Beverages & food processing times may 2014 by Advance Info Media

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Vol. 6, Issue 12, May (I) 2014, Rs. 20/-

Annual spends on fast food increase by 108% in tier-II & III cities in India: ASSOCHAM

ress release: Growing need of consumer for convenience, increased appetite and insatiable hunger for international food and exposure to global media and cuisine, the annual spending of each middle class household in India’s tierII & III cities have increased by Rs. 2,500 to Rs. 5,200, a growth of 108% on fast food restaurants in the last two years, reveals the ASSOCHAM latest study. India’s Quick Service Restaurant (QSR) market has remained largely affected by the economic

slowdown and touched nearly around $50 billion from $35 billion rupees last year, according to an ASSOCHAM recent paper on “Indian fast food market new destination: Tier-II & III cities”. “The factors propelling this buoyancy include the changing economic and demographic profiles of consumers in India and also exposed to international brands and are far more aware of global trends. Considering a large portion of customers are youth, this remains a key growth driver too”, said Mr. D S Rawat, Secretary General ASSOCHAM while releasing the paper. The annual average spending of each middle class household in India’s tier-I cities have increased by more 35% to Rs. 6,800 on fast

food restaurants in the last two years. On the other hand, middleclass families in tier-II & III cities are spending much higher in fast food restaurants in tier-I cities and have increased from Rs. 2,500 to Rs. 5,200 (108%) on fast food restaurants in the last two years, reveals the ASSOCHAM findings. As per the findings, Indian are eating out more often now, as many as 8 times a month less than US (14 times), Brazil (11 times), Thailand (10 times), China (9 times) etc, reveals the ASSOCHAM findings. There is a steep rise in quick service restaurant (QSR) spending pattern in tier-II and III cities which is propelled by the increase in nuclear families and working women, steady growth in incomes, changing lifestyle and eating patterns and, importantly, greater accessibility of quick service restaurant outlets”, highlights the

paper. Mr. Rawat further said, after capturing the tier-I cities, Indian fast food market are now spreading their wings in tier-II and tier-III cities. However, there is large room for growth in untapped tierII and tier-III cities and the future of the Indian fast food industry lies in tier-II and tier-III cities. He also said, “more than 65 per cent of the population is aged less than 30 years and are exposed to international brands. Considering a large portion of customers are youth, this remains a key growth driver too. It is one of the sector that has managed to grow even during the economic slowdown”, adds the paper. With increased competition and cost of operations in the metros and tier I cities, a number of tier II and III cities may offer better growth prospects for players

across sectors, driven by factors such as favourable demographics, infrastructure growth and higher disposable income driven by both strong economic growth and government support through various employment schemes, adds the paper. “Increase in literacy, high disposable income, exposure to media, greater availability and penetration of a variety of consumer goods into the interiors of the country, have all resulted in creating lifestyle and aspiration levels on a par with other fastmoving metropolitan cities”, highlights the paper. The growth in nuclear families, particularly in urban India, exposure to global media and Western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends. Which has lead us to a new era of eating- ‘fast food’.

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Chocolate News

Sweet growth for Mondelez in India

he makers of Cadbury and Oreo biscuits- the Indian unit of Mondelez had a good growth graph in this quarter through March, driven by increasing share in the chocolates and powderedbeverages market. Mondelez’s performance in India in particular was sturdy, up over 2.5 (percentage point) in a category that continues to grow about 20 per cent. The company’s results reflect recent capacity investments to support the tremendous growth from that market. The company has been able to regain the share it lost in the first half last year with the making of new chocolate capacity place in India. Mondelez India gets a fifth of its sales from beverages business, which also grew in mid-teens. The multinational continues to successfully expand their Tang business and increase support behind of their top selling chocolate beverage, Bournvita.

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food processing + packaging systems

Lotte to put up another Chocó Pie Plant in India

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otte Confectionery is to set up a new plant in India to manufacture Chocó Pie chocolate covered cream-filled biscuits, the South Korean company’s most popular snack brand in the country. The new US$50m unit in Rothak in the state of Haryana will be ready by this month and will supplement production from Lotte’s existing plants near Chennai and Nellikuppam in southern India. Lotte also sources products from three dedicated sub-contractor plants. There sales are rising and during big festival sessions there used to be shortages and there will also be big savings on transportation costs as the new unit will take care of the north and eastern Indian markets. Mostly local raw materials go into Chocó Pie, though some imported ingredients are included. The product is sold in pack sizes of two, six, 12 and 20 pieces and is the favourite Lotte snack among children. The plant could be expanded in future to manufacture Lotte confectionery products including Coffy Bite, Lacto King, Caramilk and Eclairs as well as BooProo gum. More than 60% of the land at the new site is kept vacant for future expansion.

B everages & Food Processing Times - May - I - 2014

Ferro India posted 68% growth with a turnover of over 575 cr

erro India has doubled his company’s business in India in two years, crossing the 500-crore mark despite rivals like Cadbury and Nestle struggling for growth as Indians cut down on discretionary products, including chocolates. This yet another success story of Indian confectionery industry. Ferrero India posted a 68% rise in sales at 575 crore during the year-ended August 2013, against Cadbury and Nestle’s growth in low teens, though at a higher base. Experts attribute this largely to the firm’s differentiation strategy of selling premium products in niche segments. “They have the most differentiated and innovative products with each brand being market leaders and category creators. Ferrero-led premiumisation and the gifting category it built few years ago when its unique

gold laddo became the new-age upgraded mithai. Ferrero now has almost 8% market share in the chocolate confectionery segment worth 6,832 crore, though it still lags behind giant Cadbury which commands 68% share, and Nestle around 19%. Yet, both rivals are anxious to introduce their existing products to the niche market created by Ferrero. For instance, Nestle has launched Alpino while Cadbury has brought Toblerone to the market. A Ferrero India spokesperson says, “We are positive towards growth opportunities in a growing market like India and are investing with a long-term perspective. We are reaching out to all important markets with our brands in India and growth numbers reflect our belief in the market potential and we believe there are more opportunities to be tapped.” Ferrero entered India in 2004 as part of its global social enterprise, a concept where they are set to make profit, but at the same time, combat serious consequences of unemployment in the less advantaged areas of emerging countries. A decade later, the company has over 2,000 employees working at its Baramati factory in Maharashtra, and Indians now form the third largest workforce by nationality after Italians and Germans for its parent company.

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Chocolate News

B everages & Food Processing Times - May - I - 2014

Food Ingredient News

Blendhub’s automatic liquid injection system proves its efficacy in producing nutritional components and aromas

he automatic liquid injection system developed by the company Blendhub for its “Portable Powder Blending” factory is being used by various food companies to manufacture new products, demonstrating its utility in contexts where flexibility is required. Specifically, this technology, introduced just a few months ago, has been requested by a German company specializing in nutritional components to

introduce a complex product in the country’s market, as well as a Swiss company dedicated to the development of aromas. The liquid injection module of the “Portable Powder Blending” is installed in the blending plant through connectors according to the client needs, and is able to inject up to ten different liquids such as fats, oils, vitamins, food colorings, etc. into the powder blend as an additional ingredient

Britain and China on verge of a trade war over cheese

hina has suspended all imports of cheese from Britain. The ban began May 1 after inspections were carried out earlier in the year to ensure all UK suppliers of dairy products conformed to the new Chinese Food Safety law. According to a UK dairy industry trade group issues related to maintenance, air sanitization, raw milk transport temperatures and chemical storage were cited as the reasons for the temporary ban. According to British media outlets, China put the ban in place after some of its officials took a look at just one dairythe visit was nominally an unofficial visit but once onsite, the Chinese officials conducted a full audit. The facility has not been named, but it reportedly wasn’t even exporting any dairy products to China. In a further twist of the cheese knife, Ireland passed the Chinese audit with a clean bill of health, and received

authorization to export its cheeses to China just as the UK ban went into effect. However it seems possible that cheese ban is itself a tit-for-tat response to an earlier move by the UK. On April 30, the day before British cheese exports to China were blocked, the UK adopted an EU law that bans the sale of unlicensed herbal products, in particular those used for Chinese herbal medicine. Dairy product safety is also a sore subject in China, which is still traumatized by the tainted milk powder that caused the death of six infants and sickened thousands in 2008. China’s new food safety law, which purportedly prompted the UK cheese ban, is seen by some analysts as an attempt to level the playing field between domestic milk companies and foreign firms that have thrived due to public doubts about food safety. Still, problems with production still mean that China imports huge quantities of dairy products. Here are the numbers for whole milk powder alone:

without requiring changes or modifications in the portable factory. The ability to add liquid to the powder blends in an automated way and the flexibility of this system are the two most highly valued aspects by the companies that demand this technology. Blendhub currently has a portable plant installed in Spain, and is delivering orders that require liquid injection to Germany within just ten days, while these blends are being made with absolute precision, since the liquid injection system of the “Portable Powder Blending” has a software which controls process parameters such as the timing and quantities, or the provisions of liquid slosh and heating which require some products. In addition, the Blendhub liquid injection module is designed to ensure maximum safety and traceability conditions throughout the process.

Cargill obtains approval for use of sunflower lecithin in food in Japan

argill has obtained approval for the use of sunflower lecithin in Japan – the only country in the world where it had not previously been approved for food applications. Approval by Japan’s Ministry of Health Labour and Welfare means that Cargill’s Topcithin™ sunflower lecithin, a clean label non-GM emulsifier – made from oilseeds for which GM plant varieties do not exist at a commercial level – is available to customers in Japan for the first time. It also means food companies worldwide can export products containing Topcithin™ sunflower lecithin for sale in the growing Japanese market. Moreover, sunflower seeds are not amongst the common causes of food allergy, so Topcithin™ is not subject to allergen labelling requirements, unlike soy-derived varieties. Cargill Texturizing Solutions commissioned studies from leading Japanese research company INA Research Inc. to fulfil the conditions for use from the country’s food authorities. After working closely with the Japanese government’s approval panels for three years, official approval of sunflower lecithin (E322) as a food additive was published on 10 April 2014. Chris Hollebeck, Cargill Texturizing’s Business Line Manager, Lecithins, explains: “Until now Japan was the only country where sunflower lecithin had not been approved for food use, so businesses in this market and those exporting to Japan were missing out on this natural and safe alternative to soy lecithin.

Food Industry of India growing on and on

ndia’s food industry to be one of the fastest growing industries today. Economic growth, the relaxation of import and export policies, the growth of organized retailing, plus the changing lifestyles and food habits of people in India, have opened the doors for imported food products from around the world. India has seen a rise in middleincome groups which has resulted in an increase in consumption of functional foods, convenient and ready foods and health foods. The domestic spend of the average Indian consumer is approximately 30% of their total income, making the region an integral part of the food ingredients network. The study on the Indian food industry by FICCI-E&Y also supports this fast growth by demonstrating that investment opportunities in the region are set to rise to US 258 billion by 2015. Given the growth of the food industry in India, Fi India, held from the 29

September – 1 October 2014, is an essential platform to enter into this flourishing market. Fi India, the only food ingredients trade fair in the entire region, announces the first Food Technology, Processing & Packaging Pavilion in 2014, to showcase products, technologies and innovations in these areas. The Indian government has taken measures within the Agriculture Produce Marketing Committee and the implementation of the National Horticulture Mission in order to boost the processing procurement, processing, storage and transport activities within the country. Also returning is the popular Health ingredients India pavilion, to meet the industry demands for health, nutritional, Food ingredients Global, Director, Matthias Baur says, “With the key focus on customer insight, business development and innovation and trade, in a region with one of the fastest growth rates in the world, Fi India is the most cost-effective platform to source new ingredients and is the key stepping stone to

enter the Indian food ingredients market”. Fi India is the number one food ingredients platform in the entire region. As part of the Food ingredients portfolio, buyers and suppliers have the opportunities to engage with new customers and also present new business growth and opportunities to their existing client base and is the top meeting place for companies looking for new business opportunities within this rapidly expanding economy. Food ingredients India takes place from the 29 September – 1 October 2014 at the Bombay Convention and Exhibition Centre, Mumbai, India.

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B everages & Food Processing Times - May - I - 2014

Chocolate News

New Trend-Experience Chocolate Pharmacy warmth of the garlic peeked through, only to give way to the radiating coolness of sage, which lingered long after the chocolate Packages of Chocolate Pharmacy truffles had melted or most chocoholics, the love away. These women have an of chocolate is intertwined extraordinary gift of sensory with a twinge of guilt, if intuition, perhaps owing to yoga, in not a full dose of anxiety about knowing how to combine the right sugar, fat, calories, plus other ingredients. It was in the second added substances. Austin yogis, bite, however, that I unearthed Jyl Kutsche andAmy Pancake, the magic, a stratum beyond the may have found a solution to this dancing flavors, health benefits, and low calories. The truffle had problem These two friends dreamt of a soul, something none of my “overchocolate not currently found the-counter” chocolates had ever in stores, without the additives offered. people react to, either physically It had a home-cooked side to it, or emotionally. Thus was born nourishing and sensual. I could Chocolate Pharmacy, where pure taste the care gone into making it. raw organic chocolate meets spices Patients usually ask for treatments leading to truffles rich in health a doctor would recommend to his benefits and packed with taste. mother, if she were in their shoes. Their Paleo Certified chocolates This is the chocolate Kutsche have no sugar, gluten, dairy, nuts, and Pancake would give to their or soy. They use Peruvian heirloom moms, or children for that matter. Criollo cacao, one of the best in the It is their best. Hidden in the tiny world. truffles is the uniqueness much When I received the email about like what makes granny’s oatmeal the product, I was both curious cookies impossible to replicate. In and a little skeptical. Spices in each bite, the chocolatiers’ essence, chocolate? Sure, I had tried chili care, and love caress the taste buds chocolate, but these had everything to leave us with a sense of well except chili. Having attended being. Kutsche’s Yoga of Chocolate class, I knew her love extended beyond just quality dark chocolate to socially responsible practices. So, I decided to give it a try.

Chocolate Pharmacy truffles

My chocolates arrived in a few days, one sample of each of their eight truffles. The ingredients reminded me of the colorful spice shop I had visited a few years ago in a Persian bazaar, where baskets carried a rainbow of spice mounds. The treats were cleverly named based on the health effect of the ingredients: Jumper Cable, Time Machine, Happy Tummy, etc. Happy Tummy, for instance, has mint, fennel, and ginger – mom’s remedy for an upset stomach. Then came the moment of tasting. I chose Time Machine as my first, because the label listed an ingredient I grew up on: saffron. It also listed garlic and sage, combinations that should never work with chocolate. Cautiously, I opened the bag, took out the truffle, cut it in half, and tasted it, expecting the bitter of the dark chocolate and sage to sting my palate. I was wrong. It tasted neither bitter nor sugary sweet. Rather, it exuded an opulence of layers. First appeared a hint of sweetness. Then the

Amy Pancake making truffles BY BAHAR ANOOSHAHR

Meet the Chocolatiers: Jyl Kutsche: A yoga practitioner for the past twenty years, Jyl’s fascination with chocolate started as a child. But over the years, her taste buds evolved from nondiscriminative consumers of sweets to connoisseurs of the bitterness of dark chocolate. Before teaching yoga, which she has been doing for twelve years, she owned a clothing and chocolate store called Therapy on South Congress. That’s when she really delved into the health benefits of chocolate. In her travels to India she learned about the goodness of spices through Ayurveda. “I started developing a fantasy of mixing chocolate with spices.” Through her community yoga center, where she provides access to yoga for those who can’t afford

a studio membership, Jyl met another yoga teacher who shared her passion for the food of the gods. A year ago, the two sat down at Thai Fresh and decided to bring something special to the world. Inspired by the work of Dr. Bharat Aggarwal, who had published a book about the healing powers of aromatic spices, they began their research. “Who makes the chocolates?” I asked, in search of the essence I had tasted. “For now, Amy and I are the chocolate elves in the kitchen. I’m sure we will add more staff as time goes by.” Jyl believes in playing with your food. “We want to take people beyond their comfort zone and invite them to experiment with their chocolate. We want to extend how chocolate feels beyond M&M’s. Our recipes on Facebook encourage folks to use the truffles as more than just dessert. Mix them with balsamic vinegar in salad dressing, for example. If you like cheese, you must try them on a grilled cheese sandwich with Brie. The fat of the Brie absorbs the flavor of every single spice. Crunchy, soft, sweet, savory. It’s heavenly. I think chocolate should be the sixth food group,” she concludes with a chuckle. I agree wholeheartedly. Amy Pancake: Also a yoga instructor, Amy grew up in New York working with her mother, the owner and chef of a French restaurant in Long Island. “I grew up sitting on countertops snipping green beans. Mother used to know the farmers who sold us the products by name. Food became a part of us. So much so, that my sisters and I communicated through food. When we were excited, we’d cook for each other or share a recipe.” But her chef gene remained dormant until a few years ago, when one day she woke up and just had to make chocolate in a jar. She laughs at the simplicity of her early recipes. Soon she started making more complex dishes involving chocolate. “When Jyl approached me, I was more than happy to partner with her. And since its inception, the product has been a yellow brick road. Things just happen in the right

direction.” I asked how they settled on the spices. “After months of research, we made a chart of health benefits and chose the ones with the most overlap.” Amy’s mom contributed to their venture by helping them find the heirloom Criollo from Peru. After tasting Criollo, there was no going back. Instead of sugar, they chose Yacón syrup as a healthy substitute. Yacón is a perennial plant with tuberose sweet roots. The natural sugar in it, oligofructose, has a very low glycemic index. Amy noticed the way the chocolate harmonized the seasonings. Rather than competing, it acts as a backdrop that balances the flavors. I wanted to know at what point in the process the truffles are heated. They aren’t. The chocolate embraces the spices through blending only. Amy goes on: “We want people to know they don’t have to sacrifice taste for the sake of eating healthy. We are here to show them the possibilities.” She asked me to drop a Finish Line truffle in my coffee. “Just see what happens.” I did, while writing this article, and I must confess it gave a new dimension to what I thought I had already perfected. Derek Dollahite: Endearingly referred to as “our token male” by the ladies, Derek is the man behind the witty names, creative website, and playful packaging. He is a

freelance web designeras well as a yoga practitioner who offered his services when he heard the idea. “I wanted to help communicate the sensation of this wonderful product in one glance.” He hoped to show people that they can see chocolate not as a guilty treat, but a healthy one. “Be patient with the truffle. Let it melt on your tongue, and you can feel the different flavors.” Spoken like a true yogi. Chocolate Pharmacy truffles are now sold online as well as at Tiny Taiga (1200 East 11th). For recipes and events, follow them on Facebook or sign up for their newsletter through the website.

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B everages & Food Processing Times - May - I - 2014

Meat & poultry News

Alltech expands India Operations with Kolkata Office

lobal animal nutrition and health company Alltech has officially opened its second regional Indian office in Kolkata. The brand new building, which also includes a 7,000-square-foot warehouse, will be used as a support center for the company’s business operations in East and Northeast India as well as Nepal. Located on the east bank of the Hooghly River, Kolkata is the capital of the West Bengal. The city is the commercial,

cultural and educational centre of East India with the country’s oldest operating port. It is also an important area for the Indian poultry, dairy, aquaculture and equine industries. Alltech’s newly opened facility will be used to support the company’s logistics and sales operations to Nepal, Bihar, Chhattisgarh, Orissa and North Eastern States excluding the West Bengal area. “We have hired eight full time employees at the new office in order to give the highest level of support to our customers in the

region,” said Sayed Aman, regional manager, Alltech South Asia. Alltech entered the Indian market in 2001 and shortly after developed the business to become a multimillion dollar region for the company. Today, with over 100 employees as well as two strategically located production facilities, Alltech India is one of the fastest growing regions for Alltech. “Whether looking to improve the yield of maize for silage, get more milk from cows, improve chickens’ health status or enrich eggs with DHA, Alltech offers solutions and services to Indian producers and farmers tailored to bring performance and profitability to their operation,” said Matthew Smith, regional director, Alltech Asia Pacific. “With our newly opened facility in Kolkata, Alltech will be even more wellplaced to support farmers in reaching these goals.”

US poultry production and sales up by 15%

Antimicrobial edible films can improve microbiological Safety of Meat

n a new research it has been found out that, Antimicrobial agents incorporated into edible films applied to foods to seal in flavour, freshness and color can improve the microbiological safety of meats. Pullulan – an edible, mostly tasteless, transparent polymer produced by the fungus reobasidium pulluns, is used to make the films – researchers evaluated the effectiveness of films containing essential oils derived from rosemary, oregano and nano particles against food borne pathogens associated with meat and poultry. The results reveal that the bacterial pathogens were inhibited significantly by the use of the antimicrobial films. The researcher are hopeful that the study will lead to the application of edible, antimicrobial films to meat and poultry, either before packaging or, more likely, as part of the packaging process. In the study, researchers determined survivability of bacterial pathogens after treatment with 2 per cent oregano essential oil, 2 per cent rosemary essential oil, zinc oxide

he combined value of production from US broilers, eggs, turkeys, and the value of sales from chickens in 2013 rose 15%, according to a report from the USDA’s National Agricultural Statistics Service. The combined value of US poultry products was $44.1 billion, compared to $38.2 billion in 2012. Of the combined total, 70% was from broilers, 19% from eggs, 11% from turkeys, and less than 1% from chickens.

Broilers The value of broilers produced during 2013 was $30.7 billion, up 24% from 2012. The total number of broilers produced in 2013 was 8.52 billion, up 1% from 2012. The total amount of live weight broilers produced in 2013 was 50.6 billion pounds, up 2% from 2012. Turkeys The value of turkeys produced during 2013 was $4.84 billion, down 11% from the $5.45 billion the previous year. Turkey production in 2013 totaled 7.28 billion pounds, down 4% from the

Chickens The value of sales from chickens (excluding broilers) in 2013 was $87.9 million, up 11% from $79.1 million a year ago. The number of chickens sold in 2013 totaled 185 million, up 3% from the total sold during the previous year. Eggs Value of all egg production in 2013 was $8.50 billion, up 8% from $7.85 billion in 2012. Egg production totaled 95.2 billion eggs, up 2% from 93.3 billion eggs produced in 2012.

nano particles or silver nano particles. The compounds then were incorporated into edible films made from pullulan, and the researchers determined the antimicrobial activity of these films against bacterial pathogens inoculated onto petri dishes. Finally, the researchers experimentally inoculated fresh and ready-to-eat meat and poultry products with bacterial pathogens, treated them with the pullulan films containing the essential oils and nano particles, vacuum packaged, and then evaluated for bacterial growth following refrigerated storage for up to three weeks. “The results from this study demonstrated that edible films made from pullulan and incorporated with essential oils or nano particles have the potential to improve the safety of refrigerated, fresh or further-processed meat and poultry products. The research shows that we can apply these food-grade films and have them do double duty – releasing antimicrobials and imparting characteristics to protect and improve food we eat.

Feed Pigment Market is up because of increase in Meat Consumption

7.56 billion pounds produced in 2012.

sia-Pacific and North America are two of the largest consumers of feed pigments. Growth is particularly high in emerging markets such as China, India, and Japan, because of industrialization and rising meat production. U.S. is the largest market in North America. Feed pigment is an important ingredient that is combined with the basic feed mix to provide color to the feed. This helps in improving the feed intake and consequently increases the weight of the animals. A variety of feed pigments are available and they are used in different concentrations depending upon the type of animals. The type of feed pigment that is mostly used in feeds of animals is carotenoid. The animal feed pigment market is growing steadily due to the increase in meat consumption. The demand-driving factors are the increasing mass production of meat, industrialization of meat production, and increasing

demand for nutrition-rich meat products. The restraining factors are the rising cost of raw materials and health hazards of feed pigment. However, adopting new technologies for the manufacture of feed pigments helps in cost reduction. Key participants in the global feed pigment market are The Synthite Industries (India), BASF SE (Germany), Novus International (U.S.) and Royal DSM NV (The Netherlands), PHW Group (Germany).

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B everages & Food Processing Times - May - I - 2014

Dairy News

International dairies Sets Its Sights on Asia and Will ‘Milk Life’ Go Global?

countries in the region have little tradition of drinking milk or eating other dairy products. Increased number of packaged and processed milk, yogurt, cheese, and ice cream products is appearing in retail spaces advertising campaigns are underway throughout Asia. Some of the larger dairy corporations have begun to depict local, unpackaged milk as unhygienic, tapping into consumer fears about food safety. In several countries, Nestlé and Tetra Pak have become major players in school milk programs and nutrition education. In Thailand and Vietnam, for instance, demand for milk from school initiatives is an important driver of increased domestic production. Many Asian government officials see rising dairy consumption as a net good. They also see industrial milk operations as resource efficient and economically sound, and the CAFO model has a great deal of money and marketing behind it. India, on the other hand, is home to about 300 million cows and buffalos, most of them milkproducing. The nation has

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sought for decades to encourage development of its dairy sector as a means of providing income for poor rural communities, and specifically women. But the shape and scale of Indian dairy is changing, from pro-poor to procommercialization. Despite being sacred in the Hindu tradition, many Indian cows are now confined in semi-industrial operations, where they are chained indoors for much of the day. CAFOs are also gaining a foothold in India. Although plans for a 40,000-cow operation in the state of Andhra Pradesh were recently scuttled over animal welfare and environmental concerns, other large dairies are planned. One South Asian dairy corporation, Global Dairy Health, wants to “take over India’s milk production” and envisions 100 CAFOs across the country within a decade and a half, each housing 3,000 cows.

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Gujarat accounts top share in total dairy output: Assocham

ujarat has acquired highest share of about 21 per cent with an annual dairy output worth over Rs 12,500 crore, according to an Assocham study. The dairy sector enhancement is in term of total dairy output worth over Rs 60,000 crore across the top 20 states in India. The state ranks third in terms of generating direct employment in the dairy sector with the 12 per cent share, besides, the state is ranked fourth with a share of about 7.5 per cent in 1493 dairy factories across India according to the study titled ‘Unlocking Growth of Potential of Indian Dairy Industry,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Gujarat ranks fifth in terms of milk production, with about eight per cent share across India in total milk production of over 120 million tonne. Besides, the state has recorded fifth highest growth rate of about 24 per cent in milk production which is above the allIndia growth rate of about 19 per

cent, highlighted the study prepared by the ASSOCHAM Economic Research Bureau (AERB). In terms of per-capita milk availability, the Gujarat has ranked fifth and has clocked a growth rate of about 17 per cent in this regard which is well above all-India growth rate of 12 per cent. Andhra Pradesh in terms of both milk production and per-capita milk availability has recorded highest thereby clocking a growth rate of over 41 per cent and about 36 per cent approximately during the five year period of 2006-10, however the state ranked third in terms of milk production with over 1.1 million tons (mt) of milk produced annually. Apart from AP, the states of Rajasthan (28 per cent), Kerala (24.8 per cent), Karnataka (24 per cent) and Gujarat (23.7 per cent) are amid top five states in terms of clocking high growth in milk production. Milk production across India has grown at a significant rate of about 19 per cent during the aforesaid period with overall milk production crossing 121 mt mark as of 2010-11 but despite being the largest milk producer in the world, per-capita milk availability in India at 252 grams falls below the global average of 279 grams per person per day, says the Assocham report.

B everages & Food Processing Times - May - I - 2014

Agro Processing

Kellogg, Wal-Mart collaborate to improve rice crop sustainability

ellogg, a US-based cereal company, has partnered with Wal-Mart to improve rice crop sustainability and help smallholder growers across the world. The announcement was made by Kellogg president and CEO John Bryant during the recent Wal-Mart Sustainable Product Expo, a three-day meeting

with eight of the largest USbased food companies. The scope of the initiative includes further supporting rice growers and rice growing communities to help smallholder rice growers advance their practices, while also reducing greenhouse gas emissions by 2020. Kellogg plans to promote and support initiatives with producers in every country in which it sources rice globally, which will, by 2020, lead to a 25% increase in the adoption of Climate Smart Agriculture (CSA) practices. This is expected to improve smallholder livelihoods, enhance producer resilience and lower

greenhouse gas emissions. “Because rice is one of our largest ingredient purchases it’s appropriate that our new partnership with Walmart focuses on supporting smallholder rice growers.” The company also seeks to monitor progress through a number of metrics, while aligning this initiative with the Global Alliance on Climate Smart Agriculture. This alliance will be launched later this year at the United Nations Secretary General’s Climate Summit in New York. Kellogg also has collaborative initiatives with growers, suppliers and external partners such as the International Rice Research Institute (IRRI), United Nations Environment Program (UNEP) and the Sustainable Rice Platform (SRP).

El Nino may impact India’s GDP by 1.75%.: ASSOCHAM Study GDP rose despite rains being significantly below average. Also, all El Nino years have not resulted in a drought, although all droughts have happened in years of El Nino.

he deficit rainfall of 5% is due to El Nino factor will cause loss to the GDP of about 1.75% i.e. Rs.1,80,000 crore, hurting the lakhs jobs of unskilled sectors, according to the study under taken by ASSOCHAM. It has been estimated test rise in agriculture by one unit was likely to raise demand for industrial goods by 0.47 and services by 0.12 units and GDP falls 0.35% with every one percent deficiency from the average rainfall, reveals the ASSOCHAM study. The news of drought hitting the economy owing to El Nino factor, the Chamber President Mr Rana Kapoor said, “prima facie is a matter of grave concern”. A good harvest results in increased demand for industrial products. Also, good agricultural performance is a must for India to raise demand for services like trade, transport, banking and insurance services. On the supply side, agricultural inputs are used in the production of various chemical and pharmaceutical products; consumer items, especially non-durable food products, etc. Agriculture provides industry with input such as grains for processed foods, sugarcane for the sugar

industry, oilseeds for edible oil industry, cotton for textile industry and so on, said Mr. Kapoor. About 30% of the manufacturing sector is agriculture-based. So a bumper crop ensures the supply of raw material for industry at relatively lower prices. To add to this, about 60 %of net sown area of the country is rain-fed. The second major implication of the country facing drought is the food inflation vegetable oils and pulses. High rise in the prices of food articles has always been a concern to the policy makers in India, more so during recent years when it has averaged 10 percent during 2008-09 to December 2012. Given that an average household in India still spends almost half of its expenditure on food where as a poor household spends still higher share on food, prolonged spell of high food inflation has caused havoc to their finances. High food inflicts a strong ‘hidden tax’ on the poor, adds the ASSOCHAM paper. However, on the other side, the projections of monsoons do not point to a very high probability of a drought in 2014-15. Past experiences the ASSOCHAM Chief said indicate that in 2000, 2005 and 2009, agriculture

The Chamber has submitted to the government 12 point strategy to contain the drought-like situation: a) The Government must expand the farm insurance cover. Advice banks and financial institutions to settle crop insurance claims in the drought hit areas without delay. b) High quality seeds of alternate crops must be distributed among farmers in the drought affected areas. Te MSP of alternative crops to be cultivated in drought hit areas need to be attractive. c) Government must realistically assess the ground level situation in order to estimate the shortfall of oilseeds and pulses and help the traders with market intelligence. d) Bring down the cereal inflation by liquidating the extra stock that the Government is keeping over and above the buffer requirements. e) As for controlling the prices of fruits, they attract 30 percent import duty. By bringing down the import duties prices of fruits in the domestic market can be controlled. f) Scrap the APMC act and allow the free flow of agriculture goods across states. This would help bridge the mismatch of demand and supply of goods which is the main underlying factor of inflation. g) Prevent Hoarding and Curb Speculation: As in the past, imposing stock limits on various

ITC, Cargill and other private companies giving FCI a tough completion on wheat procurement

ood corporation of India (FCI) is having a tough competition from private companies and multinational traders, like ITC, Cargill, Noble, Louis Dreyfus, Glencore, Midstar, Concordia, Bagadiya Brothers and Emmsons in the procurement of wheat. Apart from procuring the grain for export from Rajasthan, Gujarat and Madhya Pradesh, the private sector has also entered Punjab and Haryana market this year. Vinod Goel, vice-president, Haryana Arthiya Association, said that, “After a gap of 3-4 years we are seeing private traders from ITC, Cargill procuring wheat from the northern states for exports and domestic supplies”. The government agencies

agriculture commodities like sugar, pulses, onions, paddy and edible oils to control the rising prices would help prevent hoarding. Also, Forward Markets Commission (FMC) must keep a close watch on key agricultural commodities to curb possible speculation and price increase in the backdrop of poor monsoon. These measures need to be continued till there is improved supply and higher production. h) Distribution of pulses through public channels at subsidized prices as was done in 2008 to all the households is needed. i) Creating Relief Employment Programmes: As drought directly affects all those dependent on agriculture in terms of both income and employment, drought management must essentially aim at creation of new employment avenues. Governments, both local and centre, must partner together to prepare relief employment programmes in the affected areas. The convergence of various existing employment schemes is a must for better drought management. j) Preparing alternative cropping plan and providing financial and technical help for the farmers is required. Ensuring the availability of seeds and other inputs as well as

including FCI are unlikely to meet the target of buying 31 million tonne wheat with current procurement at the fag end of the season slated to be 21 million tons. Mr. Goel stressed that farmers selling wheat to private traders were getting anywhere between Rs 1,400 a quintal which was the minimum support price to Rs 1,500 a quintal. As per rough industry estimates, the private sector has signed export contracts for 1.5-2 million tons since April till July. The Indian grain was in demand across the geographical arc from Yemen to South Korea, and with no signs of an ease off in the Ukraine-Russia the exporters of wheat see very desirable market for wheat.

creating awareness among farmers need to be a plan component. Also, the government must provide buyback agreements for these crops thus raised. k) Fuel subsidy that enables farmers to provide supplementary/ alternative irrigation through pump sets in the drought and deficient rainfall areas to protect the standing crops needs to be announced. Emphasis must be put to provide quality power for agriculture in drought hit areas. l) Initiate the structural and institutional reforms in agriculture. Facilitating private investments in agriculture and farmer producer organizations would boost the supply response in agriculture and save on large wastages in the supply chains. Tap the unexploited irrigation potential.

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B everages & Food Processing Times - May - I - 2014

Food Processing

Herb Lotman, Founder of Keystone Foods, Dies at 80

conic Entrepreneur from Philadelphia Leaves a Legacy of Success, Innovation and Selfless Giving Philadelphia, PA, May 8, 2014 - Herb Lotman, 80, husband, father, successful entrepreneur, and philanthropist, died Thursday, May 8th from complications of heart failure. Mr. Lotman was the founder of Keystone Foods, supplier of McDonald’s burger patties, poultry and fish. Today, Keystone Foods is one of the world’s largest food companies. A Philadelphia native, Herb Lotman began his career in the food industry with his family’s

wholesale beef business. In the late 1960’s Mr. Lotman and his partners pioneered cryogenics for McDonald’s and developed a mass-production system for the manufacture of frozen hamburgers. By the late 60’s the company was selling its new and innovative product to the Golden Arches. Keystone Foods developed and provided the first total distribution concept in the McDonald’s system, enabling restaurant owners to save time and focus on customer service. They were also instrumental in helping develop the Chicken McNugget in the1980’s. Lotman built the company over 40 years from scratch to one that was generating more than $5 billion in sales annually. Keystone opened operations in over 15 countries around the world and was rated 45 on Forbes’ list of America’s Largest Private Companies in 2010.

Mc Donald will serve healthier foods by 2020

xpect to see more fruits, vegetables, whole grains and sustainable beef on the menu, says McDonald’s, which released details on its corporate responsibility plans for 2020. By 2016, the mega fast food chain says it will begin purchasing “a portion” of beef from verified sustainable sources. Customers in nine of its top markets -the US, Canada, Australia, Brazil, China, France, Germany, Japan and the UK -can expect to see 100 per cent more fruit, vegetables, low-fat dairy and whole grains on the menu. Likewise, 100 per cent of the chain’s coffee, palm oil and fish will also be sourced by verified suppliers, says McDonald’s. By 2020, all the packaging used will be fibrebased from certified or recycled sources, while efforts will be made to increase instore recycling to 50 per cent. The goal will also be to increase energyefficiency to 20 per cent in seven of its top markets. Rival Burger King also pledged to purchase beef from suppliers that source only beef that has been raised in environmentally responsible ways. That means that none of the beef comes from recently deforested rain forests.

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Six years ago Mr. Lotman retired from Keystone Foods to spend his time working tirelessly for the causes he believed in most. He was never too busy to advise or help young entrepreneurs, and there were many that came to him for guidance over the years. He was an active member of the board and shared his management expertise with several charitable organizations including the Philadelphia College of Osteopathic Medicine (where he served as Chairman for 15 years), The Children’s Cancer Research Foundation, The International Board of the Ronald McDonald’s House Charities, and most recently with revival of the Prince Music Theater in Philadelphia. Mr. Lotman also co-founded the McDonald’s LPGA Championship, a major women’s professional golf association tournament,

which directly benefited Ronald McDonald House Charities. This event raised more $48 million for the RMHC in the 29 years since its inauguration, making it the largest single fundraiser in all of golf. He also served on the International Board of the Ronald McDonald’s House Charities, which supports initiatives for the benefit and wellbeings of children worldwide. Herb and his wife Karen established the Macula Vision Research Foundation, which is dedicated to finding a cure and restoring the vision for people who are affected by retinal and macula diseases. The foundation has provided nearly $20 million to fund groundbreaking research projects conducted by the world’s top scientists with the promise of helping millions of people affected by visual impairment. The Macula Vision Research Foundation unique is unique in that every dollar donated goes directly to find a cure, all administrative and fundraising expenses are underwritten by the Karen and Herbert Lotman Foundation.

Although he often said, “I’m just a butcher,” it is clear that Mr. Lotman was an inspiration to many generations. Countless people from all walks of life benefited from his business sense and steadfast generosity. He was extremely dedicated to his family and to giving back to the community. Herb Lotman is survived by his wife Karen, and children Shelly Fisher & Jeff Lotman and grandchildren Julia, Sam and & Joseph Fisher and Anna Sophia and Gianna Lotman also survived by sister Marlene Weinberg. Services will be held at Main Line Reform Temple on Monday the 12th of May at 1pm and the interment will strictly be for immediate family members only. The family will hold shiva at the late residence on Monday, Tuesday and Wednesday from 7:00PM- 9:00PM and respectful request that, in lieu of flowers, contributions in his memory may be made to Macula Vision Research Foundation, 100 Front St., Suite 300 W. Conshohocken PA 19428.

B everages & Food Processing Times - May - I - 2014

Editorial

Domino’s Pizza Is Primed For Big Gains

www.agronfoodprocessing.com www. timesinfomedia.com

Vol. 6, Issue 12, May (I) 2014, Rs. 20/-

ublic memory is short; Media moves on, Ministers find ways to make the right noises. All these celebrations will pass away but the promises made by BJP aka Modi will be there. Then it will be the public’s turn to scrutinize whether the money loaded campaign, the affluent speech and emotional advertisement were there to bring a change or to swindle them for votes. Well let’s wait and watch how magical will the 5 years saga be. Narendra Modi India’s next prime minister, will lead the BJP-led National Democratic Alliance government at the Centre for the next five years – the full tenure is for sure because the party on its own has crossed the simple majority of 272 seats, with the NDA winning over 300. The winning triumph was Modi’s projection of the so-called Gujarat model of development with its stress on setting up industries. But interestingly Gujarat has not out-performed other Indian states in terms of healthcare, education and empowerment of women, it has a historical tradition of promoting industry and commerce. I still fail to understand are industrial and commercial development the main issue for the Indians, because as far as I and many others know other segment like religion, castism, poverty, corruption, safety for women, equality, inflation and unemployment marks a question mark on Gujurats development. The task of living up to the aspirations of the youth, as well as the upwardly-mobile middle classes who account for roughly a quarter of the 1.2 billion Indians, will undoubtedly prove to be a overwhelming task for the incoming government that Mr Modi will head. The Indian people are changing, they have voted for change and they will judge the government according to what they expect. The corruption and inflation issue toppled the congress, as the public is no more ignorant. Hopefully BJP’s over confidence and Modi’s self confidence does not ruin their fairy tale. While watching the national television an intellectual said,” It’s not a Modi/BJP government it’s a top business class and RSS government”. Well that’s frightening, if Modi uses the RSS ideologies and brain of the business class, I wonder if we would then be able to call India a secular democratic nation. Anyway With ‘power’ in its bag, the BJP’s next focus will be the road ahead – the challenges are many for NDA-2 in the coming 5 year tenure. One issue the Narendra Modi-led government will have to take very seriously will be corruption. One prime reason behind Congress’ massive defeat in the 2014 Lok Sabha elections has primarily been corruption. Scams like 2G, CWG, Coalgate, VVIP choppers etc not just spoiled the UPA’s reputation in its second tenure, but also hurt India’s image internationally. The BJP, which had been out of power for the last decade, had based its Lok Sabha poll campaign mainly on the policy paralysis alleged during the UPA-2 tenure and the corruption unearthed during the same. So, for Modi an uphill task will be to reduce if not uproot corruption from the country. How much capable is Modi or the BJP time will tell. Economy & Inflation is one issue on which the Modi government will have to act quickly and efficiently. Under UPA’s tenure, the growth slipped from a high of near double-digit to a low of 4.6 percent. The agriculture as well as industry too failed to register healthy growth, with the IIP even going into the negative during the UPA-2 regime. While the UPA government had managed to tide over the 2008 depression, it failed to revive the ‘India story’. For Modi, the challenge is this – revive the ‘India growth story’ and hard sell it to attract foreign investment. In India, there has been a practice that successive governments largely carry forward the policies of previous regimes as regards external affairs. Same is expected during the Modi government’s tenure. Like the UPA, the NDA-2 government is expected to maintain a fine balance in India’s ties with Russia and the US. However, as promised will Modi adapt a hard stance on China and Pakistan about which he is quite vocal? Hysterically the country that repeatedly denied him visa on humanitarian grounds, Narendra bhai is focused on leveraging relationship that India and the US have shared. One major challenge for the Modi government will be to tackle Naxal surge in the country. Lately, Naxals have carried out spectacular strike – in one attack, they nearly wiped out the entire state leadership of the Congress party in Chhattisgarh; in another incidence over 70 security forces personnel were killed. Notably, both the attacks took place during the BJP rule in the state. Another challenge will be to deal with terrorism. Modi will have to modernize and bring in reforms within the paramilitary, police and investigating agencies in order to help them deal better with terrorists, who are armed with sophisticated weapons. Also on agenda will be to modernize the armed forces – the Army, Air Force and Navy – to prepare them to face challenges. Recent naval tragedies have already exposed India’s preparedness. Further, the nation has the capacity to increase domestic consumption, but for that to happen inflation has to come down. This will be another key challenge for the BJP government under Modi’s stewardship, coupled with employment generation for India’s youth. Modi will also have to keep on his radar fiscal discipline and banking reforms etc. Alleviating poverty and spreading education will also be key challenges for the Modi government in the 21st century. The government under Narendra Modi will also have to take special care of minorities, especially Muslims, as the BJP is mainly seen as a pro-majority party. Modi is still forced to answer on the 2002 Gujarat communal riots, despite courts giving him a clean chit. He will also have to impress upon the fact that his government’s agenda is not pro-Hindutva.

don’t remember the number of Sundays I have craved for a slice of the yummy cheese-burst pizza from Domino’s (DPZ). Fondly termed in the industry as Pizza delivery expert, this food chain has not only pleased its customers with great taste but also investors with massive returns. Its stock has almost doubled over the past 12 months as a result of sustained growth in earnings and increasing confidence of investors. Domino’s has also created reasonable value for shareholders by ensuring a consistent dividend policy. Specialization and Expansion are the key drivers When a company operates in a highly competitive industry, it can sustain and grow only by creating a separate identity for itself (an advice I have got throughout my life). Well, Domino’s has successfully implemented this dictum by becoming the go-to chain for offering unparalleled service when it comes to pizza delivery. The company’s strength was clearly visible in its second quarter results wherein it reported an EPS of $0.57 per share, up 21.3% over the prior year quarter. Its international division reported same store sales growth of 5.8%. Another thing that has aided Domino’s growth is its aggressive expansion strategy. Consider this; the international division of Domino’s grew by a whopping 101 stores in the second quarter alone. Hiccups in certain countries While I appreciate Domino’s aggressive expansion, the performance of some of its franchises in major countries is worrisome. Reportedly, a couple of directors in Domino’s UK offloaded sizable stake in the company that was preceded by a stake sale by the CFO of the company. It is believed that a poor show in the first half of the year could have propelled these executives to exit at a good valuation. In India, Jubilant Foodworks that runs the Domino’s franchise reported a massive decline in the growth of same-store sales from 22.3% to 6.3% in Q1, 2013. In order to beat the slowdown in demand, Jubilant introduced new products as well as entered new regions. Though the stock has not been punished on the U.S bourse because of the news, a continuing phase of poor results would definitely have substantial effect on Domino’s business. Since the company is highly leveraged with a long term debt of approximately $1.52 billion (as on 16thJune, 2013), a decline in revenue would mean lesser value for shareholders. If we consider this scenario in simple numbers, Domino’s free cash flow is approximately 1/4th of its debt while its current ratio is at 1.32. Though the company is not facing any serious liquidity crisis, it sure has to generate more cash going ahead to justify the enormous debt taken for financing operations. Papa John’s is as good as Domino’s Only on the basis of certain technical metrics, Papa John’s (PZZA) portrays a better picture than Domino’s with a current ratio of around 1.5 and total long term debt of around $0.13 billion. One of the arguments that surfaces in this regard is Domino’s store count and

presence across a wide range of markets. Also, once we take a look at the share price movement of both these companies, Papa John’s is dwarfed with a growth of meagre 24% as against Domino’s 82% growth in the last 12 months. Earlier, Papa John’s was not in favour of investing huge money in promotion but with the increasing competition, it has picked up pace in advertising. It was the brand most identified by NFL fans as NFL sponsor. To add to the celebration, it was also ranked #1 in customer satisfaction in America. Even though the company lacks humongous international presence, this data surely conveys its herculean power in the U.S. and I think that this lack of wide presence is more of a growth opportunity than a negative point. Papa John’s consistent record for delivering strong results and a tonne of opportunities ahead make it a ripe investment. Yum! Brands does have some problems Yum! Brands (YUM), the holding company of popular brands like KFC and Pizza Hut has been facing constant issues with its KFC brand in China. The media in the region has tainted the brand for using illegal drugs for fattening chicken besides other allegations. While Yum has made all efforts to meet quality standards in order to sustain growth in this key market, it has limped on ever since the first allegation. Yum has also not been the best investment for investors as it churned out total returns of 11.8% over the last year as compared to S&P 500 total return of 24.7%. Apart from low returns, another downside to this stock is volatility. A look at its share price movement reveals a high frequency of swings in the last 12 months with a net capital appreciation of just 11%. Thus, an investor is better off investing in a stable dividend paying stock like Domino’s than Yum! Domino’s is the obvious choice A couple of months back I read an article on how the CEO of Domino’s India franchise designed the entire delivery system in order to deliver pizzas efficiently and without violating the legislation of the country. It is this planning and dedication that has helped this company in becoming the pizza delivery champion across the globe. This title that Domino’s has earned is a huge advantage that will continue to pay off handsomely in the future. To conclude, I am not asking investors to disregard certain concerns over the financial health of the company or challenges it is facing in big markets. Domino’s is a fundamentally strong company that has effectively tackled competition to sustain value for shareholders, which is the primary reason that one should pick it as an investment in this industry.

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B everages & Food Processing Times - May - I - 2014

Opinion

Will ‘Milk Life’ Go Global? Big Dairy Sets Its Sights on Asia

Mia MacDonald

ould the U.S. dairy processors’ new slogan, “milk life,” make it big in Asia? If dairy multinationals like Nestlé and Danone have their way, the answer might be yes. As the market for dairy products in industrialized countries nears saturation, the U.S. dairy industry, along with its counterparts in Australia, New Zealand, and Europe, have begun to look for new consumers in China, Vietnam, Indonesia, and other Asian countries. With a steadily growing population, rising incomes, rapid urbanization, and greater exposure to Western consumer products and lifestyles, Asia is Big Dairy’s new target. This untapped “emerging” market consists of nearly three billion new potential dairy consumers, according to research by Tetra Pak, manufacturers of aseptic packaging. Among those on the list are the rural and urban poor and school children, despite the facts that lactose intolerance is widespread throughout East Asia and countries in the region have little tradition of drinking milk or eating other dairy products. (A large majority of the East Asian population--an estimated 98 percent--has difficulty digesting lactose, a sugar found in dairy products.) In some parts of Asia, a dairy industry is being ignited where one didn’t exist before. Cambodia, for instance, milked its first cow when a mega dairy operation opened there in 2011. In other countries, smallerscale dairy production is being displaced by dairy CAFOs (aptly, if brutally, named “concentrated animal feeding operations”) often housing thousands of cows, akin to the dairy behemoths common in California’s Central Valley and other parts of the U.S. Meanwhile, an increased number

of packaged and processed milk, yogurt, cheese, and ice cream products are appearing in retail spaces and advertising campaigns are underway throughout Asia. Some of the larger dairy corporations have begun to depict local, unpackaged milk as unhygienic, tapping into consumer fears about food safety (a particularly potent concern in China). In several countries, Nestlé and Tetra Pak have become major players in school milk programs and nutrition education. In Thailand and Vietnam, for instance, demand for milk from school initiatives is an important driver of increased domestic production. Many Asian government officials see rising dairy consumption as a net good (despite the occurrences of lactose intolerance and concerns in industrialized countries about the health impacts of high milk and dairy intake). They also see industrial milk operations as resource efficient and economically sound, and the CAFO model has a great deal of money and marketing behind it. But CAFOs are so new in most of Asia that policymakers and civil society has yet to discover their downsides: ground and surface-water pollution, smog, pungent odors, huge manure lagoons, crowded, cruel conditions for the cows, as well as low wages and safety risk for workers. As a result, they’re spreading quickly throughout the region. Vietnam is one example. Residents have developed a taste for dairy products only recently, but the nation now has one of the world’s highest rates of growth in annual milk consumption. And a new joint venture by the TH Milk Joint Stock Company is building what may end up being the world’s largest dairy

CAFO. Located in a rural area in the north of the country, not far from a national park that is home to endangered species, the CAFO has 45,000 cows in production. When it’s completed in 2017, that population is set to triple, rising to 137,000 cows. The ecological footprint will be significant, to say the least. The U.S. Environmental Protection Agency (EPA) estimates that a dairy operation with 2,500 cows in the U.S. create as much waste as a city of 400,000 people. That means a Vietnamese CAFO could produce as much waste as 22 million people-about as many as live in themetropolitan area of New Delhi, India’s capital city. Meanwhile, in China, dairy production and consumption are expanding fast. In 2002, the nation had three million dairy cows. Ten years later it had eight million and 30 percent of dairy operations in China now house 100 cows or more. Many of the existing dairy CAFOs in China have been built with support from the government

and private sector investment. Now, a new $140 million deal between China Modern Dairy, which introduced dairy CAFOs to China, and U.S.-based Kohlberg Kravis Roberts & Co (KKR & Co.), willbuild two operations housing 100,000 cows each. As industry experts acknowledge, however, the majority of Chinese dairy CAFOs lack adequate waste treatment facilities. That means the cows’ manure is contaminating local water supplies, attracting insects, and releasing strong odors, to the detriment of neighboring

communities’ health, livelihoods, and quality of life India, on the other hand, is home to about 300 million cows and buffalos, most of them milkproducing. The nation has sought for decades to encourage development of its dairy sector as a means of providing income for poor rural communities, and specifically women. But the shape and scale of Indian dairy is changing, from pro-poor to procommercialization. Despite being sacred in the Hindu tradition, many Indian cows are now confined in semi-industrial operations, where they are chained indoors for much of the day. CAFOs are also gaining a foothold in India. Although plans for a 40,000-cow operation in the state of Andhra Pradesh were recently scuttled over animal welfare and environmental concerns, other large dairies are planned. One South Asian dairy corporation, Global Dairy Health, wants to “take over India’s milk production” and envisions 100 CAFOs across the country within a decade and a half, each housing 3,000 cows. Even as the CAFO model gains traction in Asia, researchers and advocates in industrialized countries have begun to document the often-devastating consequences these facilities can have in the developed world on the environment, rural economies,animal welfare, workers, and public health. Groundwater pollution has been a persistent complaint lodged against California’s “megadairies” and a study found they are a major contributor to the smog that bedevils Los Angeles and the surrounding area. Another recent study of the sustainability of the U.S. dairy industry by climate change, economics, agronomy, and animal welfare researchers concluded that despite the efficiencies achieved in milk production, “the current

structure of the industry lacks the resilience to adapt to changing social and environmental landscapes.” The authors also commented on the wide gap between the industry’s practices and public perceptions, and a consequent drop in the public’s trust. The ever-popular advertising slogan, “Got milk?” was catchy, but it didn’t work. During its 20plus year run, Americans drank less milk, not more (hence “milk life,” designed to make milk part of Americans’ daily routines again, and to brand it as a healthy food.) In 1975, the average American consumed 260 pounds of milk each year. Now it’s less than 200, which is still an enormous amount, and well outpaces sugar consumption. Americans have also started drinking more non-dairy milks, like soy, almond, and rice milk, many of which, ironically, originate in Asian countries. Is the growth of Big Dairy inevitable in Asia? Not necessarily. Governments, international agencies, and non-governmental organizations in the region have an opportunity to alter current trends and craft policies that eliminate land giveaways, tax holidays, or low-cost loans for dairy CAFOs and tax or fine polluters. Governments can also incentivize plant-based foods and redirect subsidies for large-scale dairy operations to indigenous and sustainable agricultural enterprises, including for nondairy milks. Prohibiting dairy industrysupported school curricula, and creating public education initiatives for healthy eating could also make a dent. Food and agriculture groups, researchers, and policy-makers in the US and other industrialized nations should also share information and perspectives on dairy CAFOs with those in Asia. Long-term food security should be Asia’s priority: Not a “milk life” but the “good life.” This article was first published by Civil Eats on April 1, 2014 and is adapted from Brighter Green’s new report, Beyond the Pail: The Emergence of Industrialized Dairy Systems in Asia. Courtesy: huffingtonpost.com

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B everages & Food Processing Times - May - I - 2014

Bakery News

Dunkin’ Donuts enters Mumbai with two Outlets

unkin’ Donuts (DD), the world’s leading baked goods and coffee chain, has opened two outlets in Mumbai thus taking the total store count to 29. The two outlets, one at Linking Road, Khar and the other at Phoenix Market City, Kurla, will be thrown open for the consumers on May 10. It is two years since Dunkin’ started its first store in Delhi in May 2012. Jubilant said Pune figures in the list of future store openings, and Bangalore would be its entry into the south of India in the second half of the year. Stores will be opened at locations such as Hyderabad and Chennai thereafter. Ajay Kaul, CEO, Jubilant FoodWorks

Bakery Chain Ubiquitous Foods to double outlets from 28 to 50

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Limited said, “With the evolving QSR and café market Dunkin’ Donuts presents an interesting opportunity for Jubilant FoodWorks Limited. We are encouraged by the appreciation Dunkin’ Donuts has received from consumers right from the time we opened our first restaurant in Delhi. In 2014 we plan to expand beyond North India and start the journey of taking Dunkin’ Donuts national. This opening of our restaurants in Mumbai marks the beginning of this exciting journey for us.” Jubilant FoodWorks Limited, a part of Jubilant Bhartia group, is one of the country’s largest food service company. It has exclusive brand rights for Domino’s Pizza and Dunkin Donuts. The Company is the market leader in the organised pizza market with a 67% market share in India according to a latest Euromonitor report and competes with Yum Brands that operates Pizza Hut and KFC in India.

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et another success story in baking business Chennai-based Ubiquitous Foods, which runs bakery chain Ovenfresh, is set to expand its operations to the high streets to target the retail consumer. The company, which has focused on outlets in IT parks and office complexes, plans to nearly double its outlets from 28 to 50 by the year end. Studied at IIM-A Rajiv Subramanian established the company is also in early talks to raise $8-10 million (Rs 48-60 crore) in series-B which it expects to complete by December 2014. Last year it raised an undisclosed amount of funding from venture capital firm Kalaari Capital. The company has expanded from nine outlets to 28 in the past six months. Ovenfresh started in Chennai but is also present in Bangalore. It plans to have 80 outlets in these two cities. The outlets planned will be 550-1200 square feet, with the first already operational in the Madipakkam and Velachery neighborhoods of Chennai. Experts see an opportunity in the market, which is highly fragmented. “Our approach is very process oriented and that is where our innovation is. We run commissaries in Bangalore and Chennai which supply to our outlets every day. Since we own the supply chain we are able to keep the outlets small which drives down real estate cost and employ low-skilled labour but deliver fresh baked goods in very short time,” said 32-yearold Subramanian.

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www.agronfoodprocessing.com Puratos Food Ingredients India Pvt. Ltd. D-222/48 & 49, TTC Industrial Area, MIDC Shirwane, Navi Mumbai-400 706, Maharashtra (INDIA) Phone: 022 61240808, Email: info@puratosindia.com, Website: www.puratos.in

B everages & Food Processing Times - May - I - 2014

Machinery News

TOMRA Sorting Food to demonstrate new solution for individually quick frozen vegetable and fruit market at Interpack

OMRA Sorting Food has launched its Blizzard freefall sorter for the individually quick frozen vegetable and fruit processing market, and will be demonstrating it for the first time at Interpack. The Blizzard will be showcased at the leading processing and packaging trade fair, at Düsseldorf fairgrounds, Germany, from 8 to 14 May. The company will be at stand G86 in hall 08b. An alternative to the company’s existing Helius and Nimbus high end, free-fall sorters, TOMRA Sorting says the Blizzard is a cost effective solution. It provides continuous inspection and ensures food safety and customer satisfaction by removing unwanted discolourations, foreign material and misshapen produce, with maximum yield. The Blizzard delivers stable detection, utilizing pulsed lightemitting diodes (LEDs) with multiple infrared (IR) wavelengths, combined with specially-designed

full red, green, blue (RGB) cameras. TOMRA Sorting says the Blizzard is a small footprint sorter that can comfortably replace older generation systems and easily fits in processing lines. Specifically designed to handle output of individually quick frozen (IQF) tunnels optimally, it can be installed just after these or prior to packing. It can handle both mono and mixed colour produce, meaning it can work with the complete colour palette, including ready-to-eat meals, for example. Bjorn Thumas, Market Unit Director, TOMRA Sorting Food, said: “The Blizzard involves pulsed LED technology, already implemented in our large produce sorters, adapted to the specific needs of the IQF industry. Our proven track record in frozen fruit and vegetable sorting solutions and improvements in technology have resulted in this breakthrough, which offers processors the best of both worlds.”

Mr Thumas said the high-power, colour modulated LED technology was very effective for various reasons. It had a lifetime of more

than 50,000 hours, so required virtually no replacement, and offered very stable output, with its calibration frequency kept to a minimum. He added another benefit of the LED lighting was low heat production, meaning no extra cooling device was needed, allowing customers to save on cost and maintenance. Mr Thumas said: “Thanks to our multiple decades of experience

6.0791 cm New print and apply labeling system with Intelligent Motion™ technology delivers what no ther labeler can

hicago, Illinois – May 8, 2014 – As manufacturers implement lean practices, operations teams are focused on high value tasks with limited time to focus on end-of-line labeling systems that require mechanical adjustments and frequent intervention. Responding to these needs, Videojet Technologies, a global leader in coding, marking and printing solutions, has taken

an innovative approach to Print & Apply labeling LPA design with the Videojet 9550 to address and fix the common causes of lost productivity. This new design removes the mechanisms that frequently cause everyday operational problems, such as label jams and routine manual adjustments. Ondrej Kruk, global business unit manager at Videojet adds: “The 9550 with Direct Apply places the label onto the pack without the need for a tamp or air blast applicator, achieving throughput of up to 150 packs per minute for typical 4” x 6” GS1 barcode labels. This means it never misses a label, even after line build-backs.” By incorporating Intelligent Motion™ technology, the entire system is precisely and electronically controlled, targeting

zero unscheduled downtime on production lines. “Customer feedback about lost production time made it clear that there was a need for advanced labeling technology to improve operating performance. In response, we designed the new Videojet 9550 LPA system incorporating Intelligent Motion™ technology,” said Steve Buckby, vice president of Innovation at Videojet Technologies. “Intelligent Motion™ technology enables all the design elements of the machine to be automatically controlled with precision, allowing us to simply take out the parts and adjustments that make most other labelling machines fail.” Manual adjustments are one of the main causes of daily operational problems, resulting in costly

in supplying solutions to the IQF industry, the sorter has LEDs covering multiple selected wavelengths, combined with the right optical components and sensors. The optical set-up, which is totally modular and flexible, is selected according to customer needs and the numerous combinations ensure better detection of specific defects.” TOMRA Sorting says the Blizzard sorter has a very open design, making every component easily accessible for operators, and was developed with the specific sanitary requirements of the IQF industry in mind. The company says the machine’s other advantages include the elimination of flat surfaces, integration of open, easy-toclean legs, hygienic door locks, installation of transportation hooks and positioning of the electrical cabinet at its rear end. A highfrequency electromagnetic shaker is also installed on the machine frame, minimizing vibration and

making the system ultra-compact. TOMRA adds the Blizzard has an intuitive graphical user interface, allowing operators to set the sorter manually, without having to follow intensive training. Mr Thumas said: “These are only some of the sorter’s features, so customers shouldn’t hesitate to contact us for more details on some smart innovative aspects that further enhance the machine’s stability, efficiency and yield.” TOMRA Sorting Food has created a video of the Blizzard in action which can be viewed here. Instead of just offering products, TOMRA Sorting consults its customers and develops tailormade solutions in line with their expectations, requirements and budgets. It says it offers its expertise from different businesses, resulting in faster development time and tailor made solutions, with the new Blizzard sorter being a great example of the synergies between ODENBERG and BEST, the two brands in its food department.

downtime and production loss. The direct drive system, with Intelligent Motion™ technology, feeds and places labels accurately even at high line speeds without the use of manual adjustments, clutches or nip rollers. No adjustments means that only two operator touches are now required to manage job selection and web changeover, complemented by a collapsible mandrel to ensure quick label changes. The Direct Drive system with Intelligent Motion™ technology, unlike conventional print & apply labelers, controls the entire label path ensuring web tension is maintained from start to finish, irrespective of speed or label size. The unique ability of the new Videojet 9550 Direct Apply system removes the need for complex applicators for mainstream top or side label applications, reducing the number of labels being incorrectly applied or mangled during application. Requiring no factory air, the new system is the

only solution to print and directly apply labels to cases and trays at high speed. The 9550’s print engine also incorporates Intelligent Motion™ technology for precise ribbon feed and printhead control, ensuring optimum print quality and improved performance. Through use of a clutch-less ribbon drive, the 9550 substantially reduces ribbon waste and improves printhead life. The trends toward increasing retailer and regulatory requirements and increasing SKU complexity is a main concern for manufacturers seeking to safeguard their operations from costly labeling errors. In order to help manufacturers improve quality and adhere to applicable standards, the 9550 comes equipped with the Videojet industry-leading CLARiTYtouch screen interface, which includes intuitive job selection, comprehensive feedback and diagnostics to minimize human error. This single, easy-to-use interface provides manufacturers with built-in Code Assurance solutions that focus on getting the right label on the right case, time after time. Kruk commented “With virtually zero unscheduled downtime and the highly-reliable Direct Apply label placement, we can finally give customers what no other labeler has been able to provide for the past 20 years. The application of Intelligent Motion™ technology to eliminate the mechanical adjustments used in everyday operation reduces manufacturers’ hidden costs and drives productivity gains.”

For updated news everyday, logon to www.agronfoodprocessing.com

B everages & Food Processing Times - May - I - 2014

F & V News

India threatens to draw EU to the World Trade Organization

t time for India to act tough and taking strategic step, it has threatened to drag the European Union to the World Trade Organization if the 28-nation bloc did not lift its ban on the import of Indian mangoes and vegetables. The Commerce and Industry Minister, Mr. Anand Sharma said they were anticipating for the

EU will see sense, considering the strength of the economic partnership between India and EU, and not precipitate the situation any further, which leads us to go to the WTO. Sharma said, a letter has already written a letter on the matter to EU Trade Commissioner Karel De Gucht.

India government has invested in creating world-class laboratories through the Agricultural and Processed Food Products Export Development Authority (APEDA)

and their certification processes are acceptable to the EU, the US and other countries. Thus in regard to this EU’s move is an arbitrary action without any consultation According to the minister. The EU’S ban has no validation and if necessary step are not taken then there will be definitely very negative fallout in respect of economic relationship of both countries. APEDA has the mandate of certification of agri-produce exports and that is acceptable to all countries and that is the reason why APEDA and the commerce ministry have taken up this matter. EU had banned the import of Alphonso mangoes, the king of fruits, and four vegetables from India for the period from May 1 to December 2015 after authorities found consignments infested with fruit flies. Imports have been restricted as 207 consignments of mangoes and some vegetables shipped from India in 2013 were found to be contaminated by pests. The UK imports almost 160 lakh mangoes from India and the market for this fruit is worth almost 6 million pounds a year. India, the world’s largest mango exporter, sells about 65,00070,000 tons of all varieties of the fruit overseas out of its total production of 15-16 lakh tons.

Delhi HC asked to ban artificially-coloured Fruits & Veg

plea was filed on Wednesday in the Delhi High Court seeking immediate ban on sale offruits and vegetables, which contain artificial colour and harmful preservatives. A division bench of Chief Justice G. Rohini and Justice R.S. Endlaw, agreeing to hear the PIL, posted the plea for May 21 and clubbed it with another petition that relates to pesticides in fruits and vegetables. The PIL filed by advocate Sugriv Dubey alleged that fruits and vegetables sold in Delhi are “quoted with carbohydrate and other cancerous chemicals to increase their life span”. The plea said that the authorities have not taken any step to insure the quality of food being sold in markets here are safe for consumption. “Not a single sample of mango sold during the entire season has been taken into custody by the authorities to ensure that those coated with carbohydrates are not sold in the market,” it stated. The pulses sold here are polished with chemical to bring them in a very shining condition which are injurious to health when consumed, it added.

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Visitor Profile • CEO’s & Top Executives from Food & Beverage Industry • Sr. Executives from Production, Quality Control, Maintenance • Purchase Departments • Professionals from R & D Institution, Supply Chain Distributors • F & B Managers etc. • Top officials from Regulatory Agencies of Central & State Governments • Food & Beverage Consultants • Hypermarkets / Supermarkets • Grocery Stores / Convenience • Stores / Retailers • Departmental Stores • Food and Drink Importers / Distributors / Wholesalers • Foodservices and Hospitality Counsulting • Hotels / Resorts Management • Foodservice Government, Military, School, Hospital • Foodservice - Industrial • Bakeries / Confectionaries

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B everages & Food Processing Times - May - I - 2014

Agro Processing

Shattered horticulture industry of Kashmir writes Greater Kashmir

fter Maharashtra witnessed unseasonal rains and hailstorm in the month of March this year a large chunk of onion, grapes and wheat crop was destroyed there. Some parts of the neighboring Madhya Pradesh state were also affected by the unseasonal rains and hailstorm and this destroyed the wheat and Lentil (Masoor) crop. But within weeks a high level committee was constituted by Prime Minister Manmohan Singh which comprised agriculture minister Sharad Pawar, rural development minister Jairam Ramesh, finance minister P Chidambaram and home minister Sushil Kumar Shinde. On the directions of the said committee a high level delegation from Government of India visited Maharashtra and some parts of Madhya Pradesh between March 13th to March 15th to access the damages in these states after taking permission from Election

Commission of India (ECI) . A huge financial package is almost ready and would be disbursed among the affected farmers soon. No committee for Kashmir : Kashmir also witnessed heavy snowfall and consistent rains during the same time when Maharashtra and MP witnessed rains and hailstorm. Apple, pear and almond crop in most parts of Kashmir has been damaged to a great extent, almost 30 % fruit trees have suffered tremendous loss, but not a single leader from our state took up this matter with Prime Minister’s Office (PMO) with the result no such committee was constituted. I myself saw many areas in Pulwama and Shopian where fully grown hundreds of apple trees had fallen flat on ground. I saw large pear trees completely damaged due to snowfall or land erosion in Tujan , Tilsara and other high quality “Naakh Pear”

producing areas of Chararisharief and according to farmers even the officials from state Horticulture didn’t visited their orchards. High quality almond is produced in many parts of Chadoora especially in Hayatpora, Wadipora , Kultreh , Awanpora villages and the almond crop suffered huge damage due to un seasonal snowfall at a time when almond flowers had come out. This damaged the crop completely in many areas , in addition to it the snowfall also damaged the trees as well. Most of these farmers have taken heavy loans from banks and other financial institutions but nobody is coming to their rescue. A clear inference can be drawn that Government hardly cares for the horticulture industry of Kashmir. Conclusion written by DR RAJA MUZAFFAR BHAT: The Members of Parliament from J&K have failed to take up the matter pertaining to damage caused to the fruit industry of Kashmir with Government of India or PMO . If MP’s from Maharashtra could take up the matter related to damage caused to onion crop etc with Govt of India , why did not MP’s from our state met the Prime Minister and demanded similar special package for the farmers of Kashmir whose apple , almond and pear orchards have been damaged

12th five year program India set aside USD 9.2-Billion for Agri-Infra Schemes

n order to develop agriculture infrastructure in the country, India has set aside US$9.2 billion that will be spent on developing integrated scheme for agricultural marketing in the 12th plan period (2012-2017). Under the plan, investments will be used for developing agriculture marketing infrastructure, secondary agriculture and policy for internal and external trade. The funds will also be invested as per the recommendation of the Indian Planning Commission Working Group on Warehousing Development and Regulation, 35 million tonnes of storage capacities needs to be added during XII Plan period.

The investment will also be made on developing infrastructure for managing marketable surplus of agriculture, which includes horticulture as well as dairy, poultry, fishery, livestock and minor forest produce. The government will also focus on promoting innovative and latest technologies in agricultural marketing infrastructure by encouraging private and cooperative sector investments. Besides, storage, infrastructure will be developed for grading, standardisation and quality certification of agricultural produce so as to ensure a fair price to the farmers. Apart from grading and quality

certification of produce, government will also pledge financing and marketing credit, negotiable warehousing receipt system and promotion of forward and future markets to increase farmers’ income. Of the funds set aside some will go in building integrated value chain that has been defined in agriculture marketing which will provide proper flow of subsidy to the entrepreneurs under the scheme. The government’s main focus is providing agriculture marketing subsidies through transferring direct benefits to the farmers. Another focus will be to push for pledge finance to the farmers to prevent them from distress sell and to keep their produce in the storage infrastructure and those farmers who will keep the produce in storage infrastructure will be eligible for pledge loan on hypothecation of their produce. In order to discourage distress farmers, the scheme will provide small and marginal farmers with credit support if they have a Kisan (farmers) credit card. The farmers will be encouraged to store their produce in warehouses against warehouse receipts to gain these benefits.

completely in the recent snowfall. It clearly indicates that majority of the MP’s from J&K are least bothered about problems of people and that is the reason that they hardly speak out public issues in the parliament or other forums .

Many Lok Sabha MP’s from other states have raised more than 1000 questions during the last five years and on contrary to it our MP’s at an average have raised only 250 questions during the last five years.

Amira Nature Foods Ltd Announces Contract with Buhler India Private Limited for New Rice Processing Facility

mira Nature Foods Ltd (the “Company”) (NYSE: ANFI), a leading global provider of branded and packaged Indian specialty rice, announced that it had entered into a $8.3 million contract through its Indian operating subsidiary with Buhler India Private Limited (“Buhler India”), for the supply of 48 tons per hour paddy processing equipment in connection with its new rice processing plant in Karnal District, Haryana, India. The Company expects this new facility to be fully operational by the end of fiscal year 2015. Karan A. Chanana, Amira’s

Chairman and Executive Officer stated, “We are extremely pleased to expand our relationship with Buhler India. This new equipment purchase will be part of our state-of-the-art processing facility in Haryana, India. This facility, which we believe will more than double our processing capacity, will enable us to meet the processing capacity demands in our business over the coming years and will help us drive further margin expansion long-term.” Buhler India manufactures a complete range of rice processing machines right from harvest drying, parboiled paddy drying, cleaning to hulling and polishing, optical sorters, control systems and accessories to meet the needs of the rice milling industry, in addition to providing turnkey supply, installation and commissioning of rice mills.

13 new godowns for food grain storage in south Odisha districts soon

hree southern Odisha districts will have 13 more warehouses to store agricultural produce soon. Official sources today said the new godowns -each with a capacity of 2,500 metric tons- will come up in Ganjam, Gajapati and Kandhamal districts and will be set up on a public-private partnership (PPP) mode. Addressing a workshop organised here by the International Finance Corporation, the Ganjam district civil supplies officer SK Mohanty said construction of these godowns will help ease the problem of storing paddy in these districts. While the godowns will come up at Bhanjanagar, Jagannathprasad, Khallikote, Rangeilunda, Patrapur and Sorada in Ganjam district and Tikabali, Tumudibandh and Daringbadi in Kandhamal district. Besides, smaller godowns, with 500 metric tonne storage capacity, will be established in each block of Ganjam district, to store PDS commodities, sources said.

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B everages & Food Processing Times - May - I - 2014

Beverages News

Veen Waters to launch Packet water brand in India

EEN Waters of Finland, will launch two new brands in India as part of a global product portfolio expansion. The two new brands — Veen Classic and Veen Still – will be packaged as spring water sourced from Bhutan. “We are now introducing two new brands and products, within our brand umbrella. We are developing our Bhutan plant for the last few months. Hopefully we would start bottling there in early May,” Veen Director Aman Gupta told. Veen presently sells water sourced from Konisaajo natural spring area in arctic Circle of Finnish Lapland in traditional glass bottles at luxury hotels, restaurants, bars and nightclubs under the brand name Veen Velvet and Veen Effervescent. In India, Veen water is available in 660 ml glass bottle, costing Rs 110 while 330 ml is priced at Rs 77. The Bhutanese spring water would

be similarly priced, Gupta added. The company will launch Veen Classic and Veen Still in PET bottles of 750 ml and 550 ml packs priced Rs 60 and Rs 40, respectively, focusing the retails market. “Veen Classic and Veen Still will be sold to multiple markets, including the Indian subcontinent and other potential Asian market,” he said adding that Veen is exported to 12 countries from Finland. Gupta said the two new brands have potential in China, Russia, UAE markets. “Finland would continue with the glass bottles and PET would come from Bhutan for all existing markets,” he said. Veen is targeting luxury hotels and bars in India for it growth, besides exploring the traditional retail outlets. “We are also going into retail stores in India, which is new for us. Its a big market for us. It would be interesting to see how people react

to our product,” Gupta said. “We are very positive for the Indian market. We have signed companies as Marriot, Lalit and lot of top chefs in first year,” he said adding that the brand has “very good” acceptance. When asked about partnerships with major retailers, Gupta said: “We would approach modern format places such as Godrej Nature Basket, premium food halls and grab and go type cafe as Cafe Coffee Day.” According to Gupta, Veen has a distribution network in 10 major cities here and would expand it further to 20 by the next year. The company has presently 30 to 35 sales points and it would expanded further. Veen is the ‘official water’ of F1 lounge in London since the last four years besides having partnerships with Arsenal Football Club and other lifestyle sports.

Mother Dairy targets 1100 cr this fiscal, adds Mishti Doi & lassi in kitty

other Dairy Indian Milk and Milk Products Giant aims to garner revenues of Rs 1,100 crore from value-added dairy products by the end of 2014-15 against Rs 800 crore last fiscal. The company is betting

on product innovation and expansion to achieve an over 37 per cent growth in earnings from the unit. Overall, Mother Dairy Fruit & Vegetable Private Ltd reported revenues of around Rs 6,300 crore in 2013-14.

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Value-added dairy products include dahi, mishti doi and lassi. Mother Dairy, a 100 per cent subsidiary of the National Dairy Development Board (NDDB), emerged during the Operation Flood project of the NDDB in December 1974. It is different from Mother Dairy Calcutta which it helped to set up. “Value-added products are expected to close at Rs 1,100 crore by the end of the current year. It has been growing at a compounded annual growth rate of about 30 per cent for the last two to three years,” said Subhashis Basu, business head (dairy products), Mother Dairy Fruit & Vegetable. He was speaking at the launch of aam doi and cup packs of sweet and masala lassi. Buoyed by the response in Calcutta, Mother Dairy is planning to ramp up the production capacity of fresh dairy products to 16-17 tonnes per day from 12 tonnes.

BVO dropped from all drinks of Coca Cola and Pepsi

oca-Cola and PepsiCo are working to remove a controversial ingredient from all their drinks, including Mountain Dew, Fanta and Powerade. The ingredient, called brominated vegetable oil, had been the target of petitions on Change.org by a Mississippi teenager who wanted it out of PepsiCo’s Gatorade and Coca-Cola’s Powerade. In her petitions, Sarah Kavanagh noted that the ingredient has been patented as a flame retardant and isn’t approved for use in Japan and the European Union. Coca-Cola and PepsiCo have stood by the safety of the ingredient, which is used to distribute flavors more evenly in fruit-flavored drinks. But their decisions reflect the pressure companies are facing as people pay closer attention to ingredient labels and try to stick to diets they feel are natural. Several major food makers have recently changed their recipes to remove chemicals or dyes that people find objectionable. While food companies stress that the ingredients meet regulatory requirements, their decisions reflect how marketing a product as “natural” has become priority and a competitive advantage. PepsiCo had said last year that

it would remove brominated vegetable oil from Gatorade. On Monday, the company said it has since been working to remove it from the rest of its products. PepsiCo also uses BVO in its Mountain Dew and Amp energy drinks. The company, based in Purchase, New York, didn’t provide a timeline for when it expects the removal to be complete. Coca-Cola had also said that it’s removing the ingredient from all its drinks to be consistent in the ingredients it uses around the world. In addition to Powerade, Coca-Cola uses BVO in some flavors of Fanta, Fresca and several citrus-flavored fountain drinks. The company said BVO should be phased out in the U.S. by the end of the year. Coca-Cola said it would instead use sucrose acetate isobutyrate, which it noted has been used in drinks for more than 14 years, and glycerol ester of rosin, which it said is commonly found in chewing gum and drinks. The Center for Science in the Public Interest, a health advocacy group, notes that the Food and Drug Administration permitted the use of BVO on an interim basis in 1970 pending additional study. Decades later, the group notes that BVO is still on the interim list. Kavanagh, the Mississippi 17-year-old, had been planning on launching another petition on Change.org asking PepsiCo to remove BVO from all its drinks. She wasn’t immediately available for comment late Monday. Earlier in the day, however, she said, “It’s really good to know that companies, especially big companies, are listening to consumers.

Bisleri reaches to the shores of Bangladesh

ndia’s leading water brand now reached to Bangladesh. Bisleri International has opened its first overseas production unit in Bangladesh’s capital Dhaka. According to the sources from company, the new facility, with a production capacity of 60 lakh bottles a month, has been set up under a franchise arrangement with local firm Chittagong Fashion. Bisleri had first announced its plan to open an overseas production unit in November last year. Bisleri is among the top three packaged water brands in India. It competes with Coca-Cola’s Kinley and PepsiCo’s Aquafina. New entrants to the category include Himalayan from NourishCo, a joint venture between PepsiCo and Tata Global

Beverages, and Qua from Danone Narang Beverages. India’s carbonated drinks market is estimated at Rs 14,000 crore. The organised water category is estimated at close to Rs 3,000 crore. The water industry is flooded with regional brands that operate on low margins and sell cheaper than established players.

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B everages & Food Processing Times - May - I - 2014

Beverages News

ITC negotiating to acquire B Natural of Balan Natural Food’s Juice

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TC is entering the beverage market with a bang. It is in advanced talks with Bangalorebased Balan Natural Food to acquire its juice brand B Natural. The company plans to put up the proposal soon for board approval as acquisition is expected to cost less than Rs 80 crore for ITC. Balan Natural Food was founded by Kumar and his family and its manufacturing plant is in Bangalore, where ITC’s packaged food business too is headquartered The cigarette-to hospitality conglomerate has thrown challenge to all big brands in the consumer goods business. Its entry into the Rs 1,200-crore packaged-juice market may stir up a marketing war with leaders Dabur BSE 1.12 % and PepsiCo. The promoters of B Natural and ITC officials’ are in aggressive and serious negotiations to close the deal as soon as possible. ITC’s acquisition of B Natural will add energy to its packaged-food business. ITC is going to acquire the brand and not the juice manufacturing plant of Balan Natural Food. Balan will be the manufacturing partner for ITC which will acquire the brand. ITC will pay the acquisition in various tranches. ITC will almost immediately take over the brand and relaunch it with a bigger way later this year. Balan Natural Food has estimated revenue of around Rs 40 crore and B Natural has its main market in the South. The company is. The B Natural brand specializes on 100 per cent natural juices such as jamun, brahmi, amla, guava, pomegranate and dry fruits-apple juice. While Dabur leads the race in the Indian packaged-juice market with an around 54 per cent share with its Real brand, while PepsiCo is second with its Tropicana brand having a 35 per cent share. Brands like Del Monte, Onjus, B Natural, PriyaGold and Jumpin keep a balance on the market. The packaged-juice market is developing very fast at the rate 15 per cent .

B everages & Food Processing Times - May - I - 2014

Sea Food News

Idco’s sea food park proposal forwarded to Centre

disha Industrial Infrastructure Development Corporation (Idco)-a PSU of the Odisha government has suggested to the Centre a proposal to set up a sea food park at Deras in Khurda district. Idco is an Odisha government company engaged in creating industrial infrastructure for the state. The corporation has expertise for development of industrial parks. The sea food park is estimated to cost around Rs 116.43 crore and has been planned on an area of 100 acres. Land cost has been considered at the rate of Rs five lakh per acre. The sea food park will be set up under the Mega Food Park Scheme of the Centre and is expected to fulfill the long standing demands of exporters and other

stakeholders. The proposed sea food park will be the epitome to qualitative and quantitative development of the sea food processing industry. Its objectives are combination of supply chain to offer fishermen market linkages, and be the platform to exhibit the state’s potential and investment opportunities, demonstrate best management practices, highlight successful business models, address supply chain and infrastructure related issues, increase income levels of fishermen by linking them with demand side of the food chain and provide a platform for industry interaction and trade facilitation The nodal department dealing with food processing industry in Odisha has strongly recommended this proposal for approval under the

revised Mega Food Park scheme notified on February 10, 2014. The state MSME (micro, small & medium enterprises) department has agreed to provide all fiscal incentives to the sea food park developer under Odisha Food Processing Policy, 2013. The basic enabling infrastructure will cost Rs 36.60 crore within the sea food park project, while core processing facilities including buildings, plant & machinery and miscellaneous fixed assets are estimated to cost Rs 49.44 crore. A mix of equity contribution from the promoters, bank finance and grant assistance from MoFPI and Odisha government will invest in the project. The promoter would contribute 26.13 per cent of the total project cost that includes 24.62 per cent equity (Rs 28.63 crore) and 1.5 per cent margin money (Rs 1.74 crore).

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Japanese market, an opportunity for Indian Shrimp Exports

apanese companies are planning to import shrimp from India and Indonesia instead of Viet Nam, due to the excessively high levels of oxytetracycline (OTC) in Vietnamese shrimp. According to the Viet Nam Association of Seafood Exporters and Producers (VASEP), the decision was made due to the excessively high levels of OTC that were continuing to be detected in Vietnamese shrimp shipments, despite prior warnings and the public knowledge that virtually all Vietnamese shrimp exports were being tested for the antibiotic. VASEP asked the Ministry of Agriculture and Rural Development’s Directorate of Fisheries to strictly control shrimp cultivating areas to prevent such a situation. VASEP’s figure showed that 11 shrimp shipments to the EU and Japan were returned in the first four months of the year because of high OTC levels. It said the number of shrimp shipments being returned by Japan had risen since it started testing for OTC in all Vietnamese shrimps. The association also warned that Japanese importers are planning to import shrimp from the two above-mentioned countries as they have taken measures to reduce the OTC level. Japanese importers have also guided shrimp processing factories in India to process shrimps to switch the orders from Viet Nam. Two weeks ago, VASEP said the EU discovered OTC levels in some shrimp shipments from Viet Nam to be higher than the allowed level of 0.1ppm. It warned that the EU would consider applying stricter measures on Vietnamese shrimp if Viet Nam did not improve the situation. Earlier this year, the association forecast that shrimp exports could reach US$3 billion this year if the issues of breed and presence of chemicals were paid due attention. It also warned that unless the local shrimp businesses strengthened selfregulation of OTC, they would fail to penetrate the Japanese market as well as to meet the target of making Viet Nam one of the top three shrimp exporters in the world.

B everages & Food Processing Times - May - I - 2014

Firoz H. Naqvi

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Sameer K

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