Salil Singhal, who moderated the inaugural session, said that CII has always wholeheartedly supported the initiatives towards the development of sectors that are crucial to the growth of the country, and is also supporting this initiative of the Embassy of the Netherlands where they are setting up Centers of excellence (COEs) in various states of India, with an aim of doubling the food production in the country in next five years. He said that around 58% people in the country are engaged in farming activities, contributing around 14% to India’s GDP. He added majority of population is away from farming and does not take interest in it. Talking about the projected 4% agriculture growth, he said, “We should

event report

have achieved 4% growth, but we did not. But I see a lot of optimism and whatever India has achieved in agriculture in the last few decades is tremendous, as the country is now a major exporter of cereals, especially rice.” Rejuvenating agriculture Singhal also highlighted that the CII National Council on Agriculture has taken up ‘Rejuvenating Indian Agriculture’ as its key priority agenda, and with this objective the Council has actively engaged with the government, both at the central and state levels. Issues Talking about problems in the farming sector, Singhal said, “We want quantum Jump. We need to increase the pace of food processing, and create right value within value chain. But there are issues that we need to address first. Depletion of ground water resources, climate change, low crop diversification and post-harvest losses are major areas of worry. Fragmented landholdings are another issue that is not conducive to private sector investment.” Praising COE initiative Praising Dutch initiative for setting up COEs in various states, CII National Council of Agriculture Chairman said that these centres will impart necessary training among farmers and those who are involved in agri-business so that they may enhance productivity that is the need of the time. “Great indo-Dutch cooperation in the shape of CEOs is happening in states like Punjab, Kerala, Gujarat and Maharashtra. And we support it whole-heartedly”. Appreciating Dutch agri-expertise, he said that it is baffling to know that Holland, despite its tiny size, is the second largest exporter of agri-products including

flowers. “So if they can do it, why can’t we?” He also appreciated Dutch government for its tremendous support, and said that farmers’ concerns will be taken up on priority basis, as they are the main drivers of agriculture. He ended his speech on these promising, motivating words--“Let’s make India the Food Basket of the World”. Theme Address Presenting the Theme Address, the Netherlands Ambassador Alphonsus Stoelinga, said, “Dutch have always felt at home in India, and Indians too feel at home in Holland”. The same thing he said in Hindi at the end of his speech. Phases of Indo-Dutch relationship Going back to history, Stoelinga said Dutch traders came to India four hundred years ago to do business with the country. “This was the first phase of Indo-Dutch relationship. Second phase started post1947, and the third phase was born sometime in 2002 when huge Indian investment happened in Holland. And I think, today is the day of beginning of the fourth phase of this historic relationship.” He added that the Netherlands is the fifth biggest investor here. And it is also the largest recipient of Indian exports. Usefulness of COEs Talking about Dutch FDI in India, the Netherlands Ambassador to India, Nepal & Bhutan said, “Currently, we are focusing ten sectors in India, and 2 of them belong to agriculture. The purpose of the seminar is to create the new phase of mutually beneficial relationship in the agriculture sector by collaborating with India on the COEs that are big set-up in various Indian states, and are being purposefully built to boost productivity in

Zoom In “COE is a process, a process of learning and understanding. These COEs should become vibrant centres of activity. We need to have COEs in states where local governments are helpful. We need Dutch collaboration, expertise as they are world-leader, and we can leverage their technologies and processes to double up our food production and farmers’ income. Our private sector too can benefit from this collaboration. Private sector must take lead, because as soon as they put money, it becomes a big commitment. The Indo-Dutch collaboration compels us to think big, because if it can be done in Holland, it can also be done in India. We also need to understand the role played by cooperatives in Holland and why they have been so successful”

Sanjeev Chopra

JS & Mission Director, NHM “Holland is India’s gateway to Europe. But it is not that you are exporting to us, or we are exporting to you. It is about feeding the ever-increasing population that demands right use of research and development, highest kind of technology and application of know-how. And I think the Dutch has all this which must be offered to India to increase its food production and farmers’ income. We need to focus on energy, water management, cold chain development, meat processing, and capacity building. We need to shift from talking and paper phase to action and field phase. So let’s start a new phase today”

Alphonsus Stoelinga

The Netherlands Ambassador to India “We are proud of what we have achieved in milk segment, yet we cannot sit on it. There are a lot of things to be done to meet the everincreasing demands. Productivity is a matter of concern in all sectors of agriculture. But I must add that we do not have genetic problems as we have different breeds of cows and buffaloes like ‘Murrah’ and ‘Sindhi’. The problem is that feeding is not good. We are not breeding, feeding, heeding properly”

Rajni Sekhri Sibal

JS, Animal Husbandry, Ministry of Agriculture

AgriBusiness & Food Industry w July 2013

event report

agriculture and allied sectors”.

“How could we make quick results, and not only double up but treble up farmers’ income and food production? That is the question. The answer we have found—COEs. These centres of excellence can help us to achieve this goal”

Arie Veldhuizen

Counselor for Agriculture, Nature & Food Quality, the Embassy of the Netherlands in India

“Modernization of abattoirs (Opening hi-tech new ones and modernizing existing ones) is on full swing with the help of Dutch technology. We have created 4 institutes for skill-development in food processing, and signed 3 MoU with Dutch government in the field of poultry processing and meat. We held joint seminars with the Dutch to spread awareness and popularize food processing. Dutch experts are training our veterinary teachers. We have also received proposal to set up COE for meat in UP, and we are waiting the response of the state government. As UP is the biggest state in terms of bovine population, such Centre of excellence will make a lot of difference”

Anuradha Prasad

Joint Secretary, MoFPI

“These centres (COEs) will impart necessary training among farmers and those who are involved in agri-business so that they may enhance productivity that is the need of the time. Great indo-Dutch cooperation in the shape of CEOs is happening in states like Punjab, Kerala, Gujarat and Maharashtra. And we support it whole-heartedly”

Salil Singhal

Chairman, CII National Council of Agriculture & Chairman, PI Industries

AgriBusiness & Food Industry w July 2013

Focus areas Stoelinga appeared very serious about increasing food production and bettering the lot of Indian farmers. He said, “Holland is India’s gateway to Europe. But it is not that you are exporting to us, or we are exporting to you. It is about feeding the ever-increasing population that demands right use of research and development, highest kind of technology and application of know-how. And I think the Dutch has all this which must be offered to India to increase its food production and farmers’ income. We need to focus on energy, water management, cold chain development, meat processing, and capacity building. We need to shift from talking and paper phase to action and field phase. So let’s start the fourth phase today”. The Ambassador ended his speech after suddenly surprising the visitors by speaking in chaste Hindi, “Netherlands ke log Bharat mein ghar jaisa mahsus karte hain. Aur Bharat ke log Netherlands me ghar jaisa mahsus karte hain. Hum ye aasha karte hain ki Dutch sahyog se kamyabi milegi!!!” Address by Anuradha Prasad Anuradha Prasad, Joint Secretary, Ministry of Food Processing Industries (MoFPI), focused on massive opportunities in Indian food processing sector that can help India to double up its food production and minimize its food losses. She said that India needs to focus on entire value chain from farm to retail to consumers. Fill the gaps Lamenting the huge loss of foodgrain, Prasad said that though India is the largest producer of fruits and vegetables, the losses (4-8%) are hampering the growth.

“Food processing plays key role contributing 9% to agricultural GDP, and 10% to manufacturing GDP. Value addition is the need of the time. We have to create cold storages, fill the gaps, build capacity, use latest technology, and focus on food safety,” she said and added that food processing is fast gaining ground in the country. Pro-active role of MoFPI Elaborating the proactive role of her ministry, Prasad said, “The ministry is rationalizing taxes and duties, and is offering various incentives, subsidies, and schemes to increase food processing. FDI is also encouraging food processing. Apart from this, we are also supporting Mega Food Parks (MFPs), cold storages from farm to retail, and are building ‘Collection Counters’ at farm gates”. Modernization of abattoirs with Dutch Tech Anuradha added, “Modernization of abattoirs (Opening hi-tech new ones and modernizing existing ones) is on full swing with the help of Dutch technology. We have created 4 institutes for skill-development in food processing, and signed 3 MoU with Dutch government in the field of poultry processing and meat. We held joint seminars with the Dutch to spread awareness and popularize food processing. Dutch experts are training our veterinary teachers. We have also received proposal to set up COE for meat in UP, and we are waiting the response of the state government. As UP is the biggest state in terms of bovine population, such centre of excellence can bring a lot of difference”. Motivating private players Hoping the involvement of private players, Prasad said that Dutch companies could look at possible JVs

event report

with Indian companies in food processing sector, as there is a need of large-scale techtransfer. “Opportunities are numerous”. “We have the production, population, markets, and Dutch have the technology and expertise. So let’s collaborate!” Address by Rajni Sekhri Sibal Rajni Sekhri Sibal, Joint Secretary, Animal Husbandry, Ministry of Agriculture, started with a complaining tone about the general national neglect for livestock, dairy and fisheries segments despite high level of contribution to agricultural GDP (Rs. 3,05,484 crore), which is around 37%. Rising milk demand “Our expected milk production target is 133.79 million tonnes. Despite being the world’s biggest milk producer, the gap between demand and supply is still 1.4%. The massive demand for milk is being caused by increased purchasing power, health consciousness, and

lifestyle changes. In near future, we will need 180 million tonnes milk,” Rajni said. Use Dutch tech Talking about lack of technology in India, Rajni said Dutch technology is far superior, and as India lags behind in technical expertise, it must use Dutch know-how and its latest technologies to enhance productivity in poultry, fisheries, milk and livestock sectors.

feeding is not good. We are not breeding, feeding, heeding properly.”

Low productivity & poor feeding Talking about poor animal productivity, Sibal said, “We are proud of what we have achieved in milk segment, yet we cannot sit on it. There are a lot of things to be done to meet the ever-increasing demands. Productivity is a matter of concern in all segments of agriculture. But I must add that we do not have genetic problems as we have different breeds of cows and buffaloes like ‘Murrah’ and ‘Sindhi’. The problem is that

National Project on feeding Sibal emphasized on the holistic approach and collaborative spirit and said that inputs are important. She also briefed the gathering about special umbrella organization--National Project on Bovine Feeding & Dairying--that will address the issues like poor feeding and low productivity in animals. Other problems Cold chain is another key area of concern that the government is addressing

Indo-Dutch joint agri-initiative to set up 10 Centres of Excellence

he Indo-Dutch joint initiative in agriculture envisages setting up about 10 centres of excellence (CoEs) in Punjab, Gujarat, Kerala, Maharashtra and Karnataka in the next few years, a move that could help raise output and yields. DAIRY, BANANA Of this, three CoEs are to come up in the dairy sector in Kerala, Punjab and Gujarat, showcasing the latest processing technologies. Four CoEs are to be set up in horticulture in Maharashtra, Karnataka,

Gujarat and Punjab. “One centre each for piggery and banana ripening will be set up in Kerala,” said Arie Veldhuizen, Counsellor for Agriculture, Embassy of the Netherlands, in New Delhi. Speaking to reporters on the sidelines of a seminar on ‘How to double food production in five years,’ organised by Confederation of Indian Industry and the Netherlands Embassy, Veldhuizen said the State governments had shown keen interest in setting up these centres. IMPROVING YIELD “We will showcase our

technology in these centres and see how we can help the Indian farmers in improving the yield,” he added. Alphonsus Stoelinga, Ambassador of the Netherlands, said India had to intensify its agriculture to enhance output and at the same time prevent losses in the food supply chain. The joint initiative is all about the Indian and Dutch authorities and the private sector sharing technology know-how and developing skills to double food output here, he added.

with intense focus as a lot depends on the cold chain for the preservation of food items. Nutrition and traceability are other issues, Rajni added. Huge unorganized sector Talking about huge unorganized milk sector, Sibal said that only 16% is organized and the rest is open to various ills like adulteration. “But despite all such issues, we had, for the first time, excess milk in 201213, and that makes us proud.” Private-to-private collaboration Explaining the value of Indo-Dutch cooperation, Sibal said, “So far 2-3 COEs have been set up in dairying sector. These centres of excellence are governmentto-government cooperation for technology transfer. But private-to-private exchanges should also be promoted to bring revolutionary changes. All should be united— governments, private sector, farmers, suppliers, experts, etc.” Exports opportunities Commenting aptly, humourously on Sibal’s enlightening speech, moderator Salil Singhal said that we need to feed animals better to achieve excess milk as there is a golden chance of feeding Chinese with Indian milk! Sara Knijff’s speech “This is my first visit to India, and next time I may too learn some Hindi just like

AgriBusiness & Food Industry w July 2013

event report

Indian farmers & Dutch farmers Comparing Dutch farmers with Indian farmers, Hak said, “Dutch farmers lead decent life and can afford necessary tools for their farmlands and have cars. So we expect Indian farmers to have the same. Now India is a rich country, so it can pay for the technology, COEs.”

Indo-Dutch officials signing “Indo-Dutch Joint Agricultural Work Plan” in the presence of Agriculture & Foreign Trade Minister of Holland Dr. Henk Bleker & Agriculture Minister of India Sharad Pawar, in Hague (May, 2012)

our ambassador,” Sara Knijff, Deputy Director, Ministry of economic Affairs, the Netherlands, said with a pinch of humour. And she is right as while doing business in a foreign country one needs to know many local things including culture, festivals, languages, and behaviours. Ambassador Stoelinga knows it as it should be known. Sara herself said, “We need to be local to integrate well”. India: a priority country Talking about strong commercial bond between India and her country, Knijff said, “We have over 100 Indian companies doing business in Holland, and you have over 100 Dutch companies doing business in India. India is a priority country for the Dutch Economic Ministry, and in these turbulent economic times, we need solid relationship with India. Agriculture is the main pillar of this relationship. But trade is still modest between two countries which needs to be enhanced, as there is a lot of scope.” She added that many cooperation projects have been identified and India can use Dutch technology to

enhance its productivity and bring good changes in all agri-sectors. “And I am sure these centres of excellence (COEs) can change the current scenario”. Opportunities for Dutch companies Happy over the FDI, Sara said that there are massive opportunities for Dutch food processors and food exporters as FDI is a win-win game. Giving due importance to farmers, she said that farmers are key to feed 9 billion people on earth. They are key to environmental care, and we need to address their issues, and enhance their income. Jan Hak’s Address “We have lot to serve, lot to gain,” said Jan Hak, Chairman, Netherlands Agro Food & Technology Center (NAFTC). “We have more people and less land. People are coming and land is shrinking. We are in the midst of terrible problems like climate change, water scarcity, shrinkages of arable land due to fast urbanization. And according to a study, 5 Indian states are on the verge of achieving 50% urbanization. So, what is the solution? How are we going to feed billions of people? Think.”

AgriBusiness & Food Industry w July 2013

Golden Triangle formula Talking about NAFTC and its valuable work in several countries, Hak said that NAFTC is present in countries like Brazil, India, Russia and China. It is following the wellestablished Dutch formula of success—Golden Triangle, or the coming together of government, private sector and research institutes (R&D). “Innovation and performance fall in this ambit”. Massive Dutch-tech exports Being proud of the massive tech-exports, Hak said, “Holland earned 13 billion Euros by exporting hi-tech systems in 2012, out of which 42% came from outside EU. Most of it came from sectors like poultry, cheese and potato”. Solutions for tomorrow Hak was in his best element when he said, “Make solutions for tomorrow. Go from basics to sophisticated, and understand the markets and eaters. And print food if possible!” How to increase production constantly is the biggest challenge today, added Hak. “As private sector is more flexible, more innovative, it can bring great changes in agriculture sector. As a Dutch, I am greatly in favour of transferring knowledge to India to help it double up its food production”. Thus spoke Sanjeev Chopra Reminding the audience and delegates about the Indo-

Dutch Joint Agricultural Work Plan, Sanjeev Chopra, Joint Secretary & Mission Director, National Horticulture Mission (NHM) & National Mission on Micro Irrigation, Ministry of Agriculture, Government of India, said that this is the 1st anniversary of the Action Plan of Indo-Dutch Joint Agricultural Work Plan. These centres of excellence (COEs) are the result of that endeavour and collaboration. Leveraging Dutch Tech Talking about procedures, the man who once worked for The Times of India and Economic Times said that procedures are as important as performance. But he also cautioned, “All processes cannot necessarily translate into successes. COE is also a process, a process of learning and understanding. These COEs should become vibrant centres of activity. We need to have COEs in states where local governments are helpful. We need Dutch collaboration, expertise as they are worldleader, and we can leverage their technologies and processes to double up food production and farmers’ income. Our private sector too can benefit from this collaboration. Private sector must take lead, because as soon as they put money, it becomes a big commitment”. He further praised IndoDutch collaboration and said, “The collaboration compels us to think big, because if it can be done in Holland, it can also be done in India. We need to understand the role played by cooperatives in Holland and why they have been so successful”. Chopra also praised CII for playing a stellar role in cold chain development. Farmer: key to our happiness Lauding India’s Green Revolution, the former DM of Murshidabad and CEO of Himul said the real success story is about India becoming

event report

the ‘food basket’ of the world. “But this success story’s key is always farmers. And therefore, we must ensure that they get the best. But today, what we see is the entire environment is not conducive to our farmers.” Follow Amul model Inspired by Amul success story, the 1985-batch and West Bengal cadre IAS officer said, “Amul offers a great model of success where farmers get the best for their produce (milk). I think we need to focus on entire value chain and agrologistics if we need Amul story in every agri-sector. We can bring changes in neglected sectors as what my colleague Rajni Sekhri Sibal said ‘sectors like fisheries’. At the end of his speech, he said, “Indo-Dutch agreement is the best way forward to make India a better place in the world”. Arie’s concluding remarks Arie Veldhuizen, Counselor for Agriculture, Nature & Food Quality, the Embassy of the Netherlands in India, presented the vote of thanks and bouquets to the speakers, and praised them for coming together at an important platform to spread awareness about Indo-Dutch Agricultural Work Plan and COEs. He called for solid process and concrete results. “How could we make quick results, and not only double up but treble up farmers’ income and food production? That is the question. The answer we have found—COEs. These centres of excellence can help us to achieve this goal”. Technical Session The event also had one technical session that saw the presence of guest speakers: Marijn Leijten, Director, NAFTC-India, Dr. R.P. Dua, Assistant Director General (Food & Fodder crops), Indian Council for Agricultural

Research (ICAR), Professor Anton Haverkort, crop Ecologist & Plant Research, Wageningen UR, and Dr. Bernard De Geus, Director, top Technology Institute Green Genetics-TTIGG. The session was chaired by Akshay Bector, Managing Director, Cremica Foods. COE: child of NAFTC Marijn spoke on the implementation aspect of NAFTC. He said, “NAFTC is the main implementing body of COEs which is an integrated chain approach to enhance productivity through knowledge-sharing. Through these centres, you can also reduce post-harvest losses and thus minimize inflation. We have come here to Indianize our experience”. Farmers should make money Marijn added that in dairy, these COEs will teach Indian farmers about scientific animal management, genetics, dairy farm management and fodder management. “Farmers should make money so that they may re-invest in farming and related activities. To achieve this objective, we need to follow chain approach.” Go hybrid Dr. R.P. Dua spoke on hybrid seed varieties and genetics and their use to enhance productivity and minimize crops’ dependence on water and vagaries of climate. He detailed various innovative activities of ICAR to promote farming and help farmers to achieve high productivity. Integrated approach Dua said, “Production of foodgrain has increased five times since 1960s. Rice is doing very well bringing a lot of dollars each year. Now, we need integrated approach to double up production. We have to fill the gaps with technology, Dutch expertise,

and by involving private sector. We need to give the best inputs to farmers on time. ICAR has good system and connectivity, and that helps us in spreading awareness. PPP model is the need of the day. This model can develop good seed varieties as there is always scope to enhance productivity. Hybrid seeds are giving good results in maize and it can increase productivity in all agri-sectors. We also need to enhance our breeding activity, and use intelligent technologies like drip irrigation. ICAR is also developing smaller machinery that is cheaper and suit small farmers. We can have IndoDutch collaboration in cropdiversification which is the need of the hour.” Too little food, too many mouths Anton Haverkort spoke on grain production in scientific way. He said the world population is increasing rapidly and we need to be on our toes to feed billions of new mouths that appear each year. “We are producing too little and we have too many to feed. We should produce two-times more food. We need to produce more per hectare, per animal. So, small or big farmers, organic or traditional—all have to move in that direction. We need intensification—less soil and water, but more production.” Greenhouse for productivity Praising Holland for achieving high productivity, Haverkort said, “Holland achieved a mind-blowing 300% increase in the production of tomatoes. With the help of greenhouse, artificial lights, glass greenhouses heated with CO2 and the use of more such technologies, you too can

achieve high production”. Speed up processing Haverkort added that genetics is going to be a key driver of enhancing productivity. Processing should also increase in India as Holland processes 80% of its potatoes while India does only 1%. “So there is a massive scope”. Govt has a responsibility Seeking more pro-active role from the government, Dr Bernard De Geus said, “The government (central as well state) has a responsibility to create a level-field to remove problems, so that farmers could work with free mind in their farmland”. Talking about other necessary actions, he said, “We need to develop such seed varieties that can withstand intense heat and consume less water. We also need to develop vast amount of knowledge in the field of genetics. To double up food production in five years, we also must have PPP model” Value addition Session chairman Akshay Bector emphasized on value addition and said, “Value addition has a lot of scope in the country, and it has power to change the economic landscape of Indian agriculture”. Networking Dinner Later in the evening a networking dinner was hosted by The Netherlands Ambassador at his residence which was attended by more than 200 guests, most of them who attended the seminar. n

AgriBusiness & Food Industry w July 2013

one-on-one

The issue is not Price but

Service & Support

â&#x20AC;&#x201D; Neelkant Bakshi, MD, Packolabel Systems Pvt. Ltd.

Packolabel Systems Pvt. Ltd. is primarily engaged into providing complete solutions for warehousing storage, print finishing, packaging systems, post-harvest equipment for fruits and vegetables sorting, grading, washing, drying, and net, poly punnet, carton, crate packing systems for industry packaging needs. Naveen Grover, Correspondent, AgriBusiness & Food Industry, met its Managing Director Mr. Neelkant Bakshi to know more about his company, its activities, future plans, industry scenario, among other things. Excerpts:

India has become a leading importer of fruits, as demands of quality fruits and foods are growing with the growth in education, purchasing power and more emphasis on health. Being the Director of a leading company, please share your thoughts on this scenario? Definitely, India has become a major importer of fruits, as good-quality fruits, except grapes and mango, are not available here. Awareness is the main reason behind this spurt in growth as people know in details the value of quality, the vitamins and nutrientsâ&#x20AC;&#x2122; content in it, its anti-cancer properties, among other good things. Which types of machinery do you

import, and which countries and brands? We have partnership with leading manufacturers of the world like UNITEC of Italy, a leading manufacturer of equipment for electronic sorting and grading of fruits and vegetables. We also sell special doors of Foris Index for controlled atmosphere (CA). We are its exclusive dealer for India. We also offer laboratories for fruits and vegetables, manufactured by TR Torni. We are also selling packaging and post-harvesting equipment imported from leading foreign firms.

and schemes to boost production in horticulture sector in the country. What has been its effect on the industry? Agriculture Ministryâ&#x20AC;&#x2122;s various initiatives are good for the growth in horticulture sector. NHM is providing subsidy for setting up cold storages (CS), but I am surprised to see CA (controlled Atmosphere) cold stores for apples coming up in Gujarat and other southern states. These storages should be close to orchards in the northern India, as it will help growers to save cost as well as consumers getting benefits like good quality apples at reasonable rates.

National Horticulture Mission (NHM) has come up with a lot of subsidies

Many food products manufacturers, traders and entrepreneurs are

AgriBusiness & Food Industry w July 2013

one-on-one

diversifying into horticulture sector like setting up cold storages. But these cold storages are used to keep imported fruits, which does not justify the objective of subsidy. What are your views? Thatâ&#x20AC;&#x2122;s what I am saying. If anyone is setting up a CA (Controlled Atmosphere) cold store for apples in Mumbai or any place other than close to orchards, his main intension is to keep imported apples, and not local ones. So, the outcome defeats the whole purpose of subsidy. Preservation of domestic fruits is only possible if these CA cold stores are set up in apple producing states like Himachal Pradesh, J&K, and Uttarakhand. Setting up CA cold stores in Delhi can be allowed but beyond this into southward has no meaning, no sense. In the recent past, the Netherlands and Israel have started setting up Centres of Excellence (COE) for fruits in major Indian states to train the trainers and share know-how. In your view, what could be the long-term gain of this initiative? This is good initiative between two governments, but in my view, instead of setting up only COE, which are just quality centres, they should set up complete pack houses, so that Indian people could know the difference between an Indian pack house and a world-class pack house. It should be equipped with all facilities like control room. Farmers could bring up their produce and take it back after due processing. Many foreign companies are opening up manufacturing plants in India to save labour cost, and then exporting the manufactured machinery to other countries. Is this due to labour cost only

If anyone is setting up a CA (Controlled Atmosphere) cold store for apples in Mumbai or any place other than close to orchards, his main intension is to keep imported apples, and not local ones. So, the outcome defeats the whole purpose of subsidy. Preservation of domestic fruits is only possible if these CA cold stores are set up in apple producing states like Himachal Pradesh, J&K, and Uttarakhand. Setting up CA cold stores in Delhi can be allowed but beyond this into southward has no meaning, no sense or some other reason? The major purpose is to feed our own huge market. Foreign companies also want to capture neighbouring markets like Bangladesh, Pakistan, Sri Lanka, Nepal and gulf nations, so it makes sense that 80% things are manufactured in India. Technological upgradation is crucial for any industry, but it is happening very slowly in almost all sectors in India including yours. Indian manufacturers are traditional in outlook and very price-conscious. They want cheaper technology. So how do you convince these types of buyers? We will give you a very good example of that. We worked with a private company Harshana to set up a pack-house in Kashmir in 2009, followed by two other pack houses in 2012 and 2013 for the same company. Actually, those who are working on governmentfunded projects or doing government projects are doing so only to show the infrastructure. No farmers, no mandi people are using those infrastructures.

So, what is the use of these set ups? The only solution is to use the latest worldclass technology. It is a win-win game for all; the farmers get the benefits, investors get the profits as well as the end users get good quality fruits. How do you tackle competition as the industry is dominated by many leading players who offer attractive packages and timely after-sale service? The major issue in this industry is, of course, after-sale service. If you cannot give good service, you cannot survive. Our prices are higher than others who are producing machinery in India, as we have to pay import duty. At one hand, the government is giving subsidy, but on the other hand it is charging duty. So, personally I feel it is not only about price but good service and support. If customers get good service and support, they wouldnâ&#x20AC;&#x2122;t mind paying a little higher. Good support is know-how which means you tell users what to do when, so that fruits do not get damaged, because even if you offer good after-sale service, buyers will be in a mess if fruits get damaged just because of lack of knowledge. What are your plans for the future? Do you have any plan to have JV with foreign principals to manufacture machinery in India? We have started with Reliance Retail in 2005-06. In fact, most of the industry started growing during that time. Then suddenly, the economy went through tough times, and we faced stagnation. But for the last 2-3 years, due to government initiatives and subsidies, people have again started thinking about getting in again. In the coming 2-3 years, if our business keeps high and we are selling 50 machines a year, we can think about some JV.

AgriBusiness & Food Industry w July 2013

Agri Affairs

Indian agriculture needs an integrated approach It is a tragedy that despite 52 per cent Indian population engaged in agriculture, its share in the national income is less than 14 per cent, the land holdings are getting smaller, and the number of small farmers is rising in the Indian agricultural scenario. We need an integrated approach and institutional support in plant nutrition, soil health correction, debt and water management Sanjeev Chopra

and the number of small farmers is rising in the Indian agricultural scenario. We need an integrated approach and institutional support in plant nutrition, soil health correction, debt and water management.

ndia is rapidly transforming itself into a liberal, more efficient and progressive economy. However, this transition in rural India has been painfully slow for majority of farmers, especially, marginal and small ones. They are still unable to escape from the powerful clutches and dependence on middlemen, informal, lenders and other intermediaries. Agricultural growth ranges between three to four per cent. On the other hand, our farmers have to produce an additional 50 million tonnes of foodgrain to meet the domestic demand over the next 10 years. Poor Contribution to GDP It is a tragedy that despite 52 per cent Indian population engaged in agriculture, its share in the national income is less than 14 per cent, the land holdings are getting smaller,

PPP Model Support from private sector, originating from successful parties can prove a meaningful tool for empowerment of this segment. There is no reason why a farmer should remain poor if private-public partnership is structured in a way that provides a mutually beneficial relationship. The new approach for advancement of small and marginal farmers is now being tested in India and abroad. The concept is an attempt to find a critical entry point for rural development by forging agro-business partnership in which farmers themselves gradually gain ownership, supported by both NGOs and experienced private entrepreneurs. Institutional Support There is need to create a concept of value chain in agriculture sector here in India. For this, we need to develop institutional mechanism for strengthening of coordination among various extension agencies and agricultural advisory services at Panchayat

AgriBusiness & Food Industry w July 2013

level, Department of Agriculture, etc. Plug loop holes There should be easy credit flows by upgrading the Kisan Credit Card Limit, it will automatically solve 70 to 80 per cent problems but there must be full-proof system. They should also be given soil health card to maintain the soil health and decide on the pattern of crop. Large quantities of food grains, fruits, and vegetables are wasted every year due to lack of post harvest management such as storage, processing and lack of cold storage. Cold chain system will plug the loop holes. Govt initiatives The government during budget for 2013-14 has proposed a number of measures for sustainable agriculture, a mix of organic farming methods by combining modern

technology with traditional farming practices. This include 22 per cent increase in allocation and same percentage increase for agricultural credit, provision for crop diversification, additional allocations for Rashtriya Krishi Vikas Yojna and food security mission. The provision will empower the small and marginal farmers to adopt new technologies and agriculture more remunerative. Similarly, the incentives have been provided on short term crop loans to farmers who repay their crop loan on time. Role of co-operatives Government should have equity in the cooperative movement and there must be lesser restrictions from the government. Indian Farmers Fertilsiers Cooperatives, Kribhco and Amul are some of the successful examples. (The author is Joint Secretary & Mission Director, NHM & NMMI, MoA)

AgriBusiness & Food Industry w July 2013

meat industry

USDA Meat Industry Report

India to continue as top

Beef Exporter

Traceability, Quality & Upgradation must to remain at top ...Rasheed Masood, Chairman, APEDA

ndia will continue to be the leading beef exporter this year despite slower growth in cattle, calf production and higher domestic consumption. In the Indian context, beef export is shipment of buffalo meat which is also known as carabeef in the global market. Shipment of cow meat from the country is banned. Last year, India overtook Brazil as the top exporter of beef, mainly due to growing acceptance of its buffalo meat by South-East Asia, West Asia and African countries. Buffalo meat exports this year from India could rise to 1.7 million tonnes (mt) against 1.41 mt last year. Initially, the USDA has estimated that beef exports this year could top 2.1 mt. “Our buffalo meat exports are giving a tough competition to other countries due to our competitive pricing and quality,” said Tarun Bajaj, General Manager (Livestock products), Agricultural and Processed Foods Export Development Authority (Apeda). Buffalo makes up one-third of the bovine population in the country. It is preferred to cow due to its adaptability to climatic

conditions and high milk fat content as dairy production is fuelling the bovine sector. Since slaughter of cow is banned, beef production is driven by buffalo slaughter which is allowed. However, the slaughter is restricted to males and unproductive females. According to Apeda, exports of meat and its products increased to $3.29 billion in

2012-13 against $2.91 billion the previous year. Since 2008, when India exported 672,000 tonnes, shipments of buffalo meat have almost trebled. Indian exports have made inroads into West Asia, North Africa and South-East Asia, a key market for Brazil, as buffalo meat is cheaper in these price-sensitive markets. It is produced according

to halal standards (meat prepared as prescribed by Islamic law). Brazil has been witnessing a constant decline in beef exports due to shrinking land availability, but this year its shipments are expected to rise to 1.6 mt from 1.52 mt last year. Currently, there is renewed interest in livestock farming as the Brazil Government is

providing support for pasture management and genetic improvement of cattle. “The other reason for our exports rising is our quality. Some of our exporters have excellent processing units. This is really helping,” said Bajaj. Domestic Market On the other hand,

APEDA playing key role

Rasheed Masood, Chairman, APEDA

In India's meat export success story, one name that emerges very brightly is APEDA. In an exclusive interview, given recently to this magazine, Rasheed Masood, Chairman, APEDA, said, "In 2011-12, India has crossed 1.5 Million MT of meat exports and has become largest exporter of meat in the world. Having achieved the first place in exports, India has to maintain its position and this can be possible only through maintaining the traceability and addressing quality issues and upgrading the processing infrastructure. You will see tremendous growth in the infrastructure facilities being created in the country. Many small players have understood the export requirements and are upgrading their facilities, sourcing etc".

AgriBusiness & Food Industry w July 2013

domestic consumption is also likely to increase this year. It could increase to 2.1 mt from 2.04 mt last year. Since 2008, domestic consumption has not gained as much as exports. This is because people are shifting to lamb and other meats in view of increasing income in the country. Poultry meat, in particular, has increased sharply in the last few years. According to the USDA, cattle heads could increase by four million tonnes to 327 mt, while nearly 64.3 mt calf could be produced this year against 63.4 mt last year. The USDA also projected a lower export of 8.6 mt this year. FAO & OECD forecast Global meat prices are forecast to remain high in real terms over the next decade due to changing market fundamentals of slower production growth and stronger demand, according to a new report. The forecast is contained in 10 year projection for global agricultural commodities released by the Organisation for Economic Cooperation and Development (OECD) and the United Nation’s Food and Agriculture Organisation (FAO). After growing at 2.3% per annum in the past decade, the 2013-2022 report predicts that growth in global meat production will slow to a more moderate 1.6% per annum in the next decade. The slower rate of growth is attributed primarily to higher input costs and competing demand for land

meat industry

and water from alternative crops. Of the additional production that does occur, developing countries are expected to account for approximately 80 percent of that output to 2022. Poultry status as the cheapest and most accessible source of meat protein underpins the expectation that it will account for nearly half of the additional meat consumed in 2022 compared to now. While meat consumption continues to enjoy one of the highest rates of growth among major agricultural commodities, the report suggests that with demand in per capita terms in major developing markets approaching the levels of developed countries, annual rates of consumption growth will slow in the next 10 years. In developing countries, annual per capita meat consumption is forecast to increase by 2.6 kg rwt (retail weight) per person over the next decade, with poultry accounting for 60% of this increase. Growth in demand will be led by the emerging economies of the BRICS countries (Brazil, Russia, India, China, South Africa) which are projected to post a 4kg rwt gain in consumption. That figure rises to 8kg rwt per person if India is excluded, reaching over 60kg rwt by 2022, approaching the level of 66kg rwt in the OECD area. While remaining high in per capita terms, consumption in the OECD area has largely been stagnant for the past decade due to various factors including population aging and changing demographics as well as increased health and dietary awareness. World meat exports are expected to increase by 19% by 2022; an annual increase of 1.6% which compares to 4.3% per annum in the previous decade. Poultry and bovine meat shipments are the primary drivers of export

growth, which together account for 80% of the additional trade. Forecast high meat prices are underpinned on the demand side by rising incomes from rapid growth in the developing countries, and on the supply side by high input costs, notably for feed grains, energy related inputs and labour. The report notes that the combined effect of higher output prices and increased production costs tend to favour production in developing countries, where low input production systems prevail. While growth in both production and trade is envisaged in the short term for poultry, pig, sheep and buffalo meats, bovine meat markets will initially be constrained by depleted herd numbers in major exporting regions, notably in the developed countries. Focus on China In a special focus on China, the report notes that China’s consumption growth is expected to slightly outpace its production growth by some 0.3% per annum, and, as a result, a further but modest opening of China’s agricultural sector is anticipated. With comparatively little agricultural land and water resources, China has made food security and self sufficiency in the key food crops of rice and wheat a top policy priority. Agricultural output grew 4.5 times over the 1978-2011 period following agricultural and rural reforms. However, food price inflation has been rising in recent years, and output is anticipated to slow in the next decade with increasing resource and rural labour constraints. Livestock, both the meat and dairy sectors, will continue to expand, with increasing feed requirements which will result in higher

List of Participants at the APEDA Pavilion in

Agricultural & Processed Food Products Export Development Authority (APEDA) (Ministry of Commerce & Industry, Govt. of India) Mr. A.S. Rawat,GM NCUI Building 3, Siri Institutional Area, August Kranti Marg, New Delhi - 110 016 INDIA Phone : 91-11- 26526196 Fax : 91-11-26526196 E-Mail: gmbnf@apeda.gov.in Web: www.apeda.gov.in Pagariya Food Products Pvt. Ltd. Mr. Deeraj Bafna/Naresh Pagariya # 15/1, 3rd cross, Kasturbanagar, Mysore Road, Bangalore- 560 026 P: +91-80- 26753299, F: +91-80- 26753417 E-mail: dheeraj@kwalityspices.com Natural Frozen & Dehydrated Foods Mr. Gulamhyder Gulamhasan Meghani G14 Aristo Complex, Waghawadi Road, Bhavnagar, Gujarat (M) +91-9978857575 E-mail: kavita@naturalfrozenfood. com Aggarwal Impex Ms. Sangeeta Aggarwal Plot no. 74, Sector 28, Vashi, Navi Mumbai 400 703 Mob : +91 9820558904 Off: + 91 22 6512 7219 / 2789 5217, Fax + 91 22 2789 5664 Email: info@aggarwalimpex.net Samridhi Frozen Food Pvt. Ltd. Mr. Amit Sharma A-19, Okhla Industrial Area, Phase-1, New Delhi – 20 Phone +91-124-2346368 Mob : 9811085978 G.D. Foods Mfg. (I) Pvt. Ltd. Mr. Mrinal Aggarwal Plot No.14, B-Block, Community Centre, Janak Puri,New Delhi – 58 Ph: +91-11-45233333 E-mail: gdfoods@topsindia.com

imports of coarse grains, likely beyond the current tariff quota levels. Meat Exporters meet APEDA Chairman Recently, members of All India Jamiatul Quresh (AIJQ)-meat processors & exporters-led by its president Sirajuddin

Agri Gold Foods and Farm Products Limited Mr. Satish Ponugupati Vijayawada Ph: 00277 36474262 E-mail: gangadhar.kasi@ agrigoldindia.com Anupam International Mr. Anupam Khemka F-31 City Center Saltlake City Kolkata-700064,India Mobile:- 9830436374 email : india@unitedsalt.co.in Tricom Fruit Products Mr. Amar Pandey Tricom House, Gandhi Estate, Andheri Kurla Road, Safed Pool, Sakinaka, Mumbai–400072 Ph: +91-22-66907800 Email: amar.pandey@ tricomfruitproducts.com Indian Potatoes Ltd Dr. Satyen Yaadav, Chairman 304-305,Prakash Chambers,6-Netaji Subhash Road, New Delhi 110002 Shree Mahalaxmi Agro Foods Pvt. Ltd. Mr. Ramesh Gopalakrishnan Flat 101, Vishwakarma Bomplex, Building 'K', Devkar Panand Vasahat, Kolhapur 416012, Maharashtra, India M: 07738142003 Email : ramesh23@gmail.com Harihar Foods Pvt. Ltd. Mr. Parag Shah – Director 519/1, Phase Iv, Nr Ramol Police Chowky, G I D C, Vatva, Ahmedabad - 382 445 M: 90999 08609 / 0 9825511911 E-mail: accounts@ shreeganeshmasala.com Innovative Foods Ltd. Mr. E.P. Suresh JP Classic, # 157/1, Silver Corporate Block - 1, Total Environment Campus, Epip Phase 2, Kiadb, Whitefield, Bangalore – 560 066 Ph : + 91 80 30618002 / 9900394106 E-mail: epsuresh@sumeru.net

Qureshi appealed with Rasheed Masood, Chairman, APEDA, at a seminar, held at India Islamic Cultural Centre, New Delhi, to look at their problems. APEDA Chairman assured the members that he would look at their issues and would try to solve them at the earliest. n

AgriBusiness & Food Industry w July 2013

food campaign

TWO STROKES ONE GOAL Curbing Food wastage T V Satyanarayanan

This project (DFB), its main job at present being collecting surplus food and taking it to people who need it, no doubt, touches at present only the fringe of the problem in a country where millions go hungry. The organizers, however, are confident that the activities would gather momentum, and the project’s widening network would make the basic aspiration of access to food a reality for many in both rural and urban areas

n the National Capital Region, it is called the Delhi Food Bank. In China, it is “Clean Plate” campaign. The objectives of both are virtually same – curbing food wastage. The Delhi Food Banking network, which was launched by noted Technocrat Sam Pitroda in the presence of Chief Minister Sheila Dikshit, has opened its first pilot project called the Delhi Food Bank (DFB). Aimed at ensuring “the right aid to the right people, at the right time,” this technologyleveraged initiative is being implemented by the Aidmatrix Foundation.

An excess food collection van in New Delhi

AgriBusiness & Food Industry w July 2013

Feeding programme DFB has been able to achieve sustained feeding of 2000 people -- men, women and children -- since its launch in June last year. The target is to feed 5000 people by August and attain a coverage of 5 lakh households in Delhi alone by December this year. This project, its main job at present being collecting surplus food and taking it to people who need it, no doubt, touches at present only the fringe of the problem in a country where millions go hungry. The organizers, however, are confident that the activities would gather momentum, and the project’s

widening network would make the basic aspiration of access to food a reality for many in both rural and urban areas. China’s campaign In China, the campaign called “Clean Your Plate” i.e don’t waste the food served on your plate, was started as an online initiative by China Land and Resources News Vice President Xu Zhijun earlier this year, appealing to people to curb food wastage. He also exhorted them to take home the surplus food after banquets. Xu’s appeal found ready response from many and caught the imagination of several more, after it was reported by China Central Television as well as largelycirculated newspapers. A full length article on it that was carried by “News from China” magazine, published by the Embassy of China in New Delhi, points out the relevance of the new campaign in a country where, according to a study by Beijing-based China Agricultural University, 200 billion Yuan ($ 32 billion) worth food goes waste each year -- enough to feed

food campaign

"Clean Your Plate" Campaign, China

approximately 200 million people. Colossal wastage After conducting a poll of 2700 diners in Chinese cities, the university concluded that the wastages in two years (2007-2008) amounted to at least 8 million tons of protein – enough to meet the annual demands of 260 million people – and three million tons of fat, which is the annual consumption of close to 130 million people. Such a colossal wastage becomes all the more poignant if one realizes that 128 million people in China live on less than 1 dollar a day. According to official figures, about 5 million people in south-west China’s Guizhou province received government food aid last year. Statistics also shows that China’s grain output in 2012 rose by 3.2 per cent to 589.57 million tons, but import figures tell a story of strained domestic grain supply in the wake of growing population and expanding cities. China’s grain imports during the year are officially estimated at a record high of 72.3 million tons. Among those who have joined the new campaign on checking food wastage are the Beijing Catering Trade Association, Beijing Cuisine Association and Beijing

Western Food Association, along with ten franchise restaurants in the city, Their joint anti-waste campaign has secured wide support. More than 750 restaurants in the capital city have reported that customers are encouraged to place smaller orders to check waste and the leftover, if any, is properly packed so that they can take it home. Posters Posters are put up in the restaurants reminding the customers to avoid waste. “We had 20 small quantity dishes earlier in our menu card. In response to the call to save food, we have added another 10,” said a marketing officer of Meizhou Dongpo Sichuan Restaurant. Tang Qingshun, Chairman of the Beijing Food Industry Association, said a pilot programme for this campaign showed that the choice of dishes offered in smaller quantities can reduce around 50 per cent of the food usually wasted at family dinners.

Official support The “clean plates” campaign has also become part of a drive by Chinese leaders to check extravagance and to advocate thrift. The Political Bureau of the ruling Communist Party of China in its “dos and don’ts” to officials, has asked them to refrain from excessive spending, especially spending on elaborate banquets. Many provinces have issued similar instructions. For instance, Central China’s Henan province has ordered that business lunch for officials should not exceed four dishes. The order also insists on a big ‘no” to alcohol. However, not all restaurants, particularly the high-end ones, are happy, since their earnings have fallen. Chen Junhai, an executive at Wangshunge Restaurant Group in Beijing said the campaign has dealt a blow to many top-end restaurants, since 30 per cent of their income was coming from gala business banquets. Alongside, the number of luncheons and dinners hosted

Sam Pitroda - The Man behind DFB Mission

by government departments show a steady decline in various places. Farm scientist’s view Agriculture scientist Yuan Longping, however, is fully supportive of the new campaign. He is convinced there should be no wanton squandering of food. “China has a large population and very little arable land, and we scientists have worked hard to improve rice harvests. After production, it is criminal to waste the produce.” Liu Qinglong, a professor at the School of Public Policy and Management of Tsinghua University says he is happy to see the new attitudinal change coming towards food wastage. But, will this trend be sustained in the long term, is the question. “Would traditional cultural pressures again prevail to scuttle this trend? Ostentation has been part of Chinese culture for thousands of years.” But media can play a role in combating old perceptions, he suggests. n

Liu Qinglong, a professor at the School of Public Policy and Management of Tsinghua University says he is happy to see the new attitudinal change coming towards food wastage. But, will this trend be sustained in the long term, is the question. “Would traditional cultural pressures again prevail to scuttle this trend? Ostentation has been part of Chinese culture for thousands of years.” But media can play a role in combating old perceptions, he suggests AgriBusiness & Food Industry w July 2013

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Carrefour sells stake in West Asia venture for $683 million

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arrefour, Europe's largest retailer, agreed to sell its remaining 25percent stake in a Middle East joint venture to local partner Majid Al Futtaim (MAF) for 530 million euros ($682.45 million), MAF said in a statement. Majid Al Futtaim Hypermarkets, the venture set up in 1995, operates 50 hypermarkets and 44 supermarkets under the Carrefour name in the Middle East, North Africa and Central Asia. "Majid Al Futtaim...will keep and strengthen the strategic partnership with Carrefour in new countries and new formats," the company said in the statement. MAF will keep its exclusive franchise partnership with Carrefour until 2025, allowing the company to operate under the French retailer's brand name in the region. Carrefour, the world's largest retailer after Wal-Mart, sold 2.8 billion euros ($3.60 billion) of assets last year, withdrawing from Greece, Colombia and Indonesia, to raise cash for investments and shore up its balance sheet.

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Spencer’s Retail to invest Rs. 600-cr to open 12 hyper stores

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pencer’s Retail, which recently underwent a painful year-long cocktail of rationalisation and consolidation, is now ‘ruthlessly focussing’ on the hypermarket format of stores, according to family scion Shashwat Goenka, the new head of RP-Sanjiv Goenka Group’s retail arm. The Kolkata-based company has chalked out an aggressive strategy, which will see an overall investment of nearly Rs. 600 crore, to open nearly 12 such hyper stores by the end of this year, and over 50 more over the next few years. The investment will come from internal accruals. “We believe the hyper stores to be a sort of end-game in our operating model. There were problems in the cost structure of our convenient

stores. This is not to say our existing smaller stores will not serve a purpose, we will get to them after we achieve profitability in the third quarter of this current fiscal,” said Goenka. “We plan to operate a franchisee model in our smaller stores while including local kirana store owners,” he added. Hyper stores, which contributed 58 per cent of the total turnover of Rs. 1,400 crore in 2012-13, are expected to chip in 70 per cent in 2013-14. The retail chain, which is in the process of being demerged from CESC and listed, is also planning on a selling a stake in the company soon, and is presently in talks with several strategic investors. Replying to a question on foreign direct investment in multi-brand retail, Goenka pointed out that many of the ‘so-called cloudy issues’ over the specific norms were not hampering investment. “I think if companies really wanted to come in and invest, they should be able to work around any of the problems. While some people have talked to us, we mostly won’t see any foreign investment in the industry any time soon.”

Global retailers could set up cold chain, warehouses

lobal retailers such as Walmart and Tesco can set up warehouses and cold storages as well as source products from small and medium enterprises (SMEs) in States which have not permitted FDI in the multi-brand retail sector, a senior official said. “Foreign players can set up warehouses and also source products from SMEs from those States which are against FDI in multi-brand retail. No State will stop any foreign player to procure goods or do business with SMEs,” a top official in the Department of Industrial Policy and Promotion (DIPP) said.

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U.S.-based Walmart and U.K.-based Tesco have sought clarifications from the Department of Industrial Policy and Promotion (DIPP) on whether they could set up warehouses in States which are against the Centre’s retail FDI policy. The official also said there would also be no restriction on the foreign retailers from sourcing products from SMEs in those States. The official also said that 50 per cent of the first tranche of the mandatory minimum $100 million FDI would only have to be invested in back-end infrastructure and not in buying land, existing building or rent.

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ITC overtakes Hindustan Unilever in branded F&B sales

TC has overtaken Hindustan Unilever in branded food and beverages sales a decade after it entered the business, giving a shot in the arm to YC Deveshwar's ambition of making the cigarette maker India's largest FMCG firm. ITC, the maker of Sunfeast biscuits and Bingo chips, has posted branded food sales of over 4,600 crore in 2012-13, a 24% growth over the previous year, said a person with direct knowledge of the development. The number will be disclosed officially in its annual report, to be released next month. When contacted, an ITC spokesperson refused comment. In comparison, HUL, which owns Knorr soup and Lipton tea, reported sales of 4,480 crore from its food and beverages business for 2012-13 while declaring its annual results a fortnight ago. HUL Ahead in Other Segments In 2011-12, HUL's food and beverages

sales at 3,977 crore were more than ITC's 3,712 crore from this segment. However, HUL remains streets ahead of competitors in the total non-cigarettes FMCG market. Its total revenues of 25,810 crore during 2012-13 were more than three times ITC's sales of 6,982 crore from its pure-play FMCG portfolio consisting of packaged food, personal care, lifestyle retail, safety matches and agarbatti. HUL controls nearly 12.5% of the 2-lakh-crore FMCG market, with its revenue topping the combined sales of rivals such as Procter & Gamble, Nestle, Colgate and Reckitt Benckiser. Deveshwar, the long-serving chairman of ITC, has set his sights on wresting the top spot in India's FMCG market, even though he acknowledges this is a longterm target. "We are the fastest-growing FMCG company in the country. I want to make ITC the No.1 FMCG company in the country. This won't happen in my life, but I want to set it on that course," the 65-year-old said.

Punjab rice millers to invest Rs 350-cr in state

unjab Rice Millers Exporters 'Association today firmed up a massive investment plan of Rs 350 crore for setting up ultra modern rice mills in the state to boost the export prospects of Basmati and give impetus to the much-needed agriculture diversification program. Expressing gratitude to the chief minister for recently extending a slew of incentives to rice millers for the promotion of Basmati cultivation and boosting its export potential in the global market. The delegation assured the minister they would continue to help the state pursue its mission of crop diversification. Reciprocating the goodwill gesture

of the state government to ensure level playing field to the Basmati growers as well as millers and exporters, the delegation also promised to run two state-of-art ITIs at Ferozepur and Tarn Taran after upgrading them to train manpower required in the Rice mills. The Chief Minister also called upon the Rice Millers to go for Power cogeneration from Biomass to make their units financially viable and self sustainable.

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The fight against food wastage: Make it easy!

he Dutch innovation, with the name VacuVita, ensures that cooking enthusiasts and trend setters in design are able to store their food easily and safely. It has been an international topic of debate; Too much food is being wasted and a lot of it by consumers themselves. But from now on a new food-saving product will ensure fresh products will last a longer shelf-life with ease. Food is often not stored correctly because we can't find the time or the means to do so. The solution can be found in the VacuVita system, an innovation which uses techniques to remove a few major reasons why food spoils; ambient air and light. This will reduce fungal and bacterial growth significantly. Although there are a lot of storage options on the market today, few make use of light-proof vacuum and many are impractical for daily use. The VacuVita system aims to remove the hindrances that make these other products so hard to incorporate into your daily life. Fully automated and sensor driven the system gives you access to your still fresh and tasty products inside, even after many days. By using vacuum as a standard procedure in a kitchen, the food will have a longer shelf life and equally important: it will stay fresh and delicious. The design and interaction ensure that VacuVita blends in perfectly with trendy chefs and consumers who are interested in sustainable products. A vacuum storage device in the kitchen should be the standard alongside the refrigerator, freezer and kitchen cabinets. With vacuum it is also possible to marinate meat or fish faster or to cook 'sous vide'. VacuVita has everything that other vacuum systems have but without the hassle. Making VacuVita an 'Easy Access Storage' device.

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Bangladesh offers transit permit for NorthEast foodgrain

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Cermex opens plant in India

n a major policy change, Bangladesh will allow India ferry foodgrains for the mountainous northeastern states via its territory, a Tripura minister said in Agartala. "Initially, the Bangladesh government has agreed to transport 10,000 tonnes of foodgrains for Tripura through its territory," Tripura Food and Civil Supplies Minister Bhanulal Saha said. "The Bangladesh government issued necessary orders earlier this week following a series of diplomatic and other parleys. After some securityrelated clearance, the carrying of food grains, mainly rice and wheat, is likely to start within a month," he added. B.K. Roy, principal secretary, food and civil supplies, said that after getting a green signal from Dhaka, FCI (the Food Corporation of India) had initiated the process to transport food grains and essentials using the Bangladeshi river port in eastern Bangladesh and the roadways connected to the northeastern states. The FCI had earlier floated tenders to select the transporters. In the first consignment, 10,000 tonnes of rice, wheat and sugar would be ferried to Tripura from West Bengal's Haldia port via the Ashuganj port. "After Tripura, foodgrains would be ferried through Bangladesh for other northeastern states, including Mizoram, Manipur and southern Assam to save time and costs," a FCI official said. "Due to shortage of rail wagons, inadequate storage facilities and various other bottlenecks, the northeastern states have been suffering from poor supply of food grains for most part of the year, especially during the monsoon," the minister said. Surface connectivity is a key factor as the hilly region is surrounded by Bangladesh, Myanmar, Bhutan and China, and the only land route to these states from within India is through Assam and West Bengal.

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arely one month after its integration in the new Gebo Cermex unit, Cermex is pursuing its strategy of industrial presence in emerging markets. The city of Pune, in western India, is home to this new plant, five years after the opening of the Beijing plant. With this project, Cermex confirms its ambition to develop industrial sites in the most economically dynamic areas. It also wants to have engineering and customer service functions near where our customers need them. To start with, Cermex is assembling three models of machines in Pune, from each major family of its product line, including one that was also designed in India. The team, which was put in place in late 2011, is supported by a hightech design office, which uses the PLM tool and the latest in Cloud computing technologies. This gives Cermex the ability, right from the start, to create endof-line packaging machines in Pune that are specially adapted to the local market. This is the case for the Vertical Pick & Place Case Packer, which is one of the three machines assembled in India. The two other machines are an automatic shrink-wrapper with sealing bar and a palletizer (P9 - 4 axis Gripping/ Transfer), chosen as a function of local industry needs.

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A five-person Sales & Services team promotes all Cermex products with local companies and handles post-installation follow-up of branded machines installed in this part of the world. Because it has its own design capacity, can handle assembly of an initial range of machines and has the know-how to accept further technology transfers from France, the initial 15-person team in Pune should grow quickly as business expands. Further sales offices will be opened elsewhere in India, and Delhi in particular should see its importance in the Cermex organisation grow rapidly. Cermex's industrial strategy for expanding in Asia has a two-fold purpose. First, it's a matter of offering a series of widely used models at local prices, assembled in the catchment area. Second, it's about the ability to design machines locally that are specially adapted to local end-of-line automation needs. Cermex is gradually building a network in order to propose the most appropriate end-of-line solution everywhere and for every context. The stated objective is to be both a global company that is capable of proposing its project management, service, design and innovation expertise everywhere and also a local actor with its ear to the needs of each of its main markets. Today, the plants in Europe, India or China together give Cermex the potential to support the growth of endof-line automation demand from Asian companies. To profit in full from this dynamic and to stay a step ahead of its competitors, the industrial plant in Pune is being accompanied by the opening of sales offices in Vietnam and Indonesia.

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Food security law will improve PDS system: Thomas

he proposed food security law and the direct transfer of cash subsidy to beneficiariesâ&#x20AC;&#x2122; bank accounts will improve the working of public distribution system and widen coverage, according to Union Food Minister K.V. Thomas. The Union Government is considering allowing State Governments to directly import the pulses they need for the Public Distribution System. The issue will be taken up before the Cabinet and approved, he said. There has been some delay and administrative issues in the public sector enterprises in handling the pulses imports, Thomas said. Addressing the media after inaugurating a new building for the Regional Office of Food Corporation of India and its Chennai District office, he said the Food Security Bill which is to be discussed in Parliament will cover 67 per cent of the population, about 82 crore people, against 32 crore being covered

under the targeted public distribution system now. Similarly, the proposed direct cash transfer of subsidy to the beneficiaries will be implemented only after 90 per cent of the target population gets a bank account. While the food distribution infrastructure and system will continue in its present form. Consumers will be able to pay the subsidised price in cash and buy the commodities. The concerns of the State Governments on this issue will be addressed, he said. The distribution system will also be modernised including introduction of biometric system. The cash transfer will be tested on a pilot basis in the union territories before being rolled out fully. On the sugar estimates, in the current year sugar production will be about 245 lakh tonnes against 265 lakh tonnes in September-October last. But against a consumption of about 225 lakh tonnes, there are adequate stocks available and the present system of exports will continue. He ruled out any import duties on sugar, the industry should be happy that the sector has been liberalised, he said.

Cremica Foods to reach metros & big cities by year-end

r e m i c a Group, the Punjab-based maker of ketchup, mayonnaise, spreads, biscuits and buns, is planning to be present in major cities by the year-end, according to Akshay Bector, MD. The group is managed by brothers Akshay, Anoop and Ajay Bector. The Rs 500-crore firm was set up by their mother Rajni Bector in her garage

over three decades ago, and is today a leading supplier of bakery products and condiments to quick-service restaurant chains like McDonald's, Cafe Coffee Day and Barista. The brothers plan to de-merge into two separate entities, paving the way for an exit for private equity investor Motilal Oswal to offload its 20% stake (bought for $13 million in 2010). While the biscuits business is planning an IPO, condiments under Akshay Bector is going national in the retail space by foraying in the high-margin kettle chips (cooked in small batches) segment.

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YoYo Noodle to launch 200 outlets

ngland-based Chinese food chain YoYo Noodle plans to invest 25 million pounds (over Rs 210 crore) over the next five years to open as many as 200 outlets in the country. The first outlet is likely to be launched by Diwali in Mumbai. The company has partnered with city-based One Network Consulting for its foray into the Rs 5,500 crore domestic quick service restaurants (QSR) market under 'YoYo Noodle India' brand and is targeting to set up as many 200 stores across the country over the next five years. "With Chinese cuisine being so popular here, we are set for a great start. We are in the process of picking our key franchise partners and hope to have 200 stores in the next five years," YoYo Group founder Eric Ho said. He also claimed that this could generate over 2,000 jobs. The company is also evaluating setting up its own unit to manufacture packaging and merchandise items. "We are in discussions to set up our own plant, which will manufacture packaging materials, sauces and merchandise. This is the second phase of the plan, before that we want to establish our brand," One Network Consulting MD Anuradha Makhija said. The plant will receive an investment of about 20 million pounds (about Rs 160 crore) to be funded by YoYo Noodle India, she said, adding another 5 million pounds will be spent on marketing and branding. "The plant will also help us make India the central hub globally for exporting sourcing and merchandise. We are aiming for 50 million pounds (over Rs 420 crore) revenues from here in the first five years," Ho said.

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Varun Berry replaces iconic Vinita Bali; Bali graces global role

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s part of key organisational changes, Britannia Industries announced that its Managing Director Vinita Bali, who steered the company through some tough times, has moved to an international role within the organisation. Britannia, which makes Tiger and Pure Magic biscuits among others, in a press statement, said its Chief Operating Officer, Varun Berry will take over from Bali. This is the second key change in the company this year. In January, Neeraj Chandra, was replaced as COO by Berry. Chandra is now the Vice-President for Strategy and New Business Development. Berry, who has worked with PepsiCo Foods and Hindustan Unilever, takes over the domestic operations of Britannia at a time when non-biscuit revenues are expected to grow at a faster clip than biscuits, the company’s core business. Vinita Bali will now look after international business, Britannia Nutrition Foundation and new business development. Britannia’s international business contributes about 10 per cent of its total revenues. “With these changes, we are preparing Britannia for high growth in our operations by catering to the changing food habits of the evolving Indian consumer and pursuing opportunities for growth in the overall food domain, here and abroad,” company Chairman Nusli Wadia said.

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Mumbai’s iconic Dabbawalas feature in Dubai conference

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he legendary dabbawalas (lunch-box carriers) in Mumbai, known for their management skills, featured in the Gulf Cooperation Council (GCC) conference, recently held in Dubai. Arvind Talekar, spokesperson of Nutan Mumbai Tiffin Box Suppliers' Trust (NMTBST) said that he represented the 5,000 dabbawalas in the metro at the two-day 'Third GCC Government Organisations Third and Fourth Line Leaders' Development Conference'. "I shared the 'mantra' for the success

of Mumbai's dabbawallas. I also spoke on time and supply management and accuracy in delivery," Talekar said. In the conference, a case study on the history of dabbawallas and their day-today operation with focus on the aspect of 'On time delivery, Every time', was also presented, he added. The conference highlighted innovation in leadership that involved advanced decision-making & execution skills to obtain cross-functional responsibilities, as they need to drive excellence as multi-faceted leaders. The two-day event aimed to forge and build strong relationships among the governments, businesses, corporate, communities, media, leaders and professionals from east, west, north and south to meet and partner in order to build strong global relationships and expand opportunities in the era of massive globalisation.

Nagaland’s people include honey in their daily diet

eople in Nagaland are lavishing on honey. In fact, the state has become one of the major honey consuming states in the country, far exceeding the national average. What was virtually restricted to traditional medicinal usages, honey has become part of everyday diet in Nagaland today. According to S Bhattacharjee, managing director of North Eastern Regional Agricultural Marketing Corporation Limited (NERAMAC) - a central government enterprise - the per capita consumption of honey in Nagaland is 165gm per day, whereas the national average is eight gm.

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"Earlier honey was used in traditional medicine in Nagaland. With honey becoming part of the everyday diet, the demand has increased manifold. Our awareness programme on the health benefits of honey and promotion of apiary as a source of livelihood have contributed to the rise in honey consumption in the state," said Chubanungla Shilu, member of Nagaland Bee-keeping and Honey Mission (NBHM), said. Honey production in Nagaland started in a mission mode since 2007. The state produced 380 MT of honey in 2012 to become one of the highest honey producing states in Northeast. Chubanungla said by the end of 12th five-year Plan the target is to produce 1000 MT of honey in Nagaland. "As of now we are not thinking of exporting honey outside Nagaland. Instead, we are only focusing on meeting the demand within the state. Even if we export honey in future, we will look for only niche market with emphasis on low-quantity but high-quality."

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American F&B Brands Cut 1.5 Trillion Calories to arrest obesity

h r e e years ago, when a group of America’s biggest food and beverage companies g o t together to discuss what they could do to curb the country’s collective appetite, the concern over America’s burgeoning waistline was soaring, with no apparent peak in obesity rates in sight. A front-page headline in 2010 in the Washington Post delivered grim news: “Obesity epidemic rages on, CDC says.” The report released by the Centers for Disease Control and Prevention was a belt buster. The number of states in which at least one-third of the adults were obese had tripled in two years. Between 2007 and 2009, an additional 2.4 million Americans ages 18 and older had become obese, according to the report. Overall, 26.7 percent of American adults—more than 72 million—were considered obese. It’s at that very time when 16 food and beverage companies teamed up with First Lady Michelle Obama‘s Partnership for a Healthier America with the goal of reducing the number of calories sold and consumed by Americans by 1.5 trillion by 2015. Today—two years ahead of schedule— the Healthy Weight Commitment Foundation announced the partnership had exceeded that goal. HWCF president Lisa Gable made the announcement at Washington, D.C.’s Bipartisan Policy Center joined by White House representatives, as well as former U.S. secretary of agriculture Dan Glickman and Tracy Orleans, a senior scientist at the Robert Wood Johnson Foundation, which will review the data and issue a formal report later this year. According to the report, they’ve exceeded that goal. And the initiative coincides with what researchers believe may be a decisive turn in the battle against obesity. Last fall, decades

of rising childhood obesity rates, American cities are reporting their first declines, according to a Robert Woods Johnson Foundation study. A CDC study released last December showed obesity declining in 2-4 year olds from poor families. Targeted studies, like one in Los Angeles by the CDC released in February, indicated the decline had begun in 2010. HWCF brought assembled a broad based coalition, representing some of the top global brands in the food and beverage industry, including Coca-Cola KO -1.86%, General Mills GIS -1.42%, Nestle, Kraft and Con-Agra. Their challenge was daunting—impossible in some people’s minds: turn around the ocean liner of America’s out of control eating habits. They embarked on what amounted to a riverboat gamble— reducing portion sizes, changing recipes to meet calorie goals and providing lower calorie options, without gutting their own bottom lines. By every measure, the initiative has been a success. Their combined efforts coincided with a shift in consumer preferences and maybe even helped the trend along. According to a study conducted for the HWCF by The Hudson Institute, lower-calorie sales among the 16 companies increased by $1.25 billion, more than four times the sales increase of higher-calorie items. Many of the companies, such as Coca-Cola, have also begun to advertise the new options and emphasize a healthier lifestyle in marketing messages. “Our industry has a important role to play in helping people lead healthy lives and our actions are having a positive impact,” said Indra Nooyi, HWCF chair and CEO of PepsiCo, and a news conference in Washington. “We see continued opportunities to give consumers the choices they’re looking for and to work collaboratively with the public and non-profit sectors on initiatives that enable continued progress.” The HWCF celebrated the news with a full-page ad in Washington Post. Separately, Coca-Cola ran an advertisement in The New York Times noting that obesity is about more than fizzy drinks.

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Western diet & dairy products may cause acne: Research

airy and milk products have acquired a controversial status in the scientific community. There are several studies which favour dairy products but others have found dairy products to be linked to acne, autoimmune disturbances, high insulin levels, and cardiovascular disease. Acne vulgaris, commonly called pimples, has anecdotally been attributed to diet. It is also referred to as a condition associated with modern western civilisation and is considered to be virtually non-existent in traditional societies. In fact, migration studies have demonstrated that as populations shifted towards a more westernised diet, the prevalence of acne increased. This trend was observed in Canadian Inuits, who increased their consumption of sweetened colas, beef, dairy products, and processed foods, as well as among Okinawan Japanese who moved to a typical western diet with high intake of animal food and refined starch. The association between acne and diet was evaluated in 2009 with a review of 21 observational studies and six clinical trials. Observational studies, including two large controlled prospective trials, reported that intake of cow's milk increased the prevalence of acne and its severity. Based on these findings, there exists convincing data supporting the role of dairy products and food high in glycemic-index in influencing hormonal and inflammatory factors, which can increase acne prevalence and severity.

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Spices exports cross 10,000-cr mark

espite the continuance of global recession and economic slump in the overseas markets, India’s spices exports have crossed the Rs 10,000crore mark. About 6,99,170 tonnes of spices and spice products valued at Rs 11,171.16 crore ($2,040.18 million) have been exported in FY’13 against 5,75,270 tonnes valued at Rs 9,783.42 crore ($2,037.76 million) in FY’12. All-time high It is for the first time that the growth in volume of exports registered an alltime high of 22 per cent and 14 per cent in value. Total exports have exceeded the target in terms of both quantity and value. Compared to the target of 5,66,000 tonnes valued at Rs 8,203.50 crore ($1,650 million) for FY’13, the achievement is 124 per cent in terms of quantity and 136 per cent in rupee and 124 per cent in dollar terms of value. As the exports of cumin, mint and chillies show a sharp improvement during 2012-13, the pattern of trade is showing perceptible changes. New spices are gaining prominence in the export basket, A Jayathilak, Chairman of Spices Board, said. Mint products, cardamom (large), chilli, coriander, cumin, fennel, fenugreek, celery, other seeds like mustard, aniseed, ajwanseed, nutmeg and mace, garlic, asafoetida, tamarind, curry powders/pastes, oils and oleoresins etc. are the star performers recording rise in exports both in terms of volume and value. Spices like pepper, cardamom (small) and ginger had shown decrease both in terms of volume and value as compared to last year.

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J&K to launch Walnut Board

ammu and Kashmir is mulling to set up a board which will suggest scientific techniques to boost walnut production in the State. “The Government proposes to set up a Walnut Board in the State to give a boost to walnut production in a big way on scientific lines,” Minister for Horticulture Raman Bhalla said.

“Jammu and Kashmir enjoys monopoly on this fruit as it is the only State in the whole country where it is produced,” Bhalla said. The minister said the need of the hour was to exploit the optimum potential in the sector by setting up scientific walnut processing units in various areas of the State. “This is key to ensuring economic growth of the State in general and farming community in particular as horticulture is the backbone of the State’s economy,” he said. The Minister called for close coordination between Horticulture Department and Sheri-e-Kashmir Agriculture University of Sciences and Technology so that maximum farmers are benefited. He directed for judicious use of funds available under the horticulture sector and appealed farmers to take advantage of schemes meant for them.

Guar gum India's biggest agricultural export item for a second year

or a second year, guar gum has emerged as Indias largest item of agricultural export. And, responsible for pushing the countrys overall farm exports to Rs 120,000 crore in 2012-13, show data from the Director General of Commercial Intelligence and Statistics (DGCIS). Guar gum, has seen rising demand from big Western oil companies on its use as a controlling agent in oil wells for facilitating easy drilling and preventing fluid loss. Between 2010-11 and 201213, it has registered 624 per cent rise in exports in value terms. India is the worlds largest producer of the gum. On average, the country

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produces 1-1.5 million tonnes of guar annually. Almost 40 per cent of guar gum produced in the country is used for industrial purposes. In 2012, guar prices in the world markets rose a massive 8001,000 per cent, chiefly due to large-scale stocking by multinational oil companies over fears of short supplies, following drought in India. Of Indias total agricultural exports of Rs 120,000 crore in 2012-13, guar gum accounted for 18 per cent, DGCIS figures show. In 2010-11, guar gums total share in Indias overall export of agricultural items was just seven per cent. Basmati and non-basmati rice, traditionally the flagbearers of Indian agricultural exports, have also risen in export value, but have not managed to upstage guar gum as the primary item. Between 2010-11 and 2012-13, export of basmati rice increased 71 per cent in value terms, while that of non-basmati rice rose a massive 6,000 per cent, pushing India to the pole position in this segment globally in 2012.

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US sets preliminary anti-dumping duties on Indian shrimp

ndia, China and three other Asian countries will be subjected to high anti-dumping tariffs on shrimp exports to the US, due to fears that low price imports are putting American fishermen out of work. The US Commerce Department set preliminary duties last week of 5.91 percent on shrimp exports from India, and a much higher 62.74 percent from Malaysia. The US will also impose countervailing duties on shrimp exports from Thailand (2.09 percent), China (5.76 percent) and Vietnam (6.07 percent). Malaysia will be hardest hit if its duty is not relaxed, meaning it will no longer be a major supplier of shrimps to the US. The final decision will be made in mid-August. The duties are also a blow for Indian shrimp exporters as the US is their biggest market after Europe. “This will affect our exports to the US and increase the vulnerability of India’s small-scale fishing communities, harvesters and processors,” said Ravi Reddy, president of the Seafood Exporters Association of India. Reddy said the US decision comes at a time when the industry is already struggling with soaring ocean freight costs and stepped price hikes in diesel which are used to power fishing boats. In January, the Indian government allowed state fuel retailers to raise prices by up to 0.50 rupees, a litre each month to gradually align them with market rates. During 2011-12, Indian seafood exports stood at $3.5 billion, according

to the Marine Products Export Development Authority (MPEDA). The US and Europe accounted for over 45 percent of India’s total seafood exports which is driven largely by frozen shrimp. The US Coalition of Gulf Shrimp Industries had asked for an investigation in December, saying their industry was at risk because of lower-priced imports from India, China, Vietnam, Indonesia, Malaysia, Thailand and Ecuador. The US group says it has documented over 100 programs that provide subsidies and benefits to shrimp producers in the seven countries, including low-interest loans, tax breaks, and even free shrimp feed. Among the examples cited: India provides subsidies to reduce ocean freight costs; Thailand buys shrimp from farmers and sells it to processors at low prices; China has provided financing to build the world’s largest shrimpprocessing and export plant; Malaysia is spending millions to build shrimp farms. The US Commerce Department found Indonesia and Ecuador also have subsidies of 0.81 percent and 0.39 percent respectively, but the amounts are too low for duty to be collected. Americans gobble up more than 1 billion pounds (454 million kilograms) of shrimp, the nation’s most popular seafood, according to the US International Trade Commission. The seven countries subject to the investigation exported $4.3 billion worth of shrimp to the US in 2011, accounting for over three-quarters of the domestic market. Next Steps The US Commerce Department is expected to announce its final decision by mid-August. The International Trade Commission which determines whether domestic US industry has been harmed by subsidies from other governments also must approve final duties for them to take force.

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West Bengal to import Hilsa from Burma

ith supplies from neighbouring Bangladesh falling short of the demand in Bengali households, the Indian government has begun steps to bring reinforcements of hilsa from Aseancountries, especially Myanmar. As a result of Mamata's letter and a follow-up meeting with commerce and industry minister Anand Sharma, India has begun the process of removing hilsa from the negative list of goods in the India-Asean trade agreement. This means that from December-end, the fish can be imported duty-free from Myanmar, with which India is trying to cement trade and economic relations. Earlier, the commerce department had informed the West Bengal government that there were no restrictions on shipments from Myanmar. But with importers complaining of smuggling of the fish from Bangladesh, the Centre has decided to against taking any chances and move to a zero-duty regime. While hilsa from Padma river in Bangladesh is the most preferred fish on Bengali dining tables, India's neighbour in the east has put in place import restrictions as it finds it tough to cater to domestic demand. Officials in the commerce department contend that the quality of hilsa from Myanmar is the same as those from Bangladesh, although Bengali households may have a different take on it. The shortage of the fish is something that has even troubled President Pranab Mukherjee, who during his days as minister had taken up the issue with the commerce department. But with supplies not showing any improvement, the government has been forced to look farther East in its hunt for the famed fish.

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Amul to manufacture some products in America

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ujarat Cooperative Milk Marketing Federation (GCMMF), marketing its dairy products under brand ‘Amul’, said it would begin manufacturing few of its dairy products in the US over the next 6-8 months. The move is being viewed as a dry run for the Indian co-operative sector dairy giant to set up its own manufacturing facility in the US at a later stage. Amul (Kaira) District Cooperative Milk Producers Union (ADCMPU), through a third party agreement with an existing manufacturing plant owner having a plant near New Jersy in the US, will begin producing few dairy products there, GCMMF Managing Director R S Sodhi said. “The production is expected to commence in next six to eight months, and thereafter the federation will undertake marketing of the dairy products range there,” he said. ADCMPU, is among the 16 milk producers union on board of the federation. GCMMF’s current annual exports of dairy products to US is pegged close to Rs 35 crore. With this arrangement, the federation is looking to quadruple its sales in the key market. “With this arrangement in place, the federation expects sales to get a big push in the US. Initially we will begin manufacturing products like paneer and ghee etc there. Slowly other dairy product range would also be rolled out from there,” Sodhi said. “This initiative would help us in saving on duties and taxes levied on exports of dairy products from India,” he said.

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Li Keqiang calls for action on baby milk

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hina's premier Li Keqiang called on for enhanced supervision of the quality of baby formula to regain public trust in domestic dairy products. Strict measures should be used to ensure the safety of baby milk, and all baby milk formula products should be retraceable through methods such as electronic coding, Li said. The premier was speaking at an executive meeting of the State Council. Li said the regulations covering baby formula should be as strict as those on medicine. Dong Jinshi, a food safety expert and deputy director of the International Food Packaging Association, said, "Under the food regulations, it is mainly producers that are responsible for safety, but under the regulations covering medicine, both producers and sellers are held responsible." He said Li's remarks reflect the central government's determination to supervise the dairy industry and rebuild its reputation. Dong added that food safety issues are managed by several departments, which tend to shirk their responsibility when food safety scandals are exposed. At the meeting, Li vowed to launch special campaigns to ensure the safety of milk products, supervise milk sources, standardize manufacturers and sellers of baby formula, and punish companies that do not meet the standard. Domestic brands of high-quality milk powder should be built up to regain consumers' trust, Li said. Domestic dairy industry sales slumped in 2008 after Sanlu Group was found to have adulterated its infant formula with melamine, a chemical compound used to make plastic. Six children died from drinking the milk, and at least 300,000 others became ill. Li said the quality of dairy products

AgriBusiness & Food Industry w July 2013

for babies has improved in recent years after the government took a series of measures to enhance supervision. However, there are still many factors that can affect the quality of milk products. Wang Dingmian, former chairman of the Guangdong Provincial Dairy Association, said foreign milk brands are expanding from China's high-end markets in big cities to smaller cities, making a revival for domestic brands even more difficult. Domestic brands held about 70 per cent of market share before the Sanlu milk scandal. However, four major foreign brands accounted for almost half of the market share in China last year, Wang said. Liu Nan, a 30-year-old mother working at a public relations company in Beijing, said she always buys imported milk powder for her 5-month-old baby, asking her colleagues who go to Hong Kong frequently for business trips to bring back milk powder. "With the problems that keep occurring in our dairy industry, who dares to buy domestic milk powder for their baby?" she asked. "Most families have only one child, and they would rather spend more money buying imported milk." To deal with growing demand from China, some countries, including Australia, New Zealand and Germany, have introduced quotas on milk powder purchases, according to the Shanghai Securities News. Li said a regulation on online sales of baby milk products should be introduced as soon as possible, and the government will enhance supervision and regulation of imported milk powder. It will put forward relevant policies to support standardized large dairy milk farms, encourage the merger and acquisition of milk powder companies, and promote the milk industry's development, Li said. Gu Jicheng, secretary-general of the Dairy Association of China, said in May that the National Development and Reform Commission is expected to allocate 1 billion yuan (S$201 million) this year to secure milk sources.

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Panel recommends another 1-year ban on China’s milk & milk products

n inter-ministerial panel has recommended extending ban on imports of milk and its products from China for one more year as the neighbouring country has not provided any data addressing the safety concerns. India had imposed ban on Chinese milk and its products in September 2008 due to presence of melamine, used for making plastics and fertiliser. The ban has been extended every year and will expire on June 23, this year. “Ban on import of milk and milk products from China may be extended for a period of one year from June 23, 2013 unless there are dependable reports available about a significant improvement in the situation,” said an advisory issued by the Food Safety and Standards Authority of India (FSSAI)

after the inter-ministerial committee (IMC) meeting. The committee, headed by FSSAI chief, met early this month to review the ban on Chinese milk products like chocolates and chocolate products, candies, confectionary, and food preparations made with milk or milk solids. “The IMC recommended extension of ban because China has not been able to provide required data showing improvement in the situation with regard to milamine content,” a senior FSSAI official said. However, the final call on this issue will be taken by the Directorate General of Foreign Trade (DGFT) under the Commerce Ministry, he added. More than a dozen countries in Asia and Africa have banned milk and dairy product imports from China due to melamine content, the dangerous chemical that can cause kidney stones as well as failure of the organ. India, the world’s largest milk producer, does not import milk products from China, but the ban is being imposed as a preventive measure. The country’s milk production is estimated to be 133 million tonne in 2012-13.

Maahi expanding its presence in Saurashtra-Kutch region

n the land of dairy cooperatives, a small dairy products company Maahi Milk Producer Company, has started making its presence felt. Starting operations this March, Maahi which currently sells milk and milk products in the Saurashtra-Kutch region and Ahmedabad region in the state, has already touched 300,000 litres of pouched milk sales per day. While Maahi currently co-brands its products with Mother Dairy, it plans to go solo in around six to eight months time once it gains some foothold in the regional market. The target is to grow by 30 per cent by next year. The National Dairy Development Board (NDDB) which owns the Mother Dairy brand had come up with the idea

to float an independent dairy produce and marketing company moving away from the traditional cooperative model. Maahi Milk Producer Company was thus registered on June 7, 2012, and it started operations from March 18 this year. "There is no investment of either the NDDB or the government in Maahi, it has been formed solely with contribution from farmers. The producers are actively and directly involved in the company," said M M Bhatt, chief executive officer of Maahi Milk Producers Company. He added that NDDB had come up with an alternative to the cooperative model, whereby decision making process would be faster and also minimal or no political interference.

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Flavoured milk demands will spur growth in dairy: Tetra Pak

he rising demand for flavoured milk, the second most consumed liquid dairy product after white milk, would spur growth for dairy companies in countries such as India and China, according to a study by Tetra Pak, the food processing and packaging solutions firm. The study reveals that developing countries including China, India, Indonesia and Brazil will drive the demand for flavoured milk globally over the next three years. The consumption of flavoured milk globally will grow at more than double the rate of white milk by 2015. The flavoured milk is expected to grow by 4.1 per cent at a compounded a n n u a l growth rate (CAGR) between 2012 and 2 0 1 5 , outpacing t h e forecasted growth of 1.7 per cent for white milk and 2.4 per cent for liquid dairy products as a whole during the same period, Tetra Pak said. Consumers are increasingly turning to tasty, nutritious and conveniently packaged flavoured milk as an alternative to other beverages, creating opportunities for dairies to improve profitability, Tetra Pak said. “With white milk increasingly commoditised, flavoured milk offers dairies the opportunity to provide value not only to consumers but to their bottom line,” said Dennis Jönsson, President and CEO of Tetra Pak Group, in a statement. “With the right flavours, portion sizing and formulation, flavoured milk can meet a huge range of health, nutritional and lifestyle needs.” In India, the increase in flavoured milk consumption will be spurred by economic growth, urbanisation and rising prosperity, said Kandarp Singh, Managing Director of Tetra Pak South Asia Markets.

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SCENARIO OF INDIAN FOOD INDUSTRIES Scenario of Indian Food Industries : India is the world's second largest producer of food next to China but accounts for less than 1.5% of International Food Trade. The Indian Food Sector is poised for a rapid growth and has potential to become reliable outsourcing partner in the Food Industry given its strength in primary Food Sector. The Indian Food brands are now rapidly increasingly finding prime shelf space in the retail chains across US and Europe. Potential Sectors : Prominent among the areas waiting to be tapped are canning, packaging, refrigeration for dairy, poultry, fisheries, meat, ready to eat products, cereals and grains, soft drinks consumer product groups like confectionery, chocolates, coco products, soya-based products, mineral water, high protein foods and nutraceuticals, apart from health food and health food supplements, a rapidly rising segment of the food processing industry. Govt. Support : Ministry of Food Processing Industries has prepared a Vision 2015, targeting an increased level of processing of perishables from 6% to 20%. The Government has also approved proposals for joint ventures, foreign collaboration, industrial licenses and 100% EOUs envisaging an investment of Rs. 19,100 crores (US $ 4.80 billion) during the same period. Out of this, foreign investment is over Rs. 9100 crores(US $ 2.2 billion). FDI in Retail :

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