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Foodmagazine FEBRUARY 12
INGREDIENTS | PROCESSING | SAFETY | PACKAGING | EXPORT
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INFORMING FOOD AND BEVERAGE MANUFACTURERS
INSIDE
WHAT'S FRESH
09
The role of food manufacturers in our obesity crisis
BEVERAGES
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The holiday trends
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WELCOME
Foodmagazine www.foodmag.com.au PUBLISHER â Michelle Graves E: michelle.graves@reedbusiness.com.au
Chewing the fatâŚagain Food manufacturers can't deny the part they play in obesity rates
EDITOR â Jessica Burke P: 02 9422 2862 F: 02 9422 2722 E: jessica.burke@reedbusiness.com.au
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ACCOUNT MANAGER â Mark Ryu P: 02 9422 2151 M: 0404 803 356 E: mark.ryu@reedbusiness.com.au QLD SALES MANAGER â Sharon Amos P: 07 3261 8857 F: 07 3261 8347 M: 0417 072 625 E: sharon.amos@reedbusiness.com.au SA, WA & NT SALES â Mark Ryu P: 02 9422 2151 M: 0404 803 356 E: mark.ryu@reedbusiness.com.au PRODUCTION COORDINATOR - Phil Watson P: 02 9422 2657 F: 02 9422 2722 E: jennifer.collinson@reedbusiness.com.au DESIGNER - Rizwan Nawaz P: 02 9422 2322 F: 02 9422 2722 E: rizwan.nawaz@reedbusiness.com.au SUBSCRIPTIONS â CUSTOMER SERVICE Aus NZ O/S 1 year subscription 99 109 119 2 year subscription 189 199 209 P: 1300 360 126 F: 02 9422 2633 E: customerservice@reedbusiness.com.au RBI Manufacturing & Electronics Group Tower 2, Level 3, 475 Victoria Ave Locked Bag 2999 Chatswood DC NSW 2067 P: 02 9422 2999 F: 02 9422 2722
Š Copyright Reed Business Information, 2004. www.reedbusiness.com.au
Average Net Distribution 6,033 as at Sep 2011
EDITOR: Jessica Burke food@reedbusiness.com.au
e just cannot seem to get away from this topic, can we? Australians waistlines are expanding faster than supermarketâs profits (and that is fast), Type 2 Diabetes is on the rise, and we need kilojoule information on fast food menus and simple nutritional information on the front of packaged foods to help us get out weight and health in check. I wholeheartedly agree that so many average Australians need help to understand what they should be eating and when, and we do need to realise that exercise is an important part of life that cannot be ignored. Food manufacturers do need to smarten up, improve the quality and sourcing of their ingredients, and produce healthy, simple foods in appropriate portion sizes. I know many people who do understand current nutritional labels and are able to sort fact from fiction when confronted with all the theories out there about healthy eating believe the responsibility rests with the individual and not with companies, but theyâre wrong.
Because companies are made up of people. And itâs people who are not only fat, but unhealthy. And itâs people who will pay for the medical expenses of people with obesity and related conditions. So itâs people who need to get their act together, to save other people and themselves from living a life that is shorter than their parentsâ. Did you know you can actually be remarkably skinny but totally undernourished at the same time? The reason three thirty-itis rolls around most days as we sit behind a computer screen is not just because our lives are busier and we have to get up at the crack of dawn to get through peak hour and into the office on time. Itâs easy to blame it on these factors, but the reality is that most people many years ago worked in
labour-intensive jobs like farming and building, and because they ate smaller portions and more nutritious foods, they were just fine. The obesity epidemic and how to solve it is saturating mainstream media, blogs and social conversations. So much so that I believe weâve forgotten those people at the other end of the scale. Itâs not easy for an overweight or obese person to admit they need help and itâs not easy for a company to decide itâs going to stop filling its customers up with processed, unnatural ingredients to make more profits. Itâs not easy to accept that maybe the responsibility is something everyone has to bear. Because nothing worth having ever comes easy. So really the question to be asked is âis life worth having?â
www.foodmag.com.au | February 12 | Foodmagazine 3
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NEWS
Food Magazineâs Q&A I grew up in... North Shore, Auckland, New Zealand In high school, I was passionate about... Rowing. It is an exceptional sport for developing stamina, discipline, teamwork and fitness. My current role involves... Making wholesome, great tasting jams, chutneys, sauces and fruit syrups. My team develops and crafts our range of products so they taste great, then we create a plan to introduce and launch them to our retail partners. We are constantly developing marketing activity to promote our products to our valued customers. We also review our recipes, packaging and labelling for improvement as well as look ahead to what exciting products we can make in the future.
Danielle Esplin, FMCG Sales and Marketing Manager, Bakers of Geraldine- makers of Anathoth Jams and Pickles
Before my current role, I worked... Brand managing Australian wine which we imported and sold into the New Zealand market. I found my appreciation for wine and still love to drink Australian classics like Torbreckâs Woodcutters Shiraz, Dean Hewtisonâs Miss Harry GSM and Kaeslerâs Old Vine Riesling. This job gave me the opportunity
My work is helping to better the food industry by... Focusing on developing and making great tasting food products which are free from unnecessary additives and are minimally processed. We are committed to sourcing high quality fruits and vegetables for our preserves from Australasian growers wherever possible. We want to give everyone the opportunity to have a wonderful food experience at home by adding flavoursome condiments to a regular dish or meal and turn it into something which tastes amazing. The most challenging part of my role is... To keep the costs of our products in line with customer expectations. Given we are a small run producer who focuses on quality and innovation, it can be challenging to make great products and pricing them so they are accessible to a wide demographic. The best part of my role... Is being creative. Crafting new flavours, products, promotions and strategies with a bunch of people who are talented, fun and full of heart. My favourite food is... Anything that is fresh and flavoursome.
and pass some of that goodness on to others. The food industry needs to change... By better educating our children on good food and the importance of it and helping them understand where our food really comes from. Better supporting free range and local so prices of these products can decrease and stopping the promotion of over processed products with poor nutritional value at cheap prices so that shoppers arenât persuaded to make poor nutritional choices for their families over and above fresh and wholesome foods. The current food/brands that we will be eating in 50 yearsâ time are... Brands which promise and deliver something unique and special to the consumer. With the aggressiveness of private label, food brands will not survive on price alone. Good food brands will differentiate themselves to mainstream. Budget and value brands will be eaten up by private label, therefore brands which show flair, excitement and frequent usability in everyoneâs kitchen will succeed.
Start supporting free range and local so prices of good products decrease and stop the promotion of over processed products with poor nutritional value at cheap prices so that shoppers arenât persuaded to make poor nutritional choices for their families over and above fresh and wholesome foods. to enjoy many wonderful Australian personalities, landscapes and experiences. I fondly remember navigating myself around central Victoria (before GPS maps!), attending horse racing at Hanging Rock and enjoying some outstanding meals at many wonderful Australian wineries. Studies/training that has helped me in my current role include... Everyday I train hard for my job by eating, enjoying and being passionate about food! Formally, I completed a Bachelor of Business (Honours) in Marketing. 4 Foodmagazine | February 12 | www.foodmag.com.au
Having just returned from a Summer holiday my favourite food experience was eating fresh scallops coated in panko breadcrumbs and fried in a little garlic butter and oil, fresh Snapper caught by my husband and crayfish accompanied by a simple green garden salad and enjoyed with a dry Riesling. My family and friends were with me and we enjoyed our meal in the sun outside our tent. The thing that gets me out of bed in the morning is... To do good. I want to experience, learn and enjoy things with an open heart
In 50 years, the food industry can look forward to... An increasing range of functional foods which will support our ageing population and a growing interest in health and wellness. We will care more about what we eat and what we feed our families. We must make ourselves aware of sustainability issues which will be compromised by the scarcity of our natural resources and the effect on our food supply and quality. We will still be looking for convenience food options â but hopefully there will be more convenience in fresh and wholesome foods.
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WHATâS HOT ONLINE
W W W. F O O D M AG . C O M . AU BY JESSICA BURKE
Mars workers step up industrial action
MSF Sugar accepts Thai takeover bid MSF Sugar, formerly known as Maryborough Sugar Factory Limited, has accepted a takeover bid from Thai sugar company Mitr Phol. Shareholders of Australia's only locally-owned sugar factory were urged to accept a takeover bid from a Thai company in November The Thai company already owned 22 per cent of the company, which also owns the Mulgrave, South Johnstone and Tablelands mills. MSF accepted the bid from Mitr Phol, which is one of the biggest sugar producers in Asia, of $AU4.45 per share.
Tasmania left of Australia biscuit Tasmanians are not seeing the funny side to the little island south of Australiaâs mainland being left out of a limited edition Australia-shaped biscuit. Arnottâs Shapes have released the Australia biscuit in celebration of Australia Day on January 26, but while Tasmania is shown on the image on the box, it is absent from the actual biscuits inside. Acting Tasmanian Premier Bryan Green told The Daily Telegraph the state should be included in the design. "Some might say that's the way the cookie crumbles but it would have been nice to see Tasmania receive the recognition it deserves on such an important day," he said. Tasmania has often felt like the kid left out of the group at school, especially after being forgotten on Olympic medals and left off numerous maps. But Arnottâs spokesperson Toni Jones said the decision to exclude Tassie from the biscuit came down to practicability, and was not a deliberate snub. "It's just that we didn't have any way of including it without causing an unacceptable level of breakage," she said. "We hope you understand and, please be assured, Tassie was included - rightly so - on all the packaging graphics. âAnd we paid homage to (Launceston-born) Ricky Ponting on the back-of-pack quiz." Shapes is not the only company getting into the Aussie spirit for the
Last year the number of industrial disputes in the food manufacturing sector reached an all-time high, and 2012 doesn't look like its getting any calmer, with Mars Chocolates in Ballarat announcing it will increase action in coming weeks. Statistics released by the Australian Bureau of Statistic (ABS) showed the number of employees involved in industrial disputes was 66 400 in the September quarter, up from 14700 in the June quarter. A reported 101 300 working days were lost due to industrial disputation in the September quarter 2011 while the June quarter saw 66 200. Now Fair Work Australia has given approval for Tip Top Bakers in Canning Vale to begin industrial action, calling for a 15 per cent pay increase and more breaks. Workers at Mars' Ballarat factory have been negotiating for a new pay deal and better conditions for eight months. They protested outside the Victorian factory
nationâs day of celebration, with Vegemite releasing limited edition jars with its temporary name, âAustralia,â and bios of everyday Australians doing great things, as well as Red Rock Deli releasing âGreen and Goldâ party starters for the occasion.
6 Foodmagazine | February 12 | www.foodmag.com.au
gates on 24 January, and Australian Manufacturing and Workers Union organiser, Colin Muir, told the ABC they will continue to do so until the manufacturer resumes negotiations. "The workers voted today to add to their industrial action and increase that and asked us to try and get the company to engage in negotiations as a matter of urgency and at this stage we haven't heard anything from them," he said. General manager of Mars, Michael Ryan, has rejected employees' claims they should be getting better pay, labelling the unions demands as excessive. "We know our pay and conditions are set well above the community average and on top of that the existing agreement ensures that everyone get pay increases well above inflation," he said. "What we are seeing is union demands that are really unreasonable. "For example, five weeks of paid leave."
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Dairy company signs five year supply deal with Coles Australian company Warrnambool Cheese and Butter (WBC) has announced a five year deal to supply dairy products to Coles. The new brand for the ASX-listed company called 'Great Ocean Road,' will be stocked exclusively at Coles and will include cheese and fresh milk products. WCB said in a statement it will formalise the agreement with Coles shortly to supply a minimum of 4000 tonnes of cheddar cheese each year with the new branding from 2012. It will also supply 50 million litres of milk from dairy farmers each year for five years. WBC said the agreement will be positive for both its business and for Coles. "The new deal signals a strategic relationship which is beneficial for both partners," it said in the statement. "Under the five year agreement, WCB will continue to build its branded consumer product business in cheese and
other dairy products." Coles and the dairy industry have had a strained relationship since the supermarket giant's decision to slash the price of milk to $1 per litre a year ago. The dairy industry slammed the decision, saying it put dairy farmers' livelihoods in jeopardy and that the "unsustainable" prices would lead to a mass exodus from the industry. When contacted by Food Magazine to find out how they plan to ensure dairy farmers are looked after, a WBC spokesperson said they price is a decision made by the supermarket, and the only way to ensure prices won't change again is to have it a contract. "The important thing is to develop sustainable relationships with customers by putting into place terms that create value," the spokesperson told Food Magazine. "This is a premium product we're supplying, and a quality brand, which puts us in a better place to be competitive and then be able to give good money to farmers." "That will mean we can supply good products, and keep farmers happy and in the industry."
Fungicide found in imported Brazilian juice The discovery of a banned fungicide in Brazilian orange juice that can cause infertility and testicular damage has led Australian citrus growers to demand tougher regulations on imports. The industry's peak representative group, Citrus Australia, says it is up to the government to improve testing procedures on imported citrus juices to ensure the fungicide, carbendazim, is not present in any juices available locally. The discovery of the chemical was discovered when a juice manufacturer in the Unites States raised the flag with the US Food and Drug Administration (FDA). Citrus Australia chief executive Judith Damiana said more than 300,000 tonnes of oranges are imported to Australia every year in the form of cheap Brazilian orange juice concentrate. "We call on the Australian Quarantine & Inspection Service (DAFF) to immediately increase
testing of all imported citrus juice for chemicals banned in Australia," Damiana said. The use of carbendazim has been suspended by the Australian Pesticides and Vetinary Medicines Authority (APVMA) since 2010 while the health impacts are investigated. The US has suspended all foreign juice imports since January 4, and experts are urging the Australian government to impose similarly tough restrictions. "Brazilian juice concentrate can be found in products on shelves across Australia," Riverina Citrus chairman Frank Battistel said. "We are not aware of any current activity by any Australian safety or regulatory body in regards to this potential public health issue, despite this being public knowledge in the United States for the last two to three weeks." The advice from Australian citrus industry experts is to purchase local products to avoid the fungicide.
8 Foodmagazine | February 12 | www.foodmag.com.au
Committee to make second offer on Girgarre factory The co-operative formed to keep manufacturing and tourism alive in the Girgarre region, following the relocation of the Heinz tomato processing facility, has made a second bid for the factory. On 7 January the factory was officially closed, following intense opposition from the local community, which was reliant on employment at the factory, which has now moved its operations to New Zealand, sighting the high cost of doing business in Australia.Of the 420 residents aged between 15 and 64 in the town, 146 were employed at the factory, and when attempts to keep the Heinz processing plant local failed, the Goulburn Valley Food Action Committee was formed in September last year. The first offer was rejected, but Committee Chairman Les Cameron told the ABC a second offer will be made in early February. "We are lining up all our ducks, we are making sure that we've got the money to make a better offer," he said. "As long as we get what we think we
should get from the property, we hope to own the property from early February and take up residency in late April or early May." He said the committee is waiting for more information about the factory from Heinz before it makes its second bid. "We need to be sure that the water right is still going to be in tact," Cameron said. "We need to know exactly what the boundaries ... because Heinz are looking at retaining some of the land, as we understand it, for their own purposes. "We need to know what the buildings are and what infrastructure will actually be part of it and of course finally we need to know whether there is any production equipment that will be left." Over the weekend Australian Manufacturers Workers Union spokesperson Jason Hefford said the committee would have to work out what would be included if it purchased the factory. "We're hopeful that something will get up," he said. "It'll depend on how much equipment is left. "If Heinz just leave a shell of a factory, what is it worth really? "My understanding is that Heinz is going to take all the equipment."
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The alarming rise in obesity and related diseases has created a national crisis and it will impact everybody, as Jessica Burke reports.
W
elcome to our brand new section for Food Magazine in 2012, where we bring you the freshest, the biggest and the best stories for the food and manufacturing and packaging industries. Each month, we will dig deeper into the big issues in two of Australia's biggest industries, delivering more pages with more in-depth coverage of the issues impacting your sectors. We've followed the stories on our website, and you've provided feedback and used social media to spread those that matter to you, signalling the direction you would like to see Food Magazine head in as we enter a new year.
Now thatâs Whatâs Fresh! These industries are so amazingly interesting because they include every single person in Australia. Everybody eats, and everybody utilizes packaging every day, so the topical stories for our industry are not exclusive to us, but rather, issues that concern all society. This month, weâre looking at health, which is a massive issue right now, with the rate of diabetes and other obesityrelated diseases experiencing a dramatic increase. Australians are getting too fat, and the blame fingers are pointing every way imaginable.
The government is involved, manufacturers are finding success with creating simple healthy foods, but many are not heeding the warnings. Whether itâs up to the individual or the responsibility of government, or a combination of both is still up for debate, but there is no doubt something must be done about the issue.
Obesity labeled the ânew smokingâ Australiaâs obesity crisis has been labelled âthe new smokingâ by health experts and industry bodies are warning people to know the health risks associated with being overweight. Current obesity rates in Australia show one in four is overweight and one in three obese, placing us only just behind Greece, New Zealand and the United States. It has already been
documented that the risks associated with obesity, including heart disease, Type 2 Diabetes and stroke, may lead to the current generation of Australian children being the first to not outlive their parents. Previous generations grew up observing their parents and other adults smoking in the home, car and public places, and most also took up the habit in one of the most obvious examples of âmonkey see, monkey do.â Of course, the dire health impacts smoking had werenât well known, or accepted, until the 1950âs, once realized, it soon became illegal to directly advertise smoking or to portray it positively through the use of sport stars or celebrities. Nowadays, we all know the impact smoking has on our health, and that of children. In 2010, a law was passed in Australia that banned smoking in
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www.foodmag.com.au | February 12 | Foodmagazine 9
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cars with children under the age of 17 inside. Is this where junk food is headed? Ten years from now you wonât be able to eat a burger in the presence of children and anti-junk food ads will saturate the media? The pattern is already there: weâre aware of how damaging fatty, salty, sugar loaded and processed food is for us, but it is still so readily, and cheaply, available that people canât and wonât say no. The suggestion of a âfat taxâ on fatty foods similar to that implemented in Denmark was suggested, mirroring the increased tax placed on smoking to make it less appealing to take up the habit and providing more reason to quit. You cannot advertise smoking, you cannot advertise junk food to children, there are graphic pictures and health warnings on cigarette packets, and soon a simple health guide will be developed by the Australian government to appear on the fronts of all packaged foods sold in Australia.
Subsidised counselling for the obese Now the Australian Psychological Society wants counselling subsidised for overweight people seeking treatment for what many argue is a disease people cannot help. It believes Medicare should fund the cost of registered psychologists to provide assistance to those with chronic diseases caused by obesity. Each session would cost taxpayers more than $80. Is it the taxpayerâs responsibility to fund such a campaign or should people be accountable for their own weight? While it is individuals weâre talking about here, the fact is that it is a problem all of society will deal with at some stage. Do we fund a program to educate people now, or do we pay for medical costs when their arteries give up and they need round-the-clock support? The rapid rise of the ageing population is already going to completely overrun our medical system in the next decade, so is it a better idea to be proactive? Corrina Langelaan from The Parents' Jury, an organisation set up to reduce childhood obesity and get better health education in Australia, told Food Magazine that pointing the finger only on parents is not the right way to fix the problem. âObesity is one of the biggest issues facing our society today,â she said. âItâs easy to shift the blame solely to parents, but they are being constantly undermined by the actions of the food industry and lack of Government action to tackle the issue.â âFamilies need a positive and healthy environment to raise positive and healthy children.â She believes introducing counselling could be a positive move towards an entire behavioral change, but but it would need to be supported by other measures. âIn regards to changing behaviour, counselling is an interesting idea.â âWe believe there is a need to create a positive and healthy environment to help parents.â âHowever, these environmental factors need to be combined with improved regulation.â âThis includes banning junk food advertising during the times of day children are likely to be watching and traffic light labelling on packaged foods. âParentsâ need Government and the food industry to work together to create an environment that helps families maintain a healthier lifestyle.â 10 Foodmagazine | February 12 | www.foodmag.com.au
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Industry, government and society need to work together Julie Anne Mitchell, NSW Health Director at the Heart Foundation agrees that the issue is a complex one and a solution will only be found through a combined effort. âI think itâs complex, thereâs no single reason for why weâre seeing the increase in obesity, it is largely lifestyle induced, we have too many machines to do for us what we used to do ourselves,â she told Food Magazine. âOur environment is changing, weâre sitting in our workplace more and in our leisure time, itâs changed rapidly in the last 20 years and itâs changed how we behave everyday.â While the negative health impacts unhealthy foods can have are as dire as those associated with smoking, Mitchell told Food Magazine it is much more complicated. âWhile you can draw parallels between smoking and obesity, it is different,â she said. âWe didnât realise how damaging smoking was, and it has no benefit to lifestyle. âWe have to eat food, so itâs not a black and white situation like it was with smoking. âIt took 25 to 30 years of implementing a whole range of anti smoking campaigns and restrictions to curb that. âWith food its much more complex, certainly our lifestyle has changed, thereâs a greater reliance on convenience. âWe want to improve the food supply in the community, making sure everyone has access to proper, healthy food. Mitchell says most people âknow what they should be eating,â but often lifestyles get in the way. She told Food Magazine itâs not a case of having to train for hours at the gym and never eating tasty food, but finding the ways people can improve their health every day. Substituting full cream dairy products with low fat, margarine for butter and taking the stairs instead of the lifts are simple solutions people can make to improve their health. âItâs about those moments everyday where you can make a choice between healthy and not-so-healthy,â she says.
Traffic light labeling The Parents Jury has been one of the biggest advocates for the traffic light labelling system, and Langelaan told Food Magazine most people support the idea. âIn August 2011, a poll undertaken by The Parentsâ Jury showed overwhelming support for the introduction of traffic light labelling on food with almost 90 per cent of respondents supporting its mandatory introduction,â she said. âOver 91 per cent of respondents wanted to see traffic light labelling on all packaged food products and a massive 90 per cent want to see it extended to cover all items on the menu boards in fast food outlets. She dismissed claims from the Australian Food and Grocery Council (AFGC) that the Daily Intake Guides (DIGs) are a better solution. âMany parents simply donât understand the current daily intake guide and have no idea the suggested servings on many packaged foods donât reflect reality,â she said. âTraffic light labelling is a good step to helping
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consumers purchase healthy foods. It is a simple and recognisable system necessary to help families make healthier choices.â While Mitchell agrees some kind of simple, easy to understand health guide is needed for packaged foods in Australia, she stresses that it must provide accurate and relevant information every time. âThe Heart Foundation supports some type of interpretive system that is going to help mother or father in a supermarket chose a healthier option in a range. âPeople need help, they do need a way to identify a healthier food product amongst other similar ones. âWere not specifying the type of labelling, but something that allows them to compare like with like in a certain food group. âItâs not about having the one system for everything, but for each food category or it could become a bit too simplistic to work.â Foods sold in Australia will have front-of-pack labelling with easy to understand nutritional information within a year, but it will not necessarily be the controversial traffic light system. That was one of the key decisions made during the meeting on nutrition and preventative health with state and federal government ministers inMelbourne in December. In response to the recommendations in the Food Labelling Review Report â or Blewett Report â the Federal Governmentâs Forum on Food Regulation will consult with representatives from health organisations, industry and consumer groups to develop the new system. The decision to have simple front-of-pack nutritional labelling is somewhat surprising, given that the government announced prior to the meeting that it would not be supporting the traffic light system.
As used in UK and European hospitals, and now fast being adopted in food preparation areas, commercial kitchens, and the food manufacturing industry as well.
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Since the scheme was first suggested by consumer watchdog CHOICE, the Australian Food and Grocery Council has been arguing that the traffic light scheme is too simplistic to work.
Slow and steady won't win this race Mitchell praised the changes being made by some food manufacturers and governments, but says more needs to be done. âItâs a responsibility that government, the food industry and the general public share equally,we all have a part to play. âCertainly the role for the food industry is to look at the ways they produce food and look at ways to reduce saturated fat and salt in the processing of food. âThe role governments play is giving incentives for the public, as well as industry, to make healthier choices
and the educate about healthy food options. âIt is a big problem, it will not go away quickly, we need to work together on this, we have seen great ways the food industry and government is making changes, on menus as of February 2012 restaurants will display kilojoule content of food items so thatâs helping the consumer in choice they make.â
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www.foodmag.com.au | February 12 | Foodmagazine 11
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Nomination Deadline 25 April 2012 for the 8th Annual Food Magazine Awards These prestigious awards recognise best practice and innovation in the Australian and New Zealand food and beverage manufacturing and packaging industries. See your success and hard work rewarded at a glamorous gala event in Sydney 1 August 2012.
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⢠Exposure and publicity ⢠Recognition for your hard-working team members ⢠Valuable networking opportunities with key industry leaders
Download the Nomination Kit www.foodmag.com.au/awards Contact the editor 02 9422 2909 food@reedbusiness.com.au sponsorship opportunities Contact Mark Ryu T: +61 (0)2 9422 2151 E: mark.ryu@reedbusiness.com.au 2012 Categories ⢠Alcoholic Beverages ⢠Baked Goods ⢠Confectionery ⢠Dairy ⢠Food Safety and Innovation in Non-Food PLATINUM SPONSOR
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A tax on sugary drinks could save 26 000 US lives each year, and energy drinks sold in Australia need better health warnings, according to experts.
I
tâs not just food that is in the line of fire or grill, or steamer, but never a deep fryer â in the bid to curb global obesity. First Denmark imposed a âfat taxâ on unhealthy foods, now researchers in the United States are pushing for a tax on sweetened drinks, which they say could save 26 000 lives per year. The team from the University of California, San Francisco General Hospital and Trauma Centre and Columbia University have found that increasing the cost of fizzy drinks and other sweetened beverages by a penny per ounce, would reduce consumption by 15 per cent in ten years. The report, âA Penny-Per-Ounce Tax on Sugar âSweetened Beverages Would Cut Health and Cost Burdens of Diabetes,â published in the January edition of the Health Affairs Journal did base its findings on the assumption that the sugary drinks were replaced by healthier alternatives including water and milk. While kilojoule information on fast food menus and advice on how often to eat foods high in fat, sugar and salt are now part of Western culture, experts say many people are unaware of the negative affects sugary drinks have on their diets. Many people assume, incorrectly, that obesity and related diseases are cause by eating too much fatty food, while on the contrary, the worrying rise in obesity and diabetes rates in the US are partly blamed on the massive amounts of sugar people drink, with 13.8 billion gallons of fruit punch, sweet tea drinks, sports drinks, fizzy drinks and other sweetened beverages consumed every year. Each person in the US consumes an average of 45 gallons of sugary beverages each year and with 17 teaspoons of sugar in the normal 22 ounce fizzy drink, that leads to huge health problems. Each year the average American will consume 70 000 calories from sugary beverages alone and currently over 8 per cent of the population has diabetes, costing $US174 billion in medical costs each year. The University of Californiaâs associate professor of biostatistics and medicine, Dr Kirsten BibbinsDomingo, said a tax would certainly save lives. âConsumption of beverages high in calories but poor in nutritional value is the number one source of added sugar and excess calories in the American diet. Sugarsweetened drinks are linked to type 2 diabetes and weight gain,â she said. According to the research, she said $US 13 billion in direct tax revenue would be raised nationally by the tax if it was imposed across the country, which would then save the US $US17 billion each year in health care-related expenses of obesity-related conditions. The team based its research on the latest government statistics and found a tax on sweetened drinks could prevent 240 000 cases of diabetes per year alone. It would also save 100 000 people from suffering heart disease, 8000 from strokes and prevent overall deaths by 26 000 each year. California and New York City are among the states in 14 Foodmagazine | February 12 | www.foodmag.com.au
the US already considering imposing such a tax, and the US Centers for Disease Control and Prevention (CDC) has it listed as one of its chief obesity prevention strategies.
Australian experts want tougher regulations on energy drinks Less than a week after the US recommendations, Australian health experts were calling for warning labels on caffeinated energy drinks. A study published in the Medical Journal of Australia found the number of people reporting heart problems, tremors and chest pains from drinking the beverages has markedly increased. As the highest consumers of caffeinated energy drinks like Red Bull, Mother and V, teenagers experience the reactions most frequently and the authors of the study say the findings are a âwarning callâ for people who drink the beverages. More than half the reported cases were teenage males and the report found the problem is only increasing, which considering almost $15 million was spent on marketing energy drinks in Australia in 2009, is painting a pretty grim picture of the future. The researchers believe warning labels similar to over-the-counter caffeine tablets should be mandatory on energy drinks and more education is necessary to warn people, particularly younger consumers, of the negative impacts of the drinks. Naren Gunja, medical director and toxicologist at the NSW Poisons Centre and clinical senior lecturer at the
University of Sydney, said in the report the common practise of mixing energy drinks with alcohol carries even greater medical issues. ''The phenomenon of mixing energy drinks with alcohol and other stimulants is clearly occurring and is a serious concern,'' he said. ''Health authorities should increase awareness of the problem, improve package labelling and regulate caffeine content.'' Gunja, along with senior poisons specialist at the NSW Poisons Centre, Jared Brown, studied the number of calls relating to energy drinks over seven year period up until December 2010. About 110 000 poison-related calls are received by the centre each year and of those calls, 12 were concerning caffeinated energy drinks in 2004. By 2010, that number had increased to 65, with recreational use of the beverages as the most common type of consumer to experience problems. The health impacts of caffeine toxicity are similar to those related to amphetamine poisoning, including dizziness, tremors, stomach upset and irregular heart rate. Itâs not only teenagers who experience the health impacts of the drinks, with 62 children aged between seven months and 10 years old reported to have accidentally consumed the beverages. Of those, nine required hospitalisation. Over 60 per cent of caffeine toxicity cases were attributed to Red Bull and V, followed by Mother and Pulse and none were the result of cola drinks or coffee. Almost 550 people reported overdoses of over-thecounter caffeinated tablets, No-Doz and No-Doz Plus.
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ALCOHOLIC BEVERAGES
Aussies fancying a nicer tipple
Consumption of Australian alcohol is declining, but itâs not all bad news, as Jessica Burke reports.
T
he popularity of imported beers and cider is making it increasingly difficult for Australian brewers to stay afloat. The high Australian dollar has greatly impacted the alcoholic beverage market, as it has spurred increased travel abroad and increased online shopping in the sector. Ddomestic premium sales headed south by more than 20 per cent in November, while sales of international premium beers was up almost 15 per cent. In the year prior to November, international beers including Peroni and Corona were up 12.7 per cent and domestic premiums like Crown Lager and James Boag slumped 11.2 per cent. The figures represent packaged liquor sales, primarily from bottle shops. A Lion spokesperson told Food Magazine consumers are becoming more adventurous with what they drink, which explains the fall in traditional Australian alcohols. âConsumer repertoires are fragmenting â people drink more brands, on a regular
basis, than what they used to and they have room for more product types. âTwenty years ago, consumers may have been a beer drinker, a wine drinker or a spirits drinker. âNow the same consumer will drink different products depending on the occasion and will choose between a much broader range of brands. âThis doesn't necessarily only refer to consumers moving into international premium brands, but also into 'step up' brands such as Hahn Super Dry and XXXX Summer Bright Lager.
Siding with cider Australians are also turning to more alternatives to beer, with sales down 16 per cent while cider sales surged, up a massive 53 per cent. But the Lion spokesperson believes that as Australians become more worldly, and the availability of foreign beverages increases, it is only natural that a drink enjoyed abroad will find fans here too. âCider is the fastest growing alcohol segment, although it's important to
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remember it is growing off a small base,â the spokesperson told Food Magazine. âCider has been growing in popularity globally and has been something of a phenomenon in some international markets, including the UK. âIn Australia we have the ideal climate for cider to prosper and itâs relaxed, easy-drinking style is a good fit here. We recently innovated within the Tooheys Five Seed trademark, introducing a new flavour variant. âThis helped the brand become equal second biggest within the Australian Cider Category.â Reports of the local beer sale slump comes as Australiaâs biggest local brewer gears up to mark the companyâs 150th anniversary in May. Coopers became the largest remaining Australian beer company when London-based SABMiller took over Fosterâs in September after months of disputes between the two about the value of the company. Just before the takeover, Fosterâs chairman David Crawford called on
shareholders to reject SABMillerâs bidof $4.90 per share because it âsignificantly undervaluedâ the company. Coopers is also feeling the pinch on local beer sales, with its domestic premium beer sales down 0.6 per cent in November. However the year as a whole was successful for the brewer, with sales up 1.3 per cent in 2011 and Coopers currently represents 4 per cent of all beer sales in Australia. In August it announced plans to install machinery to double its brewing capacity and in 2005, survived a hostile takeover bid from Lion Nathan, saying it will always be an Australian-owned company. The Lion spokesperson told Food Magazine that while the local beer industry might be facing a tough time, it will come through it the other side. âAs a result of low consumer sentiment and increased saving activity the total beer market was in decline in 2011, however consumers continue to engage with beer, particularly in craft, international premium and contemporary brands.â
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ALCOHOLIC BEVERAGES
Taking the fizz out of Aussie beer Foreign ownership and imports arenât the only problems facing the beer industry, with the controversial Orica chemical spill also impacting brewers. The issues at the energy giantâs Kooragang Island plant had flow-on affects for the beverage manufacturing industry, with no CO2 being produced to make drinks fizz. CO2 is used in beer and soft drinks to make the product fizzy, but the company has not produced any since June last year. Initially the plant was closed for maintenance, but following a chemical spill on 8 August, operations have not resumed. Hexavalent chromium fumes were leaked over 70 or more homes in Stockton according to Australian Mining. Orica usually produces 36,000 tonnes of carbon dioxide annually, and supplies to Australiaâs biggest has gas, Air Liquide Australia and BOC. The two gas companies then supply to beverage makers including Scweppes, as well as utilities and medical industries. The Orica plant began a restart process on 3 January but a week later a person said it could take up to three weeks for it to resume to fullproduction. ââYes, we were aware of the impacts on the companies that we sell (CO2) to,ââ she said ââOur focus is on doing this safely.ââ
âOver the past two months, there has been a shortage in the supply of CO2 to our largest East Coast manufacturing facilities, due to the closure of Oricaâs plant at Kooragang Island, NSW, in August and then compounded in December by the planned closure of Origin Energyâs plant in Lang Lang, Victoria,ââ a statement said. ââAs a consequence of this shortage, we have not been able to produce the volume of soft drinks that we normally would be producing at this time of year.ââ It said the reopening of Kooragang would hopefully return full production across Australia.
Wine industryâs whine Itâs not just the Australian beer market thatâs suffering either, with the local wine industry relying on premium reds as it struggles to compete with cheap chardonnay exports. Cheap chardonnay was once the great success of Australiaâs wine export industry, but with the high Australian dollar causing it to lose its competitiveness; it is being edged out of the way in favour of products from other countries. Statistics from Wine Australia show the industry raised export prices of premium reds in 2011, for the first time in five years. Australian premium reds, including cabernet sauvignon and shiraz, are increasing in popularity overseas and
WHO IS LOOKING AFTER YOUR PACKAGING DESIGN, IMPLEMENTATION AND SUPPLY CHAIN EFFICIENCY? DO THEY NEED FORMAL PACKAGING QUALIFICATIONS TO IMPROVE YOUR BOTTOM LINE?
âCider has been growing in popularity globally and has been something of a phenomenon in some international markets, including the UK.â In December Air Liquide informed customers it would give first priority of its CO2 supply to essential services such as potable water treatment, blood transport and medical gases. Schweppes confirmed in January that the Orica closure has impacted its production but hoped to be back at normal production levels by the end of January.
export of these products are managing to keep our wine industry performing at its usual level â but only just. Half of the nationâs wine exports used to be cheap wines, but last year export of wine priced below $5 a litre were down almost 20 per cent to $646 million. Total wine export fell 10 per cent to 703 million litres.
Are you aware that the AIP can assist you with internationally accredited formal packaging training? Did you k now that you can complete a Certificate in Packaging on-line in less than two years? Did you know the AIP can offer you an on-line Diploma in Packaging Technology? The AIP can also customise half-day training courses just for your company. Ask the AIP how we can help your staff with their packaging education.
PH: 07 3278 4490 info@aipack.com.au www.aipack.com.au www.foodmag.com.au | February 12 | Foodmagazine 17
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FD.FEB12.PG020.pdf
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PACKAGING
Crunching the
Numb3rs
P Not all costs are what they seem when developing new packaging, as Pierre Pienaar, National President of the Australian Institute of Packaging writes.
ackaging plays a vital part in product distribution and the impact it has on a productâs success cannot be undervalued. It is the difference between a hugely successful product and a failed one. It is the major factor in ensuring that the quality that is obtained at the end of the production line finishes up in the hands of the ultimate customer. Packaging which is designed and constructed solely for this purpose adds little or nothing to the value of the product. It merely prevents physical damage and/or preserves the product. Cost effectiveness is the sole criterion for success in todayâs competitive business environment. Therefore efficient and cost effective packaging is an essential element in the marketing mix of a product.
Material Economics The name of the game has become one of intense competition, of finding the growth niches within the overall packaging market to make sure that you grow faster than your opposition. The overall packaging market in developed countries may therefore seem to
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be rather mature and static but internally it certainly is very dynamic. Each packaging material â paper, glass, metal and plastics â and each form of packaging within these segments, continuously struggles for its share of this enormous market. But because the total is growing slowly, the industry has come to resemble a zero game where one materialâs gain is anotherâs loss. This accelerating competition between the different materials has forced a greater emphasis on new technology, new packaging systems and new distribution systems, and these developments are increasingly occurring on a worldwide basis. Two issues have become apparent when we refer to competitive packaging materials. Firstly, materials must have certain characteristics to perform the functions which are required in their use as a packaging material. Some materials are better placed than others and there is normally a comparison of these properties to decide which will perform best under any given circumstances. No one material is perfect and in most cases there is a trade-off of properties to
reach a final decision. It is interesting to note that most packaging materials can, through highly scientific means and advanced technological developments, overcome some of their inherent weaknesses to place them in a better competitive position, i.e. their toughest opposition. This invariably costs money, which leads to the second point, namely that of the economics of packaging material. Upgrading the product technologically may be a technically feasible proposition but the strong question remains is it commercially feasible. And in this respect the commercial realities of a product carry more weight than anything else. The crux of the matter is that customers will only convert to an alternative packaging medium if the conversion results in better bottom line performance. This is a very stable industry, which has grown steadily over many years. It is far less prone to violent swings in the economic cycle, mainly because the major off-take is pitched at the non-durable segment of the market with a heavy emphasis on beverages â alcoholic and nonalcoholic as well as food.
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PACKAGING
Packaging, in product distribution is a techno-economic function aimed at maximising sales, while minimising the total overall cost of distribution. It can be regarded as a benefit to be optimised rather than merely a cost to be minimised. Packaging must be considered in relation to four major factors in industry today: materials utilisation; machinery and line efficiency; movement in distribution and management of people.
Elements of total cost In Packaging Economics, Leonard identifies seven elements of packaging costs, elements which the packaging professional should consider when looking at budgets.
Development costs These are all costs that are involved in the development of a package and normally carry through issuance of the final specification. Examples would include concept research, design, models, tooling, samples, sample evaluation, testing, test marketing, specifications, preparation, quality control, start-up, etc. There will be occasions when the development costs of a package are so expensive that it might require several years to amortise the initial costs, although 1 to 2 years is a normal payback period.
One-time costs These are generally regarded as costs that are paid âone-timeâ and are not repeated during the life of a packaging specification. They include both the above development costs as well as costs for tooling, dies, special moulds, and gravure cylinders.
Material costs We usually think of this when packaging economics is discussed. It is really only part of the costs, and even material costs have their own factors, some of which are frequently ignored, with later embarrassment. Material costs would include: ⢠Basic unit price ⢠Special packing ⢠Freight ⢠Packaging materials storage and handling ⢠Shrinkage of packaging materials ⢠Sampling and inspection costs
An effective materials pricing policy would include knowledge of: ⢠how the material is produced ⢠where it is produced ⢠production losses ⢠specification / quality assurance control
Packaging Machinery costs (other than one time) A packer need not own all the equipment in his packing lines since lease and rental arrangements are available on many kinds of machines, such as can closers, cluster packers, vacuum cappers, and in general machines which are part of packaging systems.
material storage demands more controlled conditions than beer bottle label storage. Frozen foods require warehousing at -18 degreesC or below.
Write-off inventories No packaging is immortal. To replace it with a new specification or even with nothing more than new graphics involves not only the cost of developing the new container, but a consideration of how to run out the old most economically. At any stage when a changeover is decided on from one package to another, there will be packed goods in the channels of distribution, packaging materials in the packerâs
The name of the game has become one of intense competition, of finding the growth niches within the overall packaging market to make sure that you grow faster than your opposition Supplier service and maintenance contracts are available to go with the machinery. The allocation of rental and service charges to total packaging costs is quite easy.
Packing Process costs All labour costs (direct and indirect), overhead and incidental materials must be calculated in devising a truly valid process. Plant overhead, floor space, energy and inspection costs must be calculated. In order to save utility charges, some companies elect to install their own energy plants. Fixed overhead should be known and computed into the cost of every package produced. The total monthly costs, divided by units packed, will identify a cost per unit for such materials. With a couple of monthsâ records on such items the packaging technologist can readily estimate the cost impact on any proposed new package.
Distribution costs All expenses concerned with physical moving finished packaged goods from the packaging plant to the customer are distribution costs. These costs include packing materials, palletising, warehousing, loading and shipment. Certain products need special warehousing conditions. Medical and pharmaceutical packaging
plant, raw to finished packaging materials in the suppliersâ plants and warehouses. The changeover must be arranged with a view to minimising the value of old materials in this chain of supply and distribution which will have to be discarded, without allowing customers to run out of stock while the new packages begin to flow in. Will advertising break on the new package while old packages are still in distribution? Can old packages remain in the market place or will they have to be picked up, returned for salvage or destroyed? There are some cost elements which must be considered when developing new packaging. Pressures on packaging are intensifying in the global marketplace. Too often, packaging is forced into a commodity status, at the mercy of the decisions and strategies of other sectors. But packaging will strengthen its role as a strategic partner in the marketplace. There is probably no single scenario of the future for which we would have difficulty finding support in a school of economic theory or with a few specific practitioners, but it the packaging professional keeps an alert eye on these items he (or she) need never be surprised by unexpected costs. www.foodmag.com.au | February 12 | Foodmagazine 21
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ENVIRONMENT
The Cost of Carbon
The Gillard governmentâs carbon tax could be a huge burden on food manufacturers when it is introduced in July, but arming yourself with information could save you money, as Edward Hanna, Executive Director Activ8 and Energy Action writes.
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haracterised by multi layered, changing regulations, rising delivery costs, and an imminent shift in its technology mix, the Australian energy market can be quite a perplexing party to navigate. Yet for food and beverage manufacturing companies across Australia, energy costs are more pertinent than ever. An understanding of charges and knowledge of available efficiency and reduction measures has thus become a necessity for ensuring ongoing business viability. An energy bill is a moving feast of usage charges, asset capacity charges, management fees and indirect environmental taxes and levies. Retailers managing volatile financial risks, monopolised asset owners protecting their long term revenues, and state and federal governments pursuing their various social agendas all play a part in the mish-mash of price signals that collectively make up a siteâs energy cost in any given month. It certainly pays for food and beverage
manufacturers to understand where operational changes can be leveraged to make the most effective impact on this bill. That being said, while more than 50 per cent of charges on your electricity bills are related directly to your consumption, another 30 per cent relate to your (historical or actual) maximum instantaneous demand. So, with 80 per cent of your charges directly related to your pattern of energy consumption, the most effective measures you can take to lower costs are increasing energy efficiency and reducing consumption at peak usage times.
Changing charges The best place to start to understand your energy bill is to know where the money is going. To that end, if your energy bill was a barbecue, the steak-holders (pun intended) surrounding it would include your chosen retailer, who brought the generators with him, your local network company and his bigger transmission
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company mates, the federal and state governments, and your chosen meter provider and contract manager. If you were to ask any of them who actually holds the tongs, each would point to another, or perhaps send you to the kitchen for a conversation with the government agencies responsible for the operation of the market - the Australian Energy Market Operator (AEMO) or the Australian Energy Regulator (AER). To extend the analogy, each of these players is currently working to protect their space, pile on more sausages to cook, and reduce their dependence on the hotplate. Relating this back to energy bills, there is a bevy of rapidly shifting charges that food and beverage manufacturers are confronting when they review their monthly energy costs. The Federal Governmentâs Renewable Energy Certificate (REC) regime is one such area where significant metamorphosis has taken place and the impact on energy bills is now frighteningly real. At the beginning of
January 2011 the former Renewable Energy Target was split into the LargeScale Renewable Energy Target (LRET) and the Small-Scale Renewable Energy Scheme (SRES). The aim of the two REC schemes is to ensure that 20 per cent of Australiaâs electricity supply to be sourced from renewable sources by 2020, with increasing compliance targets set each year by the Federal Governmentâs Office of the Renewable Energy Regulator (ORER). The financial liability for these targets falls to electricity retailers. How this translates to your bill is that for each 100kWhs of electricity your site consumes, about 10 per cent of it currently has to come from renewable energy generation. Your retailer must purchase a certificate at a premium to the energy commodity price to prove that they have sourced this renewable energy on your behalf. The amount you are billed each month covers the cost to the retailer of sourcing this certificate.
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ENVIRONMENT
In addition, companies have experienced increased electricity delivery costs within the ânetwork chargesâ portion of a bill. Comprised of usage charges, maximum historical or actual instantaneous demand charges, and asset management fees, these charges typically make up approximately 50 per cent of a siteâs total energy costs. The network companies themselves are monopoly providers of poles and wires, regulated by the Australian Energy Regulator. There has been considerable criticism levied at the Regulator within the industry for the sharp and repeated price increases which they have approved through to customers over the last three annual price rise cycles. As a result, you will notice each year that from either July 1 (for electricity users in New South Wales, Queensland, South Australia, ACT and Tasmania) or January 1 (Victorian users) there is a change (usually upwards) in the network component of your electricity bill. The impending carbon tax is another area set to affect manufacturers across Australia.
size to quickly understand how the scheme will influence them specifically, based on easily accessible consumption information from past energy bills. And for companies based in Victoria, the second phase of the Victorian Governmentâs Victorian Energy Efficiency Target (VEET) came into effect on January 1. The scheme will see Victorian businesses face an extra cost line on their gas and electricity bills, about 30c/GJ for gas consumption and between 0.3 and 0.5c/kWh for electricity customers, or about two to five per cent of your billed energy costs.
Knowledge is power An effective energy management program â one which is serious about managing and minimising energy costs â requires a holistic approach to energy management. Such an approach considers in detail site energy consumption as well as maximum instantaneous demand, and can provide certainty about the effect of upcoming increases and new imposts on your investment decisions. Driving an energy management program requires sustained effort from within an organisation, but external
For food and beverage manufacturing companies across Australia, energy costs are more pertinent than ever. To give you some guidance in regards to its potential impact on your business, expect your energy costs to rise by about 2c/kWh. According to calculations published by Energy Action, this will be a 12-20 per cent cost increase for the food and beverage manufacturing sector from July 1 this year. Tools such as the Carbon Tax Calculator which is a free online tool offered by Energy Action, can assist businesses of any
advice and specialised processes delivered by independent and expert market participants can provide your organisation with the information required to stay on top of changes in the energy market, and understand the drivers of your siteâs energy spending. Both the selection of an external energy management partner and the development of a comprehensive approach to energy management takes
time and effort for both parties. A good place to start for many companies is the procurement of the best energy contract. An effective energy procurement process will both minimise delivered energy costs, and allow you to size up your advisorâs capabilities in relation to energy management. Achieving reduced energy use and improved efficiency As you proceed through your contract procurement exercise note that a key outcome from any engagement with the energy market should be an understanding of what investment is needed now to reduce your energy expenditure and improve levels of future efficiency. The good news for food and beverage manufacturers is that significant improvements in energy use can be achieved without necessarily costing you the earth. Before any capital investments are required, companies can usually extract 10 - 15 per cent reductions in energy use through practical, low-cost solutions delivered by an energy performance benchmarking program. Once such savings have been achieved, an energy investment strategy which considers both opportunities as well as your investment needs can provide you with the guidance required to optimise savings in your energy bill. The prioritisation of programs should not necessarily be driven by the biggest savings, rather the investments returning the best saving per dollar of investment in the shortest time. On the basis of return of investment in a typical food and beverage processing plant, the hierarchy of opportunities runs down from refrigeration and lighting enhancements, to the installation of variable speed drives, air compressor system optimisation or replacement. Where capital intensive energy efficiency investments are appropriate and financially viable, organisations may like to consider cogeneration or trigeneration systems â essentially the onsite production of energy â which significantly reduces an operationâs dependence on grid electricity, and thus costs. There is no doubt that energy considerations will be an important concern for food and beverage manufacturers operating in Australia as changing legislation and charges continue to place upwards pressure on delivered prices. By moving to assess energy reduction and efficiency options now, businesses will likely be in a much better position to ensure their long-term viability and ultimately survival. www.foodmag.com.au | February 12 | Foodmagazine 23
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ENVIRONMENT
Responding to Responsibility Companies are more accountable than ever before, facing public backlash for mistakes, as Jason Considine, General Manager Muddy Boots Software writes.
C
onsumer knowledge, expectation and media exposure means that environmental responsibility is, or should be, at the forefront of every businesses agenda. A recent study by The Nielson Company revealed that more than 67% of Australians are more likely to choose one retailer over another if they can demonstrate a high level of social and environmental responsibility; 75% of Australians think more highly of companies that are considerate to the environment; and 68% are willing to pay more for goods from responsible companies. Retailers and brand holders are subsequently faced with a complex task, particularly within the fresh produce supply network; where they are dealing with diverse, global supply chains and
factors such as large numbers of smallscale growers, diversity of geography, cultures and an increasing trend for fresh produce to be packed at source. The issue of reducing waste across the food industry is critically important. Consumers are witnessing an increase in the price of food and yet the media communicate excessive food waste as product is being rejected for being the wrong shape or size. This media exposure continues to raise questions about the responsibility every business carries to the people it serves. The cost associated with household waste in Australia is $5.2 billion every year. The majority of which is fresh produce, with $1.1 billion worth of untouched fruit and vegetables being wasted each year. The environmental
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impact of this is huge â water resources are wasted and greenhouse gas emissions are generated through wasted production and decomposition in landfills. A study commissioned by CSIRO (Commonwealth Scientific and Research Organization) on the carbon and water footprints of the Australian fresh mango industry revealed that 54%, or 19,000 tonnes of the average yearly production of mangos are wasted from field to fork. This doesnât sit well with the whole supply chain efficiency element or the retailersâ long term sustainability agendas. The impact of this on the retailer is becoming even more significant as they continue to take ownership of the problem with own label produce. As the retailer becomes the brand, any scrutiny relating to methods of supply,
availability and cost can seriously affect their reputation. âHarnessing technology enables our suppliers to self-assess themselves against Unileverâs Code and identify good stories or areas for improvement,â explains Andrea Granier, Global Sustainability Manager Natural Ingredients, Unilever Global Supply Management. âUnderstanding we have to make a real difference in sustainability terms and being able to communicate this through our brands is leading us to create new ways of working with our suppliers,â continues Granier. Using technology to harness better business information throughout the supply chain is key to that drive for efficiency. Better planning and forecasting must play an important part in this process.
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Trusting our Farmers Australian farm groups could adopt a US initiative in a bid to build public trust in farming to address consumer concerns about modern agriculture and food production.
A
ustralian farm groups could take on a US initiative to build public trust in farming to address consumer concerns about modern agriculture and food production. The Centre for Food Integrity (CFI), a not-for-profit group in Missouri in the Midwest of the United States, has found great success in its work to increase consumer understanding of farming. The initiative, which also addresses developments for the environment, productivity and food safety, is now being closely examined by Australian experts. In February CFI chief executive officer Charlie Arnot will be back in Australia to further address initial conversations with farmers in two separate visits in 2011.
Comments welcomed in 2011 Arnot made 13 presentations to around 600 people, saying farmers and food companies need to focus on strategies to promote public trust and establish their own strict self-regulated standards. The messages were welcomed by industry and farmer groups, according to NSW Department of Primary Industries (DPI) livestock officer at Moree, Greg Mills. "The CFI model has certainly had a lot of success,â he said. âIt's now a case of trying to determine if and how it might work in Australia.â Established by soybean producers in 2007 and funded by farmers, farm and food organisations and private companies, the CFI is committed to
undertaking research to create messages to increase consumer trust. According to Natioanal Farmers Federation (NFF) executive officer, Matt Linegar, "agriculture's social licences to operate" are under increasing pressure, particularly as the divide between urban
and rural Australians increases. This divide leads to a huge lack of understanding about farming and agriculture for city dwellers, who have almost permanent availability of any fruit or vegetable, despite weather conditions, which has lead many to question the
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Rheon products abound in meat & poultry, snack & health, bakery products such as cookies & bread doughâs, cheese, seafood, confectionary, pet food & even ice cream treats. Continuous co-extrusioneg: sausage rolls, fruit bars and apple strudel. Short or long log extrusioneg: croquettes & hot dogs. Round deposits up to 300grams-eg: bread pockets, lled meat & poultry meals, lled doughnuts. Ease of operation with a simple control panel from which machine operation is controlled at the press of a button. The panel also has 99 memories for calling up your products running speci cations. Low pressure feeding to handle materials gently & avoid fragile particulate breakdown in the casing and/or lling - baked beans or vegetables into meat or potato casing, strawberries & cherries travel through the machine with minimal damage. Options allow solid centres or a second lling, open topped products, mosaic & shaped extrusions. Stainless steel construction and fully hose-able for easy & sanitary cleaning. Single, double and multi-head versions available. Test kitchen facilities available with development assistance. FROM -
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www.symetec.com www.foodmag.com.au | February 12 | Foodmagazine 25
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storage and transport of the produce. Now the industry wants more information on Australiaâs agricultural industry provided to everyone. "We're examining the CFI's activities as part of our greater aim of keeping agriculture's true value recognised by governments and the public," Linegar said. "I'm sure the issue of building consumer trust will emerge as an important theme in the NFF's blueprint for agriculture in the coming year."
Animal exports Organisations including Horticulture Australia Limited, the Australian Rural Leadership Foundation, the Animal Welfare Science Centre and the Australian Egg Corporation discussed the CFI with Arnot's in November, and sought his opinion on consumer behaviour in Australia. One of the worst incidents to impact consumer opinion of the industry in the last decade was the Indonesian live export revelations shown on the ABCâs Four Corners program, which led to public outrage and Prime Minister Julia Gillard suspending live exports to the region in mid-2011. It was also revealed authorities warned Indonesian abattoirs of the impending presence of cameras in its facilities, which industry body Meat &
Livestock Australia (MLA) has defended, saying it was part of due process to pass on such information. Live export has resumed to Indonesia and the Department of Agriculture, Fisheries and Forestry (DAFF) confirmed in November that since the ban was lifted, 128 312 cattle have been exported to Indonesia.
Honesty the best policy "Farmers often feel like the victims which they may or may not be - but the fact is consumers aren't willing to put your farm's profit concerns ahead of their current principles," Arnot said on the issue during a presentation in Sydney. "We have to help consumers understand their principles are actually the same as today's farmers. "Animal welfare, environmental stewardship, food safety and a passion for doing the food production job well are all basic principals of farming." The worst thing farmers could do, Arnot believes, is to stay quiet on modern farming activities, and therefore increase the gap in understanding for urbanised Australians. Mills agrees with the calls from Arnot, saying farmers need to give consumers all the information they can, to prove practises are ethical and safe. "The aim is to openly establish the
credibility or a voluntary code of practice that allows you to operate a farming enterprise or industry without expensive government legislation and the constant tracking and monitoring which law makers might demand," he said. "If the consumer trust you, sees what
muscle tissue. âBioaccumulation of trace elements differs between offal and muscle, so direct comparisons to the database are inaccurateâ she said. When her work is complete, she said the process would help ensure products sold
âFarmers often feel like the victims - which they may or may not be - but the fact is consumers aren't willing to put your farm's profit concerns ahead of their current principlesâ, Arnot said on the issue during a presentation in Sydney. they like and believes you're doing a good job, the industry builds great credibility with the public, but if you flout that trust the public will demand governments step in to crack down and regulate everybody."
Locating the source Another idea being suggested to ensure meat safety is one that could make it possible to trace pork offal products back to individual farms, reducing potential market damage associated with health scares. A researcher in Perth is working on a method which analyses constituent trace elements to improve Australiaâs standing on the world export market. Forensic chemist Nataxha Kreitals, who is performing the research as part of a PhD thesis, says the work would complement an existing database of trace-elemental signatures for pork
and labelled as Australian pork are genuine. It would also limit the limitations placed on farmers if a health issue arose, as the affected operation could be quickly located and others could continue selling. âWe donât eat a lot of the pork offal in Australia, but we do export it, and itâs actually a really important commodity for the Australian pork industry,â Kreitals said.
Apology In our November/December issue of Food Magazine, Wouter Moorman from Purac Asia Pacific contributed an article on meat safety requirement. In the article, Wouterâs name was misspelt. Food Magazine apologises for the error.
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Food Awards Nominations are open for the Food Magazine Awards, so get your entries in now.
T
he 8th annual Food Magazine Awards are fast approaching! The event, which recognises the best and brightest in the food manufacturing and packaging industries, will be held Wednesday 1 August in Sydney. With 14 categories, there is sure to be one (or more) where your new product or idea can be entered.
Beverages Alcoholic and non-alcoholic beverages are included in this category that any company, regardless of size, can enter. The product must be developed and/or launched in Australia in 2011 or 2012. Products that can be entered in this category include beer, fruit juice, tea and pre-mixed spirits.
Baked Goods This category is for all products that use a dry heat cooking process, whether sweet or savoury. Products that can be entered in this category include cookies, bread, pastries, pies and quiches.
Confectionary For all kinds of sweet snack foods on the Australian market. Products that can be entered in this category include chocolates, lollypops, gummy candies and boiled sweets.
Dairy For all products that include cow, milk, buffalo or goat milk as a main element. Products that can be entered in this category include cheese, milk, ice, cream, yoghurt and custard.
Organic & All Natural These are simple, unprocessed products that have been registered as organic foods. Products that can be entered into this category include any kind of food that is certified organic.
Ready Meals Meals that are ready to go, and do not require any additional ingredients. Ready meals include all the elements of a meal and require one or less steps for preparation. Products that can be entered into this category include microwavable dinners, pies and lasagnas.
Snack Foods Snack Foods are foods which do not constitute an entire meal, and are eaten between main meals. They can be sweet or savoury but do not include many ingredients. Products that can be entered into this category include potato chips, cookies, nuts and dried fruits.
Ingredient Innovation This category is for new developments in ingredients at any level of the process. Products that can be entered into this category include flavours, spices, fillings, toppings or alternative additives in place of ingredients like flour or dairy.
Packaging Design This category is to recognise and reward creativity and innovation in food and beverage packaging. Products that can be entered into this category include bottle designs, packaging artwork and portion control solutions.
Prepared Foods Commercially packaged foods that require some additions and can take two or more steps to create a meal. Prepared Foods differ from Ready Meals as they are only components of a meal, rather than an entire meal. Products that can be entered in this category include pasta sauces, relishes, powdered foods and spreads.
Food Safety and Innovation in Non-Food This product or service needs to be directly applicable to the Australian or New Zealand food and beverage industries and offer an aspect of food safety benefit in the food industry. This benefit may be realised through design, improved sanitation or additional
contribution to food safety. Products that can be entered into this category include protective clothing, sanitation products and services, monitoring equipment, materials handling products and facility fit out products and materials.
Health & Wellness These are foods that benefit the health and wellness of consumers, and should have scientific research and reports to back up the claims. Products that can be entered into this category include health bars, salads, shakes and cereals with reduced salt and sugar content.
Sponsor Profile:Kerry Kerry Asia Pacific is proud to sponsor the Ready Meals Category for the 8th consecutive year. Throughout this period, the category has experienced exciting innovation and increased opportunities in the marketplace. At Kerry we know that delivering great tasting food and beverages relies on understanding and working with flavours and ingredients to achieve the right taste result. Kerry has a wide range of technologies and depth of application expertise to provide customised solutions for almost any area of food and beverage development, which help you solve the flavour and functionality challenges you face. Recently, Kerry has been focused on sauce innovation and supply, which has resulted in more
Sustainable Manufacturing Companies reducing their carbon footprint are recognized in this catagories for doing their bit to reduce pollution and energy consumption. Products that can be entered into this category include energy-efficient production options, waste management solutions and safety equipment.
Meat & Smallgoods This incorporates all fresh meats and deli meat products. Products that can be entered in this category include mince, wings, steaks and poultry.
flexible, innovative options for ready meal development. From sachets to bottles, both wet & dry applications to complete your ready meal solutions. Kerry’s technologists are proud to help you create delicious market leading dishes. Technologies and meal component solution examples include sauces (including sachets), seasonings, meat systems and flavours, coatings, marinades, soups, dressings, stuffing cores, dry stuffing mixes, premixes, bakery solutions, beverage bases, just to mention a few. Whether you want your product to be crunchy, cheesy, smokey or spicy, Kerry can help you create a delicious market-leading dish. Kerry Asia Pacific 61 2 9741 4422 sales.anz@kerry.com www.kerry.com www.foodmag.com.au | February 12 | Foodmagazine 29
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PRODUCT SHOWCASE
Something in the air EXAIR's new Atto Super Air Nozzle has been engineered to produce the highest performance attainable from a tiny nozzle. It delivers the smallest, most precise blowoff with an efficient, high volume, high velocity airflow. The overall length of the air nozzle measures only 0.50" (12.7mm) with a diameter of only 0.16" (4mm), permitting installation in tight spaces. The durable Type 316 stainless steel construction is suitable for blowoff, cooling and drying applications located in general industrial, high temperature,
food, pharmaceutical, semiconductor or corrosive environments. The Model 1108SS Atto Super Air Nozzle provides a narrowly focused air pattern. High amplification of air flow and a strong blowing force of 2.0 ounces (56.7 grams) are achieved with minimal air consumption of 2.5 SCFM at 80 PSIG. Safe operation is assured since the airflow of the Atto Super Air Nozzle cannot be blocked, which meets the OSHA standard for dead-end pressure 29 CFR 1910.242 (b).
Bulk Bag Conditioner to loosen solidified materials FLEXICON has launched a new BLOCKBUSTERâ„Ë Bulk Bag Conditioner with two hydraulic rams and specially contoured end plates, presses opposing sides of bulk bags, loosening material that has solidified during storage and shipment, enabling bulk bag unloaders to discharge it through bag spouts. A cantilevered I-beam with motorised hoist and trolley allows loading and unloading of bulk bags without the use of a forklift. The bag can also be raised and lowered using the hoist, and rotated manually, for conditioning at any height on all sides. The system controller and hydraulic pump can be mounted on the exterior of the safety cage or remotely. The conditioner is fully enclosed on all
four sides for operator safety and includes full-height doors that are interlocked to disallow operation of the system when the doors are open. The conditioner is recommended for bulk bags containing hygroscopic chemicals, certain spice blends, heatsensitive products, and other materials prone to solidifying to the point at which pneumatically-actuated flow promotion accessories integral to bulk bag dischargers are inefficient or completely ineffective. An optional hydraulically-actuated, variable-height turntable allows automated in-frame bag rotation and conditioning of bulk bags at varying heights. The number and pressure of hydraulic ram actuations, the height of the turntable, and the number of 90-degree
30 Foodmagazine | February 12 | www.foodmag.com.au
Sound level is very low at 58dBA and meets OSHA noise requirement 29 CFR 1910.95 (a). The Atto Super Air Nozzle has been certified CE compliant by an independent laboratory. The Atto Super Air Nozzle is designed to easily replace existing wasteful nozzles or dangerous open pipes. The compressed air inlet is male M4 X 0.5. Compressed Air Australia 1300 787 688 www.caasafety.com.au
Tag that
rotations are user-programmable. The conditioner is offered as a standalone unit or integrated with the company's BULK-OUTâ„Ë bulk bag discharging systems. Flexicon Corporation (Australia) 07 3879 4180 www.flexicon.com.au
A new innovation in product-gripping elastomer tags for point-of-purchase promotions has entered the market. Elastitag is a new development that can be used on multi-shaped food and liquor products when companies are launching new products lines or kicking of new promotions. It is useful for companies that want to tell unique stories, enhance their brand identities, support worthy causes and deliver free product samples. The Elastitag can also be used to advertise special offers, advertise competitions and provide rebate coupons. Elastitag Australia greg@elastitag.com.au 07 3286 9743
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PRODUCT SHOWCASE
Intelligent screw compressors
Hygienic simplicity CHRONOS BTH has introduced the new BlockTop bag closing system which is already being used in a host of packing rooms around the world where is helping to produce uniform square shaped bags; that are hygienically closed; yet easy to open. BlockTop also helps to optimise bag sizes and provide bag cost purchasing saving opportunities. Used in conjunction with Chronos BTH Bottom-up filling systems, BlockTop provides total bag control throughout the closing process. Once filled the bag top is pre-cut, creased, double folded and hot melt glue is applied between the folds. The bag top is then pressed to spread the glue. Each closed bag top is folded over and further glue applied. The
folded bag top is pressed onto the filled bag to form a square shaped bag. BlockTop sealed bags are easy to open, by simply pulling across the top of the bag, which in then unrolled. As an added advantage the bag top can be refolded to close it again. A further advantage of utilising the BlockTop⢠closing system is that the resulting filled bags are an ideal shape for optimum palletising and subsequent stretch hooding. When enhanced closure security is required BlockTop⢠has the flexibility to be used in conjunction with conventional sewn closure systems. Australian Prime Fibre Pty Ltd 07 5476 6245 www.chronosbth.com
SUPER Spring Savings on Sullair Australiaâs Champion CS11 and CS15 rotary screw compressors are now available. Built with advanced Sullair technology, the CS11 and CS15 Champion compressors provide intelligent controllers to ensure maximum energy efficiency. Designed for use in small business and manufacturing, the compact machines provide a continuous air solution ideal for applications including cabinetry and furniture making, pre-fabrication house frames, automotive shops, tyre repairers, trucking companies, panel repairs and spray painting applications. The compressors are extremely versatile and easy to install with low noise levels. The units can be supplied in a number of configurations from a standalone compressor mounted on a receiver tank, through to a complete compressor station with receiver, refrigerant dryer and filtration, all of which are space saving and easy to maintain. The popular CS11 and CS15 Champion compressors are engineered to meet Australiaâs harsh environment and are backed by Sullair Australiaâs nationwide specialist service team, spare parts and warranty. Relate Technical Communications Pty Ltd Suite 204, 546 Collins Street 03 9614 5599 www.relatetech.com.au
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www.pakpro.net.au ww www.foodmag.com.au | February 12 | Foodmagazine 31
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Looks like jelly, tastes like a milkshake Product: Aeroplane Wobble- Chocolate Manufacturer: McCormick Ingredients: Sugar, gelatine (beef origin), flavour, cocoa
ON THE
SHELF
powder (2.5%), acidity regulator (331), colours (150C)
Shelf life: Two years Packaging: SO brandesign Product manager: Linsey MacIntosh (03) 9264 0395 Website: www.aeroplanejelly.com.au
What a sweetie
Chicken lickin’
Product: Natvia Natural Sweetener Manufacturer: Natvia Australia Ingredients: Erythritol – a naturally occurring nectar
Product: Premium Twirls Southern Style Manufacturer: Inghams Enterprises Pty Ltd Ingredients: Chicken breast (66%), flour (wheat, soy),
Shelf life: Three years Packaging: Natvia Product manager: Sam
water, vegetable oils (contains antioxidant (306)), starch (wheat), thickeners (1404, 412), dried glucose syrup (wheat), salt, milk solids (milk), flavour (wheat, soy, milk), mineral salt (451), dectrose, soy lecithin (322), ground and extracted spices (incl chilli), yeast, sugar, acidity regulators (541, 500), natural colour (160C), vitamin (thiamin). Packaging: Appetite Branding Product manager: Michelle Furtado
found in fruits like melons and grapes, Stevia (Reb A)
Tew (03) 9510 8919
Website: www.natvia.com.au
Hot potato Beauty and the Greek Product: Chobani Greek Yogurt- Blueberry Manufacturer: Chobani Ingredients: Fat free yogurt (80%) [cultured pasteurised nonfat milk. live and active cultures: S. Thermophilus, l. Bulgaricus, L. Acidophilus, Bifidus, and L. Casei. Fruit on the bottom: (20%) [blueberries (8.6%), evaporated cane juice, pectin, locust bean gum, natural flavour, food acid (330, 331, 333)]. Shelf life: 50 days with refridgeration Packaging: Chobani Product manager: Peter Meek Website: www.chobani.com.au (available soon)
Product: San Remo Potato Agnolotti fresh pastaPotato, Leek and Dill Manufacturer: San Remo Pasta Company Ingredients: Pasta (Durum wheat semolina, water, egg, salt, acidity regulator (E270), colours (E160b, E100), filling (potato (16%) (contains preservative (E223)), zucchini, chesses (milk, salt, culture, enzyme, anti-caking agent (rice, flour), yeast extract, leek (3%), onion, potato flakes (contains preservative (E222)), breadcrumbs, semolina (wheat), dill (0.2%) milk solids, salt, garlic powder, sugar, spices). May contain traces of peanuts, tree nuts, sesame, soy, crustacea and fish. Shelf life: 90 days Packaging: Zynke Design Product manager: Claudia Lordao, 8261 0555, CLordao@sanremo.com.au Website: www.sanremo.com.au, www.facebook.com/sanremopasta www.foodmag.com.au | February 12 | Foodmagazine 33
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EVENTS
Keeping up-to-date with trends and developments is the key to thriving in the food manufacturing and packaging industries, and this year will be another excuse to network with those in similar fields to find new ways to improve your business. So get your diaries out and start making plans, because these are just some of the great opportunities you could be a part of this year.
AIP Sustainable Packaging & Additives Technical Dinner February 9 Oatlands Golf Course, NSW The Australian Institute of Packaging (AIP) New South Wales Branch, in conjunction with the SPE, will be holding a technical dinner on sustainable packaging and additives on Thursday the 9th of February 2012 at the Oatlands Golf Course with speakers from Milliken Design and BASF Australia. Speakers will include Craig Benson, Country Manager for Australia and New Zealand, Milliken Design, Inc, who will be speaking about how additives can improve the consistency, quality and speed of running polyolefins in various packaging applications. Running various colours affect process set up and various additives can assist stiffness but usually have a down side on impact performance. New products on the market allow you to have the best of both worlds. www.aipack.com.au
DIAA Ice-cream Science and Technology Course May 1-5 William Angliss Institute, VIC The course will cover topics such as ice-cream mix composition and formulations, mix processing, the freezing process, sugars and stabilisers, emulsifiers, flavours, defects and food safety. The Dairy Industry Association of Australia will be hosting an intensive training program on ice-cream manufacture with renowned ice-cream expert Prof. H. Douglas Goff from the University of Guelph, Canada. Registration numbers are strictly limited, so don't delay. Last year's course sold out in only three weeks. www.diaa.asn.au
AIP National Conference 14-15 June Marriot Resort and Spa, Surfers Paradise, QLD The Australian Institute of Packaging (AIP) is currently at the planning stage of the National Conference which will be held at Surfers Paradise Marriott Resort & Spa on Thursday the 14th and Friday the 15th of June 2012. The biennial National Conference will be themed Packaging...The Road Ahead and is the largest professional development and networking opportunity of its kind in the packaging industry, bringing together leading experts from around the globe to cater for all participants in food, beverage, manufacturing and packaging. Following a number of highly successful topical conferences over the past few years, the AIP will approach the 2012 National Conference to deliver a twoday event that will cover a broad range of topics relating to packaging, incorporating current trends and future developments, case studies and real-
life applications, along with a revisiting of some packaging fundamentals. Issues like sustainability, openability, ease of use and recyclability are just some of the new developments that will be canvassed. The conference will also allow delegates to understand how the basic principles of packaging should not be forgotten when developing new packaging concepts. www.aipack.com.au
45th Annual Australian Institute of Food Science and Technology (AIFST) Convention July 15-18 Adelaide Convention Centre, SA As society in Australia and internationally âreaps the rewardsâ of food science and technology, Australian food techologists should also âreap the rewardsâ in our profession. So the focus of this 2012 Convention is on the challenges associated with maximising the potential of scientific, technological, societal, legal, regulatory and marketing developments and innovations, within topical aspects of food production. www.aifst.asn.au
International Nonthermal Food Processing Workshop - FIESTA 2012 October 16-17 Bayview Eden Hotel, Melbourne, VIC Expression of Interest and Call for Poster Abstracts are available on the website CSIRO, Australiaâs national science agency, is once again hosting the international IFT/EFFoST nonthermal food processing workshop. The theme of the 2012 Workshop is Innovative Processes for Sustainable, Safe and Healthy Foods. Opportunities for nonthermal and other innovative technologies in adding value to foods and enabling the sustainable manufacture of healthier food products (such as reduced salt, fat and sugar) that benefit Australian and international markets will be highlighted. Session themes will address innovative technologies for: ⢠a sustainable future ⢠a safe supply chain ⢠sensory aspects, human health and nutrition ⢠processing and commercial development challenges. www.innovativefoods2012.com www.foodmag.com.au | February 12 | Foodmagazine 35
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The Comprehensive Product Portfolio for Beverages
The KHS Group A single supplier for economical solutions. Profit from the experience of KHS, KHS Anker, KHS Kisters, KHS Alfill and KHS Till.
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_Cleaning Technology _Filling Technology _Inspection Technology _Labelling Technology _Packing Technology _Palettizing Technology _Process Technology _Conveying Technology _AIS Plant Planning