AGRI BUSINESS & FOOD INDUSTRY

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AgriBusiness & Food Industry

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cover story

ITC GEARS UP FOR

‘NEXT NORMAL’

WITH AGILITY IN ADVERSITY, SYNERGY IN DIVERSITY, COMPASSION IN CRISIS ITC CHAIRMAN SANJIV PURI

6 Editorial 12 Technology Cpwe Boosts Coffee Processing Efficiency By 75% With Sortex Solutions 32 Rude Food by Vir Sanghvi: Ghost of a Chance

28 Food Safety Fssai Bans Sales, Ads of Junk Foods in School Canteens, within 50m of Campus 29 Dairy Sector Mission Milk has Helped India Make Giant Strides in Dairying — Dilip Rath

34 Future Foods are Not Made of Plants — They are Made of Air — Mimi Billing

30 INGREDIENTS Food Pairing – An Outlook to Designing New Products — Basavraj Vishnu Bidave & Kabita Lodha

14 FOOD BUSINESS Food Additives Permitted for Fruit and Vegetable based Beverages

News Roundup 36 Coca-Cola Names New India Head in Sweeping Global Restructuring 36 MTR Foods Acquires Controlling Stake in Eastern Condiments 37 Amul to Invest Rs 1,500 Crore in 2 Years to Set Up Dairy, Edible Oil, Bakery, Potato Processing Plants 37 Amul Becomes First Indian Dairy Company to Be in Rabobank’s Global Top 20 List; Nestle Leads 38 Dubai Sets Up Trading Platform to Boost Food Imports from India 38 FSSAI Completes Nationwide Quality Survey of Edible Oils 39 Cold Chain Projects Costing Rs 743 Cr Approved in 11 States; J&K not in the List

18 FUNCTIONAL FOOD Covid-19 Increases Consumer Demand for Functional Foods & Beverages — Carol Wiley 20 Market Report Food & Beverage Market in Uae 24 CURRENT ISSUES Stop Toxic Adulteration Open Letter to FSSAI and AGMARK — Vijay Sardana

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Chief Editor S. Jafar Naqvi Chief Co-ordinator Syed Mohammad Baqar Naqvi Editorial Co-ordinator Syed M K Layout & Design Faiyaz Ahmad Mohd. Iqbal

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sort of assured avowal heard in the midst of India’s covid-19 stimulated fiscal retardation is: “Agriculture will lead India’s economic revival”. But how much justifiable is this claim to be offered by government and some experts?

In general, the government’s preparation appears to squeeze farmers without splurging in agriculture or rural employment. Such progress would be counterproductive.

India’s food grain production in 2019-20 was 3.7% higher than in 2018-19. The procurement of rabi wheat in 2020-21 was 12.6% higher than in 2019-20. Food inflation in the Q1 of 202021 is at 9.2% due to “persistent demand for food”. This connotes flexibility in the sector and shift of terms of trade in sustaining agriculture.

The area under kharif sowing in 2020-21 was 14% higher than in 2019-20. Higher kharif sowing was in adjunct to higher tractor and fertilizer sales, which predicted well for financial recovery. The government’s economic package for agriculture — as part of the Rs. 20 lakh crore Atmanirbhar Bharat package —also consigned agriculture as the engine of recovery.

As per official data, only 13.5% of paddy farmers and 16.2% of wheat farmers in India sell their harvest to a procurement agency at an assured MSP. The rest sell their output to private traders at prices lower than MSP. So, one should then be looking not at procurement but market arrivals. Due to lockdowns, the market arrivals were lower in 2020. It was only in paddy, lentil, tomato and banana that market arrivals comprised more than 75%. In wheat, barley, potato, cauliflower, cabbage and lady’s finger, market arrivals were between 50% and 75%. For gram, pigeon pea, onion, peas and mango, market arrivals were less than half.

In wheat only 61.6% of the arrivals were recorded in 2020. And so, the crucial setback faced by farmers was the loss of markets, stanching in supply chains, closure of mandis and a slump in consumer food demand.

The dark side of higher rural inflation in India is that small and marginal farmers are not net sellers, but net buyers of food. It was not just that farmer’s prices fell; most were also forced to pay more for food purchases.

Rabi incomes fell during the lockdown; many rural households returned to farming or intensified farming for food- and income-security. Data by the CMIE showed that the number of persons employed as “farmers” in June and July 2020 rose to 13 crore and 12.6 crore, respectively than previous year.

Agriculture contributes only about 15% to India’s GVA. For 1% point of GVA growth, agriculture will have to grow by 6%, which is unlikely in 2020-21.

Rural prospects were high when the Atmanirbhar Bharat package was proclaimed.

However, the offsetting tendencies -- lower crop prices, lower market arrivals and higher unemployment -- made this economic ineffective and unsatisfactory. Total new expenditure for agriculture in the package is a trickle: less than Rs. 5,000 crore.

PM-KISAN is barely a perfect scheme. Instead of frontloading the installments of PMKISAN, the government should have doubled the payments to farmers to Rs. 12,000 a year; set all MSPs at 150% of the C2 cost of production; waived the interest on loans taken by farmers; announced a package of direct assistance for the crisis-ridden poultry and meat sectors; arranged direct financial help to small milk producers.

It’s knowable that rural incomes will stay wretched, and shove the economy more into a cruel cycle of poor demand, low prices and low growth. The government should throw away its position as an inert spectator, and indomitably interfere. The earlier the better as holding up would only compound mistakes.

Editor : S. Jafar Naqvi Vol 17....... Issue 9 ...... September, 2020

Comments are welcome at: editorialmtpl@gmail.com Views expressed by individuals and contributors in the magazine are their own and do not necessarily represent the views of “AgriBusiness & Food Industry” editorial board. AgriBusiness & Food Industry does not accept any responsibility of any direct, indirect or consequential damage caused to any party due to views expressed by any one or more persons in the trade. All disputes are to be referred to Delhi Jurisdiction only. .....Editor

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cover story

ITC Gears Up For

‘Next Normal’ With Agility in Adversity, Synergy in Diversity, Compassion in Crisis ITC Chairman Sanjiv Puri

Though the Indian economy will face multi-dimensional challenges in the short term, it is certainly reassuring that our country remains one of the major economies in the world with huge potential

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n his AGM address Sanjiv Puri, Chairman, ITC Limited, shared his Vision on the organisation’s top strategic priorities in preparing for the ‘Next Normal’ and Reimagining the Future for ITC during the unprecedented times, its resolve to support an Atmanirbhar Bharat as well as the Company’s superordinate national purpose to create larger value for the country and its stakeholders.

The excerpt from the speech is below: Disruptive Black Swan events of the kind we are facing now, not only test resilience and adaptive capacity but can also unleash forces of innovation and creativity to shape a more sustainable and inclusive future.

Though the Indian economy will face multidimensional challenges in the short term, it is certainly reassuring that our country remains one of the major economies in the world with huge potential.

ITC: Performance Highlights Gross Revenue and PBT (before exceptional items) for FY20 stood at around Rs 46,300 crores and Rs 19300 crores respectively. Non-

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revenue growth of 34% in Staples, Convenience Foods and Health & Hygiene products, which represent 75% of the portfolio.

Over 180 factories manufacturing essential products in Foods, Personal Care and Hygiene as well as Paperboards and Packaging were progressively made operational cigarette segment revenue rose to Rs 31,000 crores during the year, accounting for nearly 60% of ITC’s total segment revenue.

ITC’s world-class FMCG brands clocked an annual consumer spend of over Rs 19,700 crores in aggregate during the year. Comparable revenue grew ahead of industry, amidst subdued demand conditions, while profitability improved significantly.

Segment EBITDA recorded

a robust growth of 33% during the year. The recent acquisition of Sunrise Foods Private Limited, which was completed during the lockdown even in a ‘work from home’ state, will further add vibrancy to ITC’s portfolio. It is encouraging that the FMCGOthers Segment delivered a comparable revenue growth of 19%, whilst Segment EBITDA demonstrated strong growth of 42% during the period. This was driven by

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ITC: A Sustainability Pioneer ITC is the only enterprise in the world of comparable dimensions to be carbon positive, water positive and solid waste recycling positive for more than a decade now. ITC has been ranked No.1 globally amongst its peers and No.3 overall on ESG performance in the Food Products industry by Sustainalytics, a renowned global ESG rating company.

This year, ITC’s Paperboards unit at Kovai became the 1st facility in India and the 2nd in the world to be awarded the Alliance for Water Stewardship Platinumlevel certification - the highest recognition for water stewardship in the world. It is a matter of deep satisfaction that ITC today supports over 6 million livelihoods.

ITC: The Response to the Pandemic As the pandemic unfolded, ITC responded with agility, resilience and compassion to adapt to the new normal. A COVID Contingency Fund of Rs 215 crores was set up to address the needs of the

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cover story distressed. Together with local authorities, a combination of cooked meals, food and hygiene products were also distributed across 25 States and Union Territories. To ensure liquidity in the hands of farmers, ITC’s procurement of agri produce was intensified. ITC has worked with the Government’s MGNREGA programme to create 7.6 lakh person days of work in just 45 days.

ITC also extended financial support to its supply chain partners for obtaining a COVID-19 Insurance Cover for their associates, covering hospitalisation and diagnostic expenses.

ITC ramped up production capacity and resumed distribution in record time, with extreme focus on safety protocols. Over 180 factories manufacturing essential products in Foods, Personal Care and Hygiene as well as Paperboards and Packaging were progressively made operational. More than 85% of ITC’s WDs and associated warehouses were made operational within 10 days of the lockdown, servicing millions of consumers with highly motivated frontline teams.

Responding with agility to emerging consumer needs, ITC fast tracked the design, development and go-tomarket strategy of innovative products and services. The Savlon portfolio of hygiene products was augmented with differentiated offerings including disinfectant sprays, advanced ‘Hexa’ sanitisers, soaps, bodywash, germ protection wipes and so on.

Other innovative products include ‘Nimwash’ - with 100% natural action for washing vegetables and fruits, B Natural Plus range of Immunity beverages, Bingo! range of new snacks, a wide

array of ITC Master Chef frozen foods and a variety of Farmland frozen vegetables to cater to the increasing demand for safe and high quality products. ITC also repurposed its perfume manufacturing facility in Manpura, Himachal Pradesh on a war footing. Manufacture of ITC’s hygiene products like Savlon sanitisers were ramped up by 275 times to cater to the surge in demand.

Reimagining the Future Reimagining the Future will encompass 3 distinct phases which will co-exist in the journey ahead. First, a ‘Survival’ phase as corporates brace to manage the current crisis. Second, a ‘Reboot’ phase as businesses align to the new normal with certain segments experiencing demand destruction, some new trends emerging whilst several pre-crisis trends gain accelerated pace. Third, as the crisis ebbs, corporates will have to gear up for the ‘next normal’ with some trends moderating, some remaining at an elevated level, certain segments witnessing recovery, whilst new opportunities and industry dynamics get constantly redefined.

Building Competitiveness & Resilience I am deeply convinced that the future will belong

to purposeful enterprises who will constantly build competitiveness with agility and innovation to respond speedily to external shocks and emerge even stronger from the crisis. It is this compelling strategic response that drives ITC to strengthen organisational vitality in a manner that is future-ready, fosters extreme competitiveness, whilst contributing meaningfully to the vision of an Atmanirbhar Bharat.

This Vitality is today manifest in the robust eco-system of ITC where differentiated products and services can move from the drawing board to the market in record speed; where trusted world-class Indian brands have been built and nurtured; where supply chains can be realigned to react swiftly to disruptions; where timely partnerships can be orchestrated; where extreme focus is provided to sweating assets and getting more out of less; where critical infrastructure and relationships nurtured across the value chain can be repurposed to sharpen competitive advantage; where sustainability is embedded in strategy and action to make larger societal value creation an integral part of business outcomes; and where dedicated talent is inspired by

a larger sense of purpose.

ITC’s investments in state-of-the-art Integrated Manufacturing facilities with a distributed footprint, that support indigenous supply-chains, enabled swift realignment and resilience to changing circumstances.

Such close-to-market factories ensure product freshness, improve market responsiveness, enable costoptimisation and provide heightened focus on product hygiene, safety and quality.

Building resilience and responsible competitiveness is integral to ITC’s DNA and a strategic driver of growth creating enduring shareholder value. The current pandemic reinforces the need for resilience, which will continue to be an area of strategic priority for ITC. Key themes: How ITC’s competitive ability reinforces its future-readiness Purposeful Innovation for Consumers Global research today points to the consumers’ increasing demand for products and services that focus on health, wellness, safety and hygiene.

Consumers continue to prefer trusted brands. Quite expectedly, the demand for essential products in the food and hygiene segments witnessed a surge. There is a growing preference for organic, naturals and fresh products though consumers also seek indulgence, comfort eating and even resort to ‘revenge’ consumption.

Frozen food, ready-to-eat or cook meals score high on convenience, during these trying times. The home has now become the epicenter of life, substituting dining out, entertainment and socialising. Cooking exotic meals, becoming an

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cover story accomplished home-chef are new entertainment and family occasions. Discretionary spends are down, and there is evidence of valueseeking behaviour. There is a shift to larger basket purchases, large value packs with infrequent shopping frequency. Digital shopping surged exponentially even as neighbourhood grocery stores emerged as the lifeline for essential supplies.

ITC’s innovation engine is at work 24x7 to develop future-ready products. This was leveraged by ITC to rapidly introduce over 40 high quality, first-to-market products and variants during the pandemic to meet emerging consumer demand.

Reimagining Digital Transformation Accelerated digital transformation is integral to ITC’s future-ready strategy and is increasingly being harnessed to enhance competitive advantage. New technologies such as Industry 4.0, Artificial Intelligence, Big Data, industrial Internet of Things (IoT) and Machine Learning are being deployed by all Businesses, including ITC’s supply chain and logistics to enhance operational effectiveness.

Substantial investments have been made in the creation of a digital eco-system to drive smart manufacturing, product quality, traceability and supply chain agility, amongst others. This accelerated digital journey has begun to demonstrate appreciable outcomes.

ITC’s Marketing Command Centre - ‘Sixth Sense’ - leverages cloudtechnology, cutting-edge social-media engagement tools and a digital marketing & analytics platform to drive contextual communication

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and product development rapidly. The Centre has today developed into a real time repository on market trends.

ITC’s wholly-owned subsidiary, ITC Infotech has developed appreciable domain-led expertise in emerging areas of digital and automation solutions and is ITC’s strategic partner in its journey of digital transformation. ITC continues to invest in building its digital enterprise capacity and capabilities to stay ahead of the curve and shape formidable strengths for the future.

Rediscovering Sustainability ITC’s vision to serve a larger national purpose has inspired unique business models that build substantial economic, environmental and social capital for the Nation. ITC’s superior environmental benchmarks in all its operations, creation of large forestry and water resources as also a renewable energy portfolio accounting for over 41% of total energy consumption makes ITC an icon of environmental stewardship.

Several innovations, backed by R&D, have led to path breaking initiatives. For example, ITC’s Paperboards as well as Packaging businesses have introduced several innovative sustainable packaging solutions. These include the recyclable barrier board ‘Filo’ series as an innovative substitute for single-use plastics in the food service segment and the biodegradable ‘Omega Series’ as an alternative to plastic coated containers and cups, and so on. ITC has also pioneered a replicable Multi-layered Plastic waste management model in Pune, providing an end-toend solution for converting

such waste into commercial products based on technical knowhow of the ITC Life Sciences & Technology Centre.

ITC has set ambitious sustainability goals for the future. ITC aspires to meet 50% of its total energy consumption from renewable sources by 2030. ITC intends to sequester over four times the CO2 emissions from its operations as well as create rainwater harvesting potential equivalent to over five times its net water consumption over the next decade. As part of its waste management programme, the Company aims to ensure that 100% of its packaging is reusable, recyclable or compostable in the next decade. ITC’s leadership in sustainability reinforces its aspirations to be a future-ready enterprise, responsive to the needs of society.

Building Next Generation Agriculture It is critical that the latent power of Next Generation Agriculture is unleashed to raise farmer incomes and drive a virtuous cycle of consumption, investment and employment whilst insulating the farmers from the threat of climate change by the largescale promotion of sustainable agricultural practices. The recent path-breaking reforms provide an unparalleled opportunity to transform agriculture.

In the true spirit of Atmanirbhar Bharat, ITC has, over several decades, engaged deeply with farmers to address these multidimensional challenges and co-create sustainable solutions to raise rural incomes. Powered by ITC’s celebrated e-Choupal, and ITC’s social investments, large-scale interventions have

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been implemented to enable climate-smart agriculture, enhance productivity, promote value-addition, and expand market access and exports. To future-proof agriculture and combat climate change, ITC’s Water Stewardship programmes have brought soil and moisture conservation to over 1 million acres whilst initiatives for demand-side management of water that enable ‘more crop per drop’ cover more than 2 lakh acres across 6 states, reducing consumption by as much as 20 to 45%.

ITC’s Agri-Business lends distinctive competitive advantage to its Branded Packaged Food Businesses with superior agri-sourcing that focuses on identity preservation, traceability and certification, as well as lower transaction costs. Today, ITC is one of India's largest integrated agri business enterprises with segment revenue of over Rs 10,200 crores. It is also a significant exporter of value-added agri-products and the largest procurer of wheat in the private sector. ITC sources over 3 million tonnes of agriproducts from 225 districts in 22 States. Several competitive agri value chains have been assiduously built over time to benefit farmers. The Wheat and Spices Value Chain is anchored by the Aashirvaad brand as well as exports. The Potato Value Chain is driven

by ITC’s Bingo! Snacks; the Fruits & Vegetables Value Chain is powered by ITC’s B-Natural juices, Farmland and ITC Master Chef Frozen Foods and the Dairy Value Chain leverages Aashirvaad Svasti dairy products and Sunfeast Wonderz milkbased beverages. These vibrant value-chains provide consumers high quality

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cover story products whilst generating substantial livelihoods. ITC’s increasing engagement across the perishables value-chain, including value-added products in frozen, purees and dehydrated formats will also spur investments in climate controlled infrastructure and food processing.

ITC is well poised to expand its horizons in the agricultural sector.

The transformative agrireforms will also open up new opportunities. These measures are likely to enhance operational efficiencies and accelerate ITC’s journey towards building a robust and future-ready Value-Added Agri Products portfolio catering to both the B2B and B2C channels. ITC is stepping up farmer engagement in wheat, potato, chillies and fruits & vegetables through a Crop Value Chain Cluster model to connect small farmers to markets. The Company expects to support nearly 3000 FPOs with more than a million farmers across 24 crop value chain clusters in 21 states, shaping competitive agri valuechains and enhancing farmer incomes. These value chains will be anchored by ITC’s large investments in food processing, its vibrant brands as well as exports.

ITC: In Support of Atmanirbhar Bharat ITC’s superordinate goal to serve larger national priorities is enshrined in its credo of Nation First – Sab Saath Badhein. The vision to create multiple drivers of future-ready businesses, competitive and inclusive value chains that retain larger value in India, is deeply aligned to the Prime Minister’s clarion call for an ‘Atmanirbhar Bharat’.

ITC is recognised as a pioneer in enabling agricultural transformation.

Following the success of ITC’s

‘Baareh Mahine Hariyali’ programme aligned to the Government’s ‘Doubling Farmers’ Income vision, we are now ready to implement e-Choupal 4.0 at scale and bring the benefits of the digital revolution to empower farmers even more effectively.

This digital platform, designed as a crop agnostic integrated solution framework will synergistically aggregate technologies like remote sensing, precision farming, drone-based services, quality assaying, e-marketplace and many others. It is now ITC’s vision to empower 10 million farmers in India multiplying livelihoods that will benefit over 50 million people.

Over 77 public-privatepeople partnerships have been forged with State Governments and public institutions to bring complementary skills and resources together to benefit rural communities. ITC in collaboration with NITI Aayog has trained 15 lakh farmers in 27 backward districts of 8 states under the Aspirational Districts programme covering 15 crops.

In line with its abiding vision to make a meaningful contribution to inclusive growth, ITC’s portfolio of world-class Indian brands enables retention of larger value within the country, in alignment to the call for ‘Vocal for Local’. Supporting the manufacture of these high quality products, are the ‘Make in India’ investments in state-of-the-art ICMLs, and in India’s largest Paperboards facilities that contribute to the Nation’s modern industrial infrastructure creating livelihoods across the value chain. The Company also promotes local entrepreneurship across states in manufacturing ITC’s diverse products. ITC has also created some of the most iconic properties to enrich India’s tourism landscape. n AgriBusiness & Food Industry

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technology

CPWE boosts coffee processing efficiency by 75% with Sortex solutions London, September 02, 2020 - Coffee plays a crucial role in generating foreign currency to Ethiopia’s national economy. With a 26% annual market share of all processed coffee for national export, CPWE is the largest coffee processing plant in Ethiopia, facilitating over 100 exporters every year. The company maintains a thriving relationship with food processing specialist Bühler, during which it has exclusively used Sortex sorters in all of its coffee processing operations. Subsequently, the company has been able to overcome its four biggest hurdles in coffee processing: product quality, export standards operational efficiency and stability.

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stablished in 1994, the Coffee Processing and Warehouse Enterprise (CPWE) processes and stores export-standard, washed and natural Arabica coffee beans grown all around Ethiopia.

The Enterprise operates from a 50,683 square meter coffee processing plant located in the nation's capital, Addis Ababa, with around 400 permanent and contract employees.

Three export coffee processing lines are able to collectively process 15 metric tons of coffee per hour. The company also boasts a storage capacity of up to 30,000 tons and processes approximately 50,000 tons of Arabica coffee every year.

Improving product quality and operational efficiency Most processing

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plants across Ethiopia use handpicking as a primary means of sorting coffee beans. Getaw Yalew, General Manager at CPWE says, “Before investing in the Sortex machines, we relied heavily on handpicking and the quality control of our coffee was not great. The efficiency was poor, output per hour was low and costs were high.”

In order to ensure a superior and more consistent quality of coffee, the company turned to Bühler.

With a portfolio of solutions responsible for processing around 75% of all Arabica beans exported from Ethiopia each year, Bühler was able to meet CPWE’s sorting requirements.

Today, across each of its three lines, CPWE has two

Sortex color sorters, running back-to-back at the last stage before packing. The SORTEX Z+ Bichro machines, the SORTEX A ColorVision and the SORTEX B MultiVision machines have all been installed for primary sorting as well as re-sorting, for an added layer of quality assurance.

“Since investing in the Sortex machines, we have reduced our dependency on handpicking,” Yalew states.

As a result, the company has noticed a vast improvement in the quality of their coffee beans, with easier removal of sour, vinegar, immature and discolored beans, in addition to insect damaged and broca beans. “The Sortex color sorters really do provide an unmatched product quality,”

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Yalew affirms.

However, most significantly, CPWE has seen a huge improvement in efficiency, “So much time has been saved by using our Sortex machines. What would have taken five minutes now takes just two minutes to handpick,” Yalew says. “Overall our sorting efficiency, up to and including the final bagging stage, has increased by 75%. For us, that is outstanding!”

Satisfying export standards Every year over 100 exporters, consisting of agricultural cooperatives and private coffee exporters, use CPWE’s facilities for warehousing and processing.

They also make use of the company’s export services to foreign markets such as

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technology Europe, Asia and the United States. “The first thing we always show our international buyers are our Sortex color sorters, as a guarantee that we have a superior quality of coffee. And they are always very impressed,” Yalew says.

Export requirements for coffee beans in Ethiopia are of the highest criteria, with a 99.9% accept quality as standard. If the input quality is poor, a second pass is often required in sorting. “Thanks to the simultaneous resorting functionality, we can count on our Sortex sorters to ensure that we continue to meet the toughest export requirements,” Yalew notes.

Providing stability By exclusively using Sortex machines in all of its coffee processing operations, Yalew says “CPWE has seen the market constantly grow in terms of volume.

We have been able to supply our products at a consistent quality standard, with markets now perceiving us as a reliable supplier of highquality coffee.”

As the only coffee processor in Ethiopia that has two Sortex sorters running on each of its lines, CPWE is confident that its valued customers are satisfied and this in turn allows business to remain stable.

Another factor that provides stability for the

company is the reliable aftercare service provided by Bühler’s local sales channel partner in Ethiopia, Sol-Pro Engineering & Trade PLC. “It is a very good relationship,” Yalew says. “I have been with CPWE for 15 years and SolPro Engineering has always provided us with quality customer service when we need it. Particularly when it comes to spare parts, we put in a request and receive them very quickly.”

Indeed, as an integral cog

in Ethiopia’s coffee export market, a quick turnaround is not something that CPWE can compromise on and fortunately with Bühler, they don’t have to. Solomon Belachew, Manager at SolPro Engineering and Sales Manager for Bühler products says, “We supply efficient machinery that is reliable and stable with a complete solution in coffee processing, from bean to cup.

“It makes us extremely proud to say that CPWE’s Bühler machinery-powered plant continues to lead the market in high-quality coffee processing.

“What is so great about our relationship with CPWE is that they are very proactive.

They always approach us directly to discuss our latest solutions. This is the result of a strong bond based on trust and respect, which will be nurtured for many years to come.” n

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Food business

Food Additives Permitted For Fruit and Vegetable Based Beverages — Suresh Bhise Krishi Vigyan Kendra, Anand Agricultural University, Devataj, Gujarat

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he Food Sanitation Act defines “additives” as “substances which are used by being added, mixed or infiltrated into food or by other methods in the process of producing food or for the purpose of processing or preserving food”. Food additives are chemicals added to food and beverages to enhance their colour (colouring), flavour or texture (flavour enhancers) and to keep them fresh (preservatives). They can be derived from natural sources or created artificially.

Importance of Food Additives 1. To maintain or improve safety and freshness: Preservatives maintain the quality and slow down the food product spoilage caused by mold, air, bacteria, fungi or yeast.

2. To maintain product

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3.

4.

5.

6.

7.

consistency-improve mouth feel: Emulsifiers give products a consistent texture and prevent them from separating.

Stabilizers and thickeners give smooth uniform texture to deliver on consumer expectation.

To improve or maintain nutritional value: Vitamins and minerals are added to beverages for enrichment of nutrients lacking in diet.

To maintain palatability and wholesomeness: Acidulants and buffering agents help to control the acidity and alkalinity of foods Antioxidants prevent development of offflavour of oils, oleoresins in beverages emulsions from becoming rancid or developing an off-flavour.

To enhance flavour or impart desired colour: Flavouring agents are

integral part of beverages.

These may be natural, nature identical or artificial flavours which besides enhancing taste of beverages also deliver feeling of refreshment and enjoyment.

8. Colours improve the appeal of beverages throughout its best before period.

Food Additives Permitted for Beverages Generally, the additives that are allowed in beverages are as follows: 1. Acidifying Agents Influence the function of other substances in foods, e.g. slow down the growth of microorganisms (200 & 300 ranges) (citric acid, fumaric acid, lactic acid etc.). l Sourness or acidity - basic taste/ property of a beverage. l Acids are added to beverages to fulfill two

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main functions: a. To inhibit the growth of micro-organisms such as bacteria, yeasts, moulds b. To improve the taste profile of a beverage by balancing the

sweetness l Citric, malic, tartaric, lactic acid, phosphoric acid are used as acidulants in cola flavoured beverages l In case of juice drinks based on fruits: acid naturally present in juice aids in taste balance and preservation 2. Antioxidants Slow down or prevent the oxidative deterioration of foods (Ascorbic acid) (300 range). l Butylated hydroxyanisole (320)-antioxidant is used in a variety of foods. l Carcinogenic to humans as it causes cancer in mice, rats and hamsters.

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food Business l The cancer occurs in the fore stomach, which is an organ absent in human being.

3. Preservatives Slow down or prevent the deterioration and spoilage of food by microorganisms (200 range) (Sorbic acid and its sodium, potassium and calcium salts as sorbic acid, sulphur dioxide, benzoic acid). l The use of additives in food preservation is one of the oldest traditions. l Preservatives are single most important class of additives, as they paly an important role in the safety of the food supply l Preservatives used in beverage industry l Salts of benzoic acid: Benzoates l Salts of sorbic acid: Sorbates l Dimethyl Dicarbonate (DMDC): Cold sterilant l In soft drinks, the mixture of sodium benzoate (211) or potassium benzoate (212) and ascorbic acid can lead to the formation of carcinogenic benzene compound.

4. Non nutritive/ non caloric sweetener/ artificial sweeterners l Increase the sweetness without adding kilojoules of energy in food. l Intense sweeteners had code numbers in the 900 range l Bulk sweeteners have code numbers in the 400 & 900 ranges (Aspartame, Acesulphame K, Saccharin Sodium, Sucralose) - Aspartame o Aspartame about 200 times more sweet than the

reference sugar (Sucrose). o It is disintegrated into aspartic acid, phynylalanine and methanol in the body on digestion. o Most commonly used no caloric sweetners in foods, beverages and medicines - Acesulfame K o 130-200 times more sweet than reference sugar (sucrose). o Used in large quantity gives after taste. o Acesulfame K is used in fruit preserves, dairy products and all types of beverages

- Sucralose o Sucralose is 600 times sweeter than reference sugar (sucrose). o Easily soluble in water solubility and has excellent stability in a wide range of processed foods and beverages 5. Bulking Agent Increase the volume of food without majorly changing its available energy.

6. Colours Add or restore colour to foods (100 range) (Titanium oxide, Ponceau, Carmoisine, Erythrosine, tartrazine, Sunset Yellow etc.

l Colour additives are used to offset colour loss due to exposure to light, air, temperature extremes, moisture and storage conditions l To correct natural variations in colour l To enhance colours that occur naturally l To provide colour to colourless foods l Natural colour preferred by consumer l Artificial - Safe and has excellent stability. l Combination of food colourings and the preservative sodium benzoate (211) caused

hyperactivity in young children. l A tartrazine (102) can cause allergic reactions, while sunset yellow FCF (110) caused tumours in mice and rats.

7. Flavour Enhancers l To improve the flavour and/or aroma of food (600, 900 & 1000 ranges). l Most flavour enhancers have code numbers in the 600 range, while thaumatin and proteases are in the 900 and 1000 ranges respectively. l Monosodium glutamate (MSG) (621) could cause asthma attacks

and Chinese restaurant syndrome (headaches, flushing, numbness, tingling, weakness, drowsiness and nausea).

8. Anticaking Agents in Powder Prevent the formation of lumps (400, 500 & 900 ranges) (e.g. sodium aluminium silicate).

9. Thickening agents/ stabilizing Maintain the even dispersion of substances in foods (400 range). l Carrageenan (407) is used in yogurts, ice creams and other dairy products, has been linked to cancer. l Additives aren’t all harmful; some will only cause serious harm to the human body when taken in large doses or if someone is sensitive to a particular additive. l It is better to eat more fresh fruits & vegetables. l Not only reduce the additive intake from processed foods, but also dramatically reduce the risk of getting cancer and other diseases.

10. Emulsifying Agents Prevent oil and water from separating, as well as keep fats from clumping together (400 range) (alginates, pectins etc). l The purpose of emulsifiers & stabilizers is to facilitate the mixing together of ingredients that normally would not mix namely fat and water. l This mixing of the aqueous and lipid phases is then maintained by stabilizers. l Stabilizer are substances that can stabilize, retain or intensify an existing

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Food business colour of a foodstuff and substances that increase the binding capacity of the food to allow the binding of food pieces into reconstituted food. l Makes possible new product formats (E.g. Fruit juice + Milk beverage) l Stabilizers used to prevent separation l Improve mouth-feel through the desired shelf life.

11. Antifoaming agents like dimethyl polysiloxane.

Food Additive Safety Regulatory authority doesn’t approve the use of an additive unless: 1. It has been tested for safety.

2. There will be no harmful effects if people were to consume it.

3. There are good reasons to use it.

4. The amount added to the food or beverage is low, reasonable and safe.

5. It will be listed on product labels to inform consumers about addition of additive Accepted Daily Intake (ADI) amount is the amount that people can consume it on a daily basis over a long period of time without causing any harm to human being. It is necessary to estimates the expected daily intake, which is the amount a person is likely to eat the additive from food or beverages. This is compared to the ADI amount

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like a rapid heartbeat, bronchospasm, or chest pain. l MSG has recently become known as a contributing factor to obesity, migraines and ADHD. l Reagent kit is developed to measures the L-glutamic acid in food products containing MSG.

to determine how much of the additive can be added to a food or beverage. Up to 400 food additives (natural and artificial) are approved, but only few of them known to cause adverse reactions in people who are sensitive to an additive. When additives were consumed in large doses causes very harmful effect on the body. So people claim that all additives are harmful.

Hazardous Beverage Additives 1. High fructose corn syrup l Mono and disaccharide sugar often used in the food and beverage industry l Sucrose obtained from sugar beets, sugar can or high fructose corn syrup (HFCS) is used in soft drinks/ beverages. l High Fructose Corn Syrup is a cheap alternative to cane and beet sugar and it blends easily with beverages to maintain a

product’s sweetness. l The low cost of HFCS make it best alternative for sucrose in numerous food products at industrial level. l Consumption of food products having HFCS in large quantity causes obesity and diabetes problem.

2. Monosodium Glutamate l Monosodium glutamate (MSG) is a flavour enhancer added in noodle soups, spice packets, Chinese food, salad dressing, chips and many other food products. l MSG can stimulate appetite and cause headaches, nausea and edema in people who may be allergic to MSG. l As per the report of FDA (1995) nearly 15% of the population complained for headache, nausea, drowsiness, or sweating to more severe symptoms

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3. Artificial Sweeteners l Artificial sweeteners impart the sweetness to products with lesser calorific value. l Had intense sweetness as they are many times sweeter than reference sugar. l Marketed as sugar free or diet l Used in products like chewing gums, soft drinks, baked goods, candy and many more food and beverage products. l Few sweeteners may cause headaches, dizziness, obesity and cancer.

4. Sodium nitrate and nitrite l Sodium nitrate and nitrite are used as preservatives and curing agents in foods. l Commonly added in processed meat products to protect against microorganisms that can cause food poisoning, such as clostridium botulinum. l Nitrite can react with secondary amines to form nitrosamines, a class of carcinogenic compounds, in food products or in the

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food Business digestive system. l Nitrate is more stable than nitrite, can act as a reservoir for nitrite. l Nitrate can readily be converted into nitrite by microbial reduction. l Nitrate and nitrite must be monitored to ensure the quality & safety of meat products.

5. Artificial flavours and colours l Artificial flavours and colours are added to food products to preserve flavour or enhance a food’s taste, texture or appearance. l Additives used to a. Maintain product quality and freshness (to stop deterioration, rancidity, and spoilage), b. Improve or maintain

Monosodium glutamate (MSG) is a flavour enhancer added in noodle soups, spice packets, Chinese food, salad dressing, chips and many other food products

nutritional quality (to prevent diseases such as goiter, pellagra and rickets) c. Make foods more appealing (make them look and taste good) d. Aid in the processing and preparation of foods. l Food colourings (also called colour additives), are any dyes, pigments, or substances that are used a. To impart colour when they are added to food or drink. b. To enhance colours that

occurs naturally c. To correct natural variation in colour d. To make food more attractive and appetizing. e. To offset the loss of colour due to processing and storage. l A flavourant is defined as an additive, either artificial or natural, that is used to give foods and beverages flavour. l Flavourants include chemicals that can impart or enhace a particular taste, such as sweet, sour,

savoury, or bitter. l Artificial colour are chemical compounds made from the derivatives of coal-tar to enhance the colour of a product. l They have been linked to headaches, allergic reactions, skin issues, asthma and hyperactivity in children. l Artificial flavours are cheap mixtures of chemicals that mimic natural flavours in food and beverages products. l These have also been linked to headaches, allergic reactions, skin issues, asthma and hyperactivity, in addition to thyroid problems. n

E-mail: sureshbhise_cft@yahoo.co.in

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Functional Food

COVID-19 Increases Consumer Demand For

Functional Foods & Beverages — Carol Wiley

C

onsumers already had an interest in functionality before the COVID-19 pandemic.

Because of the pandemic, 31% of consumers are taking more supplements and 29% are consuming more functional foods/beverages, according to the Functional Food & Beverage 2020 Report from the Hartman Group, based on research done in April.

Hartman believes this surge in the use of functional food/beverages and supplements will become a long-term change in consumers’ daily behaviors.

In a webinar featuring highlights from the report, Laurie Demeritt, Hartman CEO, said she believes two consumer reactions and adaptations to the pandemic will have long-lasting positive effects in the functional market. The first is a focus on personal empowerment that includes taking control of personal health. The second is the new emphasis on physical and mental resilience going forward. These changes are likely to create new opportunities for functional products.

Consumers use supplements, functional foods, and functional beverages along a continuum. For supplements, that means choosing from a range of products, from those with more scientific backing to formulations using traditional or alternative remedies.

Historically, consumers wanting functional benefits have chosen supplements.

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Source: Functional Food & Beverage 2020 Report

Fifty-five percent of consumers still say they prefer supplements for adding functionality to their diets.

For food and beverages, the continuum is from inherently functional foods and drinks to scientifically fortified products. More consumers prefer inherently functional foods because fortified products can mean processed food with artificial ingredients, isolates, stabilizers, etc.

Hartman asked consumers why they use supplements, functional foods, and functional

beverages. The following table shows the top six reasons for each category.

Although the order of the reasons for using functional products varies by category, running through all the categories are immunity, energy, general prevention, and digestion/microbiome.

“We’ve seen a long-term trajectory in terms of the rise of immunity as an area of interest for consumers, but certainly what’s happening in the current environment has really pushed that up to the top,” said Demeritt.

What do consumers look for when choosing

functional foods/beverages?

Even when functionality is a priority for consumers, they want good taste and real, natural food. Although natural is a subjective word, for most consumers, it means the ingredient list is generally clean and short, with recognizable items.

Also important are no artificial colors, flavors, and preservatives; less processed; low/no added sugar; and reasonable price.

The most successful products are likely to be ones that support health and wellness while also addressing consumer constraints around time, energy, money, and daily routines, notes the Hartman report.

Consumer desire for functional products is robust and evolving. To stand out from the crowd, supplement makers must go beyond standard quality measures to being transparent about ingredient purity, states Hartman. Supplement makers also need to consider offering non-pill products.

Producers of functional foods and beverages need to focus on the primary goals of delivering on sensory experience (especially taste) and consumer definitions of quality.

Supplements

Functional Foods

Functional Beverages

Immunity

Energy

Hydration

Bones/Joint Health

General Prevention

Energy

General Prevention

Weight Management

General Prevention

Skin/Hair/Beauty

Cardiovascular/Cholesterol

Digestion/Microbiome

Energy

Digestion/Microbiome

Immunity

Digestion/Microbiome

Immunity

Fitness/Performance or Weight Management

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Market report

Food & Beverage Market in UAE

Market Overview: Focus Economics reported that the “UAE” economic growth is expected to decelerate this year on a weaker oil sector, while the non-oil sector is also expected to contract. Economic momentum ebbed further in the first quarter of 2020 amid coronavirus-related disruption, after decelerating for two consecutive quarters in 2019. The hydrocarbon sector likely suffered from markedly lower oil prices amid plunging global demand and rising supply due to the Russia-Saudi Arabia price war. However, increased production after the breakdown of OPEC+ production cut agreements in early March will have softened the hit to revenues

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somewhat.

The duration of the Covid 19 outbreak and its impact on global travel and trade present considerable downside risk to the outlook.

FocusEconomics panelists forecast Gross Domestic Product (GDP) to increase 1% in 2020, which is down 1% from the March estimate, and 2.9% in 2021. Recently a vast gas field measuring around 80 trillion cubic feet was discovered in the UAE in February, boding well for energy self-sufficiency.

According to Euromonitor the real value of inbound tourist and business travel receipts rose by 4% in 2019 and growth of 2.3% is forecast for 2020. To attract more visitors, a movie-based theme park known as IMG Wolds

of Adventure has been built, which has the capacity for 10,000 visitors daily. Dubai also plans to invest US$32 billion to develop one of the world’s largest aviation megahubs. Expo 2020 is expected to create 270,000 new jobs and bring in 25 million visitors.

In the financial field, credit growth to the private sector has slowed as banks increase provisioning against potential loan losses. Although banks remain well capitalized, most are increasingly unwilling to lend to SMEs. The standard of living in the United Arab Emirates is one of the highest in the world. A liberal, business friendly and market-oriented growth strategy has reshaped the economy. The non-oil sector steadily expanded as

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diversification of the economy proceeded. However, greater diversification meant that the UAE was hit more severely by the global financial crisis than its neighbors.

Abu Dhabi and Dubai together account for about 80% of the UAE’s income.

Abu Dhabi’s diversification program has made impressive progress. Its non-oil industries now account for close to 50% of GDP. Dubai’s diversification efforts were slowed by problems in the financial industry and the real estate market. However, both sectors now appear to be on the way to recovery. The UAE is the second largest foreign direct investment (FDI) recipient among Arab countries after Saudi Arabia.

As the UAE’s economy has developed into a major services hub in the Middle East, its dependency on oil exports has declined.

The UAE’s population has risen at a significant pace. In 2020, the total number was 9.9 million, up from just 3 million in 2000 (CIA World Factbook Est.). Foreign citizens make up around 88% of total population and are mainly responsible for the rapid gains in population. However, almost all immigrants are young or middle-aged adults and their presence ensures a relatively high median age (38.4). In addition,

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Market report

immigration has led to an imbalance between the male and female populations – there are two men for every woman in the UAE. U.S. exports of consumer ready food products totaled US$936.5 million in 2019, an increase of 20% from 2018.

The UAE is the largest U.S. consumer food export market in the Middle East and the 20th largest overall. The UAE also imported US$424.6 million of U.S. processed foods in 2019, an increase of 6%. The UAE is the 2nd largest U.S. export market for processed foods in the Middle East after Saudi Arabia. Top U.S. exports of processed food products to the UAE in 2019 included: l Food Preparations l Snack Foods l Processed/Prepared Dairy Products l Condiments and Sauces l Chocolate and Confectionery l Fats and Oils l Processed Vegetables and Pulses Retail Sector: Euromonitor has estimated 2019 retail sales in the UAE packaged food market to be US$5.7 billion.

That represents an increase of

23.7% and nearly US$1 billion from 2015. They also forecast sales of packaged food in the UAE market to reach nearly US$7.4 billion by 2024, an increase of US$1.4 billion and 23.7%. High growth products in the forecast include: l Processed meat and seafood l Rice, pasta and noodles l Soup l Sauces, dressings condiments l Breakfast cereals l Processed Fruit and Vegetables l Baked goods l Savory snacks Euromonitor reports that when it comes to modern grocer retailing, omnichannel is becoming a growing trend in the UAE. For example, in 2018 the Lulu Group allowed consumers to make a purchase online and pick it up from a

designated Lulu supermarket at their convenience. This click-and-collect model has been particularly convenient for people who have busy working lives and prefer to have their groceries delivered in the evenings.

Dubai Mall has added another grocery store to the mall; currently it only had a Waitrose supermarket.

Grandiose, a supermarket that sells French brands such as Luchon and Cotterley has now opened in the new Dubai Mall Zabeel extension, the 9-storey retail space that is linked to the main mall with a footbridge. Grandiose Supermarket will be the sole player in that space in close proximity to the car park, which will give consumers, added convenience because it will save them the hassle of having to travel through the mall to get to their car.

Abu Dhabi and Dubai together account for about 80% of the UAE’s income. Abu Dhabi’s diversification program has made impressive progress. Its non-oil industries now account for close to 50% of GDP. Dubai’s diversification efforts were slowed by problems in the financial industry and the real estate market

One of the reasons for the success of this Dubai-based business is its location in high-density residential areas.

Furthermore, in a bid to compete with the convenience offered by convenience stores, more and more supermarkets such as Al Maya are being open around the clock. Al Maya has been in the Gulf region for the past 35 years and is pursuing further growth opportunities in the future.

With its first outlet in Abu Dhabi, it opened a second outlet in Dubai in 2019 which caters to a more multi-ethnic basket of consumers. It includes many products of private label, SPAR Own Brand products are sourced both regionally and internationally. The Dutch supermarket offers a fresh bakery, a fish counter and butcher. It plans to open 30 more multi-format stores in Dubai in the coming years.

According to Euromonitor, leaders in hypermarkets are creating buzz by bringing cutting-edge technology to their brick-and-mortar stores.

The best example of this is Carrefour’s “Tally”, a 14kg robot with a height of 163cm, which scans items on the shelves and alerts managers

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Market report to discrepancies. This allows the rest of the staff members to focus on consumer service and create a better shopping experience. This is a very important way to drive future prospects because some people avoid hypermarkets due to the chaotic nature and long queues. Furthermore, promoting the in-store experience is a way for hypermarkets to compete with the growing entrenchment of discounters, competition that is expected to intensify as more players enter the market. Investing in state-ofthe-art technology can help hypermarkets distinguish themselves from lower-end convenience stores and supermarkets.

Consumer behavior is changing as more and more customers prefer to shop for convenience and grab and go, even at higher-priced outlets. As the frequency of largely weekly or monthly shopping decreases, this can be a source of worry for hypermarkets. Furthermore, the growing preference for fresh food means that people buy things and use them right away rather than keep them in the “fridge” for weeks. In addition, as lifestyles become ever busier and household size is reduced, hypermarkets will see sluggish growth over the forecast period (2024).

Hypermarkets are seeking ways to distinguish themselves from competitors.

One way they are doing this is by appealing to consumers’ sensitivity to environmental sustainability. For example, in 2019 Carrefour hypermarket announced that it would become the first retail chain to set up a refill station in its hypermarkets for liquid

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detergents. Hypermarkets will have to appeal to consumers’ new behavior in order to keep themselves relevant over the forecast period.

The consumer trend of rising health consciousness continues to grow in the UAE as more people, especially millennials, look for products that are positioned as increasing wellbeing.

Traditionally, such choices have been exclusively the realm of premium offerings and hypermarkets are continuing to address demand by offering more choice. Charcoal toothpaste has become a ubiquitous trend in hypermarkets, a niche product that appeals to consumers’ desire for novelty and products with more nature-based ingredients.

Following Majid Al Futtaim’s strategic acquisition in 2017, acquiring the rights for Géant hypermarkets and supermarkets in the region, it acquired the largest distribution warehouse in Dubai’s Jebel Ali; factors that have helped it solidify its leading role in the channel.

At 1.5 million sq ft. (140,000 sq m), the storage warehouse will be the largest fmcg warehouse ever built in the region (four times larger than any of the previous Carrefour distribution centers). The

building represents an AED300 million (US$82.2 million) investment by Majid Al Futtaim, and plans are in the pipeline to automate the sourcing and delivery process for Carrefour in the next 2-3 years. The storage facility will also help ensure freshness and keep prices competitive for the increasingly pricesensitive consumer base.

Another reason it is the leader in the channel is the success of the Carrefour private label. The company offers private label products in consumer appliances as well as homewares, which are quite popular among price-sensitive consumers in the UAE. Prominent product segments are baked goods, shelf stable food, dairy and meat products, as well as bottled water and facial tissues.

According to Euromonitor, among UAE residents, there is an ever-increasing value placed on retailers who provide convenience and certainly convenience stores capitalize on this. Given this, grab-and-go products from convenience stores, despite having a higher mark-up than in say, hypermarkets, are particularly popular.

Convenience stores in the UAE have increasingly expanded their range of

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daily essentials and tend to be located near residential buildings with a wide variety of ready-to-eat meals with fresher and healthier ingredients.

Ready-to-eat meals with a focus on fresher ingredients are helping to fuel the prospects of this segment.

Unique foods, especially of the Southeast Asian variety, such as ready-to-eat chicken tikka and butter chicken biryani, continue to attract UAE consumers.

With 7-Eleven engaging in constant store rationalization, other non-food-related plans to fight retail headwinds include rolling out of more self-checkout systems and retrofitting stores to include seating areas. 7-Eleven also partnered with soCash in 2018 to offer consumers the choice of “cardless” cash withdrawal via the soCash app as part of its efforts to enhance consumer convenience through digital means. These initiatives are projected to ensure 7-Eleven’s dominance in the years to come, despite similar initiatives from rival Cheers.

When self-checkout was first introduced in the UAE, it usually required human assistance to get customers familiar with it. But now after a couple of years, the selfcheckout system has found its footing and convenience store consumers appreciate how quick and time saving it is.

This creates a better shopping experience and reduces the barriers for time-strapped young consumers. Long queues are very off-putting in a convenience store, and as the segment becomes more popular, self-checkout will help grow the segment.

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Market report There are a greater number of players in this segment as brand-name supermarkets such as Spinneys and Carrefour expand their smaller format stores. Some of these supermarkets are called “Mini Marts”.

Adnoc Distribution, one of the largest players in the UAE in the fuel and convenience store space, outperformed its competitors and stated that this was due to significant increase in volume and improvements in cost efficiencies in Abu Dhabi and the Northern Emirates.

Furthermore, newly-opened outlets in Dubai helped fuel growth. Adnoc Distribution’s C-suite personnel are entirely made up of Emiratis, a rarity for the private sector.

After years of aggressive expansion, Zoom consolidated its position as the leader in value share terms in 2019.

Zoom’s expansion of food and beverage service through Pronto cafés in its outlets also attracted consumers who were interested in healthy and organic alternatives.

Zoom also acquired master franchise rights for Starbucks hot and cold beverages and introduced these in its outlets which have been popular among younger consumers.

Another source of its success is that it has consolidated the most fertile segments in the market but positioning its convenience stores in busy urban areas and within office buildings. It has won the award UAE Superbrand for five consecutive years. It also dominates the transit system in the UAE, with hundreds of stores across service stations and across the Dubai Metro.

The UAE is the largest U.S. consumer food export market in the Middle East and the 20th largest overall. The UAE also imported US$424.6 million of U.S. processed foods in 2019, an increase of 6%. The UAE is the 2nd largest U.S. export market for processed foods in the Middle East after Saudi Arabia

Best Product Prospects: U.S. consumer food products with good potential into the UAE and rest of the GCC-5 region include: l Condiments and Sauces l Halal Poultry Meat and Beef (Chilled And Frozen) l Breakfast Cereals l Confectionary Products l Snack Foods l Frozen Vegetables l Fresh Apples and Pears l Edible Oils l Cheese l Fruit and Vegetable Juices l Pet Foods Food Service Sector: Due to rising concerns regarding health and wellness among consumers in the UAE and the greater impact of consumption patterns shaped around calorie counting and the intake of vital nutrients, the industry has begun to see the development of functional food items with more foodservice operators introducing gluten-free options under regular menu items. This has also led to foodservice operators offering premiumization in their menus by using ingredients such as organic grass-fed meat, organic vegetables, olive oil, avocado, etc. and labelling the calorie intake for menu items.

Rapidly developing tourism and diversity in the population makes the UAE

a very attractive market for expansion for both big and small international players from all around the world, given that a number of enterprises specializing in the Middle East are ready to provide franchise support and investment to new brands and malls looking to increase their presence through a greater number of foodservice outlets.

As the country prepares for Expo 2020, with it continuing to attract a global tourist audience through the development of real estate, leisure and entertainment experiences it is expected that this will help support a positive turnaround within the consumer foodservice industry. The opening up of various projects in the capital city of Abu Dhabi has also gained global attention, which will likely drive investment in new concepts, thereby raising the profile of the UAE as a provider of unique culinary experiences and thus being able to attract global audiences.

Food-Processing Sector: At last report about 430 food processing firms operate in the UAE and a smaller number of food processors in other Gulf countries such as Kuwait, Oman and to a much lesser extent in Qatar.

This sector consumes much of the bulk, intermediate, and semi-processed products the

U.S. sells to the region. In the food-processing sector, U.S. ingredients are mainly used in the following product categories: flour and bakery products, vegetable oil, canned beans, carbonated and non-carbonated beverages, chicken franks, manufactured snack foods and reconstituted juices.

Two soybean crushing facilities with 6 million metric ton processing capacity/year are operating in the UAE. They mostly crush canola seed for the production of oil and meals, targeting the European Union (EU) market. Soybeans are sourced from the U.S. and Latin America. Local dairies and poultry farms are not large enough to meet local demand. Consequently, a number of local companies reconstitute dairy products from milk powder, primarily sourced from Europe, New Zealand, and Australia. It is expected that an increasing number of multinational food companies will look to link up with local processors.

While food processors often started small, the UAE’s strategic location, excellent ports, and strong infrastructure have helped many to expand. Some locally produced foods are of very high quality with competitive prices compared to imported products. As the number of food processing companies in UAE continues to increase, locally produced products are likely to compete directly with imports of consumer-ready foods, while boosting demand for ingredients and other raw materials. n

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Source: Food Export Association Market USA September 2020

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current issues

Stop Toxic Adulteration

Open Letter to FSSAI and AGMARK — Vijay Sardana, Advocate & Techno-Legal Expert (Specialized on Techno-Legal & Techno-Commercial Matters and Public Policies)

Vijay Sardana, a well-known Techno-Legal Advocate, Dispute Mediator, Contract Negotiator and Arbitrator, is a Trade Policy Expert with focus on Risk Management and Regulatory Compliance. He is a member of CDAC, SEBI and GOI; Independent Corporate Director and International Trainer. He is well-known key note speaker author, blogger, TV panelist, column writer & well-known moderator in international and national conferences. He is alumni of well-known leading institutes like IIM, Ahmedabad, CFTRI, Mysore Collage of Dairy Science & Indian Law Institute, New Delhi. He has also acquired professional qualification from WIPO, Geneva & Harvard University. With wide global experience of more than 20 years in various leadership positions, his understanding of complex inter-relation between multi-dimensions aspects of business, economy and trade policy make him a sought after corporate policy advisor.

To, The Chairperson / CEO Food Safety & Standards Authority of India Ministry of Health Govt. of India New Delhi & The The Joint Secretary / Director, Incharge for AGMARK Ministry fo Agriculture Government of India Dear Chairperson / CEO / JS/ Director, Subject: Letter of 19th Aug 2020 (attached) is legally ineffective and will have no impact on adulterated oil suppliers. This appears to

be eyewash.

Eat Right (adulterated food) is the joke of FSSAI, if food adulteration is not controlled.

The mentioned letter on the subject is a baby step but this is a half-hearted incomplete attempt to address the serious concerned with public health.

FSSAI has issued the advisory in the form of a letter and it has no legislation under the court of law. In past, such advisories were questions in the court and courts refused to accept such directions unless issues as proper notification.

Unfortunately, the letter reminds the department about the power of food safety officers. The record of the department and the market flooded with adulterated and substandard products clearly indicates that this advisory will have no effect on the ground.

If they had any concern, commitment, and understanding of their moral and legal duty, citizens’ health can be saved from adulterated products. Unfortunately, as a citizen, with the experience I can say, this will have no positive impact on the ground. Corruption is due to these powers under the act. Your letter will only create more corruption opportunities. I will be happy to see the change on the ground this time under your leadership.

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current issues 1. As citizen, I also expect transparency in the function of FSSAI. FSSAI must honestly disclose how many oil samples were tested every week, how many were found adulterated, and how many suppliers were booked and factories sealed. Unless there is an action on the ground, do not expect this letter of FSSAI has any impact on the ground.

2. It is sad to see that citizens of India are suffering due to adulteration and FSSAI is taking too long a time to issue a proper logical notification to protect public health. This letter also ignored many vital parameters which were suggested for controlling adulteration.

As a citizen of India, let me help FSSAI in formulating the proper standard and rules. If the technical advisory committee has any issue with any of the following suggestions, the same should be discussed in an open forum. The industry should know the reason for rejecting the following suggestions.

My humble request is the following points should be considered and included in the regulations to control the adulteration in India edible soil in India.

1) Raw oils should NOT be allowed for blending under any pretext.

2) Only refined oils meeting FSSAI standards are allowed for blending.

3) Colour of the edible oils, other than raw oils, must be mandatory parameters under FSSAI and Agmark in line with BIS. 4) All blended edible oils must mention Fatty acid profiles on the product label to know the truthfulness of the blended oil and claims made on the label.

5) All oils, not added with rice bran oil must mention, must mention “Free from Oryzanol” on the label.

6) All oil samples must be tested for Oryzanol content 7) All raw oils and refined edible oil standards must specify mono-glycerides and di-glycerides parameters in FSSAI and AGMARK. 8) Mono-glycerides and di-glycerides parameters oils must be tested for these items in every sample.

9) Raw Mustard oils (Kacchi Ghani) must have a minimum 35% erucic acid and diglyceride content is not more than 2%.

10) All Invoices must mention the license and registration number of the purchasing dealer to minimize mixing in tankers and in godowns: Modify Point no. “14 in FSSAI licensing condition - The Manufacturer/ Importer/ Distributor shall buy and sell food products only from, or to, licensed /registered vendors and maintain record thereof. The invoice/delivery challan in respect of the sale/movement of vegetable oils must mention the license/registration number of the purchasing dealer. " 11) Modify Point no. “5 in FSSAI licensing condition. Every sale and movement of stocks of solvents-extracted oil,'semi-refined' or 'raw grade I’, 'fatty acids / acid oils produced during the refining of vegetable oils', edible groundnut flour or edible coconut flour, or both by the producer shall be a sale or movement of stocks directly to a registered user and not to any other person, and no such sale or movement shall be effected through any third party."

12) Ministry of Finance and Corporate Affairs, FSSAI and Agriculture Ministry must enforce Section-148 under Companies Act 2013 on all food companies. This will ensure only good material and purchased by the company. This will be verified by the statutory auditors and should be made part of the annual report to shareholders and to ROC. This will ensure not only safe products but also proper GST collection for the government.

If any help is required in explaining these self-explanatory points, undersigned will be happy to explain all the technical and legal justifications in from of any expert in the country or outside India. Please provide the opportunity for the same before rejecting the above points in the public interest.

Appeal: My requests to all FSSAI leadership and officials, you all are paid salaries to sustain your decent lifestyles and families by taxpayers and your inaction is making the same taxpayers and their families sick due to adulterated foods. Is this morally and ethically right?

Your actions will speak louder than your words. Citizens are watching carefully are you ensuring that foods are delivered as per the laws or not.

I wish you all the best so that you have the courage to take a right stand against the wrong door and make the system FSSAI transparent before more citizens of India become victims of adulterated foods. FSSAI actions must be visible and should inspire confidence among citizens. Are we expecting more than the minimum required?

Waiting for proper elaborate notification on this vital concern of the citizens.

With best regards, Vijay Sardana

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current issues CC: 1. PM Office 2. All Concerned Ministers 3. All Concerned Secretaries 4. All Concerned Departments Copy of the letter issues: This letter has no legal standing. This is not a law. Please issue the proper notification.

F. No. 12 (3) 2016/Edible Oil/RCD/FSSAI Food Safety and Standards Authority of India (A Statutory body under Ministry of Health & Family Welfare, Government of India) (Regulatory Compliance Division) FDA Bhawan, Kotla Road, New Delhi – 110002 Dated tgem 19th Aug, 2020 To, 1. The Commissioner of Food Safety of All States/UTs 2. All Central Licensing Authorities (Delhi/Mumbai/Chennai/Kolkata/Guwahati) Subject: Adulteration of edible oil with DAG/Synthetic Oil-reg.

Reference: 1. FSSAI Letter F. No. Stds/O&F/SP/16/FSSAI-2019 (pt.1) dated 17.07.2019.

2. FSSAI Letter F. No. Std/SP-15/T (Surveillance)/Standards/FSSAI dated 04.03.2020.

Sir,

Please refer to reference letters cited above.

In this regard, it is advised to strictly monitor the production process of all the vegetable oil refineries and blending units under your jurisdiction through surveillance through indicators like presence of Glycerine in the oil mills, presence of Oryzanol in the Mustard oil products of such mills/FBOs and ensure to prevent use of any DAG/Synthetic Oil for adulteration with any edible vegetable oil including mustard oil. The testing for Oryzanol presence in mustard oil should be carried out on regular basis with strict enforcement.

Further, it is also advised to sensitize the Food Safety Officers towards the provisions of Section 38 (9) of FSS Act, 2006 regarding “Powers of Food Safety Officer” which states “When any adulterant is seized under sub-section (6), the burden of proving that such adulterant is not meant for purposes of adulteration shall be on the person from whose possession such adulterant was seized” and accordingly in exercise of the powers, if any DAG/Synthetic Oil is found in any oil mill appropriate proceedings should the initiated against the FBO as per the provisions of FSS Act, 2006 and rules and regulations made thereunder.

Executive Director (Compliance Strategy)

Source: https://lawnotesforstudents.blogspot.com/2020/08/stop-toxic-adulteration-open-letter-to.html

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CMYK

current issues

Date: 02 Sep 2020 Dr. N. Bhaskar Advisor (Science & Standards) Food Safety and Standards Authority of India FDA Bhawan, Kotla Road New Delhi 110002.

Subject: Request for revision in Standards of Sauces and like products FCS 12.6 in Ref: FIFI letter of 6 August, 2018) Respected Dr. Bhaskar Ji, Greetings from Forum of Indian Food Importers!

With this letter we would like to draw your kind attention towards letter submitted

by Forum of Indian Food Importers (FIFI) on 6 August, 2018 requesting for the amendments in FSSAI Standards for Vinegar and Culinary Sauces. The Food Authority is in the process of revision of standards of various food articles prescribed during the regime of Prevention of Food Adulteration and were incorporated as it is under the Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011.

The FSSAI standards are quite different from standards set by CODEX. We have tabulated standards of culinary sauces and vinegars set by FSSAI vis-Ă -vis CODEX below for your ready reference: 12.6 FCS Sauces and like products 12.6 Sodium Benzoate is allowed under 1000 mg / kg, Potassium Sorbate (E 211) is not allowed in the main category.

12.6.1. Emulsified sauces (sorbate, phosphate, poly sorbates all 3 are allowed together) 12.6.2. NON emulsified sauces (sorbate, phosphate, poly sorbates all 3 are allowed together).

The request is to allow under the sub categories 12.6.1 AND 12.6.2 preservative Sodium Benzoate (E 211) either jointly or singly with the sorbates, phosphates and poly sorbates).

The reason being that Sodium benzoate, and potassium sorbate are used to prevent microbial growth that causes spoilage and to slow changes in color, texture, and flavor.

Potassium sorbate and sodium benzoate both prevent spoilage by inhibiting mold and yeast. The major reason for the utilization of these preservative in the food industry is to stop nutrition losses due to enzymatic, chemical or microbiological, changes and in this way increase its shelf life (Mota FJM et al., 2003). Sorbic and Benzoic acids and their respective salts of potassium, sodium, and calcium are the chemical preservatives. These compounds avert mold and yeast growth and also helpful against a large range of bacteria and due their low pH working well in foods. Benzoic and sorbic acids are alsoutilized as antimicrobial agents.

The growth of yeasts, molds and bacteria in food is inhibited by Sodium benzoate so it is added as food preservative in a variety of food products in concentrations of 1 mg mL.A daily in take of 0.5 g is suitable to humans. Potassium sorbate is most efficient against mold growth in

juices. It can be adopted as a preservative but with the precautionary measure it should not be used more than 2000 mg L -1(Pylypiw HM et al., 2000). Sauce being semi solid / liquid needs works better preservation since Sodium Benzoate compliments liquids and potassium sorbates compliments solids.

Keeping in view the above in the interest of trade and ease of doing business, we earnestly request your kind office to consider our request sympathetically and revise/amend the existing standards of sauces.

I most sincerely hope to receive a positive consideration on the subject request. If you have any further question please feel free to contact the undersigned.

With kind regards, Amit Lohani Founder & Director- Forum of Indian Food Importers

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Food safety

FSSAI Bans Sales, Ads of Junk Foods in School Canteens, Within 50m of Campus

S

ales and advertisements of junk foods in school canteens and within 50 metres around school campuses have been banned in order to promote safe and wholesome food for children, regulator FSSAI said. The Food Safety and Standards (Safe Food and healthy diets for School Children) Regulations, 2020 in this regard has been notified now after consideration of stakeholders' comments, FSSAI said in a statement.

"Sufficient transition time will be given to all stakeholders before enforcing these regulations," the Food Safety and Standards Authority of India (FSSAI) said.

Meanwhile, FSSAI would direct State Food Authorities/ Department of School Education to frame safe and balanced diets for children in school in accordance with the general guidance given in these regulations, it added.

As per the regulations, "Foods which are referred to as food products high in saturated fat or trans-fat or added sugar or sodium (HFSS) cannot be sold to school children in school canteens/mess premises/ hostel kitchens or in an area within fifty meters from the school gate in any direction."

Also, food business operators (FBOs) manufacturing HFSS foods are "barred from advertising and marketing of such foods to children in school premises including through logos, brand names, posters, textbook covers etc. or in

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an area within fifty meters from the school gate in any direction."

The school authority should ensure that a board containing warning "Do not sell (including free sale or market or advertise) the food products high in saturated fat or trans-fat or added sugar or sodium within school premises or campus" in English or one Indian language, as applicable, is displayed prominently at the entrance gate or gates of the school.

Besides, a license will have to be obtained for selling or catering school meals by the school authority itself or FBOs contracted by the school authority.

FBOs contracted by the state government for

operation of Mid-day Meal Scheme will also have to get the license.

They have to comply with the requirements of sanitary and hygienic practices to the food service establishments as specified under schedule 4 of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011, the FSSAI added.

FSSAI said schools should adopt a comprehensive program for promoting 'safe food and balanced diets' amongst school children, and to convert school campuses into 'Eat Right Campus' focusing on provision of safe and healthy food, local and seasonal food and developing practices amongst kids on food waste as per the specified benchmarks.

Sufficient transition time will be given to all stakeholders before enforcing these regulations," the Food Safety and Standards Authority of India (FSSAI) said

AgriBusiness & Food Industry

To promote consumption of a safe and balanced diet in the school as per the guidelines issued by the National Institute of Nutrition (NIN), the school authority should engage nutritionists, dietitians to assist in the preparation of menu for the children, periodically.

There should be regular inspection of premises to ensure that safe, balanced and hygienic food is served to students and a 'Health and Wellness Ambassador' or 'Health and Wellness Team' may be appointed as the nodal persons to monitor availability of safe, balanced and hygienic food, it said.

The local public authorities, in addition to state food authority, should ensure compliance of these regulations.

The regulation also provides for creation of a sub-committee by the State Level Advisory Committee for monitoring implementation of these regulations and to ensure availability of safe and wholesome food to school children.

"It is important that right eating habits should be ingrained in children right from early childhood.

The importance of a healthy and balanced diet leads to development of cognitive ability in children and helps them learn better and grow healthy," FSSAI said.

At the heart of these regulations is a fundamental idea to make it clear what is healthy for children and what is not, it added. n

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dairy sector

Mission Milk Has Helped India Make Giant Strides in Dairying — Dilip Rath

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hase I of the National Dairy Plan (NDP-I), referred to as ‘Mission Milk — The Next Revolution’, implemented by the National Dairy Development Board (NDDB) during 2012-19, helped the country maintain its self-sufficiency in milk production in the post Operation Flood (OF) era.

Phase III of OF (1970-96) had transformed India from a milk-deficit nation to the world’s largest milk producer.

The NDP was planned with a 15-year horizon with rollout in two phases.

The first, NDP-I, launched in March 2012, aimed at ensuring sustained growth in milk production by increasing animal productivity, for meeting the projected demand of 200-210 million tonnes (mt) of milk by 2021-22. The World Bank-assisted NDP-I was implemented by NDDB in 18 major dairying States from 2011-12 to 2018-19, with a total outlay of Rs.2,242 crore.

NDP-I covered scientific programmes in animal breeding and nutrition with the objective to enhance animal productivity. A nationwide High Genetic Merit bull production programme was launched to enhance the quality of frozen semen doses. Semen production infrastructure was strengthened along with biosecurity measures.

A model pilot artificial insemination delivery programme with Pashu Aadhaar was implemented, which resulted in improving the conception rate by 47 per cent. These breeding programmes improved the genetics and breeding efficiencies of our milch

animals.

Balanced feed Another critical component of NDP-I was to ensure balanced feed for dairy animals through a Ration Balancing Programme (RBP) to demonstrate the benefits of feeding a balanced ration.

About 29 lakh animals in 33,374 villages were covered under the RBP. It led to an about 12 per cent reduction in feed cost and an increase in farmers’ incomes. The RBP also resulted in methane emission reduction from dairy animals by 13 per cent, contributing to the government’s efforts to reduce greenhouse gas emissions.

Under Fodder Development, activities covering securing, storing, enriching and conserving fodder were promoted. A network of micro training centres with progressive farmers as trainers was set up to disseminate these techniques to other farmers.

Expanding and strengthening market access by establishing village-level milk procurement systems was instrumental in providing market access to milk producers. More than 16.8 lakh milk producers in about 52,000 villages were covered and 4,100 bulk milk coolers were established, which resulted in better milk quality.

More than 29,000 automatic milk collection units were set up for ensuring milk quality and fairness and transparency in milk procurement.

The Socio-Economic Survey of NDP-I carried out by the National Council of Applied Economic Research (NCAER) estimated that the average annual income of a typical project household was 10 per cent higher than non-project households and significantly higher at 38 per cent for the landless.

NDP-I contributed to social inclusion of weaker sections and empowerment of women engaged in dairying.

World Bank outcome rating According to the recently released ‘Implementation Completion and Result Report’ of the World Bank, the economic rate of return (ERR) was estimated at 60 per cent as compared to ex-ante ERR of 23 per cent. The report lauds the achievement of the physical and financial targets of NDP-I. The World Bank has given the highest outcome rating to NDP-I in its report.

NDP Phase II will be a logical extension to handle additional volumes of milk coming to the organised sector.

Some components envisaged under Phase II of NDP have now been

covered under the Dairy Processing and Infrastructure Development Fund (DIDF) and Animal Husbandry Infrastructure Development Fund (AHIDF) schemes under the recently announced Aatmanirbhar Bharat Abhiyan. This will help build and modernise milk processing infrastructure in the organised sector.

Growth in our milk production at over 6 per cent per annum over the last five years can largely be attributed to NDP-I. This growth momentum is likely to continue in the foreseeable future due to the implementation of the Rashtriya Gokul Mission for breeding activities, DIDF and AHIDF. Temporary aberration The current situation of surplus milk in some States, leading to lower producer prices and accumulation of milk powder stocks, is at best a temporary aberration owing to market disruption due to the Covid-19 pandemic.

Dairy development has not been uniform across the country. The eastern, north-eastern States and aspirational districts in particular have lagged behind. In order to ensure inclusive growth in milk production and procurement, it would be necessary to promote the creation of alternative producer owned institutions in these areas where cooperatives are absent or weak. This will truly make our country self-reliant and self-sufficient in milk. n (The author is Chairman, National Dairy Development Board. Views expressed are personal)

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ingredients

Food Pairing – An Outlook to Designing New Products — Basavraj Vishnu Bidave & Kabita Lodha

I

magine you are opening a new restaurant or a food truck. With so many competitors already existing in the market, it becomes vital to differentiate yourself. You could choose to differentiate on several factors. Primary of these include: 1. Introduce or sell a new in demand product.

2. Differentiate on the basis of a theme, i.e. the ambience of restaurant 3. Create innovative promotions to gather a crowd.

Of all of these, only the first option is relatively sustainable, for what a customer would take back from your restaurant is “Khaana accha tha”.

However, getting a new product in the typical manner is not very easy. This is for these three problems always exist.

1. You may not have the financial power to invest in a high quality chef or setting up an ambience which can differentiate yourself from others.

2. To create a differentiating factor, you may want to sell products that are not sold by other restaurants yet, products that you know that the Indian palette would love.

3. You may not want to sell products that 000’s of other restaurant sell, for they might push you off the market with their financial muscle.

But what if there is a way, in which new products could be developed, without even ever looking at the food or holding them in your hands?

Food Pairing Food Pairing is the age old technique of combining two or more food items together in order to complement their tastes.

Remember popcorn and butter Or Burger and Fries?

You would think that they just exist. One fine day, someone stumbled upon these combinations and now they are just there.

While it may have so happened many years ago, the concept of

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Food Pairings is making it easier to understand why certain foods combine so well together.

Every food item’s taste can be roughly be explained by using the following mathematical function: Taste (food) = f {aroma (food) + taste (food) + happiness (while cooking and eating)} The first component, the Aroma contributes to around 75-80% of the taste that you get from eating a food. This is another reason why, all food items seem so bland when one is down with a cold.

The second component, the Taste of the food, is the taste that you feel when the food touches the receptors on your tongue. This contributes to around 10-15% of the taste you get from a food.

The final component is very intangible but very important. It is commonly said in many cultures that, the taste of a food item very much depends on the emotions felt by the cook when the food was being made.

A little bit of Science now Every food item has several individual components.

For eg: In saffron, Crocin is responsible for the Color, Picocrocin for the Bitter Taste and Safranal for Odor and Aroma.

It is only when all of them are combined, that Saffron is formed.

But how are these components and their concentrations found?

These components are found by running the food item in a HPLC (High-Performance Liquid Chromatography), where each component shines at a particular wavelength.

Confused?

Here’s a graph.

A simple thing to remember is that every component shines at a particular absorbance level (y-axis) measured at a particular

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Ingredients

HPLC result for Apple Juice

time (x-axis). In the above graph, you can see that Patulin shines at around 58mAU (corresponding to say 240nm) and at a time of exudance of 12 minutes.

So, once you have all the components, you check for components in another item. If there are a lot of individual components in common, the food items go very well together.

The central hypothesis behind the Food Pairing theory is that the more the number of aromatic flavour compounds two food items has in common, the better they taste together.

That is: Taste (food 1) = f {aroma (food 1) + taste (food 1) + happiness (while cooking and eating)} Taste (food 2) = f {aroma (food 2) + taste (food 2) + happiness (while cooking and eating)} Only when a lot of components are common in both aroma and taste, do the food items combine very well together.

I.e. only if {aroma (food 1) ∊ aroma (food 2)} >= ~25% (just a number), the food items are said to be wonderfully paired together.

Surprised? Here’s an example (last one promise).

Chocolate is seen to have a bigger intersection with hazelnut than orange peels, cake or coffee. It is this combination of dark chocolate and hazelnut which is also very popular in global cuisines.

The number of components in common and their strength would tell you how well those two flavors go together.

Let’s consider a more popular food item, the Pizza.

In a typical pizza, the mozzarella cheese, the tomato sauce, and the parmesan cheese, all have 4-methylpentanoic acid in common that together gives a great combination of aroma, taste and flavour, which is loved by almost every individual in the present world which is more and more being dominated by contemporary food choices.

But does this apply to every single food combination in the world?

Not really. There are excellent examples of food pairing that

can be very well explained through this concept, but then there are a few food combinations that only seem to follow an antipairing or counter-pairing effect.

What combines well with a pizza? A Cola drink (preferable Coca Cola we hope).

Why do a cola compliment a pizza so much? The answer is simple. To counter-balance the burning taste due to hot, spicy and intense flavors, we usually have a drink that is sweet, served cold and lower in alcohol content (i.e. it should provide hydration and should not have dry taste).

The same thing happens when you try eating a loaf of bread.

Ever felt the urge to drink a glass of water/milk/tea along with it?

When it comes to Indian Cuisines, the matter gets complicated further.

Indian cuisines are heavily spiced and have more complex flavor profiles. Then ingredients do not have overlapping taste/ aroma attributes. Thus, most of the food combinations under Indian cuisine straight away avoid the rules of Pairing-theory and sometimes even follow the counter-pairing concept.

Researchers have shown evidence that the Food-pairing theory is successful only for North American and Western European cuisines. The south European and Asian cuisine, including India, have many discrete flavors that do not share any common aroma or flavor molecules.

So, would it be a good idea to surprise your family with a new combination of Pizza tonight?

Probably yes.

Source: https://fabclubiima.wordpress.com/2020/09/02/food-pairing-an-outlookto-designing-new-products/

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Technology

Rude Food by Vir Sanghvi: Ghost of a Chance The future belongs to ghost kitchens, food and chefs!

Vir Sanghvi

H

ave you ever seen the inside of a restaurant kitchen? If you have, you will know that it is nothing like the pretty space you see on food shows on TV where celebrity chefs demonstrate dishes.

A restaurant kitchen is usually a busy, bustling; notvery-pretty (okay, ugly) space where chefs jostle each other, a lot of shouting goes on and an air of chaos prevail.

They are not supposed to be like that, of course.

The legendary French chef Auguste Escoffier, who designed the staffing for the modern restaurant kitchen, wanted it to be like a well-run military operation (the kitchen team is called ‘brigade’) with various army-style ranks for the various chefs. The top chef (the man who took final responsibility) would stand proudly at the pass, from where the dishes were collected by the waiters. The chef acted like the general in command. In a classic French

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kitchen, the top man is never addressed by name; he is just called “Chef” by everyone.

(Would a lesser rank ever address a general by name?)

At expensive places in France, the ghost of Escoffier still stalks the stoves. But at most other restaurants, it is a chaotic free-for-all. And even the best restaurant kitchens have more in common with factories or workshops than home kitchens. This is why the few chefs who run happy relaxed kitchens (Daniel Humm at Eleven Madison Park in New York and Davies and Brook in London) encourage guests to eat a little snack in the kitchen halfway through the meal. (This has

been copied by many inferior restaurants the world over.)

At Mugaritz in Spain, Andoni Luis Aduriz shows guests the zen-like calm of his kitchen to indicate how different his style is.

For the most part, however, kitchens have been the dirty little secret of the restaurant business.

Restaurants want to restrict guests to the plusher dining room and not let them see the madness in the kitchen.

(Sometimes there may be hygiene issues as well.) At Chinese restaurants in India where the chefs are not remotely Chinese, guests are actively discouraged from seeing the kitchen.

Because nobody knew what was going on in the kitchens, restaurateurs could just buy microwavable packets of dishes from catering suppliers, and reheat them in the microwave when the order came in. Then they would serve them on fancy plates

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In the 1970s, as the microwave oven grew in popularity in America, many restaurants used their do-not-enter kitchens for skulduggery. Because nobody knew what was going on in the kitchens, restaurateurs could just buy microwavable packets of dishes from catering suppliers, and reheat them in the microwave when the order came in. Then they would serve them on fancy plates.

This practice continues all over the world. If you go to a moderately-priced restaurant in any tourist centre in Europe (Venice, for instance) and the menu is very large, get up and walk out. It is usually all frozen food that they will microwave for you.

But this year, as delivery has boomed, all the old rules have changed. The great growth area in the food business has been the cloud or ghost kitchen. This, as you probably know already, is a kitchen in an inexpensive area

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Technology

that is proud of functioning like a factory where different cuisines can be cooked in different sections. Most successful ghost kitchen operators in India like Karan Tanna or Cross Border Kitchens have several brands, all of which are cooked in the same kitchen by faceless chefs and cooks.

Over the last few months, I have tried the food from many ghost kitchens and it is usually of the same quality as all but the top restaurants.

But because ghost kitchen operators do not incur restaurant-level expenses (low rent, no waiter salaries, no air conditioning, etc.) they can price their food at less than half of what restaurants charge. And most of them are better organised when it comes to delivery.

This is now a global trend and, in the US, large restaurant companies are opening their own ghost kitchens. For instance, The New York Times reports, SBE Collection, a major hotel and restaurant company now uses ghost kitchens to fulfill orders for its restaurant brands: Umami Burger, Sam’s Crispy Chicken and Krispy Rice.

Customers don’t necessarily

know that the food does not come from the restaurants but from ghost kitchens.

When Dani García, the three Michelin-starred Spanish chef was in Delhi a few months ago for a pop-up, he told me that he had turned his back on Michelin-star food and closed his three-star restaurant. García has now tied up with SBE to develop cheaper brands that can be run out of ghost kitchens. No restaurants will be opened.

Other chefs have had the same idea. Though Daniel Boulud has an empire of (relatively) highend restaurants around the world, the New York-based French chef will also enter the delivery space using separate kitchens. Boulud has had to

lay off many of his kitchen staff during the pandemic. He thinks the delivery kitchen will allow him to rehire many of his cooks.

In India too, the big boys are now getting into the delivery business. Lite Bite Foods (owner of Punjab Grill, Tres and other popular restaurants) has already opened one ghost kitchen and is in the process of opening three more.

All this is well and good but it is the next step that I am really intrigued by.

Assume you run a mid-level restaurant. Assume now that you have to put Butter Chicken, Biryani etc. on the menu. What do you do? Do you hire a great Punjabi chef?

A biryani guy? And another

cook to make, say, your momos for you?

At the moment, restaurants are either hiring expensive specialist chefs or they are getting the guy who makes Chicken Manchurian to also make the biryani. That is why the food at many midlevel standalones in India is so bad.

But imagine if they could sign up with a ghost kitchen to have Butter Chicken, Biryani and Momos delivered to them every morning. The quality would probably be better and the ghost kitchen would offer competitive prices. The customer would never know that the food came from a ghost kitchen because he or she would not be allowed to see the restaurant kitchen.

It’s the same principle as the mid-range restaurants in the West who buy their food from catering giants and then just microwave it before serving.

It is certain to happen here: not only are ghost kitchens the future, so are ghost chefs — and ghosted food! n The views expressed by the columnist are personal From HT Brunch, September 13, 2020

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Technology

Future Foods Are Not Made Of Plants — They Are Made Of Air — Mimi Billing

W

hen cooked and added to a pancake base, alternative protein solein tastes a bit like egg. When baked into bread it has a hint of carrot.

Aside from the taste, solein has another twist which makes it different from other non-meat proteins such as pea or hemp which have taken off in popularity in recent years: it’s made pretty much from thin air.

Made by Finnish startup Solar Foods, solein is made without any kind of conventional agricultural process but one more like fermentation, combining renewable electricity, air and water laced with bacteria to make food completely divorced from the land.

“We have produced about 20 products so far, and we provide food for every meal of the day, ranging from breakfast granolas to desserts,” the cofounder and chief executive Pasi Vainikka tells Sifted in an interview.

Solar Foods was founded by a group of scientists, experts in biotechnology and renewable energy, at the Technical Research Centre VTT. After having managed to develop the protein on a small scale inside of the research facilities, Solar Foods was spun off in 2017.

Now finally the product is ready to go to market, meaning that you may be

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able to try the product in the coming years if all goes to plan.

And Solar Foods have big plans. In a few years, the company plans to produce enough to make two billion meals a year.

The environmental impact is important to the founders.

According to the them, solein is 100 times more climatefriendly than any animal or plant-based protein, when it comes to land-use efficiency, greenhouse gas emissions and water usage. It uses 1,550 times less water to produce than beef.

The company raised €15m earlier this month to start building its first demo factory in an urban spot in Helsinki where Solar Foods will be able to show the production process as well as having a food bar where people can try different things made with the protein.

The money raised won’t

be enough to build the factory and the company is now looking for local and European grants to make it happen.

“Venture capital companies do not want to spend money on steel tanks, so we need another €15m in grants. We are looking for this now,” Vainikka says.

Tastes like corn puffs According to Vainikka, the taste of plant-based meat and other protein substitutes such as pea protein and hemp can be a bit off-putting — but not solein.

“The professionals say it is neutral so it doesn’t have off-taste, unlike pea protein. It tastes a bit like the corn puffs that you give the youngest children as their first snack.

When you cook it or add it to a pancake base, I believe it reminds me of the taste of egg,” Vainikka says.

“One of my favourites is

AgriBusiness & Food Industry

our bread, it is a bit orange and tastes a bit of carrot,” Vainikka says.

There are similar companies out there, such as the US-based Calysta and Danish Unibio, which are also producing a protein with a similar kind of process, but they are using large quantities of methane gas and bacteria and are focusing on producing animal feed.

Vainikka does not want Solar Foods to be compared to these companies since they are depending on the agricultural system for methane gas rather than carbon dioxide.

“We want to delink food from agriculture that is our vision. Food tech is now where information technology was in the late 80s, early 90s.

We have a higher standard of living than ever before and that has been enabled by delinking economic growth from increasing use of natural resources — most of the value we create we do in front of our computers, not in the field. Now, it can happen to food production,” Vainikka says and continues: “Many of the venture capitalists that have made their money from IT and e-commerce, those funds are keeping an eye on food tech. This is a new sector emerging.”

Combining efforts with a confectionery giant Solar Foods has managed

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Technology to attract venture capital but also some more strategic investors. The company’s last financial round was led by the Finnish food company Fazer Group and Bridford Investments.

Fazer is a family business with reported revenue of over €1bn in 2019. Apart from the chocolates, which is what they are most famous for, they also have a large bakery business and a newly opened lifestyle food section that consists of non-dairy products, plantbased snacks and breakfast cereals.

According to Jussi Loponen, head of Fazer lab, this is not the first time the company is trying to go beyond what is commonly sold.

“For a few years ago we got quite a lot of media attention for selling bread made of insects. However, that was more of a campaign than anything else,” Loponen says. “But the strategic partnership with Solar Foods is actually quite unique for us and a new type of investment for us.”

The partnership between Fazer and Solar Foods started one year ago when Fazer invested €3.5m. Since then, the companies have met every second week to discuss the development of solein and the commercial potential for Fazer. Apart from the joint effort to make products for Fazer, Solar Foods will also make their own line of food and sell solein to other food companies. This doesn’t worry Fazer.

“We have a certain advantage in comparison to other food companies since we already have products in development. But we want

to make sure that they also are successful. After all, we have invested in them so their success is also ours,” Loponen says.

Loponen, from Fazer, sees meat substitutes as one of the areas of greatest potential for solein. But Vainikka has a slightly different view.

“I am not as keen on the meat replacement products actually. Plant-based hamburgers are great but the field is pretty crowded,” he says.

And perhaps he is right, only in Europe, there are several plant-based companies serving vegan meats to customers.

Europe’s lengthy food approval process Unfortunately, Sifted has not been able to try the protein since it has not received a food permit from the European Food Safety Authority (EFSA) — and this may take some time.

The EFSA has 18 months to go through the application from the moment they receive it. And in the case of Solar Foods, the company won’t submit its application until the end of the year.

“In comparison to the EU, some other countries like the US and India do the same tests in 3–6 months.

It’s because of this kind of hurdle that we don’t have the leadership of food tech on this continent,” Vainikka says.

Solar Foods has worked in 30-month cycles since the start. The first one was about developing the protein; the next 30 will be about going to market with a demo factory.

At the beginning of 2023, when the next cycle begins, the plan is to build a large-

scale operation. Vainikka hopes that this will bring the cost of the protein down to €5 a kilo.

That the protein is comparatively expensive is also a reason why Solar Foods are not considering producing animal feed.

“With our calculations, solein will be a bit more expensive than soy protein, even with a large-scale production in place. Perhaps it will become cheaper over time if the cost of renewable energy decreases,” Vainikka says.

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News Round-up Coca-Cola Names New India Head in Sweeping Global Restructuring

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everage maker CocaCola on Thursday named company veteran Sanket Ray as its new India head, as part of sweeping changes in leadership across markets.

Ray is presently chief operating officer for CocaCola Mainland China.

Current president of CocaCola India T. Krishnakumar has been named chairman of the company. Coca-Cola said Krishnakumar will be responsible for building and strengthening critical local partnerships in India and supporting the new operating unit leadership team. Krishnakumar had been heading Coca-Cola India as president since April 2017.

The Atlanta-based company had announced at least 4,000 job cuts across markets, as the pandemic and lockdowns across markets including India severely

impacted April-June quarter sales. The maker of Coke and Sprite soft drinks said it plans to first offer buyouts to 4,000 employees in large markets like the United States, Canada and Puerto Rico and then offer similar voluntary programmes in other countries. The impact of job reductions in India is not yet known.

The world’s largest beverage maker also said it plans to reduce the number of its global operating units from 17 to nine. “The company’s nine operating units will replace current groups and business units, effective January 1, 2021. These changes will help eliminate duplication of resources and enhance the company’s ability to scale new products more quickly,” the Atlanta-based company said in a statement posted on its website.

For the quarter ended June

2020, Coca-Cola’s volumes for sparkling soft drinks fell 12% led by India, Western Europe and the fountain business in North America, it had said in a statement, attributing the decline to pressure in awayfrom-home channels. In the Asia Pacific region, unit case volumes fell 18%, primarily due to strict lockdowns in India, the company had said.

India imposed a nationwide lockdown starting March 25, which resulted in a complete shutdown of markets, malls, restaurants and cinema theatres. The lockdown coincided with the

peak season for soft drinks.

The April-June quarter contributes more than half of the soft-drink industry’s annual sales of over Rs 20,000 crore, with out-of-home consumption accounting for 80% of sales. Its juice, dairy and plant-based beverages declined 20%, driven by pressure in Asia Pacific and Europe, while the packaged water and sports drinks businesses declined 24%, led

by Asia Pacific, the company said while announcing its June quarter earnings.

said in a statement.

Following completion of these transactions, a merger application will be filed with the intention of merging Eastern into Orkla’s wholly owned subsidiary MTR. The merged company will

be jointly owned by Orkla and the two brothers Firoz and Navas Meeran, with an ownership stake of 90.01% and 9.99% respectively, the company said.

MTR Foods Acquires Controlling Stake in Eastern Condiments

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ackaged foods and condiments maker MTR Foods, wholly owned subsidiary of the Norwegian Orkla Foods, said it is acquiring 67.8% in homegrown spices company Eastern Condiments.

The company said Orkla Foods, through MTR, has signed an agreement to purchase 41.8% ownership stake in Eastern from members of the Meeran family and to acquire the entire ownership

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stake held by McCormick Ingredients SE Asia PTE. Ltd. This will give Orkla a 67.8% ownership stake after completion of the transactions.

Eastern is currently owned by the Meeran family (74%) and McCormick (26%).

“The transaction will double Orkla’s net sales in the fast growing Indian market, and the combination of MTR and Eastern will create a strong base for growth and value creation,” MTR Foods

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News Round-up Amul to Invest Rs 1,500 Crore in 2 Years to Set Up Dairy, Edible Oil, Bakery, Potato Processing Plants

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CMMF, which markets dairy products under the Amul brand, will invest around Rs 1,000 crore over the next two years to set up milk processing plants, and another Rs 500 crore on facilities for new products like edible oil, its MD R S Sodhi said. In an interview with, Sodhi said the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) expects 12-15 per cent growth in revenue in current fiscal year from Rs 38,550 crore during the last fiscal year despite COVID19 pandemic, as demand for branded food products has increased.

"We will invest around Rs 1,000 crore in the next two years on setting up dairy plants across various states,"

Sodhi told.

He said the processing capacity would increase to 420 lakh litres per day from the current 380 lakh litres per day.

On new businesses, Sodhi said the cooperative has started manufacturing sweets as well as bakery items using dairy fats.

Besides, he said, GCMMF has forayed into edible oil and potato processing segments as part of its objective to boost income of farmers from Gujarat and other states.

The edible oils will be marketed under the new brand 'Janmay'. It will produce groundnut oil, cottonseed oil, sunflower oil, mustard oil and soybean oil.

"We already have few

Amul Becomes First Indian Dairy Company to Be in Rabobank’s Global Top 20 List; Nestle Leads

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mul, Gujarat Cooperative Milk Marketing Federation (GCMMF), has become the first Indian dairy firm to make a place in the global top 20 list released

by Rabobank, a Dutch multinational banking and financial services company.

According to the list, Switzerland’s Nestle topped the list with a turnover of US $22.1 billion, followed by France’s Lactalis with US $ 21 billion turnover. Amul has achieved an annual turnover of $5.5 billion. “GCMMF (Amul)

enters the Rabobank’s Global Top 20 Dairy Companies list for the first time at No.16,” Amul said in its tweet. It further added that this is a matter of pride for 36 lakh milk producers of Gujarat.

On this achievement, RS Sodhi, Managing Director, Gujarat Cooperative Milk Marketing Federation Limited (Amul) thanked the Gujarat government. “For all this tremendous growth credit also goes to Govt of Gujarat, CM Vijay Rupani for supporting 36 lacs farmers during difficult

plants for edible oil, bakery and potato processing. We will invest Rs 400-500 crore on setting up more plants in these new business areas over the next two years," Sodhi said.

Asked about sales during the pandemic, he said sales of its dairy products like milk, butter milk, paneer and ghee were 15 per cent higher during April-August as compared with the year-ago period, driven by rising household consumption of branded food products.

However, he said, ice cream sales declined by 30-40 per cent due to closure of hotels,

restaurants and canteens because of lockdown.

"Marriage ceremonies contribute a lot to ice cream sales. This has been affected badly this year," he said.

Sodhi noted that household consumption of milk and other dairy products has risen, compensating loss of sales caused by closure of hotels, restaurants and cafeterias (HoReCA segment) during the lockdown period.

Amul sells 140 lakh litres of fresh milk per day, mainly in Gujarat, Delhi-NCR and Uttar Pradesh. Its dairy products are sold across the country.

times by giving timely export incentives and Infrastructure funding,” Sodhi said in a tweet. He also said that this has been achieved due to the efforts of 3.6 million milk producers especially women.

US’ Dairy Farmers of America which was ranked 6th in the 2019 list, has been positioned third this year with a turnover of US $20.1 billion.

Among others are France’s Danone at fourth, China’s Yili at fifth, New Zealand’s Fonterra at sixth, Netherlands’ FrieslandCampina at seventh, China’s Mengniu at eighth, Denmark/Sweden’s Arla Foods at ninth and Canada’s Saputo at tenth position.

Earlier this week, speaking at an online dialogue organized

by All India Management Association (AIMA), RS Sodhi

said that the dairy sector can give a significant boost to the employment generation in the country. This sector would alone create 1.2 crore new jobs over the next 10 years.

Sodhi added saying that India produces 21 per cent of the milk in the world and India’s milk market was growing at 5 per cent, compared to the 1.8 per cent growth in the global milk market.

In the wake of the coronavirus pandemic, Amul has increased its focus on immunity-boosting products and launched Haldi Ice Cream. The company plans to roll out two more products i.e.

Immuno Chakra Ice Cream, the Health trinity of HaldiGinger-Tulsi in tri-colour Ice Cream stick of 60 ml and Star Anise Doodh in the 200 ml can.

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News Round-up Dubai Sets Up Trading Platform to Boost Food Imports from India

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ubai Multi Commodities Centre’s platform named Agriota and developed with India’s CropData Technology, will enable trading in cereals, pulses, oil seeds, fruits, vegetables, spices and condiments A freezone in Dubai has established an agricultural trading platform to connect Indian farmers with food companies in the United Arab Emirates, as the Gulf Arab country seeks to enhance its food security amid disruption of supply chains caused by the

coronavirus.

The Dubai Multi Commodities Centre’s platform named Agriota and developed with India’s CropData Technology, will enable trading in cereals, pulses, oil seeds, fruits, vegetables, spices and condiments.

The UAE and most other Gulf states import the bulk of their food, largely because their arid climates make crop and livestock cultivation difficult.

They also depend on overseas supplies of medical, consumer and industrial products.

The UAE has “the ultimate goal of positioning our nation as a world leading hub in innovation-driven food security," Ahmed Bin Sulayem, DMCC’s chief executive officer, said in a statement.

The government has taken several steps to ensure uninterrupted access to

supplies since the virus spread around the world. A foodsecurity council coordinates official efforts, including the stockpiling of essential goods.

The country is also looking to farm rice to reduce its reliance on purchases from abroad.

“The final survey results will help in identification of the key hot spots for adulteration of edible oils and will strengthen efforts at the State/UT level in devising targeted enforcement drives in the coming months,” the official statement added.

The FSSAI said that this

exercise has been undertaken to ensure availability of pure and safe mustard and other edible vegetable oils in the country. In the past, the FSSAI had conducted a pan-India survey to check on the quality of milk.

FSSAI Completes Nationwide Quality Survey of Edible Oils

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he Food Safety and Standards Authority of India (FSSAI) has decided to intensify the crackdown against the sale of adulterated edible oil with a pan-India surveillance of both branded and unbranded products.

In a statement, the food safety authority said that a nationwide quality survey was been carried out for the first time on August 25-27. Over 4,500 samples were collected covering a total of 16 varieties of edible oils including mustard, coconut, palm, olive and blended oils.

The FSSAI said in a statement on Friday: “A comprehensive strategy for testing of these samples through the State Food Testing Laboratories or FSSAI notified food testing labs (including private NABL accredited) to analyse various parameters including fatty

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Acid composition as well as adulteration or harmful or extraneous substance/ chemical, has been developed.

The test results are expected in a month’s time,” the official statement added.

The samples have been drawn from hypermarkets and supermarkets and retail and grocery stores including national and local brands.

The surveillance and samples collection exercise was undertaken by State food safety department officials, inline with the procedures and SOPs set down by the FSSAI. “Various hilly and difficult terrains such as Ladakh, Arunachal Pradesh, Daman and Diu as well as Andaman (UT) have been strategically included to be a part of this exercise so as to represent a holistic distribution of the sample size across the country,” the FSSAI said.

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News Round-up Cold Chain Projects Costing Rs 743 Cr Approved In 11 States; J&K Not In the List

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odern integrated cold chain projects costing Rs 743 cr have been approved in 11 states under PM Kisan SAMPADA Yojana (PMKSY), Harsimrat Kaur Badal, Minister of Food Processing Industries, has said. Interestingly, J&K is not among the 11 states where the projects have been approved.

The 27 projects which have been approved under the scheme for integrated cold chain and value addition infrastructure of PM Kisan SAMPADA Yojana (PMKSY) are estimated to provide direct and indirect employment for 16,200 farmers.

The projects have been approved across the states of Andhra Pradesh, Bihar, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu, and Uttar Pradesh.

Observers opine that Jammu & Kashmir being primarily an agrarian economy with significant produce in fruits and vegetables should have been included in this new venture of modernizing supply chain in the agriculture sector.

The ministry of food processing industries has informed that the 27 new integrated cold chain

projects will leverage a total investment of Rs 743 crores for the creation of modern, innovative infrastructure, and cold chain facilities for the food processing sector across the nation. The facilities are aimed at increasing efficiency and sustainability in India’s food supply chain.

The new integrated cold chain projects are likely to generate thousands of direct

and indirect employment, benefitting around 2.58 lakh farmers, Ms Badal said.

Saving the perishable produce, by provisioning adequate infrastructure, shall not only help in augmenting farmer’s incomes but it shall also act as a small step towards making India self-reliant in the fruits and vegetables sector, the minister added.

ADQ Launches Silal to Enhance UAE's Food and Agriculture Ecosystem

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DQ, one of the region's largest holding companies with a broad portfolio of major enterprises, announced the establishment of Silal - a new company in Abu Dhabi - developed to diversify food sources and increase locally grown, raised and manufactured food.

Designed to protect the overall food and agriculture sector and local farmers, Silal's efforts include the management of offtake programmes and strategic food reserves. Silal will also implement knowledge-transfer programmes related to desert farming technology and other R&D projects to support an increase in local production of fruits and vegetables from small farmers in the UAE. Jamal Salem Al Dhaheri,

CEO of Silal, said: "Silal will facilitate sustained production, sourcing and distribution of essential foods in Abu Dhabi for the benefit of retailers, farmers and the community.

The name Silal, which means "baskets" in Arabic, denotes the variety and abundance of produce that is at the core of what the new company will deliver. Our team will work collaboratively across the entire value chain to ensure an adequate, reliable supply of fresh and longer-life food items for our local communities."

Earlier this year, ADQ announced its acquisition of a 50 per cent stake in Al Dahra Holding Company, a multinational agribusiness specialising in animal feed and essential food commodities.

Agthia and Al Foah, which

Jamal Salem Al Dhaheri, CEO of Silal

produce a range of food and beverages, are also part of ADQ's food and agriculture portfolio through Senaat.

The UAE has long recognised the importance of securing food supplies as a national priority. It produces nearly six million tonnes of food locally per year, reflecting its growing selfsufficiency in food production.

The UAE has also championed the enhancement of local food production through 'agtech', and has taken strides to increase domestic food yield through bioscience, research and development (R&D),

and technology-enabled food production.

Khalifa Sultan Al Suwaidi, chief investment officer at ADQ, said: "The creation of Silal helps to ensure that the UAE population has access to safe, sufficient and nutritious food at affordable prices. Silal also complements ADQ's existing investments in the food and agriculture sector as we seek to expand this important economic cluster.

Under Jamal's leadership, Silal will benefit from his depth of industry experience as we deliver upon this key national initiative."

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News Round-up HSBC Global Research Puts Food Delivery Firm Zomato's Valuation at $5 Bn

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SBC Global Research has valued food delivery firm Zomato at $5 billion, a major increase from its earlier valuation of $3.5 billion.

“We now value Zomato at $5.0 billion ($3.5 billion earlier), as Covid-19 has accelerated its path to profitability owing to lower discounts (and higher average order values),” said HSBC Global Research in a report analysing Info Edge (IE), which is an existing shareholder in Zomato.

Among all the potential positive triggers for the IE’s share, the report said, Zomato is the most critical. It said other companies such as Naukri and Policybazaar are great assets for IE, but Zomato can significantly impact IE’s valuation in the coming years.

HSBC’s report said it valued IE’s stake in Zomato at $1.1 billion. It said in a blue-sky scenario, India food delivery could be valued at $30 billion in the long term, implying IE’s share in Zomato at $3.5 billion.

It said this is an increase of $2.4 billion or 45 per cent of IE market cap. In that scenario,

Zomato could be valued at $15 billion, according to the report.

“This is the blue-sky scenario and the only one where IE stock can create value from the current market valuations,” said the report.

“However, we believe the scenario assumptions are too simplistic and there are multiple pitfalls.”

The report assumes the food delivery industry presently is valued at over $10 billion.

However, this adds only $1.1 billion to the valuation of IE (Rs 750 per share).

While valuing Zomato, the report has referred to the Chinese food delivery giant Meituan, which is valued at $200 billion with 70 per cent market share in delivery in mainland China, but with other instore businesses as well.

Adjusting for everything, the mainland China food delivery market is currently valued close to $200-250 billion, said the report.

“Usually, mainland China is 6x larger than India, on most economic parameters. So

Majority of J&K’s Fruits, Vegetables Brought under Fresh Atmanirbhar Initiative

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hat could be termed as a shot in arm for farmers of J&K, the Centre has brought majority of fruits and vegetables grown in Jammu under a fresh initiative of Aatmanirbhar Bharat Abhiyan.

With this significant step a most all fruits and vegetables

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in J&K are covered under the ‘Operation Green’s TOP to TOTAL’ scheme.

The announcement of new initiative is aimed at to support farmers of Fruits and Vegetables under Aatmanirbhar Bharat Abhiyan in order to prevent distress sales, Price stabilization

in a few years, in a bull case scenario, India’s food delivery could be worth $30 billion,” said the report.

In January, Info Edge India, said that Zomato had signed a definitive agreement to undertake a primary fundraise of up to $150 million from Antfin Singapore Holdings and its affiliates. Info Edge had said in an exchange filing the transaction valued Zomato at a pre-money valuation of $3 billion.

However, in August, Ant Group, which is the payment and finance-focused company of the Chinese e-commerce giant Alibaba, recently said in its initial public offering (IPO) prospectus at the Hong Kong

stock exchange that a change in foreign investment regulation in India led to “further evaluation” of the timing of its additional investment in food delivery start-up Zomato.

The same month, Zomato raised Rs 184 crore from existing investor Foodie Bay Employees ESOP Trust, according to the regulatory documents. The Deepinder Goyal-led firm is also planning to raise capital from MacRitchie Investments Pte Ltd by allotment of 15,188 shares. MacRitchie is an investment holding company, an indirect wholly-owned subsidiary of Singapore-based Temasek Holdings.

interventions under Central Sector Scheme- “Operation Greens” which has been extended-from Tomato, Onion and Potato (TOP) to all notified fruits and vegetables (TOTAL) for a period of six months on pilot basis.

The fruits and vegetables notified in J&K are Apple, Almond, Pear, Capsicum, Carrot, Cucumber, Okra, Orange, Kinnow and Lemon.

Under the scheme the Union Food Processing

Industries Ministry will provide subsidy @ 50% of the cost of transportation of notified crops from production clusters to consumption centres and/or the cost of hiring of appropriate storage facilities for a period of up to 3 months for notified crops, if the price of the crop falls below the average price of last three years or 15% below the last year’s price.

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Date of Publishing 24-25 Every Month Date of Posting 1-2 Every Month

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