Saarc Oils & Fats Today- January Issue

january 2012, SAARC OILS & FATS TODAY

SAARC OILS & FATS Today, january 2012

january 2012, SAARC OILS & FATS TODAY

Chief EDITOR S. Jafar Naqvi Hon. Advisory Board Dr. A. K. Vasishtha Dr. I. A. Siddiqui G.G. Patel Ajay Tondon O. P Goenka Dr. S. K. Saxena Consulting Editors T.V. Satyanarayanan K Dharmarajan Editorial Co-ordinator Syed M K General Manager Lalitha V Rajan Production Mohd. Iqbal HYDERABAD 9248669027 mediatodayhyd@yahoo.com MUMBAI 9702903993 mumbai.office@mediatoday.in Bangalore 9342185915 bangalore.office@mediatoday.in PUNE 9881137397 pune@mediatoday.in ADMN. & MARKETING OFFICE MEDIA TODAY PVT. LTD. T-30, 1st Fl., KHIRKI EXTN., MALVIYA NAGAR, NEW DELHI - 110017. PHONE : 91-11-26681671, 26682045 TELEFAX : 91-11-26681671 E-mail: mediatoday@vsnl.com ANNUAL SUBSCRIPTION India: Rs.1000/-for 1 Year / Rs.1950/-for 2 Years Overseas: US$ 120 for 1 Year / US$ 230 for 2 Years Single Copy Cost in India : Rs. 60.00 Printed, Published & 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

ISSUE 4 Vol. 14 January 2012 ‘Saarc Oils & Fats Today’ T-30, Ist Floor, Khirki Extn., Malviya Nagar, New Delhi - 110017 E-mail : MediaTodayMails@gmail.com

SAARC OILS & FATS Today, january 2012

Contents v Editorial

5

v Research l 12 Facts on Palm Oil and Palm Olein

6

l Neutraceutical and Medicinal Applications of 20 Phospholipids — Prof. Patrick Adlercreutz

v Processing Quality Aspects in Soya Processing 8 — M K Tripathi, Krishna Jha

v Agriculture Agriculture in India with Special Focus on Soyabean 14 — J. S. Pangaria, v Technology Science and Technology of Mozzarella Cheese — Atanu Jana v Feed Industry A Novel Technology to Provide Complete Feed to Dairy Animals for Enhancing their Productivity — T K Tiwalli v Bio-fuels Missing Factors in Indirect Land-use Change — Sigurd Naess-Schmidt

v Mustard Oil Mustard oil’s powerful flavour makes it an ideal medium for Indian cooking v News

16

22

26

30 32

Like coconut and mango in India, olives, traditionally grown in the Mediterranean region, are known for their versatility. While the uses of olives are many, this crop can have one more feather added to its cap, if it helps to green the desert state of Rajasthan.

Encouraged by the success of field trails in the state-owned farms, plans are afoot to promote olive cultivation in private farms in Rajasthan in a big way.

If all goes well, about 300 hectares would be brought under olive cultivation in about a year.

The promoters of the project, Rajasthan Olive Cultivation Ltd (ROCL) are optimistic about covering in the next three years about 5000 hectares under olives by adopting a cluster approach. Such an approach – say, clusters of 50 hectares each – would help provide to the farmers hassle-free and cost-free technical consultancy in the initial years. The stakeholders in ROCL’s project are Rajasthan Agriculture Marketing Board, Plastro Plasson Industries, an Israeli company which has successfully cultivated olives in the southern parts of that country, and Indolive Ltd., an Israeli agriconsultancy firm.

Normally an olive plant starts yielding fruits from the fourth year and farmers taking to olive cultivation can, in the meantime, earn some income by growing pulses like chick pea and green gram as intercrops.

While ROCL would distribute seedlings to farmers, the government would offer 75 per cent subsidy for purchase of planting material. In addition, the growers would be entitled to 90 per cent subsidy on use of latest drip irrigation equipment, which can save as much as 40 per cent more water than the earlier models. Drip irrigation techniques are particularly important in a state like Rajasthan having limited water sources, most of which are used for growing cereal crops.

The olive varieties to be planted have been selected from those which have done well in Israel, which has many climatic and cultivation-technique similarities with Rajasthan.

...........................................................................................................................................................................................

Editorial The project was envisioned under a general agreement concluded by Rajasthan and Israeli governments five years ago. The two governments took about a year to work out the details after which a joint venture agreement was signed.

While Rajasthan government is keen that the farmers should try out olives, the farmers on their part seem equally enthusiastic, as was evident from the flood of queries on the techniques of olive cultivation at an agritech exhibition held in Jaipur.

Besides Rajasthan, some other states have also been showing interest in promoting olive cultivation, since the demand for olive oil, credited with having immense health and nutritional value, is on the rise all over the world. The Gujarat government, for instance, has funded a pilot project for which Sardarkrushinagar Dantiwada Agricultural University (SDAU) has tied up with Israeli company Asia Everest Limited (AEL). The project seeks to grow olives on a large scale to help the farmers to earn more.

A discordant note, however, has come from Punjab, where there has been no proper follow-up action after having announced an ambitious olive cultivation project three years ago. Plans had been finalized by Punjab Agro Industries Corporation, with Indolive as its partner in the project, for which 400 acres had been identified at Ladhowal.

On the other hand, the project promoters in Rajasthan sound confident. However, they have to keep in mind the fact that success depends on a number of factors. Since the state is not a natural olive growing region, problems can crop up that need to be tackled effectively. Cost of cultivation, yield levels, pricing and marketing are all important issues that would have a bearing on the overall performance.

Nevertheless, if the project does make a mark, it would definitely be a creditable achievement towards improving the lot many poor farmers and transforming the state’s landscape.

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 “SAARC Oils & Fats Today” editorial board. The magazine 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

january 2012, SAARC OILS & FATS TODAY

Research

12 Facts on Palm Oil and Palm Olein

Significant scientific findings and propositions arise from painstaking efforts in many laboratories. Once these observations withstand the security of time and re-evaluation by peer review they eventually become accepted as FACTS. Research has confirmed and established many scientific facts about nutritional effects of palm oil, twelve of which are presented here. Each fact has been thoroughly examined and evaluated by scientists dedicated to discovering scientifically proven data about palm oil regardless of popular perceptions or misconceptions.

The scientific experiments of which these facts are based have been conducted in some of the world’s most respected laboratories, using methods based on universally approved principles, to render them worthy of international acceptance.

This compilation of documented facts on the nutritional effects of palm oil has been published in full or in part in international scientific journals and is endorsed by committees of several of the most recognized and respected nutrition scientists in this field. (Refer : MPOPC Health, Nutrition and Palm Oil: A Compilation) A Compilation of the Nutritional Effects of Palm Oil and Palm Olein

hydrogenation for use as a fat component in foods and , as such, does not contain trans fatty acids. (3,4) FACT 1 Long Record of Safe Use Palm oil has been a safe and nutritious source of edible oil for healthy humans for thousands of years.

FACT 2 Consumed Worldwide Palm oil and its liquid fraction, palm olein, are consumed worldwide as cooking oils and as constituents of margarines and shortenings; these oils are also incorporated into fat blends used in the manufacture of a variety of food products as well as in home food preparation.

FACT 3 Excellent Dietary Energy Source Like other common edible fats and oils, palm oil is easily digested, absorbed and utilized in normal metabolic processes. It plays a useful role in meeting energy and essential fatty acid needs in many regions of the world.

FACT 4 Free of Cholesterol and Trans Unsaturated Fatty Acids Palm oil, like other vegetable oils, is cholestrol free. Having a moderate level of saturation, it does not require

SAARC OILS & FATS Today, january 2012

FACT 5 Rich Carotenoids Red (unprocessed) and red or golden (specially refined) palm oils, the major cooking oils in many parts of the world, are rich sources of beta-carotene, an antioxidant and precursor of Vitamin A and tocotrienols, all of which have antioxidant properties.

FACT 6 Vitamin E Antioxidants Palm oil and palm oil products are naturally occuring sources of the

Research antioxidant vitamin E constituents, tocopherols and tocotrienols. These natural antioxidants act as scavengers of damaging oxygen free radicals and are hypothesized to play a protective role in cellular aging, atherosclerosis and cancer.

FACT 9 Palm Oil is Not Palm Kernel Oil or Coconut OilPalm oil from the fruit of the palm is physically and chemically different from either palm kernel oil which is derived from the seed, and from coconut oil, both of which are highly saturated.

FACT 7 Balanced Fatty Acid Composition Palm olein contains a mixture of polyunsaturated, monounsaturated and saturated fatty acids. The relative concentrations are 44% oleic acid, 10% linoleic acid, 40% palmitic acid and 5% stearic acid. The concentrations of palmitic and oleic acids are reversed in unfractionated palm oil i.e. 44% and 40% respectively. The fatty acid composition of palm oil is similar to that of the adipose tissue in most people on an ordinary diet.

FACT 1 0 Favourable Nutritional Studies Human feeding studies and epidemiologic data have shown that palm oil or palm olein do not ordinarily raise blood cholesterol levels in direct comparison with olive or canola and peanut oils. In several such studies blood cholesterol was reduced from entry level values and palmitic acid (16:0) was found equivalent to oleic acid (18:1) insofar as it affected cholesterol metabolism. A balance between linoleic (18:2) and palmitic (16:0) acids may be required to maximize HDL levels. (14) Substitution of palmitic acid (16:0) from palm oil or palm olein for the lauric acid (12:0) and myristic acid (14:0) combination from palm kernel or coconut oils leads to a decrease in plasma and LDL cholesterol. Of several fats tested, including a fat blend approximating

FACT 8 Provides Linoleic Acid: An Essential Fatty Acid Palm oil triglycerides carry linoleic acid predominately in the 2-position, which favours absorption and availability for use in the body.

American intake, a palm oil-enriched diet fed to hamsters induced the highest level of protective HDL-chlolesterol and the greatest production of liver LDL receptors, key to removal of harmful LDL-cholesterol from the blood.

FACT 11 Anti-Thrombotic Rats fed a palm oil-enriched diet have a reduced tendency for blood clotting.

FACT 12 Inhibits Cancer Growth Red palm olein is a major source of carotenoids which effectively inhibit some types of cancer. A diet containing palm oil, compared to diets based on other oils but which provide the same number of calories, exerted an inhibitory effect on the development and incidence of experimentally-induced breast cancer in rats. It has also been shown that the tocotrienols present in palm oil inhibit the growth of cancer cells in vivo as well as in vitro.

n

january 2012, SAARC OILS & FATS TODAY

Processing

Quality Aspects in Soya Processing — M K Tripathi, Krishna Jha Agro Produce Processing Division, CIAE (ICAR), Nabi Bagh, Baresia Road, Bhopal – M. P.

S

oyabean belongs to the family Leguminosae. On an average, dry soybean contains 40% protein, 20% oil, 35% carbohydrate, and 5% ash (Table 1). Thus, soybean has the highest protein content among cereal and other legume species, and the second-highest oil content among all food legumes.

Broadly speaking, it can be used as human food, animal feed, and industrial material. Currently, the majority of annual soybean production is crushed into oil, for use in foods and food processing, and defatted meal, for use as animal feed. Only a small fraction is processed into whole-bean foods for direct human consumption. Medical research continues to elucidate the role of soy in preventing and treating such chronic diseases as heart disease, cancer, and bone diseases.

Thousands of studies in vivo and in vitro, with animals and human subjects have shown that soybean and soy components have many health-promoting effects, including hypocholesterolemic, anticancer, and antioxidant. Regular consumption of soy can help reduce heart disease, prevent breast and prostate cancers, improve bone health and memory, and alleviate menopausal symptoms in some women. Many types of biologically active components have been shown to be partially responsible for these effects. Although isoflavones have been recognized as key components responsible for the health promoting effects, many other bioactive components of soybean are also of interest, such as lecithin, saponins, lectins, oligo saccharides, and trypsin inhibitors. Most of these components are traditionally known as antinutritional factors, but now - are known as phytochemicals. These

components, although present in small quantities, can exert some unique health benefits for animals and humans.

The Chemical composition include moisture, protein, Nitrogen Solubility Index (NSI), 7S /11S proteins, Protein Dispersbility Index (PDI) , amino acids, lipoxygenase, Trypsin Inhibitor (TI), oil, fatty acids, fiber, sugars and isoflavones.

The level, plus presence or absence of these characteristics is generally referred to as Quality. High quality soybean have desirable levels of certain characteristics or combination of characteristics. The microbial and sensory quality standards are also very important issues.

Soya and Food Pyramid Soyafoods can be an important part of a healthy diet as proscribed by the new USDA food pyramid. Most

SAARC OILS & FATS Today, january 2012

soyafoods contain no cholesterol, little or no saturated fat, high quality protein, and dietary fiber. Many soyafoods also provide essential vitamins and minerals, such as B vitamins, vitamins A and D, calcium, iron, and potassium. Soy protein may help to reduce the risk of heart disease by lowering cholesterol and increasing the flexibility of blood vessels. Soybeans also contain important bioactive components. that have begun to show promise in relieving menopausal symptoms, maintaining healthy bones, and preventing cancer.

Soyabean Grain lSoya cereal lSoya Grits lSoya waffles lSoya pasta lSoya bread lSoya flour.

Consuming at least three or more ounceequivalents of whole grains per day can reduce the risk of several chronic diseases

Processing Table 1: Nutrients and Photochemicals in Soyabeans (Dry Basis) Biomolecules

all eight of the essential amino acids.

Amount (%)

Soya food composition: The biochemical composition, different sources and important role of soy food ingredients is given in Table 2.

Protein 36-50 Oil

12-30

Carbohydrates

26-38

Ash 4.61-5.94

Traditional Soy Foods These include variety of food products generally consumed by the population of orient.

Isoflavones

0.1-0.4

Saponins

0.1-0.3

Phytate

1.0-1.5

Phytosterols

0.3-0.6 (mg/g)

Trypsin inhibitors

16.7-27.2 (mg/g)

Lectin

1.2-6.0 HU* / mg protein

Lunasin

0.33-0.95% defatted flour

and may help with weight maintenance.

Soya flour is part of this group. Substitute up to one-fourth of the total flour in your favourite backed product recipe.

Vegeables: Green soyabeans (edamame) l Canned soyabeans l Soyanuts l Onehalf cup of green soyabeans (edamame) contains 10 grams of soya protein. All soyabeans are a good source of dietary fiber and isoflavones.

Fruits: No soya-based foods in this category. Any fruit or 100% fruit juice counts as part of the fruit group. Fruits may be fresh, canned, frozen, or dried, and may be whole, cut-up, or pureed.

Oils: Soyabean oil (also called vegetable oil) Soyabean oil is rich in polyunsaturated fat and contains only minimal saturated fat. Fats, like soyabean oil, are needed to regulate your body temperature. Fats, like soyabean oil, help transport fat-soluble vitamins throughout your body. Soyabean oil is a rich source of omega-three fatty acids. Soyabean oil, labeled “vegetable oil,� is a good source of the antioxidant Vitamin E. Milk: Soya beverage lSoya cheese l Soya yogurt lSoya ice-cream.According to the new USDA food guidelines, protein choices for those who do not consume milk products include calcium-fortified I soy beverages, soybeans, soy yogurt, soya cheese, and tempeh. Soy ice cream products are a part of this group, but do not contain as much calcium or protein as the other soy products in this group.

Thousands of studies in vivo and in vitro, with animals and human subjects have shown that soybean and soy components have many health-promoting effects, including hypocholesterolemic, anticancer, and antioxidant. Regular consumption of soy can help reduce heart disease, prevent breast and prostate cancers, improve bone health and memory, and alleviate menopausal symptoms in some women.

Meat and Beans: Soya burgers l Soya hot dogs l Soya nuggets l Soya burger-type crumbles l Tofu l Soyanuts l Canned soyabeans l Green soybeans (edamame) l Soyanut butter. According to the new USDA food guidelines, protein choices in this category include all of the above listed soyafoods. Soybeans are a source of high quality protein and include

Soya Flour (50% protein): Soya flour made from roasted soybeans protein boost to recipes.

However, defatted soy flout is an even more concentrated source of protein than full-fat soy flour. Soy flour is gluten-free, so yeast-raised breads made with soy flour are denser in texture. There are three kinds of soy flour available: Natural or full fat, which contains the natural oils found in the soybean; defatted, which has the oils removed during processing; and lecithinated, which has had lecithin added to it.

Hydrolyzed Vegetable Protein (HVP): Hydrolyzed vegetable protein (HVP) is a protein obtained from any vegetable, including soybeans. HVP is a flavor enhancer that can be used in soups, broths, sauces, gravies, flavoring and spice blends, canned and frozen vegetables, meats, and poultry.

Lecithin: Extracted from soybean oil, lecithin is used in food manufacturing as an emulsifier in products high in fats and oils. It also promotes stabilization, antioxidation, crystallization, and spattering control.

Soy Protein, Textured (Flour or Concentrate): Textured soy protein usually refers to products made from textured soy flour and soy protein concentrates. Textured soy flour is made by running defatted soy flour through an extrusion cooker, which allows for many different forms and sizes.

It contains 50 percent protein as well as the dietary fiber and soluble carbohydrates from the soybean. When hydrated, it has a chewy texture. It is widely used as a meat extender, sold dried in granular and chunk style and is bland in flavor.

january 2012, SAARC OILS & FATS TODAY

Processing Table 2: Soya Ingredients and their Applications S. No. Soya Ingredients

Applications

1.

Soya flour (50% protein)

From roasted soyabean, glutin-free, 3 types-a) Natural (full-fat) b) Defatted c) Lecithinated

2.

Hydrolyzed vegetable protein (HVP)

Flavour enhancer (Used in soups, broths, sauces, gravies)

3.

Lecithin (from soya oil)

As emulsifier (In high fats & oils containing food products), Promote stabilization, Antioxidation, Crystallization

4.

Soya protein, Flour: 50% protein, dietary fibre and soluble carbohydrates.

Textured As meat extender

(Flour & concentrate) Concentrate: 70% protein and dietary fibre

Texture of meat products 5.

Soya grits

6.

Soya protein isolates

Soya flour (except in pieces) 90% protein Protein removed from defatted flakes.

Most highly refined soya protein.

Highly digestible source of amino acids.

7.

Soya protein Concentrate

70% protein Most bean’s dietary fiber.

8.

Soya fibre (Okara, soyabran, soya isolate fibre)

Inexpensive source of dietary fiber.

Product during processing Soya isolates fiber - called structural protein fiber.

Protein isolates in a fibrous form.

9.

Soyabean oil and product

Cholesterol free.

Polyunsaturated fat rich.

Textured soy protein concentrates are made by extrusion and are found in many different forms and sizes and contain 70 percent protein as well as the dietary fiber from the soybean. When hydrated, they have a chewy texture and contribute to the texture of meat products.

Soya Grits: Soya grits are toasted soybeans cracked into coarse pieces. Soya grits can be used as a substitute for flour in some recipes. High in protein, soy grits can be added to rice and other grains and cooked together.

Soya Protein Isolate (Isolated Soy Protein) (90% protein): Containing 90 percent protein, soy protein isolates possess the greatest 10

amount of protein of an soya products.

They are a highly digestible source of amino acids (building blocks of protein necessary for human growth and maintenance). Isolates’ are bland in flavor.

Soya Protein Concentrate (70% proteins): Soya protein concentrate comes from defatted soy flakes. It contains 70 percent protein while retaining most of the dietary fiber. It is a highly digestible source of amino acids and is bland in flavor.

Soya Fiber (Okara, Soya Bran, Soya Isolate Fiber): There are three basic types of soy fiber: okara, soy bran, and soy isolate fiber.’ All of these products are high

SAARC OILS & FATS Today, january 2012

¬quality, inexpensive sources of dietary fiber. Soy bran is made from hulls (the outer covering of the soybean), which are removed during initial processing. The hulls contain a fibrous material that can be extracted and then refined for use as a food ingredient. Soy isolate fiber, also known .as structured protein fiber (SPF), is soy protein isolate in a fibrous form.

Soybean Oil & Products: Soybean oil, the natural oil extracted from whole soybean, is cholesterol free and high in polyunsaturated fat. Soybean oil also is used to make margarine and shortening.

Green Vegetable Soybeans (Edamame): These large soyabean are harvested when the beans are still green and sweet

Processing Table 3: Biochemical and physical quantity standard

tasting and can be served as a snack or a main vegetable dish after boiling in slightly salted water for 15-20 minutes. They are high in protein and fiber and contain no cholesterol. Green soybeans are sold frozen in the pod and shelled.

Soya Beverages: Soy beverages can be made with soymilk or ‘isolated soy protein. Flavorings or fruit juices may be added. They can be purchased ready to drink or in a dryÂŹpowder form to which liquid is added.

to other infant formulas except that a soy protein isolate powder is used as a base.

Carbohydrates and fats are added to achieve a fluid similar to breast milk.

The American Academy of Pediatrics says that for term infants whose nutritional needs are not being met from maternal breast milk or cow milk-based formulas, isolated soy protein-based formulas are safe and effective alternatives to provide appropriate nutrition for normal growth and development.

Soya Cheese: Soy cheese is made from soymilk.

Its creamy texture makes it an easy substitute for most cheeses, sour cream, or cream cheese and can be found in a variety of flavors. Products made with soy cheese include soy pizza.

Soyanut Butter: Made from roasted, whole soyanuts, which are then crushed and blended with soyabean oil and other ingredients, soyanut butter has a slightly nutty taste, significantly less fat than peanut butter, and provides many other nutritional benefits as well.

Infant Formulas, Soya-Based: Soya-based infant formulas are similar

Soya Yogurt Soya yoghurt is made from soyamilk.

Its creamy texture makes it an easy substitute for sour cream or cream cheese. Soya yoghurt can be found in a variety of flavours in natural food stores.

Nondairy Soya Frozen Desserts Nationally frozen desserts are made from milk soyamilk or soya yoghurt. Soya ice cream is one of the most popular desserts made from soyabeans.

Quality Standard for Different Soya Products The physical and chemical characteristics are usually measurable by methods reported in AACC, 2004. The most accepted standards or specifications for the specific soyabean products (Gandhi, 2009) are given in table 3,4 and 5.

january 2012, SAARC OILS & FATS TODAY

11

Processing

12

SAARC OILS & FATS Today, january 2012

4

AgriBusiness & Food Industry w November January 2012 2011

Agriculture

Agriculture in India with Special Focus on Soyabean

— J. S. Pangaria, Executive Director, SOPA

Country Overview India, an emerging economy, has witnessed unprecedented levels of economic expansion, along with countries like China, Russia, Mexico and Brazil. India, being a cost effective and labor intensive economy, has benefited immensely from outsourcing of work from developed countries, and a strong manufacturing and export oriented industrial framework. With the economic pace picking up, global commodity prices have staged a comeback and global trade has also seen healthy growth over the last two years.

Though primarily an agrarian economy, India’s GDP is driven mainly by growth of the services sector. Corresponding contribution by the agriculture sector has declined from nearly 34% (in 1990-91) to 17% (in 2009-10). With almost 80% of the population still in the rural regions, agriculture forms the driving force behind the Indian economy. Agriculture is the main employment generating sector-with nearly 52% of the Country’s labour force involved in the sector.

Over the past few years, robust 14

foreign capital inflows and domestic project investments have led to an increase in capital formation; swift recovery in consumption post the recent economic crisis, has led to a healthy rise in production of consumer durables.

Expected capacity additions and new projects have supported industrial production in 2010-11 and revival of global demand has resulted in an increase in exports.

Agriculture in India Globally, India ranks second in terms of farm output. India also leads the global Percentage Share of Productionunder Horticulture Crops during 2008-2009

Others 3%

Vegetables 60%

Plantation Crops 5%

SAARC OILS & FATS Today, january 2012

Fruits 32%

Source: Agricultural Statistics at a Glance 2010, Ministry of Agriculture

production of fresh fruit and accounts for early 10% of the world’s production of fruit. Despite the declining contribution of agriculture to the country’s GDP, it is still the largest economic sector and plays a significant role in the socio-economic development of the country. Agriculture in India is primarily rain dependant and crops are grown in two seasons: Kharif (July-Oct) & Rabi (Nov.-March). Approx.

49% of the land mass is arable is land, of which only ~35% is under irrigation. The south-east monsoons are considered as the primer source of rain for most of the cultivated crops in India, and over 60% of the arable land is rain-fed. Sugarcane, food grains, rice and wheat are the principal crops of India. Rashtriya Krishi Vikas Yojana (RKVY) aims to achieve 4% annual growth in the agriculture sector during 2007-2012 by providing access to materials, loans and subsidy for farming.

India Agro Sector Overview - SWOT 1. Strength: The Indian agriculture sector forms the backbone of the Indian economy and is the highest employment generator. The sector is large, competitive and well developed, offering products at low prices. Recent advances in technology and government initiatives support the development of the sector through increased adoption of farm automation and availability of information to farmers.

2. Weakness: Average farmland holdings are very small (20,000 sq. m), leading to lower rate of adoption of modern farming techniques.

Current agriculture practices are not economically sustainable, resulting in India’s yields for many commodities to be lower than world-wide averages. Lack of extensive irrigation facilities have resulted in more than 60% of farms being solely dependent on the monsoons especially for the Kharif crops.

3. Opportunity: Public and private sector investments in the agriculture sector have nearly doubled between 2004-05 & 2008-09. Government initiatives are being set up to promote a second wave of the green revolution focusing on states with heavy monsoon dependence. More than 10 mega food

Agriculture parks are being planned to be set up by 2015 indicating the government’s focus on food processing industry.

4. Threat: Rising environment concerns may pose a threat to increasing the area under cultivation - essential to boost production. Current government policy of support to cereal crops, by providing minimum support prices to certain crops does not provide farmers with incentives to diversify into production of other crops, leading to unbalanced production.

Inefficiencies in the value chain such as proper storage facilities and uncertainty in price trends result in the farmers taking ‘safe’ approach to farming. Though the, agriculture sector forms the driving force of the economy and is expected to continue receiving government support, several inefficiencies in the system need to be tackled in order to optimize the result of efforts.

Soybean Soybean, one of the major oilseed crops in the world, accounts for 57% of total oilseed production in the world.

Global production of soybean is dominated by the US, Brazil and Argentina - these countries together account for nearly 80% of the global production.

The global average yield for soybean is ~2.4 tonnes per hectare and the total production of soyabean has grown with a CAGR of 5.5% over the past decade. 85% of the world’s total soybean production is crushed for oil-edible oil recovery is around 17-18%; meal forms around 80%. The other uses of Soybeans are for preparation of food products such as soya milk, tofu, nuggets, flour and extruded proteins etc. Soy oil is mainly consumed for edible purposes.

Soy oil is mainly consumed for edible purposes.

Global Production & Demand of Soyabean 00-01 to 09-10

Other 5% Paraguay 3% India 4% China 6%

Soyabean Trends in India Globally, India ranks 5th in soybean production with total produce of 10 million tonnes (2010). India is the largest producer of non-GMO soybean in the world due to which it is the largest exporter of soy meal in Asia. Of the total soybean produced approx. 90% is crushed for oil & meal production & 10% kept for resowing & direct uses. Madhya Pradesh is the single largest Soybean producer in India contributing to 60% of the country’s total production, followed by Maharashtra 25%, Rajasthan 10% and all other states put together 5%.

Import -Export Trends India exports Soya meal and imports soy oil to satisfy demand for edible oil.

Currently approx. 80% of Soya meal produced is being exported. India is aiming to increase soy consumption through increased awareness and promotional campaigns.

Road Ahead - Demand Estimates Global soybean demand is estimated to grow to approx. 371 million tonnes in 2030 (CAGR of ~2% over 2010-2030.)

The demand from India’s soybean processing industry is currently estimated to be approx. 25mm tonnes annually; however it is already under supplied. With an increased focus on healthy eating, soybean has a great future in terms of domestic consumption within India as well. The government is looking at setting up initiatives to promote a positive outlook towards soy consumption, which is expected to register a growth of 6% annually over the next 5 years.

Supply Estimates While total area under cultivation is not expected to increase significantly, new high growing hubs are expected to develop in states such as Gujarat & Chhattisgarh. It is expected that the soybean production would grow at @5% p.a. over the next 5 years.

Government Support The Govt. of India has taken a proactive stand towards soybean cultivation. Soybean is among the list of crops that have been assured a minimum support price (MSP) by the Department of

Agriculture. NGOs such as the soybean Processors Association of India (SOPA) play a significant role in promoting soybean cultivation across India. The central and state governments have launched a scheme named ISOPOM (Integrated Scheme for Oil Seeds, Pulses, Oil-palm and Maize to accelerate production by providing subsidy for cultivating these crops.

Economic Environment Soybean prices in Indian market depend on several uncontrollable & un-predictable factors. Globally, the demand for soybean is higher resulting in a steady rise in prices in India as well.

Indian Oil extractors procure beans from the market based on soy meal demand.

Soya Oil price movement does not have a direct link with soybean price movement because it closely tracks the international edible oil market.

Consumer Preferences Soy products made form of soyameal, are slowly gaining acceptance in Indian households, however, usage is quite low currently. Bulk of India’s soy exports are in the form of soyameal to be used for feed application (Poultry, Aqua Piggery etc.).

Soya oil is essentially used as edible oil and is also imported in significant quantities.

Impact of Technology With continued research several new varieties of soybean are now under cultivation. New research initiatives are primarily focused on enhancing cultivation techniques. Research pertaining to developing newer varieties essentially focuses on lower dependence on rain, disease & pest resistant and shorter duration.

An Action Plan We need to implement Direct Seeding method in India which will help to increase productivity, retain moisture and organic materials in the soil, reduce soil erosion and degradation, and reduce cost of cultivation and to make agriculture more sustainable. The main objective should be to transform agriculture from sustainable to profitable, localized to globalized and production driven to market driven. n

january 2012, SAARC OILS & FATS TODAY

15

Technology

Science and Technology of Mozzarella Cheese — Atanu Jana SMC College of Dairy Science, AAU, Anand, Gujarat

M

ozzarella cheese is a soft, non-ripened cheese variety of the Pasta-filata family having its origin in Italy. The finished cheese, lightly salted, is white, soft, with a very lively surface sheen and has a unique property, stretch ability, especially in hot condition.

This makes it irreplaceable by any other type of cheese in the preparation of lasagna, veal cutlet alia parmagiana and as a topping on pizza. Mozzarella cheese has potential application as part substitution of young Cheddar cheese in preparation of Block processed cheese with attendant cost savings. The PFA specifications for such cheese are depicted in Table 1.

to mono-calcium paracaseinate, which provides the strings and sheen to the cheese .

The type of milk used, the ingredients used, the method of manufacture adopted and the storage conditions affects the functionality of the cheese when used as a pizza topping. Low pressure homogenization of cheese milk has a beneficial effect while high temperature pasteurization has a deleterious effect on Mozzarella cheese.

Technology of Mozzarella cheese making Mozzarella cheese can be made in several ways. The sequential steps include

Table 1: Classification of Mozzarella cheese as per PFA Class

Moisture, %

Fat on dry matter, %

Mozzarella

Min. 60.0

Min. 35.0

Pizza cheese

Max. 54.0

Min. 35.0

In India, Mozzarella cheese also referred to as Pizza cheese is invariably used as a topping on pizza pie. Its production has been boosted due to the emergence of the successful business enterprise, the pizza parlor.

Principle and chemistry of Mozzarella cheese making In ‘Pasta filata’ principle of cheese making, the smooth texture and grain of the cheese is achieved through a skillful stretching of curd in hot water. The cheese owes its characteristics mainly to the action of lactic acid on di-calcium paracaseinate. At a pH between 5.2 - 5.4, much of this compound gets converted 16

standardization of milk, pasteurization, cooling to setting temperature, culture addition/direct acidification, renneting, cutting and cooking of curd, draining of whey in part or in full, attaining the targeted acidity of whey/curd (especially cultured ones), contacting cheese curd with hot moulding water, stretching of cheese curd, chilling, brining followed by vacuum packaging and refrigerated storage. Pasteurized Mozzarella cheese has been prepared from raw milk, relying completely on the plasticizing water to inactivate ‘alkaline phosphatase’ enzyme in cheese with attendant saving in time and energy. The techniques that are being employed are as follows:

SAARC OILS & FATS Today, january 2012

I. Starter culture technique This method utilizes preferably thermophillic starter generally in 1:1 proportion. The fermentation time required by thermophilic culture is about 4.5-5.0 h when incubated at 40-420C. However, mesophilic starters (e.g. Sir. lactis, Sir. durans, Sir. faecalis) have been used especially for production of high-moisture Mozzarella cheese varieties. The thermophillic starters have advantage of shorter cheese manufacturing period and a different but subtle flavour profile. The desired pH of cheese curd at stretching is about 5.2-5.3.

The flavour of such cultured cheese is relished by the pizza consumers, when it is topped on pizza pie. Nevertheless, presence of antibiotic residues in milk or even bacteriophage in the cheese factory environment can have a detrimental effect on cheese making. Strict hygienic practices in starter propagation are inevitable, though availability of ‘direct-to-vat’ starters have simplified the procedures. High ratio of Sir. thermophilus/ Lb. helveticus (i.e.

10:1) gave superior meltability and oilingoff when fresh and during cold storage for 4 weeks compared to when using lower coccus:rod ratios.

II. Direct acidification technique In order to eliminate the use of starter culture, adoption of ‘direct acidification technique’ is another means to achieve the cheese curd with desired pH in a very short span (2-2.5 h excluding brining) compared to that required in ‘starter culture technique’. The problem faced by starter in presence of bacteriophage in cheese environment is completely

Technology avoided by adopting this method. The acids used in obtaining the ‘direct-acid cheese’ could be hydrochloric acid, lactic acid, glacial acetic acid, phosphoric acid, etc. The targeted pH of cheese curd at the time of stretching is somewhat higher (i.e. 5.4-5.6) than that kept for cultured cheese.

Directly acidified Mozzarella is functional from the day of its manufacture due to its characteristic soft body caused in part by its high moisture and low calcium content (Fox 2000). The lack of desired flavour, as inherent in cheese made by ‘culturing method’, can be tackled using selected spices, seasonings and vegetables as topping on pizza pie along with the shredded cheese.

Direct acidification continuous agitation method of Mozzarella cheese manufacture greatly facilitates the mechanization and continuous production of curd.

III. Modified cheese curd technique Plasticizing of cheese curd in hot moulding water leads to losses of fat (3.0-6.5%) and proteins (2.2-3.85%) in such water. An alternate technology for plasticizing the buffalo Mozzarella cheese curd in dry condition with emulsifying salts has been developed at Anand Agricultural University, Anand, Gujarat (Patel and Upadhyay, 1999). This method avoids such milk solids losses since curd is treated in dry condition (not using moulding water). In this technique, the cheese curd left after draining the whey completely at 0.42% LA is treated with 1.0-1.5% of emulsifying salts (tri-sodium citrate and di-sodium hydrogen phosphate (1:1)) along with salt (NaCl) added at the rate of 1.0% w/w of curd. The cheese curd was then heated to a temperature of 700C/10-15 min to attain the desired plasticity required in Mozzarella cheese.

The yield of cheese is also increased since in traditional technique the treatment of cheese curd with hot water leads to shrinkage of protein network in cheese curd, leading to slight loss in cheese weight. Another advantage is reduced firmness and chewiness of resultant cheese. Buffalo milk is reported to yield more chewy cheese than cow milk.

IV. Cheese from Ultrafiltration retentate Ultrafiltration (UF) is one of the membrane processes adopted for cheese milk. It is a method of fractionation as well as, concentration of milk (especially skimmed milk), which is operated at much milder temperature so that the nutrients of milk are not adversely affected and the process is quite energy efficient compared to conventional evaporation under vaccum.

The UF retentate is used for cheese making, instead of the bulky milk from which most of the water has been removed in form of ‘permeate’. The principle behind the manufacture involves separation of milk, UF of skim milk to obtain paste type retentate, concentration of cream and mixing it with UF retentate, culturing, renneting and then following the conventional steps. Ultrafitlered whole milk is concentrated to N 30% TS and ultrafiltered skim milk to ~18% TS and shipped to cheese makers for use in standardizing milk or supplementing existing milk supplies to increase manufacturing productivity. Diafiltration (adding water back to the ultrafiltered milk followed by ultafiltration again) is used to standardize milk with regard to fat, casein and lactose contents.

Advantages of using UF retentate for cheese making l It requires less vat capacity. l There is savings in rennet (70-85%) and starter. l It produces less whey having lower BOD. l Increased yield of up to 20% is made possible through incorporation of

whey proteins, which otherwise gets lost in conventional cheese making. l Improved control of cheese weight. l It can adapt to continuous cheese making.

Nevertheless, whenever any new process is adopted, it needs some modifications to tackle any problem posed by such process. Some modifications are essential to tackle the problems of high buffering capacity of the retentate, high viscosity of the pre-cheese mix and control of calcium and lactose content.

Some manufacturing lines like Firma Pasilac, Ridgeway Foods, Alfa-Laval Alcurd continuous coagulator and MMV process are utilizing UF process in the manufacture of Mozzarella cheese on commercial basis.

V. Mozzarella cheese analogue using processed cheese technique To produce Mozzarella cheese of ‘tailor-made’ specifications as dictated by the food retailers, scientists have come up with novel techniques of producing such cheese, more suited for pizza applications.

Further, these have additional scope for nutritional fortification, fat reduction, etc.

One method is to prepare ‘Mozzarellatype cheese’ by blending rennet casein and vegetable fat/dairy cream along with required functional additives. Such product is referred to as ‘Mozzarella cheese analogue’ or ‘Imitation Mozzarella cheese’. The latter product has ‘vegetable oil adjusted to specific melting point’ in place of ‘milk fat’.

A Mozzarella cheese analogue (MCA) has been prepared from rennet casein and dairy cream using functionaladditives like stabilizer, emulsifying salt,

Table 2: Typical formulation for Mozzarella cheese analogue Ingredients

per cent, w/w

Partly hydrogenated vegetable oil or dairy cream*

20.00

Rennet casein

27.00

Emulsifying salt 3.00 Starchy material

2.00

Salt

1.50

Enzyme modified cheese flavour

0.50

Acidulant

0.36

Water 45.64 * Water will vary depending on fat content of cream, if used. january 2012, SAARC OILS & FATS TODAY

17

Technology starch derivative, acid, cheese flavouring and water (Table 2). The product can be obtained in just 30-40 min instead of conventional cheese making which requires about 7 h by ‘starter culture’ or 2.5 h by ‘direct acidification’ techniques.

The MCA had all the functionalities sought after from a natural milk-based Mozzarella cheese viz., shredability, meltability and fat leakage.

A patented method for processed Mozzarella cheese that does not require any ageing or refrigeration during storage, involves dicing Mozzarella cheese curd, adding 0.5% Na-citrate as emulsifying salt and thermo-mechanically treating in a twin screw extruder (50 rpm) to stretch and cook (900C/90 sec.) the curd. The product had shelf life of 45 days.

Chemical composition of Mozzarella cheese The composition of Mozzarella cheese will depend on the type of milk, standardization for casein/fat or fat, cooking temperature, which in turn decides the final moisture content of cheese. The proximate composition of cow and buffalo milk Mozzarella cheese is shown in Table 3.

Composition of cow and buffalo mil Mozzarella cheese.

Baking characteristics of Mozzarella cheese for pizza applications In India, people use Mozzarella cheese as a topping on pizza pie, wherein the cheese is expected to perform certain functions. Some of the ‘sought-after characteristics’ include shredability,

Table 3: Composition of cow and buffalo milk Mozzarella cheese Constituents

Composition %

Cow Mozzarella

Buffalo Mozzarella

Moisture

50.30 49.81

Fat

24.80

23.05

Protein

20.31

22.35

Ash

2.76

2.96

Salt

1.72

1.56

Acidity, % LA

0.73

0.67

Source: Ghosh and Singh (1996) Table 4: Baking characteristics of Pizza cheese Properties

Description

Shredding

Cheese should be firm enough to shred. Soft and gummy cheese shreds poorly and clogs up mechanical shredders. The shredded particles should resist clumping.

Stretchability

It is the ability of the melted cheese to form fibrous strands that elongate without breaking under tension; also referred to as stringiness. Cheese must exhibit stretch and elasticity, but should not be tough and overly chewy.

Meltability

It refers to the capacity of cheese particles to coalesce to a uniform continuous layer of melted cheese. The cheese must melt readily but not excessively so as to become soupy.

Oiling-off

It is the tendency of free oil to separate from the melted cheese body and form oil pockets, particularly at the cheese surface. A moist appearance due to slight oil release is desired; cheese should not release pools of oil onto the cheese surface.

Browning

It is characterized by formation of a skin-like layer containing coloured patches that may range from light or golden brown to black. The cheese should not take on a burnt appearance, although acceptable intensity of browning can vary greatly depending on market expectations.

18

SAARC OILS & FATS Today, january 2012

meltability, stretchability, fat leakage, browning, etc.

Ageing of Mozzarella cheese Freshly manufactured Mozzarella is unacceptable as a pizza ingredient since it melts to a tough, very elastic and somewhat granular consistency with poor water holding capacity and limited stretch.

The cheese requires about 10 days in order developing its desired flavour and body-texture and optimum functionality for use on pizza. The proteolytic breakdown during refrigerated storage brings about such desirable changes.

Packaging technology Modified atmospheric packaging in laminate comprising of LLDPE/BA/ Nylon-6/BA/LDPE of 110 u pack having atmosphere of 100% CO2 has been found to retard microbial growth, oxidation reaction as well as enzymatic reactions leading to extended shelf life of 12 weeks when stored at 70C. It can be used as an alternative to vacuum packaging for Mozzarella cheese.

Defects in Mozzarella cheese Some of the defects that maybe encountered in Mozzarella cheese includes: (a) Soft body, (b) Soft rind, (c) Soft and slimy surface, (d) mould growth, etc.

Conclusions The booming of ‘pizza parlors’ has given an impetus to Mozzarella cheese production and the perception of the today’s consumer has not remained traditional. Varied customers want to enjoy food of a particular specification. It is the challenge for the cheese manufacturer to cater to their needs through research and development in those areas. The form in which the cheese is sold i.e. shredded cheese or powdered cheese is going to offer convenience to the consumers and the food retailers alike. The adoption of advanced technology will entail modification in the existing procedures of pizza cheese manufacture so as to avail of the benefits of the recent technology for ‘value-addition’. n E-mail: atanujn @gmail.com

Research

Neutraceutical and Medicinal Applications of Phospholipids

— Prof. Patrick Adlercreutz Department of Biotechnology, Sweden

Source of Phospholipids For practical applications, phospholipids can be extracted from natural sources or be synthesized using chemical or enzymatic methods. Important natural sources of phospholipids include soybean, egg and krill. Both the relative amounts of different phospholipids classes and their fatty acid composition vary considerably depending on the source.

Phospholipids from oil crops are available in large quantities as side products from the production of vegetable oils.

Chemical Synthesis of Phospholipids Chemical synthesis of phospholipids from simple building blocks is possible, but rather laborious. It should be kept in mind that phospholipids contain an asymmetric carbon atom and in many applications only the naturally occurring enantiomer is desired. Therefore, semisynthetic strategies are attractive. In this case, a natural phospholipid is used as raw material, providing the backbone of the molecule with the correct configuration.

The parts of the natural phospholipid (fatty acids or polar group) which do not match with the target molecule are then exchanged using chemical or enzymatic methods.

Chemical phospholipid synthesis has been excellently described in the literature.

This presentation will focus on enzymatic modification of natural phospholipids, which is an attractive approach for the production of phospholipids for food, neutraceuticals and pharmaceutical applications. Both fatty acids and the polar group of phospholipids can conveniently be exchanged using phospholipases or lipases as catalysts. Some of these reactions are carried out in low water media to avoid the hydrolytic reactions which these enzymes normally catalyze.

The exchange of the fatty acid in the snl position is normally carried out using a lipase as catalyst. The lipases which are 1,3¬ specific in the conversion of triacylglycerols are often specific for the sn-1 position of phospholipids. The fatty acid exchange can be carried out in one 20

or two steps. In the one-step approach, the original phospholipid and an excess of the fatty acid to be introduced are used as substrates in a low-water medium and the lipase catalyses the sn-1 specific fatty acid exchange. In the two-step approach, the same lipase can be used to catalyze first the hydrolytic removal of the original fatty acid in the sn-l position and, after physical removal of that fatty acid, the new fatty add is incorporated in an esterification reaction in a low-water medium. The two-step approach is more laborious, but can give products of higher purity.

In an analogous way, phospholipase A2 can be used to exchange the fatty acid in the sn- 2 position of phospholipids, and for exchange of the polar group, phospholipase D is a useful catalyst which accepts a broad range of natural and unnatural polar groups for incorporation into the phospholipids.

Application of Phospholipids In neutraceutical and pharmaceutical applications, phospholipids are used either to supply a specific type of fatty acid or as an additive, aiding in the formulation of the drug. Concerning supply of specific fatty acids most interest has been focused on long-chain omega-3 fatty acids (LC-PUFAs), which are health promoting for both humans and animals.

These fatty acids are quite sensitive to oxidation and the mild conditions used in enzymatic processing constitute a definite advantage compared to chemical processing. It has been shown that LCPUFAs are more efficiently supplied to fish larvae in the form of phospholipids than in the form of normal fish oil. The growing fish larvae require both the LCPUFAs and phospholipids and supplying these in the same molecule promotes their development in an optimal way, which is of major importance in aquaculture.

Phospholipids containing LC-PUFA’s have also successfully been evaluated for the treatment of children with inattention problems. In a 3 month intervention study, the increase in total attention score was significantly better for the phospholipid

SAARC OILS & FATS Today, january 2012

preparation compared to when the fatty acids were supplied as normal fish oil and far better than the placebo.

Phosphatidylserine (PS) is a phospholipid of special importance since it is the main acid phospholipid in the human brain. Improved cognitive performance has been observed for patients having Alzheimer’s disease when treated with PS from bovine cortex. The risks for prior infection have limited the use of this form and unfortunately the alternative PS from soybean has given inconclusive results.

To provide a safe source of PS containing LC-PUFA, enzymatic fatty acid exchange in PS has been used. The products obtained gave a significant improvement in the cognitive function of non-demented elderly with memory complaints.

Butyric acid is attracting a lot of interest because, of its strong physiological effects. An especially important effect is the inhibition of histone deacetylase and thereby effects on gene expression.

This might be a mechanism behind the anticancer effects observed, especially in colon cancer. There is an interest to find a prodrug which sets butyric acid free at the right time in the right place.

Phosphatidylcholine containing butyric acid has been synthesized enzymatically with the intention to evaluate these possibilities.

The incorporation of such a short fatty acid creates extra problems because in low-water media it tends to partition to the microenvironment around the enzyme, thereby increasing the acidity. However, these problems were overcome and the product was obtained in high purity. When mixed with water, the phase behavior resembled that of a lysophospholipid.

Due to their surface activity phospholipids self assemble in mixtures with water. The resulting structures are used for drug delivery. Useful formulation forms include emulsions, micelles and microemulsions. Furthermore, liposomes have been widely used for formulations in therapy against. n E-mail: Patrick.Adlercreutz@biotek.lu.se

Feed Industry

A Novel Technology to Provide Complete Feed to Dairy Animals for Enhancing their Productivity — T K Tiwalli*

Feed Resources Scenario Feed is the main raw material which gets upgraded through the ruminant system, providing nutritious foods like, milk and meat for human consumption. With the feed cost accounting for 65-70 % of the total rearing cost of bovines and other livestock, it certainly is the major input cost factor for ruminant production. In fact, nutrition has been identified as the major constraint to animal production across the developing region. Unfortunately, whole of the tropical world including India, is having an acute feed shortage, due to variety of reasons. The growing feed shortage in the region is pushing the feed cost higher and higher, so that most of the resource poor smallholders, who constitute majority of the livestock farmers in the tropical region, are unable to afford good quality feeds for their animals. The performance of the animals in the absence of proper nutritious and balanced feeding is generally below optimal level.

The bulk of bovine feeds in these regions are the poor quality crop residues, besides agro-industrial by’� products. This is because these regions badly lack well managed pastures and the area under green fodder crops is shrinking due to the pressure of human population on the limited land available. In India the area under fodder production has remained static at around 4 % of the total cultivable land area for the last three decades. In these areas, grains have the first priority for human consumption, followed by 22

poultry. Grains are now also being partly diverted for the production of bio-fuels.

Oil seed cakes, which are already in short supply, are exported indiscriminately in, large quantities from these areas to earn foreign currency. With regard to green forages, there is little hope to increase area under fodder production or to regenerate the degraded pasture lands through intensive management. However, there is some scope to increase the usage of sugarcane tops and the top feeds

SAARC OILS & FATS Today, january 2012

in the diet of ruminants, to be included within safer levels to avoid toxicity to the animals. Fibrous crop residues are thus, the major roughage source available for ruminant feeding in tropics. They dry matter availability in India through crop residues, which was to the tune of 211 million tonnes in 1980-81 increased to 354 million tones in 2002-2003, registering an increase of 65 % over a period of two decades. Increase in the availability of crop residues has been made possible due

Feed Industry to increase in grain production achieved through green revolution, rather a kind of spill over effect. But these crop residues as such are fibrous feeds, in which much of digestible cellulose and hemicellulose is trapped within indigestible lignin. That makes it a roughage of lower palatability and digestibility, apart from the fact that it is also low in N (protein) and mineral content.

Proper Management of Feed Resources Needed Apart from our limited feed resources, which are mostly of lower quality, the region has by and large failed to manage its feed resources properly, especially the bulky and fibrous crop residue, making their use below the optimal level in relation to animal productivity. In North-Western parts of India, a lot of straw is burnt right in the field worth millions of US dollars, which is no doubt a sheer wastage of feed resource, but more than that, burning of straw also causes environmental pollution, emitting carbon dioxide and nitrous oxide into the atmosphere. The burning of straw also results in the degradation of soil fertility.

Improving the management of crop residues as animal feed and restricting its wastage through burning should be the priority area for livestock planners.

Our feed management should include the use of specially designed bailers for the collection of residual straw from the field after using combine ÂŹharvester and subjecting these residues to processing technologies for the commercial manufacture of balanced animal feed.

In this respect, the Technology of Densified Complete Feed Block is a

novel and a revolutionary approach, which provides an excellent opportunity to feed manufacturers and entrepreneurs to remove regional disparities in feed availability and supplying balanced feed to the dairy and other livestock farmers on a large scale. This also gives us an advantage to be well equipped with a disaster management strategy, by setting up fodder banks, to overcome the problem of feeding animals during natural calamities of floods and draughts, which are the common a phenomena in tropics.

TECHNOLOGY OF DENSIFIED TMR Blocks as Complete Feed Straw based densified total mixed ration (TMR) or densified complete feed block has two major components and one minor component. The major components are roughage and concentrate, added in different ratios, depending upon the level of production, stage of lactation and the physiological state of the animal. The third component is micronutrients & feed additives.

The roughage part is generally the crop residues like wheat and paddy straw, sorghum stalk, sugarcane tops.

Sometimes gram straw, sugar cane baggasse and groundnut halums too have been used as part of the roughage component. In hilly areas, even the nonconventional roughage sources like forest grasses and tree leaves have been used in place of crop residues. The second major component of the densified feed block is the concentrate part. The proportion of the straw and concentrate in the block varies with the type of animal it is to be fed. The ingredients of the concentrate mixture are as usual: oil cake meal (as protein

Nutrition has been identified as the major constraint to animal production across the developing region.

Unfortunately, whole of the tropical world including India, is having an acute feed shortage, due to variety of reasons.

The growing feed shortage in the region is pushing the feed cost higher and higher, so that most of the resource poor smallholders, who constitute majority of the livestock farmers in the tropical region, are unable to afford good quality feeds for their animals.

source}, molasses, grains, grain products/ by products (as energy sources) and supplements like bypass protein / bypass fat, to enhance the direct supply of amino acids and fatty acids to the host animal as concentrated protein and energy sources.

The third component provides strategic and catalytic supplements, the additives like micronutrients, vitamins, minerals, bentonite (toxin-binder), probiotics, antioxidants, herbal extracts etc. The role of these components in the feed block is to enhance the productive and reproductive efficiency of the animal with regard to feed utilization and enhance the immunoprotective ability to keep the animal as much as possible free from infections.

The value addition of the feed blocks can be a continuous research process under R& D. Anew Concept in Nutrient Delivery System For Ruminants In India and other tropical countries, farmers can hardly follow any feeding standards as they are unable to scientifically compute a balanced feed for their animals, possessing neither the knowledge nor the means to do so.

Apart from being resource poor farmers, their awareness level about the feeding of animals is also quite low. This results in below optimum level of production from these animals. Densified TMR is a revolutionary concept in the feeding of dairy animals and is a novel system of delivering nutrients to bovines as a complete balanced ration. Each feed block is a total ration for a cow or a buffalo for 24 hours and supplies all the major and minor nutrients, including micro nutrients required by the animal.

The making of feed block requires proper processing and can be manufactured on a large scale in a factory. The concentrate mixture is prepared separately and then mixed with straw (using a proper ratio) in a specially designed mixer, to ensure proper mixing of the two components, varying in density. The mixer is pressed in a specially designed using hydraulic press. The process of densification causes the concentrate particulate matter to get physically attached to fibrous straw particles with the help of binder, so much so that there is hardly any scope for the animal for any selectivity. This

january 2012, SAARC OILS & FATS TODAY

23

Feed Industry not only brings uniformity to the feed, but also increases the palatability of the straw based feed and minimizes the feed wastage. A few agencies have taken the initiative of developing and refining of feed block technology in India. One such pioneer feed company in India has pursued efforts in right earnest and successfully designed fuel efficient and labour efficient models of feed block machine. It is now possible for the company to set up a feed block unit on turnkey basis. Results of the on-farm feeding trial on feed blocks conducted recently on buffaloes in rural situation near Karnal, showed a significant increase in milk production in the experimental group compared to normal feeding pursued by farmers in the villages. Although the feed cost was higher in the experimental group, the profit earned in the experimental group was double than the extra amount spent on block feeding.

The Advantages of Complete Feed Block Technology The densified complete feed block technology offers variety of benefits, both to the farmer as well as to the feed entrepreneur. One can predict that this technology is going to be the key feeding technology to provide total solutions to the problems related to feeding of bovine and other ruminants in tropics. Looking to the literature scaned, our own experience and on the basis of the feed back received from farmers who are using feed blocks to feed their animals, following advantages of this technology have been identified.

A balanced ration for ruminants: In India and other tropical countries, it is normally very difficult for illiterate or semi literate farmers to compute a balanced feed for the animal. In fact, except at some organized farms, practice of feeding balanced ration is almost negligible at least in India. Densified TMR is a complete balanced feed. By feeding an animal a balanced feed with optimum nutrients through TMR, one can expect an improved nutrient utilization, resulting in optimum productive and reproductive performance from the animal.

An efficient nutrients delivery system: The feeding is almost simple and 24

Improving the management of crop residues as animal feed and restricting its wastage through burning should be the priority area for livestock planners hassle-free. The animal is not given any option for selectivity. In separate feeding system, the animal picks up the more digestible / palatable parts first, and at the end, the residue left over has more of unpalatable and less digestible parts of the feed. Feeding of densified TMR reduces this kind of feed wastage, which is advantageous to the farmer.

Time and labour saving:

By TMR feeding, the labour expenditure is reduced by 30-40 %.

Being a readymade feed, the farmer can feel relaxed about feeding of animals, when the densified feed is in stock.

In just 10 minutes 20 animals can be fed, as against two hour required for feeding same number of animals in a conventional manner. This could also be a clear advantage to women folk, especially in hilly areas, where women generally look after the feeding and management of dairy animals, spending best part of their life in drudgery, cutting, collecting and transporting huge loads of forest grasses.

Cheaper and easier to transport: Densification of the straw based feed under mechanical pressure reduces its bulk by about three times. Accordingly, lesser storage space is required to store the feed, especially straws. The related advantages of this can be that the extra space is used for other activities at the farm. Since the feed blocks occupy lesser space/ volume, almost 3 times more feed (by weight) can be accommodated and transported within the same space

SAARC OILS & FATS Today, january 2012

than the loose straw. This makes the transportation of crop residues feed much easier and cheaper. Even the blocks are easier to handle during storage.

Can help in checking environmental pollution: Even the emission of methane gas, the green house gas from ruminants can be reduced slightly, when straw is mixed with concentrate ingredients and other supplements and feed additives, to make it a balanced feed as a densified feed block. It has been proved beyond doubt that balanced feeding reduces the methane emission by 10-15 %. There is also less dust pollution when the feed is transported as blocks rather than as loose straw in pregnant looking trucks, which are also hazardous on the roads, being prone to accidents. In North-western parts of India, straw worth hundreds of crores is burnt in the field after harvest. If this residual straw is converted into feed blocks, this feed resource can be saved and environmental pollution due to straw burning can also be prevented. Another “disadvantage of straw burning is that along with the straw wastage, soil fertility is also degraded.

Improved productive/reproductive efficiency: Feeding of densified complete feed block has a positive effect on both production and reproduction. While the growth rate of calves can go up by 25-30 %, the milk yield can show an increase by 10-15 %. After feeding densified TMR, the milk yield of the animal persists at one level over a longer period, causing increase in total lactation yield. Because, in the absence of dietary fluctuations, the rumen microbes get constantly used to the get same type of feed/ substrates, which brings stability in microflora and increases the rumen efficiency.

Because of faster growth rate, feeding of densified complete feed blocks results in early maturity and early age at first calving for the animals. This has a significant effect not only on lowering the cost of rearing, there is also reduced age at first calving and a regularity in subsequent calving, which could result in increase in life time production of the animal. The animals can be kept free from reproductive problems of late maturity,

Feed Industry anestrous and repeat breeding condition.

The optimum supply of nutrients, including micro-nutrients has also a very positive effect on the health of the animals. The block feeding keeps them comparatively free from common metabolic disorders, reproductive disorders and provides immuno-protection against infectious diseases. This also saves the farmer from the expenses incurred on the medication of his animals.

Storage of bulky Feeds possible: With the availability of feed block technology, it is possible to set up such feed/fodder banks in feed deficit areas, because of easy handling, easy transportation and easy storage of the straw based feed. Feed block technology can be most beneficial during natural calamities of flood and draught, to save the live stock from hunger and death.

The blocks can even be air lifted to the remotest places to avert disasters.

Vehicle for feed additives/pharma/ neutracuiticals: In straw based complete feed blocks,

there is so much room for improvement.

Its value addition could be a continuous exercise through extended research, trying different supplements, newer feed additives, neutracuiticals including herbal extracts to improve its over all quality. TMR can offer a best delivery system for specific nutrients and a carrier for neutracuiticals.

Feed block can be the easiest way to administer some specific medicines to the animals, especially antihelmentics to control parasitic infections in livestock.

Stability in feed prices: The benefit of proper storage of feed blocks makes it possible for the uniform supply of the feed throughout the year, with lesser price fluctuation, as against the large price fluctuation and irregular supply of straw and other feed ingredients in different seasons. Better performance of the animals after feeding complete feed block, in terms of growth, reproduction and production could have an over all positive impact on the economy of keeping animals, thereby, bringing better returns to the farmer.

The technology of straw based

densified feed block is a step towards better feed management. Apart from providing balanced feed to dairy animals, it has the potential to remove regional disparity in feed availability in India and other tropical countries. With this technology, it is now possible to set up Fodder Banks, which can especially be used during the emergency situations created by natural calamities. Govt. of India, realizing the potential of this technology in enhancing livestock production, has thoughtfully decided to offer 50 % subsidy for setting up a fodderblock units. This is acting as an incentive to attract the feed entrepreneurs and livestock cooperatives for the commercial manufacture of densified complete feed blocks on a large scale, which is proving to be a pragmatic approach to improve productivity of dairy animals in the country. n *Author is retired P Sand Head, DCN Division, NDRI, Haryana Source: Indian Dairy Association (East Zone)

january 2012, SAARC OILS & FATS TODAY

25

Bio-fuels

Bio-fuels: Missing Factors in Indirect Land-use Change — Sigurd Naess-Schmidt Copenhagen Economics

B

io-fuels have the potential to reduce greenhouse gas (GHG) emissions by displacing fossil fuels in the transport sector. Emissions from the combustion of bio-fuels are practically the same as emissions - from gasoline; however feedstocks grown for bio-fuels absorb a similar amount of GHGs from the atmosphere. Bio-fuels are therefore seen as a means to achieve short-term renewable energy objectives.

Growing, processing and transporting bio-fuels require energy, which leads to emissions which are crop specific. Taking these effects into account means that the emission reduction effect of bio-fuels is less than 100%. Sugarcane ethanol and palm¬-based diesel, for example, are deemed to have the greatest emission potential at 71 % and 56% respectively.

These direct emission reductions are well above the current sustainability criteria in the EU’s Renewable Energy Directive (RED), requiring that bio-fuels reduce emissions by at least 35%.

Bio-fuels that - meet this 35% threshold may therefore comply with the target of at least 10% renewables in transport fuels by 2010.The 35% threshold will be increased to 50% and 60% in 2017 and 2018 respectively.

The EC is now considering whether estimated emissions of GHGs resulting from indirect land-use change (ILUC) associat¬ed ,with production of bio-fuels - emissions from socalled ILUC - should be included in the sustainability criteria in the EU directives on Renewable Energy and Fuel Quality The main challenge is that it is very difficult to find out how large this ILUC effect is, while it is virtually impossible to deter¬mine which bio-fuels have the ILUC-related emissions. It all depends on a number of factors in a complex global system which policy makers, researchers and industry have to this date been unable to properly assess.

Uncertain science base In a review of the available studies and reports making up the current scientific base on ILUC factors, our research found widely different results and conclusions about the extent of emissions related to ILUc. The large and rapidly growing number of empirical studies on the subject reveals significant variation of ILUC factors even for the same bio-fuel in the same region: High-end estimates are generally 3-1 I times higher than low-end estimates.

Such vari¬ations are no surprise given the complexity of the 26

SAARC OILS & FATS Today, january 2012

calculations with a huge number of assumption? to be made.

Yet there are often solid arguments for several divergent and conflicting approaches that in turn produce highly different results.

In the absence of knowledge about the true value of ILUC fac¬tors, what would it be wise for policy makers to decide?

Should they decide to use uncertain factors anyway, or should they consider other options?

In our view, the nature of the uncertainty in the case of ILUC factors leads to widely ambiguous implications for sustainability.

Estimates of ILUC factors are muddy and the considered actions to introduce an ILUC factor to be applied to feed stocks may imply conflicting impacts on sustainability.

Should EU decision makers nonetheless decide to go ahead with the introduction of ILUC factor(s) , they should ensure that the approach has some potential to improve the environ¬mental sustainability of bio-fuels.

Available evidence suggests that especially sugarcanebased bio-ethanol from Latin America but also palm-based biodiesel from Southeast Asia have the highest potential in terms of reducing GHG emission per litre of fuel replaced. Legislation that de focto discriminates against such imports will weaken the potential of EU bio-fuel policies to combat climate change and potentially trigger WTO related disputes.

Our conclusion is that a consensus on ILUC factors is missing. Hence, we have warned against introducing such legislation given the current lack of consensus about how ILUC factors should be determined. .

Substantial economic costs In addition, we emphasise that there are also wider economic consequences to the choices EU legislators are considering.

While arguably having larger replacement effects, the costs of producing specific bio-fuels. such as sugarcane ethanol are also lower than alternatives. So limiting the use of these types of biofuels will substantially increase the costs of complying with the EU’s climate and energy policy objectives.

More generally, introducing new legislation on uncertain ground while investors have committed substantial funds to comply with the already agreed tightening of legislation could drive up future risk premiums for investments in low carbon technologies. This problem would be exacerbated

Bio-fuels if ILUC fac¬tors were to change as a consequence of new model esti¬mates. So the choice facing EU policy makers has substantial economic implications, demonstrating the need to proceed with caution.

Significant variations There are huge variations in the predictions of the models regarding ILUC effects. We would expect that different ILUC factors could be derived from different bio-fuel types but a consensus-based science should not produce variation between different studies/models considering the same feed¬stock. In the science of ILUC modeling, however, this is very much the case and estimates for the same fuel: e.g. ethanol produced from wheat, can vary from - 79g to 329g CO2 eq./MJ Table 1.

When comparing the ranges of emission factors with the default direct emissions stated in the RED, which lie between 24g and 58g CO2 eq./MJ different ILUC results are capable of producing significant variations in total emissions from different feed stocks. These variations in model result$ are due largely to the lack of a common modelling structure as well as major dif¬ferences in key assumptions.

We found that there are three overall factors that generate the different results in the models: Table 1: ILUC Emission Factors from Different Models Type of bio-fuel

Sugarcane Palm oil Sugar beet Wheat Maize Soybean Rapeseed

Emission Emission Median Median Factor Factor (min) (max) Minimum Maximum Values Values (g CO2 eq/ (g CO2 eq/ MJ bio-fuel) MJ bio-fuel) -1-48 19-195 14 -55-45 34-214 14 13-33 65-181 16 -79-79 -8- 329 21 5-104 44-358 25 0-92 63-293 27 -33-80 52-800 30

86 160 151 142 79 100 157

Fossil fuel Comparator

83,8

Source: Copenhagen Economics based on Ros et al (2010); AI-Riffai, Pet al (2010), JRC (2010), E4tech (2010), Searchinger et al (2008), European Parliament (2011) Note: Minimum values are a range between different studies minimum values.

Maximum values depict a range between different studies maximum values.

The values differ from those in Ros et al (2010), since more studies are included

l Difference in projections of key variables and data reliability, such as the demand, supply and price of food, the price of oil, or global crop production l Difference in parameter assumptions, such as substitution elasticities or land average productivity l Difference in behavioural assumptions, model type and structure, such as simplification of the models used or assumptions of how co-products are taken into account

Since model estimates will be very difficult to subject to empirical testing, it might take long time before the modeling science will converge towards a consensus-based framework.

However, if one were to accept this uncertainty and take the model results for what they are worth, one should address the question how this can be translated into policy.

Three policy options The EC is considering three policy options for including an ILUC factor: Option 1 A general (average) ILUC factor common

to all bio-fuels Option 2

A set of bio-fuel-specific ILUC factors

Option 3

A set of region- and bio-fuel-specific ILUC factors depending on region-specific risk of deforestation

Naturally, policy makers do also have the option of not introducing any ILUC factor and decide to deal with the issue of deforestation through other means. The EC has retained the option to delay application of an ILUC factor until research is conclusive. However, there is a view within among certain members of the EC and European Parliament that immediate action must be taken - regardless of whether or not a univer¬sally recognised methodology is identified.

We will summarise some of the consequences for individual crops, if policy makers decide to introduce ILUC factors through the three options.

Option 1 If one were to apply an average ILUC factor in the low range of the estimates, the median value of 22.5 would be a possi¬ble estimate. Adding such an ILUC factor would imply that bio¬fuels made from sugarcane and wheat with optimal use of straw in CHPs would still be able to meet the 35% sustainabil¬ity criterion, (Figure I). Bio-fuels made from any other crop would no longer be considered sustainable in the RED termi¬nology, excluding all commercially available bio-diesel feed¬ stocks.

Option 2 This option would apply to crop-specific ILUC factor estimates. Theoretically this option would address ILUC more precisely than Option 1. If an ILUC factor is applied in the low range (the median of the lowest estimates in the literature), then bio-fuels from sugarcane, wheat (where straw is used in CHP) and palm-¬based diesel would be the only ones eligible under the 35% sus¬tainability, threshold, (Figure 2.). Bio-fuels made from sugar beet, soybean, wheat from conventional boilers and rapeseed would be furthest away from meeting the sustainability criteria when adding a crop-specific ILUC factor.

Option 3 Most models estimate that an increase in bio-fuel demand in the EU will lead to a larger land expansion impact outside the region than within. This has led to the argument that since the EU regulates land-use change within the region, ILUC january 2012, SAARC OILS & FATS TODAY

27

Bio-fuels regula¬tion should only be directed towards bio-fuels from outside. By requiring third-country suppliers to meet tighter criteria, this would allegedly be sufficient to target ILUC emissions.

We considered the crop-specific ILUC-factors used in Option 2 and only applied these to sugarcane from Latin America, palm oil from Malaysia/Indonesia and soybean from Latin America.

Under such a scenario, bio-diesel from soybean no longer meets the threshold for application to member-state bio-fuel targets, (Figure 3).

However, all bio-fuels produced in Europe will still be sustain¬able and will therefore be able to count towards achieving the 10% renewable energy objective. Even with an ILUC factor, sugarcane ethanol from Latin America will continue to meet the RED threshold with a comfortable margin. This is also the case for palm-based diesel from Southeast Asia (with methane capture), within a smaller margin.

within specific land-types. Such benchmarking may ignore that - in the case of forest - not all forests are primary forests but may in fact already have been somewhat degraded through subsistence farming, particularly in developing countries.

When land expansion due to agriculture expansion takes place on such forest, the amount of carbon released is lower than in the case of primary forest. This may attribute inflated carbon emissions to land expansion due to commercial crop production.

Another discriminatory issue that has been addressed is the fact that, in the RED, the default value for maize ethanol only applies to feedstock produced in the EU. This leaves US and African producers at a disadvantage since they need to docu¬ment that every production of maize ethanol fulfills the crite¬ria, whereas EU producers automatically fulfill the criteria by referring to the default value.

Possible discrimination in RED Much discussion has taken place about the potentially discrim¬inatory effects of the RED. Besides allowing EU import tariffs and generous subsidies, especially to ethanol producers, the RED has been accused of introducing technical trade barriers, violating WTO rules. This is particularly the case with respect to requiring documentation demonstrating compliance with sustainability criteria.

While EU members-states may have better technical and administrative capabilities for documenting land habitation overtime in order to document direct land-use change effects, for example, these capabilities are far from developed in devel¬oping countries. This puts producers from such countries at a comparative disadvantage.

Furthermore, it is not obvious what amount of carbon should serve as a benchmark for emissions caused by land expansion

Consequences for consumers and investors Should the EU decide to introduce ILUC factor(s), it should be introduced in a way that has a high probability of reducing GHG emissions in the most cost-effective manner. The 10% target for the share of renewables in the EU transport sector does not take into consideration that different bio-fuels have different displacement values.

By using bio-fuels as a means in climate policy, policy makers should achieve two things: l Maximum displacement of GHG per litre of gasoline replaced l Lowest cost of producing bio-fuel per litre of gasoline replaced Together these criteria make up a shadow price of replacing GHG emissions, calculated in Figure 4.

Except for sugar beet, which is produced in EU and, to some extent, maize which is produced both in the EU and the US,

Source: Copenhagen Economics based on Ros et al (2010); Al-Riffai, P et al (2010), JRC (2010), E4tech (2010), Searcjomger et al (2008), European Paliament (2011) Note: The horizontal line indicates the 35% GHG savings minium equivalent to 54g CO2 eq./MJ.

Source: Copenhagen Economics based on Ros et al (2010); Al-Riffai, P et al (2010), JRC (2010), E4tech (2010), Searchinger et al (2008), European Parliament (2011) Note: The horizontal line indicates the 35% GHG savings minium equivalent to 54g CO2 eq./MJ.

28

SAARC OILS & FATS Today, january 2012

Bio-fuels sugarcane ethanol and palm-based diesel are bio-fuel types produced outside EU. If such bio-fuels were used to a greater extent in achieving, GHG emission reductions in the EU, it would have the poten¬tial to significantly reduce the cost of achieving such emission reductions to the benefit of both consumers and public finances.

Source: Copenhagen Economics based EU RED and IEA (2011) Note: The shadow cost of sugarcane, sugar beet, palm oil and maize matches estimates in the literature rather well, cf. DEFRA (2008). We obtained large numbers for some bio-fuel types relative to other studies, which can be explained by our addition of an ILUC factor.

Source: Copenhagen Economics based on Ros et al (2010); Al-Riffai, P et al (2010), JRC (2010), E4tech (2010), Searchinger et al (2008), European Parliament (2011) Note: The horizontal line indicates the 35% GHG savings minium equivalent to 54g CO2 eq./MJ.

The think-tank European Forum for Sustainable Development has asked Copenhagen Economics to review the available reports and studies con¬stituting the science base on ILUC associated with bio-fuels. The full ver¬sion of its report is available at: www.efne.eu.

n

january 2012, SAARC OILS & FATS TODAY

29

Mustard Oil

O

Mustard oil’s powerful flavour makes it an ideal medium for Indian cooking

ur sense of smell is notoriously easily tired, but can be revived by smelling something strong.

Professional perfumers often use coffee beans for this purpose, but if I’m in the kitchen I sometimes open a bottle of mustard oil from a ghani, a traditional Indian oil mill, and take a deep whiff of that pungent, prickly aroma, with the irresistible aftertaste —which can be so strong you actually feel you’ve eaten something — of good home-made pickle.

I think raw mustard oil smells delicious, but I might be in the minority here. In the past we were fine with fats that had a distinct taste and textural character of their own: the deep rich taste of ghee, the subtly sweaty aroma of coconut oil, the nuttiness of exotic oils like argan, pumpkin seed or hazelnut, flaky pastry made with lard or crumbly pastry made with butter. But at some point we seem to have acquired the notion that our cooking fats and oils should lack all character and turn into tasteless, odourless entities that ideally pretend they don’t exist at all.

Mustard oil would seem to be the antithesis of that. Murky yellow, with a flavour that can be so pungent it could probably stop a charging elephant, mustard oil can seem so untamed and wild that it is no surprise to learn from KT Achaya that in the Chandimangal, a 16th century Bengali poem, “The tamasic nature of Lord Shiva is reflected in the fact that his food is cooked not in ghee, which is a luminous sattvic product, but in pungent mustard oil.”

Sattvic snobbery could be one reason why, as Chitrita Banerji notes in her excellent Life and Food in Bengal, “In 19th century Calcutta, many of the great feudal families would die rather than 30

serve food cooked in mustard oil, which was considered only fit for the poor.” No doubt, such families would view the value now attached to mustard oil in traditional Bengali food as a further sign of declining times, but I’d rather see it as Bengal’s progressivism that it was able to overcome faddish barriers, to focus on the real taste and health benefits of mustard oil.

Mustard oil is, of course, used across North India, but I associate it most with Bengal partly because that’s where I got my first taste of it used raw. Growing up in South India, I was familiar with mustard seeds fried at the start of cooking, which makes them nutty and slightly bitter, but not hot.

So when a fellow student at IIM Calcutta made me try some jhal-muri I just thought I was getting some Bengali bhel puri, and wasn’t prepared for that lick of sinus-stirring heat that exploded from the mixture of puffed rice and onions. Despite the similar structure, this wasn’t bhel puri at all, and the reason was that drizzle of mustard oil that I had hardly noticed the jhal muri maker putting on at the end.

After that I was addicted. I happily experienced the homely satisfaction of mashed potatoes and other vegetables mixed with a little raw mustard oil. Fish, fritters, omelettes and luchis fried in it made me realise that mustard oil had multiple personalities.

Most of its uses involved heating it, which denatured its pungent chemicals, though never entirely. You would think it had been quite tamed, but after eating you would be aware of a phantom pungency that lingered quite pleasingly on your palate. Cooking with mustard oil was like watching a body builder play with a baby — those big muscles might be capable

SAARC OILS & FATS Today, january 2012

of surprising delicacy, yet this reminded you all the more of their latent, crushing power.

When I started cooking myself and using mustard oil, I realised that these multiple nature extended here too. Some were almost incandescent, releasing their pungent smells as you opened the bottle, whereas others were so bland they hardly had any heat. Bengali friends in the US in particular complained of the latter, which I was told was because it was blended with tasteless soya oil.

But the trick, I was told, was to look in Indian stores for the real stuff, disregarding the warnings always posted on the bottle stating that it was only for external use, like massages or oiling your scalp and hair. That was just meant for wussy Americans who couldn’t believe that something that smelled so strong wasn’t dangerous.

The smell, though, is just part of the natural chemistry of mustard, which belongs to the vast family of Brassicas, which include cabbages, turnips and other vegetables that all contain pungent chemical defences. In mustard, the chemicals are so strong they can harm the plant itself, which is why they are prudently kept in a condition where they don’t become active unless crushed and moistened.

This is why mustard powder is sharp to the taste, but only becomes really strong when mixed with water and left for a while. KT Achaya, in his study of ghanis, notes that while water is usually added with any seed, to help the oil separate out, for mustard oil even more is added, to help develop the sharp flavour. n Author Vikram Doctor can be reached on vikram.doctor@timesgroup.com

AgriBusiness & Food Industry w January 2012

31

News

Amul says FDI in retail will hurt farmers While the Government claimed farmers support on FDI in retail, the country’s largest dairy cooperative and food brand Amul felt such a move will hurt the interest of both producers and retailers.

“FDI in retail is definitely not going to benefit the farmers,” said R.S.Sodhi, Managing Director, Gujarat Co-operative Milk Marketing Federation Ltd, which owns the Amul brand.

Farmers get the least returns from the modern trade and the “so called efficiency” benefits only the large retailers as they constantly drive down the prices, Sodhi said.

Citing the International Farm Comparison Network (IFCN) data, Sodhi said milk producers in the US got only 38 per cent share of the consumer’s dollar spent on milk, while the rest was earned by the processor and retailer. In the United Kingdom, the milk producers got only 36 per cent.

However, in India, the milk producer gets more than 70 per cent of the consumer’s rupee on an average.

Moreover, the milk producer affiliated to co-operatives get more than 80 per cent share of the consumer’s rupee, Sodhi said.

In the US, the farmer’s share in the consumer’s price has declined from 52 per cent in 1996 to 38 per cent in 2009, while in the UK it has declined from 56 per cent in 1996 to 38 per cent in 2009. “This decline clearly demonstrates that the

R.S.Sodhi

milk producers suffer when the share of organised retail increases,” Sodhi said.

Sodhi questioned whether those seeking liberal FDI policy be able to maintain the farmer’s share of consumer price in India. “Will they operate at 2 per cent distributor margin and 3 per cent retail margin for milk as practised by Amul and other milk brands,” he asked. From a manufacturers’ perspective, Sodhi said the organised retail trade tends to be monopolistic. The access to market to brands often comes at a heavy price to be paid by the producer, Sodhi said citing Amul experience with large retailers in about 40 countries like the US, Japan,

Australia and Singapore where it exports dairy products.

The terms of the trade dictated by many of these players are not even heard of in India such as short credit period, huge listing fees for products, reluctance to increase prices for as high as six months among others. “The retailers will effectively kill innovation, squeeze margins and always threaten the brands with cheaper substitutes, imports or finally private label store brands,” Sodhi said.

For the Government, the share of taxes would remain the same irrespective of the format of retail, while on the contrary the foreign retailers will demand more and more concessions and liberal policies to earn better. Further, the labour prices of large retailers were not employee friendly and that the Government may have to deal with huge labour issues if liberal FDI policies are implemented in retail. “If largest and most reputed Indian corporate houses like Reliance, Tata and Birla have invested in retailing in India, we do not need to look to foreign investors to invest in Indian retail,” Sodhi said.

The small retailers in India over the past decade have improved their outlets, presentation, service levels and consumer orientation significantly. The modern retail and their deep pockets due to foreign investment will destabilise the retail trade, which gainfully employees a very large section of our society.

“The promised employment generation in modern retail will be at the cost of unemployed shopkeepers who form the backbone of our commerce and economy,” Sodhi said.

Edible oil refiners look to corrective measures from govt next year Characterised by low yields and poor policy support, edible oil industry faced yet another challenge last year the decision of Indonesia to encourage their processing industry reducing duties on export of processed oil. This single decision threatens the very existence of Indian oil industry.

Rattled by this decision, the Indian industry wants immediate corrective measures to come to its rescue at least 32

in 2012. ``It is not just for the interest of the industry. It in fact is needed to reduce huge oil bill that is assuming serious proportions. During November 2010 to October 2011, the country must have imported 90 lakh tons of edible oil costing Rs 350 billion,`` an office-bearer of Solvent Extractors` Association of India, said.

There are 15,000 oil mills, 600 solvent extraction units, 600 vegetable

SAARC OILS & FATS Today, january 2012

oil refineries and 250 vanaspati units in India. While the domestic turnover of the vegetable oil industry is over Rs1000 billion, import-export turnover is put at about Rs 5 billion a year.

Oilseeds in India are grown mainly on marginal and sub-marginal lands under low input usage. Only 25% of crop is irrigated, leaving the sector exposed to weather-related yield risks. Over decades, this marked the oilseed sector, forcing

News the country to continuously depend on imports. Our yields at 1,000 kg a hectare is less than global averages, an expert pointed out. ``It is therefore very essential to increase the availability of vegetable oils from domestic resources by encouraging diversification of land from food grains to oilseeds, increasing productivity of oilseeds and fullest exploitation of non traditional domestic sources,`` B V Mehta, Executive Director of the association, felt.

The association has already submitted a detailed wish-list for 2012 to the Union government, asking it to address them in the upcoming Budget. ``We have to begin somewhere. We have to do something to improve capacity utilisation, increase production and productivity to make the Indian industry compete international market,`` Sushil Goenka, the President of association, said.

The industry asks the government to earmark at least Rs 7,500 billion in

the next three years to expand the area under oil palm cultivation. ``Last year`s allocation of Rs 300 billion will have a very little impact to meet the demand in oilseeds and hardly sufficient to make the country self-sufficient in edible oil sector,`` he said.

The industry feels that it has got a role in addressing the problems. It thinks it needs to enter oilseeds extension programme to provide farmers with necessary agri inputs to achieve higher productivity level. ``We suggest that weighted Income Tax deduction should be granted to companies undertaking such programmes,`` he felt.

Indonesian impact The industry is nervous about the likely fall out of implementation of a new tax structure on export of palm oil and by-products in Indonesia. The structure, which came into being in September 2011, significantly reduces duties on export of finished product to 10% (from 16.5% to 10%) and on packaged products to just

Indonesian palm oil tax change puts Indian refiners in a spot A move by Indonesian Government to encourage local oil industry poses indirect threat to palm oil farmers and Indian refineries. It drastically increased export duty on crude palm oil, while significantly reducing duty on refined oil.

Though it would mean cheaper oil for consumers, it would lead to two major problems.

While gradually killing the Indian refined industry, it could as well pose major health risks for consumers, Solvent Extractors Association of India has alleged.

Chances of increase in carcinogenic elements are far higher as time-toconsume goes up as the refined oil takes much time to reach Indian consumer after it is refined in Indonesia, Sushil Goenka, President of the Association, told press persons.

Indonesia move The duty on CPO (crude palm oil) and RBD palmolein (refined, bleached deodorised or finished product) was uniformly at 15 per cent in Indonesia.

The new policy, effective from September 15, imposes duty on CPO at 16.5 per cent while export duty on RBD palmolein has been reduced to 10 per cent on palmolein in bulk and 2 per cent in consumer packs.

“This duty differential, between CPO and RBD Palmolein, will encourage the Indonesian refineries to export refined RBD palmolein,” the association feels.

“Ministries of Health, Commerce and

2% on packed products.

This, the Indian industry thinks, would have a catastrophic impact on domestic mills as the new duty structure could discourage Indonesian traders to export raw product and encourage millers there to dump finished products in India.

The sites some figures here. In 200910, India imported 6.4 million tons of palm products from Indonesia and Malaysia.

This included 5.2 million tons of raw oil and the rest being finished products. ``With domestic Indian refineries facing closure threat, there would be no takers for the crude palm oil produced domestically. This would impact farmers,`` Goenka said and asked the government to revise immediately the tariff value to be in line with the current market prices and also raise the import duty on finished product to 16.5% from 7.5%.

The association has asked the government to completely ban the import of edible oils in consumer packs.

Finance in India seem to be wedded with the idea of providing cheaper oil. We are building a strong case for imposing higher duty on import of refined oil. We hope that the Government would rise to the occasion,” Mr Goenka said.

“Large-scale import of RBD palmolein will be detrimental to the interests of domestic refiners. This might lead to decline in their capacity utilisation and, then, to their closure gradually,” he said.

The domestic turnover of vegetable oil industry is pegged at Rs 1,00,000 crore, while import-export turnover stands at Rs 50,000 crore. This includes import of Rs 35,000 worth edible oils and export of Rs 15,000-crore worth oilmeals, castor oil and groundnut oil.

REVISING TARIFF “In order to counter this situation, we have asked the government to revise the tariff value to match current market prices and raise import duty on RBD palmolein to 16.5 per cent from 7.5 per cent.

The figure 16.5 per cent is because it would match the export duty on crude palm imposed by Indonesia last month.

The oil industry also wants the Government to completely ban import of edible oils in consumer packs.

january 2012, SAARC OILS & FATS TODAY

33

News

As India dithers, Indonesia, Malaysia in talks to resolve palm oil duty row It is of course a matter of conjecture as to when the Indian government would address the longstanding issue of marking the imported vegetable oil tariff value to the market price. The tariff value on imported refined palm oil is at a low level in relation to the current market price. The issue was imparted urgency because our country’s principal palm oil supplier Indonesia slashed export tax on refined palm oil to promote value added export and kept export tax on crude oil at a higher level.

Despite a strong case in terms of revenue generation and reasonable protection for the domestic refining industry, nothing has moved because of New Delhi’s unsuccessful fight against high levels of food inflation.

IMPORT BAN So, while it is unclear when the issue of tariff value will be dealt with practically, the government has clearly ruled out another demand of the industry - that of a ban on import in consumer packs. While the rationale for seeking a ban on import in consumer packs (not in bulk) is that such

imports would hurt domestic packers, in the assessment of the Department of Food and Public Distribution, domestic edible oil industry is not affected by import of edible oil.

From discussions with officials at various levels it is clear that the ban on import in consumer packs may not be imposed; and that the matter of raising the tariff value on refined oils will have to be decided by the Ministry of Finance.

Even as India continues to grapple with tariff-related vegoil issues, Indonesia and Malaysia are already in talks to address the issue. Clearly, Indonesia’s export duty cut will willy-nilly affect Malaysia’s export competitiveness of refined palm oil. Malaysia runs the risk of losing market

World cotton price crash may impact output next season After registering unsustainably highs levels, world cotton prices have faced a sharp correction in recent months following a healthy change in the market fundamentals.

From a tight demand-supply balance in 2010-11, the world cotton market has got into a state of surplus in 2011-12 thanks to a big rebound in output.

Ending stocks are expected to show a substantial increase.

With supplies far ahead of demand, prices have reacted as they naturally would. The supply pressure driven price slump has surely affected growers’ incomes in many countries; and as the Washington DC-based International Cotton Advisory Committee (ICAC) put it recently, the price fall in the current season has not only reduced farmers’ 34

incomes but also decreased for the first time in three years the attractiveness of this crop when compared to that of its main alternatives.

INDIAN SCENE Domestic cotton has been no exception. Cotton growers in India, especially in Maharashtra, have begun to demand higher support prices to compensate the loss of income resulting from sharp price fall.

The Government has unfortunately not been able to persuade cotton growers to accept the reality.

It is necessary to educate cotton growers about the futility of expecting higher and higher prices disregarding demand and supply conditions. It is necessary to build capacity among

SAARC OILS & FATS Today, january 2012

share in price sensitive markets such as India, for instance.

JOINT MEASURES The two top producing countries are already engaged in discussion to review their respective export policies. According to reports, joint measures that will benefit downstream palm oil processing industries are expected to be announced before year-end. Various possibilities relating to reworking export tax on both sides are being explored.

Interestingly, despite being the world’s second largest producer and exporter, Malaysia imports crude palm oil from Indonesia to utilise its large domestic refining capacity. Duty-free quota on Indonesian crude palm oil bound for Malaysia is under active consideration.

There is reason to believe, Indonesia will buckle under Malaysian pressure.

The Indonesian government is also under pressure from palm oil plantations and smallholder cultivators who complain that their crude palm oil exports attract higher rates of tax than processors who export refined oil. The possibility of smuggling in the wake of huge duty differential cannot be ruled out, a trade representative pointed out. So, some more action can be expected in this sphere of trade soon. growers to withstand the vicissitudes of the market.

Currently, the global commodity market picture in general and agriculture market in particular is far from inspiring.

In general agricultural prices have come under severe pressure in recent weeks.

The ongoing concerns about the Euro zone debt, the health of the global economy and changing (read, deteriorating) sentiment are currently driving the market.

World cotton supply and distribution (in million tonnes)

2010/11 2011/12 2012/13

Production

24.88

26.88

25.14

Consumtion

24.49

24.39

25.02

Exports

7.62

7.72

8.40

Ending stocks

9.01

11.50

11.62

(Source: ICAC)

january 2012, SAARC OILS & FATS TODAY

35

Out of stock

Out of stock

44

AgriBusiness & Food Industry w January 2012

NEWS The selling pressure is reflected in the US commodity futures market regulator (CFTC) non-commercial positions which in many of the commodities including cotton are at their lowest in over a year.

PRICE FORECAST No wonder, many analysts have revised their price forecast for 2012.

As for cotton, the market is probably poised to post the most marked year-onyear price fall. It would be no surprise if prices come under further downward pressure following large crops in at least three major origins.

Worse, falling prices or consumerfriendly prices are unlikely to stimulate demand as macroeconomic concerns still rule and leading indicators point to a slowdown across nations.

In ICAC assessment, the price levels of the current season will result in a decline in global cotton production in 2012-13 to around 25.14 million tonnes compared with 26.88 mt in the current year. This would mean production and consumption will be evenly matched next year. Of course, many imponderable factors may operate between now and the next season.

However, what is certain is that in 2011-12, world cotton prices will continue to face pressure. If the global economic outlook worsens, demand will be impacted too. On the other hand, central banks across the world have begun to take coordinated action to improve liquidity and help the financial markets.

Monetary tightening is now giving way to easing. Stock building at current prices is a possibility. Weather of course is the most potent known unknown.

World cotton prices are sure to stay well below 100 cents a pound with quarterly average prices gradually declining over the next two quarters to 90-85 levels. This will surely have implication for the Indian market which is facing a glut situation.

It is of course a great time for mills to source their requirement and build inventory for the long term. Whether they would enter the market or wait for a further fall in prices remains to be seen.

Gogrej’s Mistry bets palm oil to turn bullish in 2012 WEAKER growth in Southeast Asian palm oil production and normal demand expansion will set the stage for a bull market next year, leading industry analyst Dorab Mistry said of Friday.

“For the next one year it will be a tug of was between bullish fundamentals and a somewhat uncertain macroeconomic situation. I am backing the tight fundamentals to prevail,” he told the Indonesian Palm Oil Conference and Price Outlook in Bali island.

His forecast is the most bullish among traders, producers and analysts that Reuters spoke to.

An earlier survey of 13 respondents at the conference showed that average palm oil prices are likely to fall to 3,115 ringgit ($990) a tonne next year, from 2011’s record average, on expectations of output recovery after a spell of erratic weather and a bleak global economic outlook.

Mistry, who heads the trading desk for India’s Godrej International, said he was maintaining an earlier forecast that Malaysian palm oil will hit 4,000 ringgit ($1,300) by June 2012 on strong demand chasing tight supply.

He also struck to a short-term forecast for palm oil to hit 3,300 ringgit in January on output made worse by top producers Indonesia and Malaysia entering a “flat phase” in the oil palm biological cycle that lasts between six and nine months.

“After my speech in China on November, crude palm oil futures did make a dash towards 3,300 ringgit.

This was clearly premature and the bad macrosituation has pulled them back,” he said.

“The market needs to see confirmation of lower production and strong exports in order to make a sustainable move higher. I believe that will happen in December,” he added.

Mistry said Malaysian crude palm oil production for next year will be more

or less flat at 18.6-18.9 million tonnes, compared to his 2011 forecast of 18.8 million tonnes.

For the first ten months, output touched 15.8 million tonnes, industry data showed.

Indonesia fares a little better only because of new acreage. Mistry pegged 2012 Indonesian production at 26.5 million tonnes compared to this year’s forecast of 25.2 million tonnes.

The Southeast Asian country does not issue data like Malaysia.

Mistry said demand from India, the world’s largest palm oil buyer, would likely continue to expand as long as prices of refined, bleached and deodorized palmolein used in cooking oil remain around $1,100 f.o.b. or $1,300 landed cost next year.

This represents a rise from the $1,200 landed cost forecast this year that Mistry calls the “Indian biting point” or the maximum price at which pricesensitive buyers are comfortable to with before they cut back on purchase.

“With food-price inflation still strong and the economy growing at a minimum of 7 per cent even in these difficult times, it is necessary that the Indian biting point be raised,” he said.

Food demand from India comes as the soya-exporting Americas push ahead with more aggressive biodiesel mandates, which will see Argentine soya oil maintain a premium of about $100 to $120 a tonne over crude palm oil.

“Discretionary use of biodiesel in Brazil and Argentine will also increase so fossil diesel prices strengthen,” said Mistry, who pegged Brent crude oil to trade between $105 and $120 a barrel.

“At this point it does not appear as if there will be too much soya oil available for export from South America in 2012,” he said, implying palm oil will have a large share of the food market.

JANUARY 2012, SAARC OILS & FATS TODAY

37

38

SAARC OILS & FATS Today, january 2012

january 2012, SAARC OILS & FATS TODAY

39

Date of Publishing 4-5 Every Month Date of Posting 9-10 Every Month

40

SAARC OILS & FATS Today, january 2012

Postal Regn. No. DL (S) - 17/3193/2012-14 R.N.I. Regn. No. 69781/98