Beverages & Food Processing Times

India’s Ist Fortnightly Newspaper For Beverages, Food & Allied Industries

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Indian Ice Cream Manufacturers' Association

AFTPAI ( An Association of Allied Sectors of Agro & Food Industry in India )

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MoFPI to invest Rs 241 cr in abattoirs Scoop Ice-creams

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he Union ministry of food processing industries (MoFPI) is focusing on schemes to scale up infrastructure projects for the food processing industry, and would invest around Rs 241 crore in setting up new abattoirs and modernising the existing ones, said a senior official from the Indian Council of Agricultural Research (ICAR).

At a conference on meat processing

technologies organised by the Tamil Nadu Technology Development and Promotion Centre (TNDPC) of the Confederation of Indian Industry (CII), B S Prakash, assistant director general (AN&P), ICAR, said that the MoFPI would make investments to create a brand value for the Indian wholesome hygienic meat products and byproducts. The ministry is initiating schemes to upgrade infrastructure for the food

processing industry, and as part of this, would invest Rs 241 crore in setting up new abattoirs and upgrading the existing ones. It would invite expressions of interest for the empanelment of zone-wise project management for the scheme, he added. Even as the country has considerable livestock population, the export of meat and meat products is less than 3 per cent. The industry and academia should work together to reduce the challenges and enhance meat production in the country, he said.

Hyderabad-based National Research Centre on Meat (NRCM) has plans to collaborate with TNDPC to start training programmes for the entrepreneurs in the sector.

A K Srikanth, chief executive officer of Alchemist Foods (Private) Ltd, said that India produced around 6.5 million tonne of meat in 201011, which was around 2.2 per cent of the global meat production.

However, only around 1.1 per cent of it is conv-erted into value-added products like sausages, kababs and meat balls, while the world average is 70-72 per cent.

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udhir Shah Director of the company informed 'Beverages & Food Processing Times' “We have located two more point that is expensively located in Hyderabad, and the rest depends upon the demand and supply. Also we are not only trying to target the premier league but the focus is to not generalise it but to keep it at niche.

Viren Shah one of the Promoters told, “Presently we have three

brands in Scoops , In which scoop is the mother brand and is literally for every Indian, then we have a chain of temptation parlours which target the upper and middle class family.

Temptation outlets are the fusion of chaats and ice creams. While Cream stones located in a premium locations target the top clientele. So according to the market we target and put up the stores. Today we have about 4 cream stones outlets and 26 temptation stores across Andhra Pradesh. In fact we are putting more temptation parlours in several IT companies with free spaces provided by them”.

He also added, “our all three brands of Ice creams are unique, what one offers the other ones don't. Like Cream Stone Ice cream is a rich one with high milk fat contents and very creamy. The entire ingredients used for cream stone market are upmarket ingredients. We are targeting the best and we want to create our own niche and are against liquidifying our products”.

Beverages & Food Processing Times-June-II-2012

News

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NIFTEM launches orientation programmme

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he National Institute of Food Technology Entrepreneurship and Management (NIFTEM) recently launched the orientation programmme for BTech and MTech courses in the Capital.

Sushil Kumar, registrar, NIFTEM, said that the two courses offered by the institute will open up new horizons for science students in the country. Dr Manoj Kulshreshta, dean of academics outlined the career growth prospects for those interested in pursuing BTech and MTech courses at NIFTEM. The Institute has been established by the Government of India to harness the full potential of India's food processing sector. Similar programmes are being held all over the country between May 23 and June 15 when admissions to these courses will formally commence.

The Indian Sign Language Research and Training Centre (ISLRTC) organised a session titled 'Orientation to Deafness' at the University's Convention Centre recently.

Attended by BA in Applied Sign Language Studies (BAASLS) students and staff, the session aimed at increasing awareness about deafness, problems of the deaf community and initiatives necessary for solving them.

Professor M Aslam, Vice-Chancellor, IGNOU, said: “The moment we pick up how they talk to each other, they start communicating with us as well.” He informed the gathering that a committee had been constituted to construct a specialised building for the project at IGNOU. Terming the development of ISLRTC at the IGNOU campus a significant step, he said there still were many challenges to overcome.

Professor Avadhesh Kumar Singh, director, ISLRTC, emphasised on a systematic study of the issues and problems of the deaf community in India. He felt that there was a lack of awareness among the people.

“They don't need sympathy but empathy from all of us,” he added. The ISLRTC chief advisor Dr Madan Mohan Vasishta also shared his experience of going deaf at age 11 and how for a long time he was unaware of the existence of sign language.

Himachal invites private funds for food processing

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he Kerala High Court declined to stay the ban imposed by the state government on manufacture and sale of gutka and pan masala products containing tobacco. The court directed the government to inform it the action plan for implementing the ban. The direction was issued by justice T R Ramachandran Nair while considering a batch of petitions by All Kerala Tobacco Dealers Association and manufacturers of various tobacco products. The petitions have been posted to next week. To a submission, the government informed the court that they were willing to consider refund of the entire amount paid as tax by the manufacturers.

According to the petitioners, pan masala does not contain tobacco. The state complained that the details of ingredients was not printed in the cover of the products.

Even products coming under mouth fresheners contained tobacco. The ban on pan masala and gutka products, were enforced last month under the provisions of Food Safety and Standards Regulation Act, 2011, citing increasing incidence of gutka- induced diseases like oral cancer. Kerala is the second state in the country to ban the use of gutka and pan masala after Madhya Pradesh.

Beverages & Food Processing Times-June-II-2012

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Beverages & Food Processing Times-June-II-2012

China grain imports to rise, India eyes more export

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hina will import more corn and soybeans next season to keep pace with growing domestic demand, while fellow emerging giant India is trying to export more of its record wheat and rice crops to reduce its surplus, officials said. China, already the world's largest soybean importer, is expected to increase its imports of the oilseed to 57.5 million tonnes in 2012/13 from 55 million in the current season, the state-owned China Grain Reserves Corporation (Sinograin) said.

That is partly due to expectations for a smaller domestic crop this year, forecast to drop to 14 million tonnes from 14.5 million in 2011/12, Bingzhou Cheng, directorgeneral of Sinograin's general affairs department, told the International Grains Council's (IGC) annual conference. Corn imports by China were projected to rise to 5 million tonnes from 3.5 million in 2011/12, with a forecast rise in the local crop to be outstripped by rising industrial and animal-feed demand, he said.

"It is foreseeable that corn consumption in China will maintain

rapid growth," he said, speaking via an interpreter. Booming demand for corn, mainly to feed livestock reared to meet rising meat demand in China, has become a focal point for global grain markets.

Other forecasters see China's corn imports needs as bigger than Sinograin's estimate, with the China National Grain and Oils Information Center (CNGOIC) last month forecasting 6 million tonnes in 2012/13 and the IGC and the US Department of Agriculture both projecting 7 million tonnes.

As a sign of mounting industrial demand for grains, use of grains and soybeans for animal-feed making and other industries exceeded that for food for the first time in 2011, Cheng said. Sinograin forecasts a higher Chinese corn crop of 192.5 million tonnes this year, up slightly from 191.75 million in 2011, as record local prices encouraged farmers to plant more, he said.

The soybean crop would fall to 14 million tonnes from 14.5 million.

India is aiming to export more of an estimated wheat export surplus of five to six million tonnes after

shipping about one million tonnes so far this season, an official with India's Department of Food and Public Distribution said.

India is currently holding a tender to export wheat from its public stocks as the country tries to lighten reserves swollen by a record crop last year. Wheat inventory at government warehouses surged to a record 50.2 million tonnes on June 1, raising concerns a significant amount of grain will rot.

Nilambuj Sharan, a director at the Department of Food and Public Distribution, told the IGC conference that India expected to remain in surplus for grains in the coming years. "If there is any surplus, exports would be allowed," he said. Indian government sources have said there have been talks about possible wheat exports to Iran under a bilateral deal with the sanctions-hit country, but Sharan said he was not aware of any special export arrangements for Iran. India has also exported five million tonnes of rice so far in 2011/12 and had the potential to export more after a record crop in 2011, he said.

Iran needs 2m tonnes of wheat to dodge impact of sanctions

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ran needs to buy some two million tonnes of milling wheat in the next few months after having already imported three million so far this year, a member of the French grain exporters' lobby said, as the country dodges sanctions to shop for wheat at a frantic pace.

Iran has ordered a large part of its expected yearly wheat requirement in a little over one month and has paid a premium in non-dollar currencies to work around western sanctions and avoid social unrest.

“According to the people we spoke to at the Iranian millers chamber, three million tonnes of wheat has arrived since the start of the year,” an official with France Export Cereals said.

Members of the industry group were in Iran last week to promote French wheat through a technical seminar with over 140 millers and bakers. It was the sixth seminar of the kind in Teheran.

“They (the Iranians) estimate their needs at a total five million tonnes,” with the additional imports over the next few months, the official added.

Official tenders and traders' reports

show that the Iranian government and private buyers have purchased over two million tonnes of bread wheat from Germany, Canada, Brazil, Australia, Russia, Kazakhstan and even the United States, but the exact volumes and delivery dates are not clear.

Iran also has approached Pakistan and India, but doubts have been expressed over whether the barter deals announced will be reached.

Iran's import needs depend on the progression of its own harvest, which started early last month in the

southern part of the country and should last until September.

Some European traders questioned the lobby's figure of three million tonnes already imported, saying it could not be matched by exporting countries' shipping data. “Deliveries are not working that well,” one said.

“I doubt there is already three million tonnes in the country.”

Traders said the Middle Eastern country's total needs this season could reach as much as eight million tonnes.

Food shipments are not targeted under western sanctions aimed at Iran's disputed nuclear programme,

but financial measures have frozen Iranian firms out of much of the global banking system.

The French lobby official said that state buyers he met explained that GTC (Government Trading Corporation) purchases made in recent months were linked to a shortage of feed grains - maize, barley and feed wheat - as the sanctions made it difficult for private buyers to find supplies.

“A lot of (milling) wheat was used to feed animals at the cost of human food. As a result GTC was forced to react and buy milling wheat on the world market to ensure supplies,” he said.

“They did not give us the feeling of trying to build extraordinary stocks but rather to react to feed grain supply difficulties due to financial sanctions,” he said, adding that GTC officials did not seem worried about obtaining supplies.

Iranian officials told the French delegation that they were seeking to maintain a sufficient level of wheat stocks, because the country had imported little wheat last season and did not want to have to deal with a shortage. The French lobby said Iranians had cited 3.5 million tonnes as an estimate for these stocks, while traders say this is a minimum now while trade financing is difficult.

“Iranians are constantly buyers,” one trader said. “The harvest will be normal. Why would they want to buy so much if it wasn't for building stocks, and as soon as possible?”

Iran has a large livestock farming sector and needs to import grain to feed its population. Its wheat harvest is expected to reach 14 million tonnes, which would be within the average of 13-15 million tonnes, the French official said.

Last month, the United Nations' food agency FAO had said Iran's 2012 wheat output would probably fall below 2011 levels to 13.5 million tonnes, hit by erratic rainfall in the main wheat producing areas.

Grain News

4

Storage crisis: India asks Malaysia to explore bulk wheat buy ith surplus wheat stocks, India has asked Malaysia to explore possibility of importing the grain in large quantities from the country.

The country, the world's second largest wheat producer, is grappling with the problem of plenty after an estimated record wheat output of 90.23 million tonnes in the 2011-12 crop year (July-June).

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private trade and diplomatic route, he said.

Currently, India is working on various options, including wheat exports to various countries to ease domestic storage crisis, which is mounting as rice and wheat stock in the government godowns has already crossed 70 million tonnes, against the storage capacity of 63 million tonnes.

"I made a suggestion to Malaysia to consider importing wheat in bulk from India," Food Minister K V Thomas told reporters after the meeting with Malaysia's Plantation Industries and Commodities Minister Tan Sri Bernard Dompok, here.The Southeast Asian country has been asked to consider wheat imports from India both through

The government's foodgrain stocks have risen due to record procurement in the last few years following bumper production.

The Malaysian delegation is on a six-day visit to India to strengthen bilateral relations.

Bilateral trade between India and Malaysia touched a record USD 12.5 billion in 2011.

India may sell wheat to Glencore ndia plans to sell 98,000 tonnes of wheat to Glencore International for export, as the country, the world's second-

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year ending June 30, the Agriculture Ministry said. The country scrapped a four-year ban on exports by private traders in

largest grower, seeks to cut record state inventories, said two government officials.

The cabinet is set to allow the State Trading Corp (STC) next week to sell 38,000 tonnes at $230 a tonne and 60,000 tonnes at $228 a tonne, said the officials, who declined to be identified because the plan is private. The price is less than the Rs 18,220 ($328) a tonne cost to the government of buying and storing the grain, they said.

India is seeking to cut reserves held by the state-owned Food Corporation of India (FCI) to create room for a sixth year of record harvests. Production will be 90.2 million tonnes in the

September.

“Global prices are expected to plunge with exports from India and commencement of Russia's new crop from July,” said T P S Narang, an adviser at the New Delhi-based Emmsons International, a grain exporter.

Wheat for July delivery rose 0.8 per cent to $6.18 a bushel on the Chicago Board of Trade by 4:55 pm Mumbai time. Futures have fallen 16 per cent since September 8, when India ended the ban on shipments.

N C Joshi, a spokesman for the Food Ministry here, and Pravin Dongre, chief executive officer of Glencore Grain India Pvt, declined to comm

Beverages & Food Processing Times-June-II-2012

Launched 3 new products in last 6 months for Salt,

Snacks & Milk Segments

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eing the architects of Packaging Solutions in India, Nichrome believes that a true packaging solution is an optimum combination of Product to be packed, Packaging machine and Packing material. Nichrome is a company who can deliver the most complete and cost effective answer to everything related to your packaging needs. They create solutions that meet customers' individual requirements by focusing on their unique needs. Their experience and expertise of more than thirty years significantly lower the total cost of packaging for clients.

In a recent email interview Managing Director of the Group Mr H P Joshi briefed your newspaper, excerpts are below.

What is the definition of successful packaging in your words?

Successful packaging that retains quality of product being packed in most eco-friendly manner with good aesthetic appeal at competitive cost.

What are the latest trends you see in the flexible packaging industry at present?

Aesthetics seems to be taking prime seat in case of retail packs while eco-friendly aspects are prime drivers for bulk packs. More automation for scalability, quality & less labour dependence seem to be prime considerations in planning for new packaging machinery.

How has been last one year for your company especially the response from the food & beverages segments?

Food & beverage segments continue to grow in India.

More & more manufacturers are looking for reliable Packaging machines within built versatility to handle variety of products. We being the reliable Packaging machinery supplier offering customized solution business is growing well for us.

Any significant achievement for your group in recent times?

We have commercially launched three new products in last 6 months – Saltpack (for high speed packing of Salt), Snackpack (high speed packing machine for Snacks – 90 ppm) & High speed Milk packing machine (10000 packs per hour). There has been good response to these products.

Apart from this two technologies launched last year – Multilane machines & Horizontal FFS machines continue to grow for us.

India is one of the biggest consumers of packaging products but on the other hand environment friendly packaging is the need of the hour. What have been your efforts in this direction?

We continue to work with growing Indian multinationals apart from International companies working in India in offering customized reliable solutions. We will continue to launch products / systems in line with changing requirements of Indian packaging.

Marine & Poultry News

5

Beverages & Food Processing Times-June-II-2012

Corporate News

6

ITC nearing break even in few quarters, crossed 3000cr mark

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s a business, ITC Foods is younger than many other established players around, having begun operations only a decade ago. But the Bangaloreheadquartered division has shown why it cannot be taken for granted.

The division has crossed the Rs 3,000-crore-mark in terms of turnover, has cut its losses significantly and retains growth levels in excess of 25 per cent per annum. Analysts estimate that within the next few quarters, ITC Foods is likely to break even. They also say that in a couple of years, the division may touch the Rs 5,000-crore mark in terms of turnover. So how has ITC cracked the code in foods? That too at a time when rivals such as Hindustan Unilever (HUL), who've been around longer in foods, have struggled with the business.

Processed foods clubbed with icecreams constitute just 6 per cent of HUL's Rs 22,116-crore turnover.

The answer, say experts, lies in the choice of food categories that ITC has opted to play in. Besides being high-growth segments, ITC, says Anand Shah, FMCG analyst at brokerage Elara Capital, has preferred to step into areas where it can exploit back-end synergies well.

“Whether it is direct procurement from farmers using its e-choupal network or pushing products using its legacy distribution in cigarettes, ITC has got crucial elements of the marketing mix in place in foods,” he says. This point is endorsed by Chitranjan Dhar, chief executive officer, ITC Foods Division. He says, “Besides cost-effective sourcing using e-choupal what lends competitive strength is the traceability of the commodity through identity-preserved procurement. This enables customised blending (which again is a strength honed from the practice of tobacco blending over the years) to support local tastes and

preferences. ITC's packaging business provides unique solutions and the division also draws upon the synergies of the group company in areas such as consumer insights, branding and efficient trade marketing and distribution. The foods business is also able to utilise knowledge from ITC's hotels business and its master chefs when formulating its products.”

At the moment, ITC has seven brands in foods including Aashirvaad (staples and ready to eat), Bingo (snack foods), Sunfeast (Biscuits and Pasta), Yippee (instant noodles), Min-o and Candyman (Confectionery) and Kitchens of India (Ready to eat).

Of this, ITC has market leadership in staples and confectionery, is number two in instant noodles and ranks among the top three in biscuits, says Dhar.

In categories such as snacks, ITC has positioned itself as a player that offers differentiated products. Dhar

says, “We have enriched the snacks portfolio with the introduction of a new variant called Tangles where each bite disintegrates into multiple flavour-filled strands. In biscuits, two unique flavours Sunfeast Dark Fantasy Choco Fills and Sunfeast 'Dual' Dream Cream were launched.”

This combined with its attempt at premiumising its portfolio have helped the division in logging better sales numbers. Abneesh Roy, associate director, research, Edelweiss Capital, says, “Sales of value-added and premium products grew at a faster clip, leading to portfolio premiumisation and an enriched sales mix. Portfolio enrichment was driven by products such as Sunfeast Dark Fantasy Choco Fills and Sunfeast 'Dual' Dream Cream in biscuits. In staples, Aashirvaad multi-grain and Select brands continued to grow rapidly.”

HUL hits back The Mumbai-headquartered

company, which is also the largest FMCG company in the country, has put in a place a blueprint to get its act together in foods. In a recent announcement, HUL said that it was integrating its food services business called Unilever Food Solutions with its out-of-home division in a bid to enhance sales of its food brands.

An HUL spokesperson said, “Out of Home (OOH) Foods and Beverages consumption is a large and growing opportunity in India. In India, we operated in the B2B Institutional space through two separate divisions- Out of Home division for Beverages & Unilever Food Solutions for Foods. These two divisions are being integrated into one OOH services organization in order to leverage the synergies & efficiencies of having a 'One Unilever' face to customers & a consolidated Go To Market organisation. “ But will it work?

The HUL spokesperson says it will.

hopes breakfast item will thaw India's resistance to frozen food Britannia sees West, targets Indians McCain processed foods – make this a done, it will be bad, it cannot be ith her family waiting for

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ritannia Industries, which has a near dominant control in the Indian biscuits market, is embarking on a global expansion to shore up its growth story. The company, which logged 19 per cent growth in top line at Rs 5,400 crore, derives around Rs 250 crore from global operations and is looking at all vectors to expand its presence overseas.

“Several of our bakery and dairy brands are available in approximately 30 countries, and we want to open up new geographies with new offerings,” Managing Director Vinita Bali said. Britannia, in addition to a decent presence in West Asia, Southeast Asia, Africa and Australia, has entered mature

North American and UK markets.

“We are targeting the Indian diaspora in the United States, Canada and the UK. It is indeed a highly competitive market, but is a large one, as well,” Bali said about sales prospects there. According to her, Britannia has hardly touched the tip of the iceberg in reaching out to the Indian diaspora, and intends to reach beyond this target segment pretty soon and rely on the distributor model. Britannia intends to ride on the established organised retail market in mature markets and go for the hard sell at the point-ofsale terminals to reach out to the consumer.

“We support our brands selectively,

depending on the market, and this consists of in-market and some media support. The radio there is a very targeted medium and we are riding on that. Some of the Indian television networks beam Indian content to the people there and we are leveraging on that, as well,” Bali said.

According to her, a key challenge in building a brand in an overseas market with an abundance of choice, is in establishing its relevance and specialty. “In our experience, consumers around the world buy brands and not companies or the way they are structured. To compete effectively, quality and its consistent delivery is a given. Being global is the way companies look at the world and their businesses. Consumers look for brands that satisfy their needs and are different, better and special,” Bali noted.

Bali should know. She has worked in global roles at Cadbury and The Coca-Cola Company. During her stint as the worldwide marketing director in The Coca-Cola Company, she was one of the key players in doubling its historical growth rate. Apart from its expansive manufacturing capacity in India, Britannia has some facilities in West Asia after it acquired two bakery companies there.

“Some of the products catering to the global markets are sourced from these units, while the bulk of the supply is from India as it is more cost effective,” Bali said. In 201112, Britannia spent as much as Rs 200 crore to expand capacities and put up two greenfield units. Industry analysts indicate Britannia may be scouting West Asian markets for another acquisition, an aspect on which Bali declined to comment.

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breakfast, Sanjukta Majumdar reaches into her freezer, pulls out a packet emblazoned with the black and yellow logo of her favourite food brand and clatters a half-dozen frozenidli onto a plate. She pops the discs of lentil and rice flour into the microwave, tears open the accompanying packet of sambar paste, adds a bit of water and, in moments, delivers a steaming, nutritious breakfast – the family favourite – to her husband and two sons. She has a bite and, in her simple assessment, reveals the heart of the strategy a Canadian food giant is using to conquer South Asia's kitchens.

“It's even better than the ones I could make myself,” Ms. Majumdar says of her frozen idli – made and sold by McCain Foods (India) Pvt. Ltd., the Indian branch of the New Brunswick-based food-processing giant.

The little white idli is a clever gamble by McCain, an attempt to carve out a place for its frozen-food products in a market where the company has no natural foothold.

McCain came to India more than a decade ago, first focusing on agricultural research and then entering the nascent fast-food market with its ubiquitous French fries. Frozen food was a brand new field as well, but the company cautiously introduced some of its most popular international snacks, such as cheese and jalapeno nuggets. McCain, which is privately held, does not release sales figures, but the rapid rate of expansion would suggest they are solid.

Rapid social changes in India – a huge growth in people living in nuclear rather than extended families; more households with two adults working; less comfort with live-in domestic help; plus more aspirational desire for packaged and

Future Group ties up with agri company to produce healthy foods

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ishore Biyani led- Future Group and LT Group, maker of Dawaat basmati rice, announced that they have struck an agreement wherein the LT Group will utilize the integrated food park facilities that are being developed by Future Ventures for the purposes of setting up a milling, processing and storage facilities for sona masuri rice.

Both the groups will jointly develop

and market healthy snacks to be manufactured at Daawat Foods facilities, a subsidiary of LT Foods under a private label brand. In addition, they will develop and market a wide range of organic staple foods being processed by Nature Bio Foods in its facilities in North India. The integrated food parks being set up by Future Ventures aims to provide end-to-end infrastructure and facilities for the

food industry.

Kishore Biyani, founder and group CEO, Future Group said, "We are excited to have LT Foods as a partner in our integrated food parks.

Food consumption in India is largely in commodities and there lies a huge opportunity to provide customers with branded, valueadded products that offer superior quality and health benefits and benefit everyone in the ecosystem."

market with huge potential.

Consumer analysts say it is now about 300 million people strong.

But this market also presents giant challenges: People are unfamiliar with, and thus often suspicious of, frozen food; there are huge logistical hurdles in manufacturing and a near-total absence of a reliable temperature-controlled supply chain.

Nevertheless, India's Ministry of Food Processing Industry estimated in 2011 that the frozen-food sector is growing by 14 per cent a year.

This country, it says, is the last great frontier in frozen foods.

“Per capita annual consumption of frozen foods even in an underdeveloped market like China is just about 3.5 kilograms and the total market size is $14.4-billion, i.e. roughly 400 times larger than India's market,” the ministry said in a statement last year. In Britain, it is about 34 kilograms, with $60 spent per person a year; in India, currently, it is three cents a year.

“For frozen food, you have to break a lot of barriers,” said K.S. Narayanan, who was until a few months ago managing director of McCain India. (The company declined to make any of its current staff available for an interview, saying communications staff were busy “for a month.”)

“You need to go with food [Indians]are comfortable with,” Mr. Narayanan said. “Could I have done it only with French fries? No.” The company set out to woo dubious Indians using local delicacies. First, in 2008, came the aloo tikki – a small fried disc made of potatoes, not unlike a hashbrown patty, often served from street carts and school canteens.

The tikki caught on quickly but because people were used to buying them ready-made, it didn't represent a real mindset shift.

Then, Mr. Narayanan explained, close analysis of Indian eating habits revealed that the idli was a top-three breakfast food not just in the south, to which it is indigenous, but in all parts of the country. "We zeroed in on idli. It's not messy, it's easy to make, we can do it. It's known as healthy, it's just protein and carbohydrate.”

McCain perfected a freezable idli, but then had to get people to try it.

“People's instant reaction, if you tell them it is frozen, is, 'It cannot be

tasty, it is too old,' ” Mr. Narayanan said. So the company fanned agents out to small retail stores across the country (large supermarkets are rare here, kept out by government restrictions), equipped them with microwaves and had them popping idli into the mouth of any customer who would stand still long enough.

The secret, Mr. Narayanan said, lies in the way they are made. When grandmothers made idli, they prepared the rice and fermented lentils on a stone grinder – a process that created heat from friction and trapped air in the mix, making for a light, fluffy patty.

When people do it at home today, they usually use a small electric grinder, the go-to appliance in most Indian kitchens with electricity.

That produces a heavier idli.

McCain built industrial processors that mimicked grandma – and a breakfast closer to hers.

After they launched the idli last year, McCain found that not everyone knew what to do with them – which prompted the company to add sambar (a lentil vegetable broth) and sell it all in a combo pack.Sambar, Mr. Narayanan added, was tricky. It's served as a runny liquid, hard to package – and good plastic packaging is hard to find, and expensive, in India. “So a chef made us a concentrate and then we said in the instructions to add water at home – and that also gives the housewife some level of activity which gives her satisfaction of having made it.”

Ms. Majumdar said she likes it, in fact, because there is almost nothing for her to do – she runs a paperproducts business, her husband doesn't cook, her children are busy, so making her own idli was a hassle she is happy to skip. The price is nice, too – 60 rupees, or a bit over a dollar, for the six-pack with sambar.

Not everyone, however, shares Ms. Majumdar's enthusiasm.

“Most people who try them say they're only acceptable if you dunk them in sambar,” said Vir Sanghvi, who writes “Brunch,” India's most widely read food column, in the Hindustan Times. He thinks McCain should have stuck with its tikki, which he praised in his column as startlingly good. “ Idli is ambitious – it's a step too far.”

Beverages & Food Processing Times-June-II-2012

7

Beverages & Food Processing Times-June-II-2012

‘Food safety standards have immense benefits' a number of Indian standards in various fields with the needs and priorities of the country. It has formulated 1,000 Indian standards in the area of food products and food safety.

The three Indian standards recently formulated by BIS such as Indian Standards on Good Manufacturing Practices (GMP), Good Hygienic Practices (GHP) and Food Retail Management (FRM) are also important in the area of food products and food safety, he said.

T

he globalisation of food trade offers many benefits to consumers as it results in wider choices of high quality food items and offers affordability, Mr K.V. Thomas, Union Minister of State of Consumer Affairs, Food and Public Distribution, has said.

Inaugurating a national seminar here on 'Food Safety – Role of Standards', the Minister said that global food trade also provides opportunities to earn foreign exchange through export of food items that would be acceptable to people in other countries.

Objectives Viewed from these angles, the Minister said, the role of standards in the domain of food safety is immense. The main objectives behind formulation of standards includes promoting public health by reducing the risk of food, providing a sound regulatory foundation for domestic and international trade in food and to protect consumers from mislabelled or adulterated food.

The Bureau of Indian Standards, he said, has made significant contribution by way of formulating

Street foods According to Mr Thomas, the recent growth in street foods and street food vendors has been phenomenal with important economic and nutritional implications in the urban context.

Readily accessible and affordable to urban population, they provide the energy and nutrient needs to large segments of workers and their families in the cities.

BIS has recently finalised Indian standard on basic requirements for street food vendors, which is a noteworthy initiative, he added.

The seminar focussed on various facets of food safety requirements and regulatory requirements applicable to hospitality sector as well as food sector. It discussed on various subjects related to hygienic requirements, good manufacturing practices and standards related to food sector.

Court bars Commissioner of Food Safety from enforcing rules against hotels

T

he Madras High Court has granted an interim injunction restraining the Commissioner of Food Safety of Tamil Nadu from enforcing the provisions of the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations 2011 against the members of the Tamil Nadu Hotels

Association and a hotelier of T. Nagar here.

Vacation Judge, Justice K.Venkataraman, passed the interim order on a petition by the association, represented by its president, M. Venkatadasubbu and P.G.R. Ganeshan, the hotelier.

Mr. Justice Venkataraman ordered notice of admission of the petition returnable in three weeks. He said since an interim injunction and stay had been granted by the High Court's Madurai Bench on similar petitions, he was passing the interim order.

In the petition, filed through counsel G. Sankaran, the petitioners challenged the validity of certain

regulations framed under the Food Safety and Standards Act. The Centre had enacted the Act to consolidate food laws and establish the Food Safety and Standards Authority of India for laying down scientific standards for food articles and regulating their manufacture, storage, distribution, sale and import.

Under the law, the Food Safety and Standards (Licensing and Registration of Food Businesses) (Packaging and Labelling), (Food Products Standards and Food Additives) (Prohibition and Restrictions on Sales) and (Contaminants, Toxins and Residues) Regulations had been framed. The Act, rules and regulations came into effect from August 5, 2011.

The petitioners said the association members were running non-star restaurants, eateries, mess, sweet stalls, bakeries and coffee stalls.

The regulations were “really draconian” in nature as the conditions laid down were virtually

impossible to be implemented. They would result in “devastation of local food industries which were in the nature of small-scale or cottage industry and the entire food business would be conquered by multi-national companies and multi-national industries”.

The Act provided for a clear and categorical distinction between petty food manufacturer and other food manufacturers. However, on the contrary, the regulations in their entirety obliterated the difference by resorting to “inappropriate definition” of the term “petty food manufacturer”. Hence, the entire regulations were ultra vires the Act. The association said that most of the stand alone restaurants and eateries were being run as selfemployment enterprises. Their owners were educated and possessed experience and expertise to maintain hygiene and take care of the production process as they were in business for generations. Further, the chefs and cooks employed had enough experience in food preparation. Therefore, there may not be any mandatory requirement for engagement of a technical person to supervise the food processes in hotels. A physical, microbiological and chemical laboratory had been made mandatory for testing the food material within the business premises.

The court also granted interim stay of the operation of certain regulations in the Food Safety and Standards (Licensing and Registration of food businesses) and regulations of Packaging and Labelling and Food Products Standards and Food Additives regulations.

Food Safety News

8

Arbro Analytical Division Authorized by FSSAI for Testing of Food Samples Arbro Analytical Division one of India's largest NABL accredited food testing laboratory has been authorised by the Food Safety and Standards Authority of India for testing of samples under the Food Safety and Standards Act.

The Food Safety and Standards Authority of India was established by the Ministry of Health and Family Welfare through the Food Safety and Standards Act 2006.

Subsequently, the Food Safety and Standards Regulations 2011 were published on the 1st August 2011, laying down a mechanism of registration and licensing of food business operators to ensure the quality and safety of food sold in the country.

Under the regulations, for licensing of a food business, the food business operators are required to periodically get their input materials, water and food products tested from a NABL accredited and FSSAI authorised food testing laboratory. The periodic testing is intended to ensure the safety and quality of the food being produced.

For this purpose FSSAI has authorised NABL accredited food testing laboratories like Arbro, for carrying out the required testing.

Established in the year 1990, Arbro Analytical Division has been serving leading players in the food industry for over a decade now.

Arbro was first accredited by NABL in 2003 and has since evolved a comprehensive scope of accredited food testing services including Microbiology, Nutritional Labelling, Pesticide Residue, Drug Residues, Aflatoxins, Naturally Occurring Toxins and Genetically Modified Organisms. The laboratory is also

accredited for the testing of water as per the Indian and international standards.

In a comprehensive study on food testing infrastructure conducted by TUV Southasia, Arbro was declared as one of the 5 national level laboratories in India. The study was sponsored by Ministry of Food Processing of India (MoFPI) and covered 312 laboratories in India.

Backed by state-of-the-art infrastructure Arbro has been working with most of the leading food industries in the country.

“We are thrilled to be authorised by the Food Safety and Standards Authority of India. The implementation of the Food Safety and Standards Act is a commendable effort on the part of the Ministry of Health And Family Welfare, Government of India. The Food Safety and Standards Act consolidates, various acts and orders, under different ministries into a single act and organisation.

This will go a long way in ensuring the availability of safe and wholesome food to the citizens of India,” said Mr. Vijay Kumar Arora, Managing Director, Arbro Pharmaceuticals Ltd. (Analytical Division).

“I am very excited that our laboratory has been authorised by the Food Safety and Standards Authority of India, for testing of food samples. For more over a decade now we have been serving the food industry, primarily to ensure the quality of food being exported from India. This has helped us to develop a comprehensive scope of food testing services which covers all the requirements laid down under the Food Safety and Standards Act. Now extending these services to leaders in the domestic market, backed by our superior quality and service, is going to be a win-win situation for both,” said Dr. Saurabh Arora, Executive Director, Arbro Pharmaceuticals Ltd. (Analytical Division).

Keventer plans to set up food park in Bengal

K

olkata-based Keventer Group is planning to set up a food park in West Bengal, investing about Rs.7 billion, a top executive of the company said.

"We are looking to invest in Bengal in food processing and looking at setting up a food park at Dankuni. For development of infrastructure, we have to spend about Rs.700 crore. After that, we think that we would be able to bring in an investment of about Rs.2,500 crore to Rs.2,600 crore," Keventer Group managing director Mayank Jalan said.

Jalan said many food companies were looking to set up units in the state and about 80 firms were expected to build units in the upcoming park.

"A lot of food companies all

over the world are looking to set up base here. Instead of going individually, and getting their clearances, we will do it together for them at one place and we have received several expression of interest. We are expecting about 70 to 80 companies in the park to set up their units," he said. Jalan said he was hopeful of starting work for the park by the end of this year.

Keventer is also developing similar parks in Bihar and Orissa.

The company inaugurated the Edward Food Research and Analysis Centre (EFRAC) and the Rs.65 crore manufacturing unit of ITC's Sunfeast Yipee noodles, with a capacity of 50 tonnes per day, at Barasat.

Beverages & Food Processing Times-June-II-2012

Punjab trains youths to increase dairy products

A

tleast 90% of the milk produced in developed countries is processed for dairy products whereas this figure is just 14% in case of Punjab.

It was stated in a commercial training programme organized by Krishi Vigyan Kendra, which is affiliated with Punjab Agriculture University, Ludhiana, at Guniyana village of Muktsar district.

During the 10 days training programme, the participants especially rural youths were taught about balanced ration for different age groups of dairy cattle. They were also told about care of animals in different seasons, timely vaccination to avoid infectious

diseases and financial assistance from banks available for dairy farmers .

Twenty four trainees were awarded certificates after successful completion of the training course.

Dr. NS Dhaliwal, deputy director, Krishi Vigyan Kendra, Sri Muktsar Sahib shared his views about importance of dairy farming as a main occupation.

"It's a profitable venture as it complements agriculture in several ways and ensures good returns," he said. An expert on the issue, Dr. Madhu Shelly, who conducted the programme, elaborated about huge potential of dairy farming in Punjab.

It was also stated in the training programme that Punjab houses only 3% of total milk producing animals of India, though, it still holds fourth position in milk production in the country.

Few months back, Punjab had imported 1.5 lakh high quality sex semen doses from Canada to improve the cow breed, thus creating new milestones in the production of milk. According to Gulzar Singh Ranike, state minister for animal husbandry and diary development, said that these imported sex semen would help 75,000 cows to produce dual breed offspring.

Amul plans to open 1,000 outlets this fiscal

T

he largest food brand in India currently has around 6,500 outlets selling various items, including dairy and frozen product. Preparing to defend its turf from foreign competitors, Gujarat Cooperative Milk Marketing Federation that sells dairy products under the popular Amul brand, aims to open 1,000 more outlets across the country in the current fiscal.

Amul, the largest food brand in India with a turnover of Rs 11,668 crore in 2011-12, currently has around 6,500 outlets selling various items, including dairy and frozen products. "We plan to add another 1,000 outlets in the country in the current fiscal. We need to be

prepared as FDI in (multi-brand) retail can happen anytime," Gujarat Cooperative Milk Marketing Federation (GCMMF) Managing Director R S Sodhi told.

Currently, Amul's main competition in segments like dairy whitener, baby food and condensed milk comes from Swiss major Nestle, while in frozen food category it plays against regional players such like Vadilal and Kwality.

On the core milk segment, Mother Dairy is its main competitor.

The government had last year decided to allow up to 51 per cent FDI in multi-brand retail but deferred its implementation due to political opposition.

Commenting on sales projection for this fiscal, Sodhi said the federation is aiming to touch Rs 14,400 crore in 2012-13.Amul, which is also known for its advertisements based on topical events, said the campaign helps in keeping the Amul brand refreshed and young.

"The campaign has kept Amul brand contemporary, fresh and young," Sodhi said.

He added that unlike other FMCG firms which spent around 7-8 per cent of their turnover in advertising, the federation's spend on the marketing campaigns has been less than 1 per cent of the total turnover.

Formed in 1946, Amul is jointly owned by 3.03 million milk.

Mother Dairy in high-protein growth drive

A

scorching summer is good for dairy product makers.

The capital's corporate milkman is betting on this for high growth.

Mother Dairy, the wholly owned subsidiary of the National Dairy Development Board (NDDB) with sales in excess of Rs. 5,200-crore, plans to double its dairy products turnover by the end of the fiscal year 2013-14, aided by ready-to-eat kheer and fruit yoghurt on which rival brands such as Amul and

Danone have pushed ahead in the past one year.

“By 2013-14, dairy products will be Rs. 1,100 crore business for the company from Rs. 550 crore today.

We plan to achieve this by adding capacities and expanding pan-India distribution and marketing,” Subhashis Basu, business head, dairy products, Mother Dairy, told.

The dairy products division is growing at a 35% annual clip and 13 new ice cream derivatives are planned to keep up the momentum.

“With rise in incomes, the demand for protein intake will go up. We expect that huge demand will come from first-time consumers. I believe, this is the most exciting time in dairy products business,” Basu said.

In India, the per capita consumption of dairy products does not exceed 300 millilitres per annum, compares with Europe's 9 litres and US' 12 litres, say officials of Mother Dairy, which plans to fan into Kolkata and southern India next year.

Sahara India to enter dairy business

S

ahara India Pariwar announced its decision to make a foray into dairy business from next year.

"We are going to make a foray into dairy business by opening the world's biggest dairy on April 1, 2013. We plan to produce 50 lakh tonnes of milk -- the largest in the country," Managing Worker and Chairman Sahara India Pariwar told reporters here. He said pure milk would be made available to the public from his dairy and for this 9,000 acres would be acquired near

Muzaffarnagar in Uttar Pradesh besides land in Madhya Pradesh.

Asked why the company is not entering West Bengal in infrastructure business, Roy said there were a lot of political problems there. "We faced a lot of legal hurdles in acquiring 175 acres of land in Kolkata", he said adding that in Siliguri and Kharagpur the company is likely to launch its projects soon.

About the group's experience in Uttar Pradesh in past five years of BSP rule, Roy said the company

was in "back gear".

On problems being faced for development of townships, he said 47-48 government sanctions were needed for a project. "Besides, environmental clearance is necessary. It takes about two years," he said and added that group had the biggest land bank in the country and expected three-four other companies to come up.

About plans to enter Delhi, Roy said it was planning a project near Dwarka and also in Greater Noida and Ghaziabad.

Amul dairy products exports set to rise by 20 pc, says MD R S Sodhi

G

ujarat Cooperative Milk Marketing Federation, which sells dairy products under the popular brand Amul, expects to increase its exports by 20 per cent on the back of surging demand.

The federation is exporting products like butter, cheese, ghee and sri khand worth Rs 100 crore, at present.

"We are expecting to increase our export by 20 per cent soon," Gujarat Cooperative Milk Marketing Federation (GCMMF) Managing Director R S Sodhi

told.

The Amul brand has significant presence in overseas markets such as Mauritius, the UAE, the US, Oman, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries.

Sodhi said, "Though our focus is mainly on the domestic markets, we have to ship our products outside to cater mainly to the needs of Indians settled abroad".

Formed in 1946, Amul is jointly owned by 3.03 million milk producers in Gujarat.

Amul spurred the White

Revolution in India which in turn made India the largest producer of milk and milk products in the world. It is also the world's largest vegetarian cheese brand.

Amul is the largest food brand in India and world's largest pouched milk brand with an annual turnover of USD 2.2 billion (2010-11). It is selling milk and other products through 6500 outlets across the country.

The Dairy major had a turnover of Rs 11,668 crore in 2011-12 which it plans to enhance to Rs 14,400 crore in 2012-13 fiscal.

Dairy News

9

Dairy business in A P reached 5000cr mark

T

he dairy industry in Andhra Pradesh has grown by leaps and bounds over the past few years to be currently worth Rs 5,000 crore. With around 200 small and large dairy farms coming up in the city in the past four years, the agrobased dairy business seems more lucrative than ever.

The rise in the demand for milk and milk products has catapulted the state to the third position in the country in terms of milk production with 1.12 crore tonnes produced in 2010-11. With dairy farms and processing plants of different sizes scattered across city suburbs such as Shadnagar, Patencheru, Madhapur and along the Nagarjuna Sagar and Siddipet Roads, industry experts peg the mushrooming of these farms and of those across the state to the burgeoning population and the retail revolution in the city.

Significantly, in a bid to protect their lands, many farm owners set up dairy farms on the city outskirts.

Dairy farming consultant Dr Padmakar Rao says, "The availability of good quality fodder and access to water helped these farmers on the outskirts of the city to get a foothold in the business."

Experts pointed out that though the government had liberalised its policies on private entities making a

foray into the dairy business in late 1991, it is only now that the private players have made substantial progress.

K Durga Prasad, chief operating officer, Heritage Foods India Ltd, says, "Earlier the market was monopolized by APDDCF and Visakha Dairy. Now, there are many private players such as Heritage, Tirumala and Creamline apart from others such as Masqati and Bilal.

Waking up to the big money in milk, Andhra Pradesh Dairy Development Cooperative Federation ( APDDFC) will start mapping every drop of milk procured and sold. The cooperative had a turnover of Rs 450 crore in the last fiscal and milk sales have registered a growth of 9.82% with 1,395 lakh litres sold in 2011-12, according to vice-chairman and managing director, Mohd Ali Rafath.

Experts estimate that the consumption of milk will increase manifold over the next decade.

Bhaskar Reddy, managing director, Creamline Dairy Corporation says, "According to national statistics, milk consumption will increase from 112 million tonnes this year to a staggering 200 million tonnes by 2020."

Low-lactose milk from world's first GM dairy calf

C

hinese scientists claimed to have bred the world's first genetically-modified calf that would produce low-lactose milk in two years, state media said.

The calf, named 'Lakes', was born on April 24 at a lab of Inner Mongolia Agricultural University.

"It is healthy and strong," lab professor Zhang Li said. In May 2011, Zhang and his research team extracted fetus fibroblasts from a Holstein cow that was 45 days pregnant and genetically engineered the fetus by transplanting an lactose

dissolution enzyme into the cell, Xinhau news agency said.

The engineered fetus was then transplanted into the womb of a cow in July, and Lakes was born about nine months later, Zhang said.

"The enzyme can dissolve lactose — the main sugar found in dairy products — into galactose or glucose to ease digestive disorders among the lactose-intolerant people," he said. Lakes may, therefore, produce safer milk for lactose-intolerant people, who account for nearly 60% of Chinese.

‘Strengthen livestock, dairy sectors to achieve 4% agri growth'

I

ndia can achieve four per cent growth in the agriculture sector, as envisaged in the 12th Five Year Plan, provided the livestock and dairy sectors are given enough incentives, said Mr Mark Kahn, Executive Director of Godrej Agrovet.

He was participating in a panel discussion on agriculture growth at the Indian Merchants' Chamber.

Mr Kahn said that currently, polices are heavily tilted in favour of dairies run by the cooperative sector. However, cooperative dairies have been successful in Gujarat and to a certain extent in Maharashtra and Karnataka. “But, in the rest of the country it has been an unmitigated disaster.

Policy makers should pay attention to private dairies,” he said.

Under the National Dairy Plan, huge sums of money would be handed over to the cooperative dairies, neglecting private sector dairies like Nestle and others.

These private dairies are developing the sector very well, as

well as undertaking farm extension services, he said.

The National Dairy Development Board has rolled out an ambitious, 15-year-long National Dairy Plan, envisaging an outlay of Rs 17,300 crore.

Private initiative Mr Kahn pointed that private companies are best suited for developing the sector because they do maximum value addition in milk products, while cooperative sector dairy revenues are still driven by selling milk and they have not diversified their product portfolio.

He said that there was huge potential for growth in the livestock sector, which is almost 25 per cent of the agriculture sector. The sector is already growing at four per cent without any major help from the Centre or the State Governments. The poultry and inland fisheries sectors are also growing at six to eight per cent. There is a need for new investment in these sectors too, he said.

Omega-3

Beverages & Food Processing Times-June-II-2012

D

airy industry plays an important role in the socio-economic development of India generating huge rural employment and providing cheap nutritional food to a vast population. The Indian dairy industry is growing rapidly, trying to keep pace with the galloping progress around the world.

Presently, India is the world's largest milk producer, accounting for more than 13 per cent of world's total milk production. In the next 10 years, India's dairy sector is expected to triple its production in view of expanding potential for export to Europe and the West. The urban market for milk products is expected to grow at an accelerated pace of around 33 per cent per annum to around Rs 43,500 crore by 2015. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products.

The emergence of a significant middle-class, urbanisation and the expansion of modern shopping habits by busy, health-conscious and well-informed consumers is raising the consumption of packaged milk in India. Economic growth is sustaining the purchasing power of Asia's middle-class, which is set to fuel demand for healthy packaged products in supermarkets and convenience stores from Shanghai to Mumbai. The changing demographics are changing the way people are consuming dairy products. The burgeoning middle-class is driving demand for new types of liquid dairy products in both developing and developed markets. Increasingly, consumers are opting for ready-to-serve dairy products which ride piggyback on the fast food revolution sweeping the urban India.

The effective milk market is largely confined to urban areas, inhabited by over 25 per cent of the country's population. An estimated 50 per cent of the total milk produced is consumed here. The expected rise in urban population would be a boon to Indian dairying. Presently, the organised sector both cooperative and private and the traditional sector cater to this market.

This January the nation and the Indian dairy industry had felt the shock of knowing that more than two-thirds of Indian milk was adulterated with items ranging from salt to detergent and may be unsafe to drink. The Food Safety and Standards Authority of India conducted a survey in 33 states and found that 68.4 per cent of 1,791 milk samples were contaminated. In urban India, nearly 70 per cent of samples were found to be contaminated, compared with 31 per cent of samples in rural areas. This survey created a negative atmosphere for the dairy sector not only in front of its consumers Five months after India's food regulator exposed widespread adulteration of milk- TheIndian dairy industry has bounced back with further expansion plans and with new entrants.

Sahara India Pariwar has announced its decision to make a venture into dairy business from next year.It isalso set to open one lakh consumer merchandise franchisee retail outlets across the country within the next couple of years.

The outlets will be opened in stages starting from Rajasthan by March this year, and expand the network to Uttar Pradesh, Bihar and Jharkhand by June-July. The entire retail network across the country is slated to become operational by March next year.

Mr Subroto Roy, Chairman of the group stresses that there main emphasis would be on the quality of the and in the time when there are constant reports about widespread adulteration of products, especially of food products, available in the market and the group would take it as a challenge to supply only high-quality products through its outlets.

Gujarat Cooperative Milk Marketing Federation, which sells dairy products under the popular brand Amul, expects to increase its exports by 20 per cent on the back of surging demand.This company has significant presence in overseas markets like the USA, Mauritius, UAE, Oman, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries.

Amul the largest food brand in India and world's largest pouched milk brand with an annual turnover of USD 2.2 billion (2010-11) is now going to open 1,000 outlets this fiscal.

Currently, Amul's main competition in segments like dairy whitener, baby food and condensed milk comes from Swiss major Nestle, while in frozen food category it plays against regional players such like Vadilal and Kwality.On the core milk segment, Mother Dairy is its main competitor.

A scorching summer is good for dairy product makers. The capital's corporate milkman is betting on this for high growth. Mother Dairy, the wholly owned subsidiary of the National Dairy Development Board (NDDB) with sales in excess of Rs. 5,200-crore, plans to double its dairy products turnover by the end of the fiscal year 2013-14, aided by ready-toeat kheer and fruit yoghurt on which rival brands such as Amul and Danone have pushed ahead in the past one year.

By 2013-14, Mother Dairy surely will be Rs. 1,100 crore businessand they plan to achievethis by adding capacities and expanding pan-India distribution and marketing.The dairy products division is growing at a 35 per cent annual clip and 13 new ice cream derivatives are planned to keep up the momentum.

The global opportunities available to the Indian dairy industry arise primarily out of availability of a large quantity of competitively priced milk.

Most of the traditional health and wellness products sold through the dairy sector are represented by processed dairy products such as malt beverages and infant nutritional products. Growing and organised retail penetration is expected to aid the growth of the diary market in India. The visible trends are that the consumption of milk products is on the rise. While it is growing at about 1-1.2 per cent elsewhere in the developed world, India and China are beating these trends. A number of categories which are highly dependent on organised retail like frozen food products are expected to witness significant growth in the years ahead.

10

THE GOOD F O

mega-3 oils are essential nutrients. In brain, the most abundant fat is DHA (docosahexaenoic acid).

Imbedded in the neural of membranes, DHA is critical to the growth and function of nervous tissue, the transmission of information from one brain cell to another and protection from oxidative stress. According to a recent article published in

their actions as antiinflammatory agents and their tendency to reduce the potential for blood clots by decreasing platelet aggregation (otherwise known as the tendency of platelets in the blood to clump).

Omega-3s comprise a class of fatty acids deemed essential, as critical compounds the body can't make. The other class of essential fatty acids is omega-6,

associated with the additional set of health benefits established for omega-3s, notably the protection of the retina, the development of the brain and the prevention of cognitive decline.

The human body can make DHA from the flax-type omega3s — but not very efficiently.

This prompted researchers to recommend obtaining DHA

the Journal of Nutrition (Jan, 2007) reduced levels of DHA in brain are associated with impaired cognitive and behavioural performance.

The levels are DHA in brain increase during the growth and development stages of life (especially pre-partum, infancy and early childhood), then decrease with age. However, levels are influenced by type and amount of fatty acids in the diet.

Recently, EPAX (www.epax.com) Lysaker, Norway, a world leader in the production of highly concentrated, marine-based omega-3, supplied its 1050 TG oil for a clinical trial on Alzheimer's disease. The study published in the International Journal of Geriatric Psychiatry (June 2007) showed that in carriers of a specific gene common to Alzheimer's, sufferers who received the omega-3 had reduced agitation symptoms. Moreover, those without the gene showed an improvement in symptoms of depression.

abundant in nut and seed oils and the germ of grains.

Omega-6s, though essential, tend to work opposite to omega3s in some ways, promoting inflammation and platelet stickiness. And since the ratio of omega-3 to omega-6 in the modern diet has drastically changed over the last century —favoring omega-6s, which are cheap and abundant in our food supply — nutritionists favor increasing dietary omega-3s by eating more foods such as flax, walnuts and especially fish oils.

The goal is to get closer to a ratio of 2:1 or 3:1 of omega-6 to omega-3 from the current 10:1 to 20:1.

Fish oil contains omega-3s that are distinct from the flax-type omega-3s. The fatty acid molecules are longer and more bent. They are predominantly eicosepentenoic acid (EPA) and docosahexaenoic acid (DHA).

These are the fatty acids abundant in organisms adapted to the cold, such as cold-water fish and cold-adapted mammals, because they keep the membranes of cells from becoming too stiff when exposed to frigid conditions.

Fish obtain EPA and DHA by eating algae that have the flaxtype omega-3s typical of plants.

DHA comprises about half of the fatty acids in the brain and is

directly, from fish or fish oil.

Cardiologists began recommending their patients take 1g per day of combined EPA/DHA. But within only a few years of a megatrend in fish oil, there arose a number of dilemmas. What about sustainability? And where do vegetarians get their omega-3s?

IS ALGAE DHA AS HEALTHY AS FISH OIL DHA? By now, many of the benefits of omega-3 fatty acids have been well established, particularly

Microalgae, Fungus Pressed Into Service Processors can expect increased availability of omega-3-rich oils derived from algae (and possibly other microorganisms) able to be used in a variety of applications. Martek Biosciences Corp, Columbia, Md., makers of Life'sDHA, is now a part of DSM. Martek developed and patented two fermentable strains of microalgae that produce DHArich oils. The company also developed a patented process for a fungus that produces an oil rich in arachidonic acid (ARA).

Both DHA and ARA are important nutrients for optimal infant development.

Last year, Whole Foods was pressured to pull from its shelves DHA derived from krill — tiny relatives of shrimp living in the Antarctic, the largest animal biomass on the planet and a potent source of DHA. The company cited

Omega-3

Beverages & Food Processing Times-June-II-2012

11

AT CALLED OMEGA-3 sustainability concerns over the harvesting of krill.

Ironically, krill was supposed to solve the threat of overfishing resulting from the demand for DHA. But the decline of animal populations that rely on krill raised concerns over management of this natural resource, prompting the Commission for the Conservation of Antarctic Living Marine Resources to issue a report changing quotas and restricting fishing areas.

The answer was to go to the source, to algae. Algae that make the flax-type omega-3s are not important rather the microscopic algae that make DHA itself. Cut out the middleman — or middle fish and middle krill, as it were.

Raised-on-the-farm algae yield DHA that is sustainable and can carry the vegetarian label, as well as being eligible for certification as kosher and organic. Algae-derived DHA is approved for infant formulas and already is found in many applications, including fruit juices, milk, soy milk, cooking oil, sauces and tortillas.

But is algae DHA as effective at conveying the heart-healthy properties as the DHA we derive from fish oil? Many studies suggest the answer is yes, but a comprehensive review of the literature was needed.

Such was published on the first of this year in The Journal of Nutrition. Researchers from the Wellness Institute of the Cleveland Clinic, the Dept. of Nutrition and Dept. of Epidemiology at Harvard School of Public Health, Channing Laboratory, Brigham and Women's Hospital and the Harvard Medical School conducted a systematic review of randomized controlled trials published between 1996 and 2011.

The research teams examined the relation between algal DHA supplementation and cardiovascular disease risk factors, triglycerides, LDL cholesterol and HDL cholesterol. They found that supplementation with algal DHA reduced triglycerides and raised HDL-cholesterol. This was similar to what had been reported. However, algal DHA also raised concentrations of LDL-cholesterol, although the increase was accompanied by a change in the type of LDL cholesterol to the larger, lessatherogenic form. Further research is recommended because many of the studies reviewed were funded by industries.

For now, DHA from algae

seems to be a sustainable, alternative source of DHA that can satisfy both the demands of consumers and the needs of

fill your omega-3 quest, there's always chocolate. Les Truffles au Chocolate Inc. (www.strategis.ic.gc.ca),

incorporated into the oil during the bottling process.

Researchers identified a strain of algae naturally rich in DHA.

Omega-3 oils have long maintained the status of “good” fats because of their noted anti-inflammatory properties and negative association with decreased cardiovascular disease risk. But recently they surged to even greater popularity because of two important advances: First, research is beginning to unravel the key role that omega-3 fatty acids play in brain development and function. Second, advances in micro-encapsulation allow potentially fishy tasting oils to appear in almost any food with nary a hint of the sea. vegetarians, as well as fulfilling most, if not all, the health benefits currently established with omega 3s.

THE OMEGA- 3 MARKETS We obtain DHA both directly, by eating food rich in DHA, and indirectly by eating foods containing omega-3 the body converts to DHA. The bestknown direct source is fish oil.

Until recently, the way to get DHA was to eat fish several times per week, or to ingest fishy tasting oil. That changed with advances in microencapsulation.

The creation of nano-sized particles allows DHA to be suspended in virtually any medium without imparting a fishy odour or taste to the food.

Such DHA also is digested without fishy aftertaste. Today, virtually any food or beverage can be your favourite source of DHA. Puresource Inc. (www.puresource.ca), Guelph, Ontario, is Canada's largest supplier of natural and organic functional foods. The company adds MEG-3 to its new Verve brand Beverage Buddy, a powdered beverage mix added to water, milk or juice. Available in Strawberry Smoothie and Panama Punch, Beverage Buddy this supplies omega-3, protein and prebiotic fiber. This company added MEG-3 powder to their drink mix because it was so easy to use and give their product the added benefit of fish, without the fish.

Ocean Nutrition another company also supplies MEG-3 to Danone for DANONE's Drinkable yogurt; the third yogurt product Danone has launched containing MEG-3.

This drink is called Danoni and the Danino brand now gone from traditional yogurts to drinkable yogurts. Kids now have two delicious ways to contribute to their daily requirement of both dairy and DHA, so as to help them reach their full potential.

If smoothies and yogurt don't

Calgary, Alberta adds MEG-3 to its entire O Trois line of chocolate. Each 45 g chocolate contains 100 mg of EPA/DHA from fish oil, but you'd never know it. The chocolate bars and fingers have the same great taste but they also have something a little extra…the added health benefits of EPA and DHA from fish oil.

All essential omegas (omega-3 and omega-6 classes) are derived from plants. Fish derive omega oil from seaweeds and algae or from the creatures that feed off them. Some nuts and seeds contain alpha linolenic acid (ALA), which can be metabolized to both EPA and DHA, though not very efficiently in humans. The major dietary sources of ALA are soy and canola oils, flax seed, and walnuts.

Olive oil already has a reputation for tasting great and potentially reducing the risk of coronary heart disease. Italica Imports (www.italicaoliveoil.com), Scarsdale, N.Y., one of the leading producers and distributors of Spanish olive in the U.S., provides extra virgin olive oil enriched with omega-3 fatty acids. The omega-3s from hake, salmon and codfish are

The result is Life's DHA a clear, amber-colored oil rich in DHA. Life's DHA is used in functional foods and beverages, infant formula (more than 90 percent of all U.S. infant formulas use Life's DHA) and supplements. The algae can also be dried prior to DHA extraction for use in animal feed, an effective way to enrich foods such as meat, eggs and milk.

Suitable for use in traditionally vegetarian foods and beverages, Life's DHA is certified both kosher and halal, and is used in array food products. Unilever's Breyers Yogurt (www.breyersyogurt.com), Boulder, Co., encourages consumers to “boost your brain” by eating its Smart! Brand yogurt enhanced with Life's DHA. One of the more unusual new ways for consumers to get their omega comes from Natural and Organic Food Group Inc. (www.naturalorganic.ca), Charlottesville, Prince Edward Island. The company recently obtained USDA approval for a full line of omega 3 deli products. The hot dogs, sliced and bulk Ham, kielbasa, bologna and bacon are marketed under the company's PEI PORK brand. In addition to having

high omega 3 content, the products claim a perfectly balanced amount of omega 6 as well.

Speaking of pork-related omega, Austin, Minn.-based Hormel Foods Corp., through its Health Technology and Specialty Products divisions (www.hormelingredients.com), entered the omega ingredient business with the Eterna brand of pure, tasteless and odourless Omega-3 fish oils. The company has shown Eterna's efficacy not only in meat applications but products such as cookies and beverages, too.

Another new entry into the omega field is ingredient giant Cargill (www.cargill.com), Minneapolis. Its new omega ingredient is designed for higher concentrations and “promises to be an innovative alternative to existing omega 3 products in the area of flavor.” According to company literature, preliminary development studies show that incorporation of up to 150 mg of Cargill's omega 3 per serving can be added to products with no discernible change in flavor or shelf life.

Overall, omega-3 products are projected to top $7 billion in the next five years. Consumers are the driving force, having a long familiarity with omega from the numerous fish oil studies.

Surveys by the Nutrition Business Journal, indicate 60 percent of the U.S. population is “aware of Omega 3s.” As science plumbs deeper into the health benefits of omega oils, technology such as microencapsulation makes it easier for processors to take advantage of those benefits.

Clearly, one doesn't have to fish very deep waters to haul in a net of omega-3 products.

Beverages & Food Processing Times-June-II-2012

Meat News

12

India Will Be World's Largest Beef Exporter in 2012 Consumption of buffalo meat in slaughter is officially prohibited and only 600,000 metric tons were t may come as a great surprise utterly anathema to the majority of exported. to anyone with even just a India is around 2m tons in 2012 Since, in my experience, outside of the population due to tradition cursory knowledge of India's

I

cultural relationship with cows, but new data from the USDA Foreign Agricultural Service (h/t The Atlantic) shows that the way things are going this year India will be the

and/or religion, will overtake three icons of cattle ranching and beef eating.

How is this happening?

A large part of it is technical:

world's largest exporter of beef.

Beef.

By the end of 2012 India will export roughly 1.5 million metric tons of beef, continuing a sharp rise beginning in 2009 and overtaking Australia, Brazil, and the United States, in that order. Each of those nations will export around 1.2-1.4m metric tons of beef this year. India's beef is sold in the Middle East, North Africa, and Southeast Asia.

Yes, a nation in which cow

Though cow killing is prohibited, the USDA does not here make the distinction between the cow and the water buffalo in what it calls 'beef'.

India also prohibits killing of milkproducing water buffalo, but male buffalo and female buffalo once they stop producing milk can both be killed. And, based on the stats from the USDA, they increasingly are, at least for export. Back in 2009, when India trailed by a large margin Australia, Brazil and the US,

India there's widespread misconception as to why the cow is revered there and in Hinduism across the world today, here's how the Himalayan Academy explains it: The cow represents the giving nature of life to every Hindu.

Honoring this gentle animal, who gives more than she takes, we honor all creatures. Hindus regard all living creatures as sacred—mammals, fishes, birds and more. We acknowledge this reverence for life in our special affection for the cow. At festivals we decorate and honor her, but we do not worship her in the sense that we worship the Deity. To the Hindu, the cow symbolizes all other creatures. The cow is a symbol of the Earth, the nourisher, the evergiving, undemanding provider. The cow represents life and the sustenance of life. The cow is so generous, taking nothing but water, grass and grain. It gives and gives and gives of its milk, as does the liberated soul give of his spiritual knowledge. The cow is so vital to life, the virtual sustainer of life, for many humans. The cow is a symbol of grace and abundance. Veneration of the cow instills in Hindus the virtues of gentleness, receptivity and connectedness with nature.

Surely the distinction between the cow and the water buffalo is small enough that reverance can encompass them both, and all animals.

Australia's largest beef producer to employ hundreds of Indian workers

A

nticipating hardships in finding skilled workers on-shore, the largest beef producer of the continent, Australia Agriculture Co (AAco), may recruit hundreds of Indian workers for its new abattoir in the country's north.

"India will be key, but of course we have a relationship with IFFCO which kills about 3.5 million buffaloes a year. So we have a bit of access to the skills there," AAco chief executive David Farley told.

The statement is taken as an indication that there would be some recruitment from Malaysia too as IFFCO, the major shareholder of AAco, is based there.

The company is expecting trade unions to create hassles for the new project planned to be established at Darwin in Northern Territory.

"If we go into this project with fear of unions and industrial problems, then I shouldn't be starting this project," Farley said "We want to run a safe, fair and equitable plant that offers long-term employment opportunities for people. Therefore we need a productive workforce. If we go into this project with that philosophy, we will be there for a long time," Farley said.

AAco has been involved in stoushes with trade unions in the past. Its chairman, Donald McGauchie, also played a significant role in the national waterfront dispute two decades ago.

The trade unions have already started expressing concerns about the Darwin abattoir project and the AAco plans to bring in workers from India.

"Obviously we want businesses to open but there has got to be a

process in place whereby the first step is not to go overseas," Unions NT president Heinz Schmitt said, commenting on AAco's plans about the Indian workers.

The new meat processing facility would need 260 workers to operate the A$80 million plant. Most beef products would be exported to the US, South Korea and Indonesia.

Besides India, AAco may also get workers from countries like Malaysia (where major shareholder IFFCO is based) and Indonesia.

AAco has previous experience in flying in workers directly from overseas.

"We've had great experience recently in running our feedlots with staff out of the Philippines. In Darwin, we tend to run a programme bringing in Indonesian slaughtermen on a training programme.

"Through one of AAco's major shareholders, (we) have access to good meatworks staff out of India," Farley had told shareholders at a conference earlier.

"We can fly staff direct into Darwin from Mumbai or Delhi for $618," he said.

"We're looking at skilling, from an international as well as a domestic perspective," he had added.

Although most of the developed countries are experiencing

recession, Australian employers are struggling to find skilled workers due to a China- and India- driven resources boom.

As most Australian and foreign skilled workers are making a beeline to the mining sector, manufacturers are facing a tough time finding workers ready to work on comparative low wages.

The mining boom has created an unlikely skills shortage in Australia, thus playing a significant role in the closure of many large manufacturing and servicing plants.

If AAco gets a nod from the Australian Immigration Department, the Indian workers are likely to be imported on subclass 457 visas.

C

onsumption of buffalo meat in India is around 2 million tons in 2012, as per GAIN (Global Agricultural Information Network) report. Buffalo meat belongs to the category of red meat.

This has left the doctors in India worrying about the health of the meat eaters.

As per studies carried out in United States and Europe in 2005, the people who ate the maximum amount of red meat (about 5 ounces a day or more) were a third more likely to develop colon cancer than those who ate the least red meat (less than an ounce a day on average).

As per GLOBOCAN figures, colorectal cancer is the third most common cancer in men (6,63,000 cases, 10.0% of the total) and the second in women (5,71, 000 cases, 9.4% of the total) worldwide. About 6,08,000 deaths from colorectal cancer are estimated worldwide, accounting for 8% of all cancer deaths.

Experts are of the view that the same thing could be true in the Indian context. "Colorectal cancer is on the rise in India. Its incidence has increased in India as compared to the last decade ," says Dr. Rakesh Kapoor, Additional Professor from PGIMER .

"A diet high on meat, fats, and carbohydrates and low in fibrous foods like fruits and vegetables constitutes a constipating diet. A constipating diet is one of the factors responsible for the development of colorectal cancer.

Constipation results in building up of toxins which were not excreted in a timely manner through the large intestine and rectum. These toxins generate carcinogens which have

longer contact time with the large intestine that can result in cancer.

Vegetarians have less chances of developing colorectal cancer because of higher consumption of fibre in their daily diet, " says Dr Dr Rajiv Bedi , senior consultant & head, Department of Medical Oncology, at a private hospital in Mohali.

But it is not possible for the meat lovers to avoid it altogether.

However, moderation in consumption and improvement in cooking habits may alleviate its deleterious effects.

Dr Rakesh Kapoor, Additional Professor from PGIMER says, "Colorectal cancer is mainly a disease of the western world, making inroads in India. Moreover, the prevalence of colorectal cancer is more in urban areas than in the rural ones, the reason being less affordability of meat by people in the interiors. Colorectal cancer is largely a disease of urbanisation and the modern world. Though cancer of the colon and rectum is multifactorial in its origin, People of more opulent society are more prone to acquiring colorectal cancer."

There are several reasons behind red meat causing colorectal cancer.

Firstly, the method of cooking meat is the culprit. Meats are cooked either by barbecuing, grilling, deepfrying or pan-frying. Cooking meat using these methods employs high temperatures for a long time. This results in production of compounds which are carcinogenic in nature.

Some of these compounds are heterocyclic amines (HCAs) and polycyclic aromatic hydrocarbons (PAHs).

New Zealand, India urged to partner in meat processing technology, innovation

N

ew Zealand and India can partner with each other on technology and innovation in meat processing, said the New Zealand Trade Commissioner.

At the MEATTech conference organised by the Confederation of Indian Industry, Mr Gavin Young, Consul General and Trade Commissioner, New Zealand Trade and Enterprise, showcased some of New Zealand's meat processing technologies.

Processing plants in New Zealand are highly automated. For instance, flushing techniques are used to extend the shelf life of chilled meat so that it can be shipped instead of using air freight, which is expensive, said Mr Young.

Tracking of cattle and deer using RFID tags will soon be made mandatory in New Zealand. “This technology makes traceability easy.

It also allows trace-back to the farms in the event of bio-security attacks.”

New Zealand has also adopted advanced border security systems to detect invasive pests and diseases, said the country's trade commissioner.

These are some of the broad areas where India and New Zealand can work together, said Mr Young.

According to Dr B. S. Prakash,

Assistant Director General, Indian Council of Agricultural Research, the livestock sector in India is growing at 4-4.5 per cent annually.

It contributes 30 per cent to the overall agricultural GDP. But challenges remain.

A major challenge in the Indian meat and poultry industry is the presence of a large unorganised sector – with unhygienic conditions, primitive slaughter practices and no scientific processing technologies, said Mr A. K. Srikanth, CEO, Alchemist Foods, which makes processed chicken products.

The production of meat in India (2010-11) is 6.5 million tonne, about 2.2 per cent of the world meat production.

Brand India for wholesome, hygienic and contamination-free meat must be created and popularised, urged Dr Prakash. The Ministry of Food Processing Industries is to invest Rs 241 crore on modern abattoirs.

The National Research Centre on Meat, Hyderabad, plans to collaborate with the Tamil Nadu Technology Development and Promotion Centre of the Confederation of Indian Industry to conduct training programmes for entrepreneurs in the sector.

Beverages & Food Processing Times-June-II-2012

Meat News

13

New antimicrobial for meat processing

A

global developer, manufacturer and marketer of highly engineered specialty chemicals, announces the launch of a new antimicrobial used in meat processing, enhancing the company's food safety portfolio to include a liquid form of hypobromous acid.

CellVex™ is a post-harvest antimicrobial proven effective against E. coli, Campylobacter and Salmonella for high volume applications in the meat and poultry markets. With the launch of CellVex, Albemarle can now offer customers two product platforms for hypobromous acid – solid and liquid. CellVex can be used as part of a multiple intervention strategy and is approved in all applications within a meat processing plant.

"Albemarle is dedicated to providing antimicrobial interventions to reduce foodborne pathogens across the globe. We offer unique products and science-based solutions for compliance with various global performance standards including the United States Department of Agriculture Food Safety and Inspection Service's Salmonella and Campylobacter initiative in poultry processing," stated Tina Craft, Global Business Manager, Specialty Bromides.

CellVex joins Albemarle's current food safety products, AviBrom® and BoviBrom®, which are solid forms of hypobromous acid and sold through a partnership with Elanco Food Solutions.

Albemarle is the only company in the food safety industry to offer hypobromous acid in a solid form. AviBrom, an antimicrobial processing aid for poultry plants, was the first bromine chemistry solution introduced into meat processing.

BoviBrom is a post-harvest antimicrobial rinse for beef processing. All three products are FDA-approved, are efficacious in reducing bacteria and can be applied in a variety of processing applications.

Albemarle utilized its new Research & Development Microbiology Laboratory in Baton Rouge at the Louisiana Business & Technology Center on the LSU South Campus Research Park for the development and testing of CellVex. This state of the art facility, fully staffed with research scientists, specializes in microbiology testing and is equipped to test all food-borne pathogens. As Albemarle expands its product offering, the company is working with key public and private entities to solve global food safety challenges.

Albemarle's Food Safety business is a part of the company's Fine Chemistry

global business unit and offers a premium line of bromine-based antimicrobials as a unique solution for the food processing

Catalysts and Fine Chemistry.

Corporate Responsibility Magazine selected Albemarle to its prestigious "100 Best

approximately 4,000 people and serves customers in approximately 100 countries.

Albemarle regularly posts

industry. Albemarle's food safety products are some of the fastest growing products used in processing today, proven effective against many pathogenic bacteria such as Salmonella, Campylobacte r,Listeria and E. coli.

About Albemarle Albemarle Corporation, headquartered in Baton Rouge, Louisiana, is a leading global developer, manufacturer, and marketer of highlyengineered specialty chemicals for consumer electronics, petroleum refining, utilities, packaging, construction, automotive/tra nsportation, pharmaceutica ls, crop protection, food-safety and custom chemistry services. The Company is committed to global sustainability and is advancing its eco-practices and solutions in its three business segments, Polymer Solutions,

Corporate Citizens" list for 2010 and 2011. Albemarle employs

information towww.albemarle.com,

including notification of events, news, financial performance, investor presentations and webcasts, Regulation G reconciliations, SEC filings, and other information regarding the Company, its businesses and the markets we serve.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Albemarle Corporation's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forwardlooking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.

Beverages & Food Processing Times-June-II-2012

Milk News

14

Govt lifts ban on export of skimmed milk powder

A

mid surplus availability, the government lifted ban on export of skimmed milk powder (SMP) to improve finances of dairy firms and help milk producers.

The decision to this effect was taken by the Cabinet Committee on Economic Affairs (CCEA).

"It has been decided to lift ban on export of SMP," Agriculture Minister Sharad Pawar told.

The government had banned SMP exports in February 2011 to contain rise in domestic milk prices.

When asked if there was any quantitative restriction on export, he replied in negative.

Pawar said the Commerce Ministry has also been asked to provide incentives to the exports of SMP in line with other farm produce.

The ministry has also been asked to examine the possibility of imposing import duty on SMP, he added.

The dairy industry has been facing liquidity crunch as it could not make profit through sale of skimmed milk powder due to steep fall in domestic prices following surplus supplies.

Domestic prices of SMP have declined to Rs 150 per kg now as against Rs 190-200 per kg in the same period last year.

Mother Dairy Managing Director S Nagarajan said, "The exchange rate is favourable for export but we need to ascertain actual demand in the international market."

Sterling Agro Industries Managing Director Kuldeep Saluja said, "The move will benefit both industry and farmers. There is excess stock of over one lakh tonnes lying with industry. The export will help improve liquidity."

Milk production in India, the world's biggest producer, is estimated at over 120 million tonnes in 2011.

CCEA approves skimmed milk powder exports

E

ven as milk price inflation is hovering in double digits since the onset of lean season of milk production, the Cabinet Committee of Economic Affairs (CCEA) permitted the export of up to 60,000 tonnes of skimmed milk powder (SMP) in the next six months.

The move is likely to benefit producers from Maharashtra and Gujarat among other states. The government had recently allowed the export of Casein, a byproduct of milk , under pressure from Agriculture Minister Sharad Pawar last month.

The decision is also likely to help improve the financial situation of the dairy industry, which has been pushing for permitting exports of Casein and SMP. Even as the ban has been lifted, the food inflation is hovering around 10 per cent while the milk inflation, in particular, is ruling above 15 per cent (in April 2012) as against about three per cent during the corresponding period last year.

In fact, the average procurement price of milk by the milk federations are up by about 15 per cent as compared to last year with average prices of toned milk up by around 14 per cent as against last year.

The CCEA, however, allowed the export of SMP as the Agriculture Ministry pressed for it arguing that the stocks of SMP with the milk federations have almost trebled over last year in the wake of ban of its export last year. According to the figures available with the government, the milk federations across the country had a stock of over 68,000 tonnes of SMP in April as against about 18,000 tonnes last year.

Beverages & Food Processing Times-June-II-2012

opinion

15

Will India help the world banish the scourge of hunger?

by G. Chandrashekhar

T

he world is turning into a strange place of paradoxes.

On the one hand, there are an estimated one billion (100 crore) people - representing 14 per cent of the global population of seven billion – undernourished, while on the other, millions suffer from chronic diseases due to excess food consumption.b On the one hand, is the issue of affordability and accessibility to food for the poor and on the other, humungous subsidies and wastages.

Global demand for farm products Global demand for agricultural products is growing and food prices are rising; and yet, roughly a third of food produced for human consumption is lost or wasted. Food inflation hits the poor the hardest and dilutes their

already low level of nutritional intake. For most of 2011, global food prices and food price volatility remained high.

Droughts, floods and earthquake threatened food security for the poor and increased hunger and malnutrition in the areas hit by these natural disasters. Yet, 2011 saw significant gains in support of agriculture, food and nutrition security, and global poverty reduction. Agriculture moved to the forefront of the international development agenda, and investments in the sector rose.

Emerging economies such as Brazil, China and India as well as private sector and philanthropic organisations also increased their voice in the global food system through global platform such as the G20 meetings and the World Economic Forum. According to International Food Policy

Research Institute, looming large for 2012 will be continued high and volatile food prices, increased oil prices, threat of extreme weather events exacerbated by climate change (such as drought in Sahel) and financial crisis in the US and Europe.

These will combine to affect the food and nutrition security of the poor and hungry. Concrete actions that will help improve food policy decisions and actions in 2012 and beyond include: forging a broad intersectoral coalition to address issues relating to agriculture, food, nutrition and health via G8 and G20 meetings; enhancing the key role of agriculture in economic, social and environmental sustainability via Rio+20; ensuring that water, land and energy are used efficiently in food production and that poor people have access to them; and creating and strengthening institutions and capacities for country-led development strategies. That said, newer challenges are coming to the fore. Land constraints (especially in Asia), water shortage and climate change are new threats that countries have to face.

Climate changes Climate change threatens more frequent drought, flooding and pest outbreaks. It is estimated that the world loses about 12 million hectares of agricultural land each year to land degradation. Experts point out that land clearing and inefficient practices make agriculture the largest source of greenhouse gas pollution on the planet, contributing to further climate change.

A set of recommendations intended for the consideration of policymakers on how to achieve food security in the face of climate change, population growth, poverty, food price spikes and degraded ecosystems has been released by scientific leaders from 13 countries. To understand the path forward, major components and drivers of the global food system were reviewed. These

Hot food retail sector gets government push

R

iding high on the huge opportunity in a “sunrise” sector, food retail, the government is looking to set high benchmarks by releasing three new standards to bring such stores on a par with their global counterparts. The sector, currently estimated at Rs. 3.1 lakh crore, is growing 30% .

Considering such a big growth and its direct impact on the consumer, the national standards body — Bureau of Indian Standards (BIS) — has come up with three standards for the growing food retail sector in terms of management, hygiene practices and processing of food.

The three standards to be launched soon include IS 16019:2012 for basic requirements in food retailing, IS 16020:2012 for good hygiene and food safety management, and

IS 16021:2012 for good manufacturing practices in food processing.

“Since Indian food retail is a burgeoning sector and directly impacts consumers, BIS has come up with three standards to ensure quality and best practices on a par with global standards,” a senior official at BIS told.

“Though it won't be mandatory at present, the government is considering a proposal to compulsorily implement the standards in due course to ensure uniform quality in food retail across India,” he added.

With the emergence of the new urban middle class and changing consumer habits, food and grocery has emerged as the second-largest segment of the retail industry. India is among the world's major food producers and ranks as the largest in production

of livestock, milk and cereals, the second-largest in fruits and vegetable products, and among the top five in rice, wheat, groundnuts, tea, coffee, tobacco, spices, sugar and oilseeds.

“The Indian Standards on food retail management and good manufacturing practices will go a long way in the development of both the food retail and processing sector in India,” Arbind Kumar, director-general, FICCI, told.

“If FDI (foreign direct investment) in multi-brand retail sector is allowed, foreign retailers with expertise will bring in best practices in manufacturing, processing and distribution in India, thereby enhancing the objective for having the Indian Standards,” he added.

include role of changing diet patterns; link between poverty, natural resource degradation and low crop yields; need to address inefficiencies in the food supply chain; gaps in agricultural investment, and the patterns of globalised food trade, food production subsidies and food price volatility.

Need to integrate food security Calling for a multi-pronged approach, the scientific leaders asserted the need to integrate food security and sustainable agriculture into global and national policies; significantly raise the level of global investment in sustainable agriculture and food systems in the next decade; sustainably intensify agricultural production while reducing greenhouse gas emissions and other negative environmental impact of agriculture; target populations and sectors that are most vulnerable to climate change and food insecurity; reshape food access and consumption patterns to ensure basic nutritional needs are met and to foster healthy and sustainable eating habits worldwide; reduce loss and wastage in food systems particularly from infrastructure, farming practices, processing, distribution and household habits; and create comprehensive, shared, integrated information systems that encompass human and ecological dimensions. Experts are unanimous in their view that the multiple emergent challenges – food security, climate change, increased competition for energy, water, degradation of land and biodiversity – are connected in complex ways and demand an integrated management approach.

They recognise that the efforts to alleviate the worst effects of climate change cannot succeed without simultaneously addressing the crises in global agriculture and food system, and empowering the world's most vulnerable populations. Notwithstanding the

above, one set of researchers point out that countries continue to rely on market-based solutions to food and resource shortage, rather than the more controversial need-based reallocation of resources. At the same time, domestic food production continues to have a lower priority in funding projects than connecting producers to export markets. Food price speculation has drawn the ire of researchers. Private investors can bet or speculate on what the price of a food commodity will be in the coming weeks or months.

It has been shown that food commodity prices are directly correlated with the number of futures contracts, or the contracts that investors sign when they bet on prices; and both spiked in 2007-2008.

Commodity speculation To address the issue of commodity speculation, in July 2010, the US passed the Dodd-Frank Wall Street Reform and Consumer Protection Act which has called for maximum limits on the investment of a single speculator as well as improved transparency in all speculation. However, implementation of the law has been slow and uneven, with many legal challenges delaying its having a real effect on speculation.

Ironically, while the developed world is keenly discussing agriculture and related issues, and attempting to bring about a sense of balance in the global food market especially in consumption, there is a lot India can do to contribute to striking that balance.

India is home to a very number of the world's poor and hungry.

Farm growth rates are abysmally low. There is an urgent need for resurgence in agriculture. Our success in banishing poverty and hunger through growth-oriented policies and good governance can substantially reduce the stress the global food market is currently facing.

Beverages & Food Processing Times-June-II-2012

Sensational Scoops

16

Scoop

ice cream's S

creamier spell

coops Ice creams have efficaciously attained a reputable brand name in circle such as Andhra Pradesh, Karnataka and Maharashtra with a vision to expand in other parts of India. With innovative strategies such as “Near to customer” and “Dear to Dealers” Scoops has been able to market its products effectively, evident of their success is the partnership with south central railways, the Taj group of hotels and public places.

Beverages & Food Processing Times, Editor, Firoz H Naqvi in an exclusive conversation with team members of Scoops Ice-Creams came to know about their ice cream products, marketing strategy and promotional activities.

Excerpts from the conversation with, Mr. Sudhir Shah- Director of Scoop Ice-Cream, Viren Shahone of the Promoters of the company, Rehmat-Manager Marketing and Franklin Joseph - Operations Manager-Cream Stone.

Mr Sudhir Shah, Scoop ice creams are one of the known brand in Hyderabad today, tell us the experiences of your journey so far?

This was started by my father Mr. Madan Mohan Das and Mr. Govind Das – as the Haridawar group, both were the promoters of this ice cream. The scoops brands of icecream were introduced in 1990with a meagre capital of five lakh rupees and today in 2012 we have grown by leaps & Bounds. So in a span of 22 years we have achieved a substantial growth. The scoop brand was actually introduced as a strategy to introduce quality ice cream exclusively at their group hotels. The great popularity of this ice cream earned in the beginning craved the path of the ice creams remarkable success.

We are busy in evolving the franchise models for cream stone and once it is fully ready this custom made ice cream will be introduced in other states.

Mr Sudhir, You have placed all of your 4 stores at a very premier location as to target the cream segment that look for fun and partying and extravaganza. So what are your future plan for further expansion and growth?

We have located two more point that is expensively located in Hyderabad, and the rest depends upon the demand and supply. Also we are not only trying to target the premier league but the focus is to not generalise it but to keep it at niche.

Lastly do you think that the ice cream parlour business is gaining popularity with time in India?

As you started as a small scale in the starting, could tell us how many variants of ice creams did you have then and how many do you have now?

When we entered the ice cream market in 1990 and faced a lot of difficulties because at that time there were many players in the market like dollops and Indian ice creams. But our good quality and immense marketing strategy lead us to sustainability and we became a reputable brand.

As far as the varieties are concerned, even at that time we had a lot of varieties but today definitely the variants and types are much much more. We have the Scoops, the Temptation outlets and Cream Stone parlours, now.

Consumption of ice cream comparatively to other countries is very low in India. But with the help of lots of marketing, promotional activities, festivals and seminars, this problem is being solved. Also with higher income among the middle class and better awareness, today's consumers have become very experimental and extravagant

Scoop Ice Cream's trendy and innovative brand “cream stone” is becoming all-time favourite and most desired in Hyderabad. What is this cream stone and how did you guys develop this concept and market it?

Cream stone is a legendary ice cream that is custom made for people who simply love ice cream for its luscious creamy taste and scrumptious look. This brand of scoop got so much popularity that most of the parties are incomplete without this brand.

And now leaving the boundaries of Hyderabad cream stone is being introduced in other cities like Bengaluru and Mumbai.

Mr. Viren Shah, as a promoter, how do you perceive this trend of family business expanding in other states? And are you people going to follow the outline same as the Vadilal's or the Haldiram's?

Presently we have three brands in Scoops , In which scoop is the mother brand and is literally for every Indian, then we have a chain of temptation parlours which target the upper and middle class family.

Temptation outlets are the fusion of chaats and ice creams. While Cream stones located in a premium locations target the top clientele. So according to the market we target and put up the stores. Today we

have about 4 cream stones outlets and 26 temptation stores across Andhra Pradesh. In fact we are putting more temptation parlours in several IT companies with free spaces provided by them.

Our all three brands of Ice creams are unique, what one offers the other ones don't. Like Cream Stone Ice cream is a rich one with high milk fat contents and very creamy.

The entire ingredients used for cream stone market are upmarket ingredients.

We are targeting the best and we want to create our own niche and are against liquidifying our products Mr. Rehmath (who looks after the promotion and marketing) you have a tremendous experience in the ice cream industry, how do you view the trend of cream stone?

We brought in cream stone as with a basic concept of freezing imagination. The beauty of this outlet is even when you chop the ice cream with various toppings or ingredients it will not melt' rather it would be as smooth and scrumptious a fresh frozen ice cream.

The concept is not just offering varieties of ice cream with different tastes but the presentation is also outstanding. Cream stone creations make live waffle cups in front of the customers and serves ice cream in it. This place is not only known for ice creams but for hospitality too.

Cream Stone makes more than 100 flavours including fresh fruits, dry fruits and chocolate-based flavours.

It also produces fat free and sugar free ice creams for the dietconscious as well as diabetic people. Cream Stone Parlour believes in providing its customers not only quality ice-cream but also the right ambience to relax with a purpose of enriching the overall experience of enjoying ice cream.

We at Scoop personally look at every bit of the marketing in this regard.

Mr. Rehmat you are also managing the supply chain management for your company, please elaborate how you are managing and handling a part which is such a taboo for the ice cream Industry?

It is a very difficult task to manage the supply chain and take a good care of safety especially when we have to deliver at many stores, but we at Scoop don't face many difficulties as we have a pre –planned system with proper staffing and well maintained Refrigerated vehicle, vans and trucks. We in fact keep a sharp eye where food safety is concerned.

Cream stone is now becoming a fashion scion as far as social gathering, wedding and various parties are concerned, what are the new plans do you have for this season and what response are you getting?

Response has always been too good. People in Hyderabad know the types of product cream stone serves and this reflects with the fact it has branded its place as the main dessert in most gathering in Hyderabad. And its parlours are always full and crowded, with energetic persons and youth.

Mr Franklin Joseph (Operations Manager Stores Cream Stone Parlours), cream stone has a beautiful ambience plus it remains full all the time, so as a manger how do manage all this and do you view cream stone to be the trend of today's youth?

We are growing very steadily and stunningly, and nearly all the Hyderabadi people are great fans of cream stone ice creams.

Cream stones staff looks after their customer at a very personal level taking care of all there need, not letting them wait for long, keeping a clean and hygienic environment and ensuring food safety.

We have an extremely friendly and efficient staff hierarchy, which manages every aspect with full dedication and hospitality.

So in today's time the beautiful environment created by the restaurants or ice cream parlours, is to make the customer feel happy, fresh and cheerful.

Exactly, and that is what we do, we look after them, talk to them and make sure they are entertained before their ice cream are served on their table. We have an eco and people friendly environment.

What are the latest trends, flavours and tastes at cream stone?

We have different flavour, the best ones are the chocolate flavour, the nuts flavour, the kids flavour, and we have the sugar free ice cream and the fat free ice creams too. We believe in catering all the segments of people.

We make our waffles in front of the customers which entices them very much and also we do all our mixes and blend of ice cream in front of the customers and believe meit is a mouth-watering experiences for them there by increasing the customers need to ask for more .

We have many varieties in the sugar free and fat free segments too. And we have kept an open choice for customers to make their own icecream sundaes, by using their own recipes and blends. It is an open experience for them.

Beverages & Food Processing Times-June-II-2012

Bosch India offers horizontal flow wrapping machines

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osch Packaging Technology India offers Pack 201 for the horizontal flow wrapping machines segment. This is an innovative and versatile machine developed using the company's worldwide knowledge base and expertise. This mid-range speed machine is easy to maintain and designed for delicate product handling. It is ideal for wrapping bakery goods, trays, candy bars, wafers and non-food products, either individually or arranged in groups.

The robust machine design accommodates short changeover times for markets with a high level of product variety. Easy format changes for packaging various sized products are made possible through the adjustable folding box, allowing for maximum machine efficiency and

improved package quality. All mechanical settings are stored in the products recipe.

The simple and smart design incorporates minimal parts to increase reliability, streamline maintenance, and to allow for greater adaptability. The outstanding accessibility makes the machine easy to clean. The common interchangeable parts with other new Pack series machines and common Bosch user interface allow seamless integration into fully or semiautomatic packaging lines.01 The PC based control platform consists of a Bosch controller without any moving parts. All data is stored on a Flash Card.

The on board UPS protects data in case of power loss. The logical structure and the use of graphics simplifies the use of the operator screen. The screen displays

parameter entry, errors and production statistics.

A high amount of stainless steel parts are incorporated in the standard execution providing a high level of sanitation. For applications that require an even higher level of sanitation, the Pack 201 is available in full stainless steel execution. This ensures a long life-cycle while safeguarding against leakage, spoilage, cleaning and humid environment.

Your packaging production line can grow with your business, thanks to the Bosch modular standard machine design. This allows the machine to perform as a standalone machine or integrated with additional equipment such as Delta robots for primary or secondary packaging and various infeed modules.

Proposed rules on packaging may be deferred, relaxed

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he government may defer the implementation of rules stipulating pack sizes and weights for consumer goods besides easing some of the proposed norms, especially at the lower end, in the wake of lobbying by industry.

The Third Amendment Rules under the Legal Metrological Act, 2011, are scheduled to be implemented by 1 July after having been unveiled on 24 October last year.

The new rules are aimed at helping consumers cut through the plethora of pack sizes and making it easier for them to compare prices among various brands. Some companies, faced with surging input costs over the past few years, have been able to camouflage price increases by reducing pack sizes.

The deadline may be extended by about two months, according to a senior official at the ministry of consumer affairs (MCA). He didn't want to be named as the ministry is expected to shortly issue a draft proposal in response to various industry representations on the suggested rules. It's not clear what the ultimate stance of the ministry will be.

The latest thinking on the part of the ministry, in contrast with what was proposed in October, is that there should be a relaxation on Rs. 5 and Rs. 10 packs. “Weightage on these price points can be adjusted provided the weightage is mentioned,” the person said.

The ministry is also considering an increase in pack sizes, allowing companies greater flexibility in weightage options.

“But this will not come with frequent change in pack sizes and too many odd sizes,” he said.

Various industry bodies such as the Indian Beverage Association, the Federation of Indian Chambers of Commerce and Industry (Ficci) and the Confederation of Indian Industry (CII) have been lobbying for a relaxation in the norms.

CII said the rules may be deferred by up to three-four months.

“After numerous rounds of meetings with the ministry, we expect some relief for the industry, given that huge inventory is at stake which would amount to huge capital losses. We want to ensure innovation is not hampered and availability of affordable price points to the BoP (bottom of the pyramid) consumer is not hindered,” said Meetu Kapoor, head (food and agriculture), CII. Most consumer goods companies said they were willing to comply with the regulations.

“We were given (about) a year's time to accommodate the new rules, which is more than enough,” said A. Mahendran, managing director, Godrej Consumer Products Ltd, one of the largest consumer goods companies in India and maker

of personal care and household products such as Cinthol, Good Knight etc. “Some small and medium-sized companies that haven't prepared for the changes, may be affected,” he said.

He argued, however, that there should be some modification in the bottom of the pyramid segment. For instance, packaging below 50gm should be exempted from the amendment, he said.

According to Mahendran, companies may get a three-six month reprieve on the rules.

Tata Global Beverages Ltd, a leading seller of tea, coffee and bottled water, also sought a relaxation on smaller pack sizes.

“On smaller pack sizes or price point packs, our experience tells us the consumer looks at value outlay rather than a specific weight and therefore feel that there is merit in continuing with no standard grammages to cater to the needs of these consumers,” said Vikram Grover, vice-president (marketing), Tata Global Beverages.

According to the All India Food Processors' Association (AIFPA), the build-up of existing inventory is the reason why an extension is being sought.

“Companies cannot exhaust their existing inventory of nonstandard packs up till 1 July,” hence the push for a delay, said D.V. Malhan, executive secretary, AIFPA.

Packaging News

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Knorr and aku.automation achieve 100% inspection rates of food packages with In-Sight

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he Knorr sachet packaging plant in Heilbronn, Germany packages millions of products annually such as Fix Spaghetti Bolognese, Fix Goulash and Fix Pot Roast. The plant makes ongoing improvements to its production machinery in order to meet the latest technical and food hygiene requirements. Knorr's TPM (Total Productive Maintenance) efforts have allowed them not just maintain their performance levels but a keep increasing them over the years. The latest step in these improvements was the installation of an intelligent machine vision system from Cognex to deliver checks of 100% of the seals on sachets produced. The vision system that Knorr deployed consisted of an In-Sight® Micro vision system, In-Sight Explorer vision software with PatMax® pattern recognition technology and a Cognex VisionView 700 visualization panel. The system was installed by aku.automation GmbH of Aalen, Germany.

The goal of 100% quality Sporadic production errors can occur in the filling or final sealing stages of high-speed sachet production operations. However, Knorr has set an acceptable error rate of zero to maintain the highest quality. Since normal wear and tear of production machines make it impossible to make defect-free products forever, faulty items can only be excluded by checking each final product. Until recently, Knorr tried to accomplish this by assigning staff to visually examine filled trays for a few seconds and look for broken seals at the end of the production line. Although this worked well and customers had not been submitting claims for product defects, Knorr wanted Cognex's smart vision system to ensure they would meet their goal of zero defects.

Skepticism Gives Way to Enthusiasm There was skepticism from the staff initially as to whether the automatic optical product inspection would be able to keep up when integrated into the process, but this very quickly turned into enthusiasm. The In-Sight vision system from Cognex was

able to assess the quality of the sealed seams at breakneck speeds.

In the camera's black-and-white mode, the fine relief of the welded seams shows well with contrast between light and dark. Any material overlaps or defective welds are detected immediately and the product is discharged.

Another important quality parameter is the angle the welded seam makes with the outer edge of the bag. Using PatMax pattern recognition technology, the In-Sight Micro works out the observed values, checks them against the tolerance values using an internal processor and if there is an overshoot or undershoot, it sends a not-in-order signal to the PLC, which removes that product from the process. By cropping the pictures to only the image areas that are relevant for quality checking, the imaging experts aku.automation have managed to increase the evaluation rate to 840 frames per minute. This still leaves the vision system with sufficient capacity and the verification is reliable.

Quality, not Quantity The In-Sight Micro gives Knorr and aku.automation a complete image processing system that they can rely on, all in a compact package of just 30mm x 30mm x 60mm (1.2" x 1.2" x 2.4"). Due to its small dimensions, the In-Sight Micro has an extremely wide range of fitting options so that it can be used anywhere in the production line, even in tight spaces on robots and very inaccessible places. Thanks to the VisionViewuser interface display, monitoring the manufacturing and inspection process is very simple.

The powerful and cost-effective user interface provides passwordprotected user controls for setting vision tool parameters and targets regions on the factory work floor without needing a PC. This means that the employees in charge at Knorr can independently configure the system after just a short learning curve, regulating it and intervening in the event of abnormalities in the production and inspection process.

For further information, please contact: Sunil Vaggu Cognex Sensors India Pvt. Ltd vaggu.sunil@cognex.com

Beverages & Food Processing Times-June-II-2012

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Beverages & Food Processing Times-June-II-2012

Beverage News

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Japan clears world's first healthy cola

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t's being called the world's first " healthy cola". Japan, that boasts of the world's most stringent food regulatory laws, has approved the world's first cola for being "beneficial to health".

The country's food regulatory authority has cleared 'Kirin Mets Cola' for the most sought after Foods for Specified Health Users (FOSHU) label. Japan's Health and Nutrition Food Association (JHNFA) says getting a highly sought after FOSHU certification - that can sometimes take over six months and cost as much as a million yen -- greatly boosts the credibility of approved products. Colas aren't really known for their health benefits. They are usually packed with sugar and have been fuelling the global epidemic of childhood obesity.

However, according to JHNFA, this FOSHU labelled cola has zero amount of sugar and contains an indigestible form of Dextrin - a compound used as a fibre supplement, which restricts the body's ability to absorb fat while eating.

"When consumed with a high fat diet like a hamburger, the drink slows down the body's ability to absorb fat thereby saving you from putting on weight. It also helps in digesting the food easily," Akira Yabuki, general manager, department of FOSHU at JHFNA, told.

Yabuki added, "We are very strict with who is given the FOSHU label. However, this was the first time that a cola was given such a FOSHU tag. It did satisfy requirements to be healthy. The drink doesn't contain sweeteners at all and tests have shown that the drink keeps levels of neutral fats low after eating."Experts say the cola's target demographic is youngsters who love cola but are worried about their weight, as well as those who have stopped buying soft drinks for health reasons.It was in 1987 that Japan's ministry of health and family welfare introduced functional foods. The FOSHU system was introduced in 1991 and the first FOSHU approval was given in 1993. It is an individually evaluated approval system that takes into account scientific evidence on effectiveness, safety and quality.

As of December 19, 2011, 983 products have been certified as FOSHU. Of these, 24% are soft drinks like tea-based beverages, mineral water, jelly or fruit beverages and powdered soft drink, 55% are dairy products like lactic acid bacteria beverages and cultured milk, 12% are processed foods like processed meat and fish, cooking oil, vinegar and sweeteners and 9% are sweets like candies, cookies, chewing gum and dehydrated soups.

"Data from clinical trials on 10 to 100 subjects have to clearly indicate the health benefit of the product. If it contains a new ingredient, testing and approving it for FOSHU can take 2-3 years time.

Some of the nutrient function claims that have cleared the FOSHU test includes Vitamin A which helps maintain good vision at night, iron which is necessary for red blood cell formation, calcium which is necessary for bone and teeth, folic acid which contributes to a normal development of a fetus and Vitamin E which helps protect fat in the body from being oxidized and helps maintain healthy cells," Yabuki said.A recent study said aerated drinks increases the chances of heart disease by 20% among those sipping them daily. Also, people who drink diet sodas every day have a 61% higher risk of bursting a blood vessel.

Even children, who consume 40-70 ml of soft drinks a day, may put on 3-5 kilos every year as one cola is equivalent to having seven to eight spoons of sugar at a time.

The Indian Council of Medical Research (ICMR) along with nine institutes have been conducting a study that covers 10,000 households and involves interviews of nearly 70,000 people of all ages and social status to gauge how much aerated drinks Indians consume daily, monthly and annually, and what is the country's annual production of such drinks.

Beverages & Food Processing Times-June-II-2012

Jagdishpur to have UP's first mega food park

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n a landmark decision, Uttar Pradesh government cleared the decks for setting up the state's first Mega Food Processing Park at Jagdishpur in Sultanpur district.

Pending since 2010, when the Union Ministry of food processing industries gave an in-principle approval to the proposal submitted

by Aditya Birla Nuvo Limited (ABNL), the food park project, was also cleared by Uttar Pradesh State Industrial Development Corporation (UPSIDC). Speaking to TOI, Managing Director, UPSIDC, Manoj Kumar Singh, said: "UPSIDC, on allowed ABNL to sublet the land acquired for setting up the food park.

Of the 833 acres owned by IndoGulf, a Special Purpose Vehicle will be floated for setting up the food park on 72 acres.'' Singh also said the project would invite an investment of Rs 148 crore and create direct and indirect employment for nearly 30,000 persons.

Earlier, the project was caught in a web of technical complications regarding the land lease. Under the UPSIDC by-laws, only two land leases could be issued. Holding the first lease itself, the second sub-lease for the MFP land was with ABNL. However, according to the Central government rules for setting up the MFP, land holdings must be in the names of the individual processing units. Since ABNL could not further lease this land to individual units, UPSIDC decided to sell additional land adjacent to the existing MFP to ABNL, allowing it to hold the first lease and issue sub-leases to individual processing units.

The mega food park is expected to leverage UP's position as a leading supplier of raw materials - wheat, sugar, potato, milk and livestock - in agriculture. The scheme is expected to raise India's processing of perishables from the existing 6% to 20%, value addition from 20% to 35% and the share in global food trade from 1.5% to 3% by 2015. In this light, the current project is expected to tap into UP's potential by developing the value chain from the farm to the market.

According to ABNL's existing proposal, the Central Processing Centre (CPC) will be set up at Jagdishpur, with primary processing centres at Sultanpur city, Faizabad, Rae Bareli, Barabanki, Lucknow, Pratapgarh, Ambedkar Nagar and Jaunpur. With UPSIDC allowing ABNL to sublet the land, ABNL will now have 72 acres of land transferred to it from Indo Gulf Fertilisers to the Special Purpose Vehicle (SPV) floated for setting up the MFP. Though the company had, in its initial proposal, proposed to hold 94% equity in the SPV to be floated for the MFP, it has, subsequently, agreed to keep its equity at a maximum of 74%, as desired by the government.

Currently, though five food parks exist in UP, only one - at Sahjanwa, Gorakhpur - has been able to remain profitable since its inception in 2005.

Attempting to bridge the gaps through the new 3-tier MFP scheme, the government also made provisions for an efficient supply chain and backward linkages. The scheme will also provide processing, packaging,

environmental protection systems, quality control laboratories and trade facilitation centres.

Highlights The Mega Food Park Scheme is expected to raise processing of perishables in the country from existing 6% to 20%, value addition from 20% to 35% and share in global food trade from 1.5% to 3% by 2015.

The scheme aims to provide excellent infrastructure transportation, logistics, centralised processing centres, effective supply chain, processing, packaging and environment protection systems, quality control laboratories and trade facilitation centres.

Between 50 to 100 acre land holdings will be set aside for setting up Central Processing Centres. Addition land will be needed for Primary Processing Centres and Collection Centres. Each project is expected to have around 30 to 35 food processing units with a collective investment of Rs 250 crore. Eventual annual turnover is expected to be between Rs 450 and Rs 500 crore.

Consulting Editor Basma Hussain

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