Bverages & food processing times april 2014

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Vol. 6, Issue 11, April (I) 2014, Rs. 20/-

India’s food grain loss is 30% due to poor storage-Assocham, Yes Bank

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ne of the largest producer of food grains in the world, India wastes around 30% of foodgrains harvest gets wasted because it is unprofessionally managed in the warehouse, a joint study conducted by The Associated Chambers of Commerce and Industry of India (Assocham) and Yes Bank, said. Owing to extreme dearth of about 35 million tonnes (MT) warehousing capacity together with massive foodgrain storage shortfall of about eight MT, about 30-40% food grain is stored in an unprofessional manner during the peak marketing season in India. Davor Pisk, Chief Operating Officer of global agrochemical company Syngenta International AG, had on Monday, said that around 900,000 people go to bed hungry in India every day. India’s foodgrains production was estimated at 259.29 million tonnes in 2011-12but, declined to 255.36 million tonnes in 201213. Now, Ram Kaundinya, chairman of biotech led enterprise ABLE-AG forecasts India’s foodgrains production to set a new record at 301 million tonnes by 2020. Sanjay Kaul, managing director of National

Collateral Management Services (NCMSL) estimated India’s foodgrains wastage at Rs 45,000 crore annually due to unprofessional post harvest management. “India needs to recalibrate its strategy to mitigate the challenges of high food grain wastage due to lack of scientific storage facilities and high inflation due to lack of cold chain infrastructure like cold storages and refrigerated transport as itleads to wastages in fruit and vegetables,” suggested study. The warehousing capacity available in India, in public, co-operative and private sector stands at over 112 MT and another 35 MT of warehousing capacity is required during the12th Five Year Plan for storing all major crops highlighting the huge demand-supply mismatch. About 70% of warehousing space is owned bygovernment agencies. There is an urgent need to develop a strong warehousing system equipped with modern and scientific storage facilities like warehouses, silos, silo bags and others as the grain storage capacity in India has not been keeping pace with the marketable surplus.

GEA Group to invest 2 million Euros in Bangalore facility

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iant of processing machinery in India and Germany’s GEA Group said on Saturday that it will invest roughly 2 million Euros at its plant in Bangalore over the next three years on machinery and other operations. With built-up area of 25,000 sq ft, the Bangalore plant will manufacture hygienic valves and hygienic pumps with a focus on components used in process industries like dairy, breweries, beverages, food, pharma

and personal care, said Franz Buermann, CEO of GEA Flow Components, a key business unit of the GEA Group. Buermann said that GEA is working on introducing high-end technologies and products for the Indian market. With the expansion in Bangalore, GEA Flow Components India, a division of GEA Westfalia Separator India, will be able to meet demands for locally manufactured valves, he said

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

New Launch

Prebiotic fibres offer new opportunities for weight management

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sia is no exception to the global obesity trend. Although a relatively healthier diet keeps developed Asian nations apart from Western countries like the US that are facing an obesity pandemic, they are still in the unhealthy zone. A combination of imbalanced nutrition due to more hectic lifestyles, combined with less physical activity, are purported to be responsible for growing Asian prevalence of obesity and overweight. For example, Japan reports that 24 percent of its people are overweight, 3 percent obese. South Korea reports 31 percent of its people are overweight, 4 percent obese. China reports 29 percent of their population are overweight, 2 percent obese, Indonesia 26 percent overweight, 1 percent obese. India reports that 16 percent of its people are overweight, 1 percent obese[1]. With the multiple health risks associated with being overweight, such as diabetes and metabolic disorders, for example, it is good news then that the continent’s inhabitants are increasingly conscious of their weight. Research demonstrates the importance consumers are increasingly placing on fibre intake in their daily diet. The reasons are many, but one key motivator that is making consumers more conscious of including fibre in their diets is weight management. Here, Hélène Alexiou, Senior Nutrition Communication Manager from the BENEO-Institute, explains how

prebiotic fibres support weight management in the long term, with a particular focus on managing an individual’s calorie intake. It doesn’t take much to cross over from weight maintenance to weight increase. For example, the rise in body weight in the U.S. population from 1980-1994 could be accounted for by an intake of only 4 kcal higher than that needed to maintain a healthy weight per day in women and 13 kcal higher in men[2]. As a result, a typical adult can gain approximately 1kg per year over their lifetime. Taking this into consideration, it’s clear that eating just a few less calories per day could make the difference between a healthy, or unhealthy, bodyweight. BENEO’s prebiotic fibres can help food manufacturers and therefore consumers address this issue and support weight management in the following (key) ways: - Helping consumers to eat less calories - Reducing the caloric value of foods - Managing their blood sugar Can prebiotic fibres help consumers eat less calories? Animal and human intervention studies suggest that prebiotic fibres can play a pivotal role in achieving the goal of helping consumers eat less. Indeed, BENEO’s Orafti®Synergy1 (oligofructoseenriched inulin) and oligofructose have been shown to have beneficial effects on our energy balance, by helping to reduce spontaneous caloric intake in people consuming a non-restricted diet. In a study involving overweight and obese adults, Orafti®Synergy1, included at a daily dosage of 12 g/day for 3 weeks, resulted in a significant reduction in energy intake[3]. However, it isn’t only those who are overweight who can benefit from an increase of prebiotic fibre in the diet. Two earlier studies conducted in normal weight adults supplemented with 16g/day of Orafti®Synergy1 or Orafti® Oligofructose[4], [5] during 2 weeks, also showed that the total daily energy intake of the

participants was reduced when the prebiotic fibres were present in their diet. Taken together, these human intervention studies have reported a consistent reduction in energy intake, following supplementation with 12-16g of prebiotic daily. The reduction in total calories consumed was sustained over time and showed in normal weight, overweight and obese individuals. Some subjective parameters related to appetite sensations, such as lower hunger ratings, were also positively modulated in the hours following a test meal. Results suggest that Orafti®Synergy1 or oligofructose help appetite regulation, enabling a reduction in energy intake to be achieved at the end of the day. Such effects on appetite regulation however still require more firm substantiation. The effects of prebiotic fibres on energy intake have further been shown to have positive consequences in the context of body weight management. A three month intervention in overweight and obese adults has demonstrated that prebiotic fibre supplementation can bring adult weight gain to a halt[6]. This study found a reduction in body weight of 1kg in the group fed 21g of oligofructose per day, compared with an increase of 0.5kg in the control group. While this does not represent a cure for obesity, such reductions in weight could, over time, help consumers to achieve and maintain a healthy weight. In this three month study, it is also worth noting that weight reduction was mostly abdominal fat loss, an important factor in reducing the risk of metabolic disease. By week six, there was also a significant reduction in energy intake in the prebiotic group, compared with the control group. Professor Dr Raylene Reimer (University of Calgary, Calgary, Canada) says of the associated benefits of prebiotic fibre on energy intake: “Given that sustained and meaningful reductions in energy intake are essential to longterm weight management, these findings suggest that prebiotics play an important role and deliver a positive message about adding fibre to the diet in contrast to the traditional advice of simply reducing calories.” Using prebiotic fibres to reduce calories So, how can manufacturers add dietary fibre to foods to promote reduced caloric content, without altering the product’s taste profile? BENEO’s Orafti® inulin and oligofructose prebiotic fibres hold the key. Both prebiotic fibres are non-digestible carbohydrates derived from chicory roots and can be used to enrich the fibre content of a wide range of food and drink

products. Not only can they be used to add fibre to a product, but they can also be used to reduce the fat or sugar content without altering the product’s taste or texture. Compared to fully available, high glycaemic carbohydrates, inulintype fructans from chicory provide only half the calories. As a result, prebiotic fibres enable food manufacturers to produce lighter versions of traditionally indulgent food products such as ice cream, yoghurt, dairy drinks or smoothies that consumers do not want to sacrifice when entering a healthier eating regime. Blood glucose management – not only calories count As well as encouraging fewer calories to be consumed by reducing the fat or sugar content of a product, including a greater amount of prebiotic fibres in a daily diet can also help to control an individual’s blood glucose levels. According to a recently published Scientific Consensus Statement developed by an international committee of leading nutrition scientists, from ten countries on three continents, it was again confirmed that there is convincing evidence that low glycaemic diets reduce the risk of type 2 diabetes and coronary heart disease, help to control blood glucose in people with diabetes and may also help to manage weight. Prebiotic fibres such as BENEO’s Orafti® inulin and oligofructose are non-digestible carbohydrates and can replace high glycaemic carbohydrates (such as glucose, sucrose, maltodextrins or starch as in white bread or boiled potatoes), on a weight by weight basis, lowering the glycaemic profile of the final product. New proprietary research from BENEO, Cosucra and Sensus, has clearly shown the positive impact on blood glucose response when a proportion of the sugars in a product is replaced with the prebiotic fibre oligofructose, that is derived from chicory. The new oligofructose data demonstrate a significantly lower blood glucose response with only 20% replacement. With prebiotic fibres being such a powerful tool in supporting weight management, it is no wonder that more and more manufacturers are discovering the potential of ingredients such as BENEO’s Orafti®Synergy1 and Oligofructose for new product development. Fortifying foods and beverages with such multifunctional ingredients, enables manufacturers to pass these benefits onto their consumers and help them to enjoy their favourite foods and manage their weight at the same time.

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The Premitex range for yoghurts of Premium Blendhub reaches the South Asian market

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remium Ingredients Food Services India, located in the Special Economic Zone (SEZ) of Sri City, north of Chennai (India), and included in the trademark Premium Blendhub, recently began to market a wide range of stabilizers focused on different food sectors, especially on yogurts and other dairy products, in the South Asian market, through its Indian factory. In the case of yogurt, Premium Blendhub’s range Premitex® includes references adapted to all kinds of products, from conventional stirred yogurt to liquid yogurt or other more modern types such as the Greek styled one. One of the major advantages of the new line is the creaminess it gives the different yogurt bases. The range of stabilizers Premitex® includes products particularly balanced in the hydrocolloids of their composition, making them well suited for its simplicity of use and optimum results regarding texture in yogurt. In liquid yogurt, for instance, the stabilizers systems Premitex® provide a broad range of textures and viscosities. The special combination of pectin, gelatin and starch of these systems allows for yogurt drinks with exceptional textures feature creaminess, thickness, brightness and good mouth feel. These results were evident in regular formulations, as well as in reduced fat and sugars formulas. All products of the range Premitex® of Premium Blendhub maintain an optimal functionality, both during the manufacturing process as related to time of shelf life, and can be used in the modern production of yogurt.

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

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

Mettler-Toledo Safeline X-ray Tailors Contaminant Detection with the X35 Series

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ith food and pharmaceutical manufacturers seeking to ensure maximum efficiency on their processing lines to maintain competitiveness, Mettler-Toledo Safeline X-ray introduces its latest generation of x-ray inspection systems, the X35 Series, to the region. This series of adaptable product inspections systems uses the most advanced x-ray imaging technology on the market to provide high detection sensitivity appropriate to a broad range of packaged applications. The systems are designed for producers seeking to consistently detect and remove miniscule contaminants for all their

products, whilst simultaneously performing product integrity checks, from checking the mass of complex products to the seal integrity on single or multilane applications, without compromising the throughput rate and process efficiency. With a choice of innovative detector diodes, 0.8mm or 0.4mm, generator sizes, and detector width options, the system can be customised specifically to the nature and format of the packaged products being scanned ensuring quality and safety at all times, future-proofing the initial technology investment. For example, the 0.8mm detector used in conjunction with a 20W generator is up to five times more sensitive to x-ray than standard systems. The 0.8mm diode system can also be combined with a 100W or 400W generator to achieve the most efficient set-up for processing lines. Food and pharmaceutical

Indian biz man urges BJP to reconsider stand on FDI in retail

To a party with an image of pro corporate Indian corporate interested in FDI in multi brand retail business have urged BJP to rethink on FDI, saying the move may send a wrong signal to overseas investors. However, industry bodies have welcomed other promises made in the manifesto like giving a thrust to job creation, tax reforms, growth revival and containing inflation. “We welcome the openness to FDI linked to creation of assets and employment. Though we feel disappointed on the stand on FDI in multi-brand retail, we hold out hope for a possible review,” Ficci President Sidharth Birla said.

Giving high priority to revival of growth and job creation, BJP today promised to contain inflation, pursue tax reforms and promote foreign investments but said no to FDI in multi-brand retail. “We would continue to impress upon the BJP to reconsider its stand on FDI in multi-brand retail as the move will act as a multiplier effect on India’s economy without impacting in any way the neighbourhood kirana stores,” Assocham President Rana Kapoor said. “It makes little sense to bar FDI from multi-brand retail since a decision to this effect has already been taken by the government

News manufacturers also have the option of tailoring the X35 Series 0.4mm detector diode with either a 100W or 400W generator. The X35 Series offers manufacturers the flexibility to analyse the overall mass of a packaged product and individual masses within various areas or compartments and communicate this information to the filling machine, to maintain portion control and minimise waste. To suit different manufacturing layout plans and individual applications, the x-ray system is available in two lengths, 2.1m and 1.2m, and available in multiple widths, 300mm, 400mm, 500mm and 600mm. When equipped with a low power generator, the machine does not require additional cooling or air conditioning, thus reducing power consumption, energy costs and overall Total Cost of Ownership (TCO). The X35 Series is equipped with hand sensors positioned at the end of the in- and out-feed ensuring operators’ safety. For example, if an operator inadvertently places their hand in the feeder breaking the sensors for more than three seconds, the x-ray process will be interrupted. The X35 Series, 2.1m option, offers a range of fully incorporated reject mechanisms including reject bins, which detect contaminated or sub-standard products and automatically remove them the from the processing line. Manufacturers benefit from a locking feature limiting access to rejected products to authorised

personnel only. The X35 Series is also preloaded with multilingual software option enabling operators from different countries to use it in their own language, thus reducing the number of errors in data analysis. With an IP65 rating as standard, and the option of IP69K rating, the X35 Series incorporates the latest principles of hygienic design to further benefit manufacturers and protect consumers. To facilitate cleaning, the system has been built with sloping surfaces, including in the reject bin, a tubular frame and brushed steel finish. The IP69K rated air conditioning unit (when required), and the minimisation of metal to metal contact areas provide easy access to cleaning, maintenance and servicing, reducing the risk of contamination at this Critical Control Point. If necessary, the X35 Series machines can be adapted to ensure compliance with major highstreet retailers’ own food safety guidelines. “Food and pharmaceutical manufacturers looking to grow their business internationally must meet global and local industry safety standards, whether it is the China 2009 Food Safety law, the International Featured Standards (IFS) or the guidelines approved by the Global Food Safety Initiative (GFSI). The X35 Series not only offers a high level of product safety, by detecting and removing contaminants, but allows compliance with such standards, enabling manufacturers to gain and

and foreign investments lined up for it. The move, might send wrong signals to investors,” PHD Chamber of Commerce President Sharad Jaipuria said. The BJP promised to set up a price stabilisation fund to check inflation, ensure fiscal discipline and pursue banking sector reforms to deal with rising bad loans. “The BJP manifesto outlines multiple measures for inclusive development, with focus on governance, growth and employment. These are arguably the key concerns facing the economy today,” Birla said. BJP said its tax policy roadmap includes focus on a non-adversarial and conducive tax environment, overhaul of the dispute resolution mechanisms, bringing on board all state governments in adopting Goods and Services Tax and incentives to promote investment. “The BJP’s focus in its election manifesto on giving a boost to economy, rationalising and simplification of taxation and restoring investor confidence would be a morale booster,” Kapoor said. Released here by top BJP leaders, the party’s election manifesto accused the Congress-led UPA government of engendering 10 years of jobless growth. Referring to taxation, the manifesto said, “The UPA government has unleashed ‘tax terrorism’ and ‘uncertainty’, which not only creates anxiety amongst the

business class and negatively impacts the investment climate, but also dents the image of the country.

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retain access to markets outside of China,” explained Daniela Verhaeg, Marketing Manager SBU X-ray Inspection, Mettler-Toledo Safeline X-ray. Verhaeg added, “The X35 Series is the most flexible and energy-efficient x-ray system on the marketplace and can be adapted to individual application requirements to ensure a futureproof investment, even if line changes are required after the initial installation. With its outstanding detection sensitivity technology, our customers can be certain of consistent and reliable inspection results in real-time. Manufacturers will benefit from a high quality and cost-effective x-ray system that perfectly matches their production needs and reduces operational costs by avoiding unnecessary energy consumption, plus improve the environmental credentials of production processes”.

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

Tesco shakes hand with TATA in India

Britain’s biggest grocery chain, Tesco, has struck a deal with India’s Tata Group to invest in a dozen stores in the south and west of the country. The joint venture makes Tesco the first foreign supermarket to enter India, the world’s second-most populous country. It will invest £85 million in 12 existing Star Bazaar stores selling food and groceries alongside homewares, kitchen products and fashion items. Three years ago, the Indian government opened up its potentially lucrative supermarket sector to foreign companies

to help boost the economy. Big retailers were reluctant to enter, given the uncertain political and business landscape, but Tesco has now decided to dip a toe in the Indian market. It won’t be the first British retailer on Indian soil as Marks & Spencer opened its first store in the country in 2001. M&S benefits from being an ownlabel retailer which means it faces fewer restrictions than supermarkets or other stores which sell a variety of brands. M&S now has 36 stores in India, with ambitious plans to operate 100 stores in the region by 2016, which would make it the chain’s second biggest market outside of the UK. M&S operates a joint venture with local player Reliance Retail.


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

Conveying systems are the lifeline of the modern processing industry

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ne of the leaders in industrial conveyor systems and an ISO 9001:2000 certified company, Ultra Plast Chain Belts Pvt. Ltd., are offering a wide range of parts, components & accessories of the system. Came into existence in the year 1999, they are regarded as the most trusted manufacturer and exporter of Conveyor Systems, Belt Conveyor Systems, Automated Conveyor Systems, Roller Conveyor Systems, Plastic Modular Belts, Stainless Steel Slat Chains, Thermoplastic Slat Chains, UHMWPE Wearstrips & Corner Tapes, Drive Sprockets & Idlers, Side Brackets & Clamps And Connecting Clamps & Handles & Hinges, etc. Their products find great application in several industries like engineering, food and meat processing, electrical and electronics, marine, textile and automobile. Led by the company’s promoter, Mr. Shashank

Sharma who has 15 years of experience as an engineer in conveying & packaging line, company has earned remarkable success in both the national and international markets. It has supplied products to many reputed clients in India such as Coca Cola, Pepsi, Sab Miller and Dabur. Also exported our range to overseas markets in Africa, South Asia and Middle East. In a recent interview with our Sayed Shahnawaz, Shashank Sharma gave some very interesting information about the industry and importance of conveying system in a food factory. How important is the role of conveying systems in food & beverages industry? Conveying systems are the lifeline of the modern processing industry they act like blood, circulating various items in an industrial premise and boost the efficiency of the process involved. In some industries it is a dire necessity to have conveyors in order to ensure uniformity and consistency of the process. They also make the process more cost effective. What kind of demand you expect from the Indian food & beverages industry in future and what is the present status of your company in this industry? UCPL is one of the leading suppliers of top quality conveyor chains, modular belts, sprockets, wear strips , conveyor components for the bottling , packaging and food processing industry. Our current market Continue to Pg 7

Exclusive Interview

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B everages & Food Processing Times - April - I - 2014 share is close to 40% and we hope to be able to increase it to 60% in the next 2 years. We have been regularly making import substitute products and the demand for these products is growing by approx. 20% per annum due to changing lifestyles in modern cities and increased demand for processed foods and drinks. Please brief us about your company, its RND setup and expertise in conveying belts/ systems? We have been constantly improving the quality of our products and now we plan to open a dedicated laboratory to test our existing as well as new models before launching them for the Indian as well as the export market. We have also engaged a

leading consultant who will guide us in setting and streamlining the production and testing processes as per the international standards. How important is quality of conveying belts in food industry and what are the strictures one should follow before going for the same for food products? It goes without saying that the highest quality of materials and processed are required to make our products food grade. Our objective is to be accepted by the USFDA and be a major manufacturer in the international market in the coming two years. What are the different types of conveying systems available in the market? There are various kinds of conveyor systems like

The growing fast food industry of Nigeria

KFC and Domino’s are opening new stores in Nigeria to take advantage of the large population, but poverty is a challenge. Yum Brands, Domino’s Pizza and Johnny Rockets International are following suit and opening outlets. The chains are entering an industry that has grown more than 10 percent a year this decade despite operating in a nation where chicken imports are banned, power supply is unreliable and a meal costs more than most people make in a day. Outside of the business hub of

Lagos, “the fast-food industry is seriously underserved. Global growth has been key for Yum. The KFC owner gets about a quarter of its revenue from its international business unit and posted sales growth from the unit that was twice as fast as the whole last quarter. KFC, which sells Nigerians fish burgers and vegetable fried rice in addition to the chicken that made it famous, is now the biggest international rival, having opened 25 restaurants since entering Nigeria in 2009. Domino’s and Cold Stone Creamery followed in

News 1. Belt conveyors. 2. Chain conveyors. 3. Screw conveyors. 4. Roller conveyors. 5. Cable conveyors. Demand of conveying system varies customer to customer according to their needs, is it possible to make tailor made conveying systems? How do you deal with this requirement? Most of the conveyors in the foods and beverages industry have a large degree of customization and automation involved. Most of them are being built as per the specific requirements of the customer’s processes and plant layouts. We also help our customers in basic layouts and offer them our suggestions for improving the existing ones. 2012 and now plan to add about five outlets a year across the country. Poverty still restricts the number of international chains that can enter, since modern fastfood prices are quite expensive according to Euromonitor. Part of the reason for the high prices in Nigeria is that the country bans chicken imports to support its nascent poultry industry. That means all of KFC’s wings have to be sourced locally in a country that lacks a large industrialised farm system and the infrastructure to reliably get meat to restaurants before rotting. Another cost is one of the greatest attractions to customers: generators to keep the lights on and the free WiFi in a nation fraught with blackouts. The challenges of Nigeria were not deterring Domino’s and Cold Stone, which had a combined 15 shops, mostly dotted around Lagos.

Premium Blendhub creates a center of excellence to optimize the management of the Food Powder supply chain

• By using Open Formula the company facilitates food producers transparent information about the costs and ingredients utilized in the food powder blends. • This activity area has a map of raw materials enabling the company to provide its customers an international list of suppliers Premium Blendhub has created the Supply Chain Excellence Center as part of the company’s incorporation process into the new

economic category SMART Powder Blends, which is based on open formulas. Through this center, the enterprise offers its clients a fully transparent management model of the raw materials used in food powder blends. They would always know the cost and ingredients used in these products and, thus, compare and optimize their costs and functionality. The new Supply Chain Excellence Center operates through an innovative business model as opposed to the black box system, in which food producers are

unaware of the ingredients used in the blends they buy. Premium Blendhub’s system allows a clearer communication between customers and suppliers and the benefits from all the links in the supply chain, connecting raw material producers and food producers, and allowing all the professionals and companies operating in the industry more information about the processes that take place between the two ends. Through the Open Formula, raw materials producers will receive market feedback regarding their products, while food producers will have a shorter, safer and better alignment to their supply chain, optimizing the raw materials, transportation and tariffs costs of their products. Working according to the principles of flexibility and transparency, the

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Alltech’s 30th Symposium Asks “What If” Africa Becomes the New Frontier for Agriculture and Business

Aidan Connolly, Alltech vice president, corporate accounts will chair the Africa session at the 30th Annual Alltech International Symposium in Lexington, Ky, USA, May 18-21 with the theme, “What If?”

[LEXINGTON, Ky.] – Africa is the greatest unexplored continent for the world of agriculture. Understanding risks and utilizing the tremendous opportunities that Africa can offer to the world’s food production and agribusiness investors will be examined during the 30th Annual Alltech International Symposium in Lexington, Ky., USA, from May 18-21. In a new format for 2014, Symposium sessions will specifically focus on Crop Science, Life Sciences, Africa, Business and Technology, Modern Farming, and The Algae Opportunity by delving into “What If.” “In terms of landmass, Africa is capable of housing China, the United States, Russia, and Western Europe within its borders. As home to one of the world’s fastest growing economies in terms of GDP, it should become a $1 trillion food market by 2030,” said Aidan Connolly, Alltech vice president and professor at UCD Michael Smurfit Graduate Business School. “Such a dramatic change would not only transform Africa from being largely dependent on food imports to becoming a potential food exporter. More importantly, it will increase the availability of Supply Chain Excellence Center of Premium Blendhub offers services focused on two types of customers: Those hiring the open formulas of the company and those who want to optimize the supply chain of their own products. These two options are implemented through two service packages called “Our Formula” and “Your Formula”. The food producers operating with the services of “Our Formula” are able to know at any moment their costs to optimize themselves depending on the market situation, while those that contract the services of “Your Formula” will fully or partially manage their supply chain through Premium Blendhub, with the same conditions of transparency. This means that Premium Blendhub takes on the challenge to improve or cheapen their products with new suppliers, tariff codes, and support and advice about locations to perform the blending process. The new Supply Chain Excellence

affordable food and significantly decrease widespread hunger.” Connolly points out that while this year is the 29th anniversary of the landmark 1985 Live Aid concert that raised millions of dollars for famine relief in Africa, it is easy to forget that numerous factors could still potentially derail positive vision. Alltech’s Africa session will examine these factors and how they can shape investors’ decisions regarding where to invest in Africa’s food and agribusinesses. How will farmers get access to the technologies they need, and markets to sell in? What countries and markets will achieve the greatest growth? What if the problems of inconsistent farm yields in Africa are addressed? How can Africa exploit its land, sun and rainfall to produce milk, meat and eggs? What if Africa harnessed the power of its oceans for aquaculture? Experts and attendees of the Africa session will scrutinize these questions and more. Registration for Alltech’s 30th Annual International Symposium is open now and available for an early discount price of $599 until April 10. Standard registration after April 10 will be $850. Two paid registrations from a single company or organization will receive a third registration free of charge. Delegates who are members of ARPAS and AAVSB can also earn CEUs. Attendees are encouraged to register early as space is limited. Of the nearly 3,000 international delegates who attended the 2013 Alltech International Symposium, 96 percent indicated that they plan to attend again.

Center of Premium Blendhub has a map of raw materials enabling it to provide its customers an international list of suppliers for each raw material as well as information on the different qualities, prices and locations. This company’s area of activity is also responsible for the comprehensive management of the blends, seeking the best solution in terms of price of the raw materials and costs of import duties, transport, the blending and packing process, the transportation to the end user and the import duties of the blend. Other functions of the Supply Chain Excellence Center include conducting market research and consultancy on the specific raw materials state and behavior in the market or the management of samples for testing ingredients and blends until finding those most appropriate in each case.


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

Food Safety

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Food licence, registration now onlineFSSAI

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

NSF INTERNATIONAL ThE MOST TRuSTEd NAME IN FOOd SAFETy™ Food Equipment Commercial foodservice equipment with the NSF certification receive guaranteed regulatory acceptance in North America and improved acceptance worldwide. The NSF mark is specified by health departments, restaurant buyers and specifiers. Our services include: Physical Evaluation • Material Review • Performance Testing • Compliance Audits • Certification Global Food Safety Initiative (GFSI) Many of the world’s largest food retailers are mandating supplier certification to GFSI schemes, which include SQF, BRC, IFS, FSSC, GLOBALG.A.P., and BAP. NSF is the leading global certifier to GFSI benchmarked standards. Our services include: Auditing • Testing • Certification • Training & Education Beverage Quality NSF offers integrated safety and quality assurance services for bottlers, retailers, distributors and suppliers of beverages and packaged ice. Our services include: Analysis • Testing • Auditing • Certifications Nonfood Compounds NSF is the only independent, third-party organization that offers product registration for nonfood compounds such H1 lubricants, cleaners and water treatment chemicals used in food and beverage processing. Our services include: ISO 21469 Certification • Product Registration • Toxicology Assessment • Risk Assessment

NSF INTERNATIONAL Building No. 127, 3rd Floor Sector – 44, Institutional Area Gurgaon – 122002, Haryana t: +91 124 482 0100 m: +91 965 003 4551 e: india@nsf.org www.nsf.org

FS - India Food Safety Ad_August-2013_A4.indd 1

8/22/2013 10:12:18 AM

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ood business operators will no longer have to visit the civil surgeon’s office to apply for registration or licence under the Food Safety and Standards Act, 2006, as now it can be done with just a click of the mouse. The health department has launched an online licensing and registration system at www.foodlicensing.fssai.gov.in, where besides placing an application, users can also track the status of the application through an application reference number provided by the system during the submission of application. The food business operators could also know the status of their application through mobile phone or email as the information would be sent to the registered email address and mobile number. District health officer (DHO) Dr Abnash Kumar said, “Now the registration and licence process has been made online. It would be convenient for food operators as now they need not rush to civil surgeon’s office.” District food safety officer Ravinder Garg said, “The food safety officers were provided training by the head office regarding the online process of registration and licensing. For those who don’t have access to computers, like people running rehri-pharis, it has been proposed that they could get themselves registered through suvidha centres of the respective districts.” The licensing and registration process has found very takers in Ludhiana. Despite several deadlines to apply having passed by, only 1,604 food operators applied for licence and 1,05,000 applied for registration. As per the Food Safety and Standards Act, if the turnover is above `30 crore, the licence is issued by the Central Licensing Authority, and if it is below `30 crore, then the State Licensing Authority issues it. It’s mandatory to get licence if turnover is above `12 lakh, while food operators earning below `12 lakh need to get themselves registered.


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

Beverages Report

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Juices, carbonated drinks, water and health

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Vol. 6, Issue 11, April (I) 2014, Rs. 20/-

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s the Indian election progressing, the industrial anticipation is rising. BJP and Congress both have different agendas for the Agri and Food Processing Industry. Some look good and some are intriguing. Let’s see what lies ahead and what futuristic prosperity it brings. In its election manifesto, BJP has stated that: Barring the multi-brand retail sector, FDI will be allowed in sectors wherever needed for job and asset creation, infrastructure and acquisition of niche technology and specialised expertise. BJP is committed to protecting the interest of small and medium retailers, SMEs and those employed by them. The move is likely to deal a blow to international supermarket players. While congress has no aversion to FDI in any category as a matter of fact they assure on promotion of greater integration with global economy and encourage FDI especially in labour intensive sectors. According to congress Manifesto, FDI in retail can transform the economy as it creates a beneficial value chain from farm to fork. In the course of all this hullabaloo of Indian election, The United States seems to have some discrepancy with the Indian trade policy in food and poultry sector. The United States Trade Representative, (USTR) in a report, said that the Indian policies in the food and poultry sector pose significant trade barriers between the two countries. The report said that India maintains zero-tolerance standards for certain plant quarantine pests, such as weed seeds and ergot. Such zero tolerance standards block US wheat and barley exports to India. India has imposed unwarranted SPS requirements on US dairy imports, which have precluded US access to India’s dairy market, one of the largest in the world. India has insisted on onerous certification requirements and refused to accept US food safety and animal health standards as effective,” the USTR said in its annual report on Sanitary and Phytosanitary (SPS) Barriers to Trade. USTR has also expressed its displeasure on Indian policy in pulses, as its requires that shipments of all pulses to India be fumigated with at methyl bromide (MB) at the port of origin. India still has not offered any solution on this policy and United States will continue to press India to lift its unwarranted restrictions and to revise its import certificates so as to clarify any legitimate requirements and be valid for a reasonable period of time, Turmeric is finding huge potential in the processed food industries of the United States, and importing larger quantities from India, the largest producer of the spice. The demand for turmeric has increased due to the realisation of nutritional and medicinal values of this humble spice. The US is doing a lot of research about nutritional and medicinal properties of turmeric. This spice is presents treatment for diseases like cancer, Alzheimer’s, arthritis, Crohn’s disease and even depression. Though turmeric is imported from India and the market for turmericbased supplements in the US has grown by almost 31 per cent to $108 million. The spice has been termed a super-food in the US processed food market, and a number of companies are now offering products containing turmeric. These are poised to increase in future. As the demand is increasing in the US, they have plans to grow their own turmeric to meet the domestic demand, but if India can supply high-quality spices consistently then the market is very enticing with good potential and only fair players can continue in the market. Amid the aura of voting, many things are happening, Walmart re- entry in India is presently dicey, all international supermarkets are apprehensive, KFC pops up vegetarian menu, Kurkure acquires NRI status, as its production commence in Canada and Middle East, Telangana - the newest Indian state is all set to get its own Food Park and much more. Indian Food Industry is a joy ride with many twist and turns. Election is happening, predictions are being made, and the Food industry is anticipating. Whatever are the results, but I as an Indian want a government with clear and balanced outlook and agenda. Today the Indian food industry is at its helm. Hopefully the upcoming government realises and pledges to further boost its development rather than to curb it with their short sighted polices and Schemes.

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everage consumption in Indian households has steadily increased over the last decade as more families are spending on non-food items indicating a clear shift in food preferences. Not only that, the trend transcends the urban-rural divide. Apart from that health is becoming top most issues for most consumers. Indian Council for Research on International Economic Relations (ICRIER) and the Indian Beverage Association (IBA) mutually adjoined that more and more people are now shifting towards packaged drinks. The organisations depicted that the consumption of non-alcoholic beverages in India is to grow between 16.5 and 19 per cent over the next three years. In this category, the fastestgrowing category is fruit-based beverages. At present, the Indian packaged juice market is valued at Rs 1,100 crore ($177.78 million), and it is further projected to grow at a CAGR of 15 per cent over the next three years. A majority of India’s beverage market is unorganised, but this segment caters to about 75% of the consumers’ demand but, in the last three years, global giants Coca-Cola and PepsiCo Inc have tried to meet the rising demand for packaged beverages by investing in building capacity and developing bottling infrastructure in the country. Along with the increased disposable incomes of Indians, the non-alcoholic beverage segment in the country has also evolved both in terms of the number of product variants available in the market and the number of companies in the market states the ICRIER and IBA reports. Also the abundant supply of raw material, and the ready availability and affordability of skilled labour are some main reason for the rise of the non-alcoholic beverage sector. The biggest reason is definitely the strong consumer base in India. The sector is currently contributing one per cent to India’s gross domestic product (GDP). According to IBA’s report the non alcoholic beverages by corporate manufacturers were expected to grow at 16.5% per annum and those by non-corporate makers at 19% per annum. The estimates were based on an assumed gross domestic product growth of 7%, which is higher than the 5% growth forecast by several economists. According to a report by market research firm Business Monitor International, the non-alcoholic beverage market in India - comprising carbonated drinks, juices, packaged drinking water, milk, ready-todrink tea, tea, coffee and sports drinks - is expected to touch the $5.8-billion mark by 2015. Many international and big companies have plans to invest in India’s beverage sector. ITC Ltd is eager to get B Natural-, the Bangalorebased Balan Natural Food Pvt Ltd’s brand, and would market packaged fruit juices under its foods category. PepsiCo India plans to set up a plant at Sri City Industrial Park in Andhra Pradesh, which would be the company’s largest in India. The plant will be producing the full range of beverages ranging from carbonated drinks, fruit-based drinks and sports drinks. Fizzing colas PepsiCo and Coca-Cola are in a competition of another kind. If they do come about as promised, investments amounting to a total of $10 billion will come in from the two cola giants by 2020. Elections or no elections, PepsiCo’s firm would invest $5.5 billion

(Rs 33,000 crore) in India by 2020 to more than double its capacity here. The company has so far invested $2 billion in India since its entry in 1989. It said new investment would be made to strengthen its capability in various strategic areas, including innovation, manufacturing, infrastructure and agriculture. The Rs 33,000 crore investment made by Pepsi is going to cover both food and beverages and the company has decided to double the capacity of their business over the next seven years. Not to be left behind, Coca-Cola India said it planned $3 billion new investments in India till 2020 to further capture growth opportunities in fast-growing, non-alcoholic, ready-to-drink (NARTD) beverages. This would take Coca-Cola’s India investments between 2012 and 2020 to $5 billion. As per Euromonitor, Coca-Cola enjoyed leadership position in carbonates in 2012, accounting for 60 per cent of the total value of sales. It maintained a strong position with two brands — Sprite and ThumsUp. Also, stronger distribution in the existing categories and entry in new markets in rural India helped the company retain its strong position. Pepsi is the only other significant player in carbonates with 36 per cent retail value share in 2012, according to Euromonitor. Pepsi has 42 plants in India, including franchises. India is one of the largest market for the company and Pepsi will continue to expand the range of foods and beverages in its portfolio. In India it has eight brands that generate Rs 1,000 crore or more in annual retail sales — Pepsi, Lay’s, Kurkure, 7UP, Slice, Miranda, Mountain Dew and Aquafina. Apart from raising capacity, Pepsi will expand its selling and delivery infrastructure. It will also step up collaborative farming that the company claimed has benefited 24,000 Indian farmers. Since entering India, Pepsi claims it has created opportunities for more than 200,000 people through direct or indirect employment and agriculture collaborations. On the other hand, Coca-Cola said it had already invested more than $2 billion in India since it re-entered the country in 1993. The fresh investments will raise the amount to $7 billion. Coca-Cola India directly employs over 25,000 people and indirectly more than 1, 50,000 people. The carbonates market is projected to grow at 10 per cent annually in terms of retail volume, according to Euromonitor. Growth will be driven by rural areas, as urban areas are facing a degree of saturation, as well as shifting to healthier options, such as fruit/vegetable juice and bottled water. Companies are targeting rural areas to build share. Coca-Cola has equ¬ipped retail outlets in remote rural areas with solar coolers. Smaller pack sizes are driving sales in rural areas whereas PET bottles are pushing sales in urban areas. Coca-Cola bought up Parle’s four big soft drink brands - ThumsUp, Limca, Gold Spot and Maaza - which gave the company an instant 60 per cent share of the Indian soft

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

drinks market when Pepsi had less than 30 per cent. The Indian Packaged Fruit Juice Market India’s packaged juice market has charted a high growth trajectory, thanks to its easy availability, anytime-anywhere consumption, and convenience. Within the beverages market, the fruit-based beverages category is one of the fastest growing categories, and has grown at a CAGR of over 30 percent over the past decade. As of March 2013, the Indian packaged juices market was valued at Rs 1,100 crore (~USD 200 million) and projected to grow at a CAGR of ~15 percent over the next three years. The packaged fruit juices market can be divided into three subcategories: fruit drinks, juices, and nectar drinks. Fruit drinks, which have a maximum of 30 percent fruit content, are the highest-selling category, with a 60 percent share of the market. Frooti, Jumpin, Maaza, etc. are the most popular products in this category. Fruit juices, on the other hand, are 100 percent composed of fruit content, and claim a 30 percent market share at present. In contrast, nectar drinks have between 25 and 90 percent fruit content, but account for only about 10 percent of the market. The rising number of healthconscious consumers is giving a boost to fruit juices; it has been observed that consumers are shifting from fruit-based drinks to fruit juices as they consider the latter a healthier breakfast/snack option. Dabur is the market leader in the Indian packaged juices market with its brands Real and Real Activ. Other players include Parle, Fresh Gold, and Godrej. Some of the other brands of fruit juices and drinks include Frooti, Appy, Mazza, Minute Maid, Slice, Fresh Gold, and Del Monte. Considering the attractiveness of the segment, diversified consumer food companies such as ITC are working towards making a foray into packaged juices. As per studies, the most preferred pack size is the individual (small)

pack which is convenient, and easy to carry and consume. These are in great demand as out-ofhome consumption is on the rise. Tetrapaks are most popular among manufacturers as well as consumers. Some companies are also offering their products in tins (e.g. Del Monte) and PET bottles (e.g. Mazza); however, they are more expensive than Tetrapaks, which adds to production costs, and, as a result, affects the market price. Fruit juices have created a space for themselves in regular household menus, as a part of a family’s breakfast, social gatherings, and evening snacks. As a result, consumers are picking up multiple family packs at one go, which is an emerging consumption trend. There are several reasons behind the growth of the Indian packaged juices category: Changing consumer lifestyles, increased health awareness, hygiene concerns, growing category of informed buyers, rising disposable incomes, booming modern retail, habitual purchase, and introduction to new flavours. Among all challenges, it is difficult to control the cost of production at the price points of juices, primarily because of rising food inflation. The continuous, year-long supply of raw materials, and the non-stop production of juices for the full season, is another productionlinked issue which needs to be managed carefully. Also of vital importance is controlling transportation and logistics costs. Packaged juices are gradually cementing their place in the urban household in the metros and tier I cities; however, replicating the same success in tier II and III cities is still a struggle as residents in these regions still prefer fresh juices over packaged ones because they are comparatively cheaper, and also in sync with the traditional belief that juices are best consumed freshly pressed. It is appropriate to say that the packaged juices market in India is still evolving. As there are many national and international brands on the verge of succeeding and

Beverages Report

expanding further into the field, new entrants can also cash in on this opportunity by positioning/ promoting packaged and bottled fruit juices as part of the consumers’ daily diet. Simultaneously, it is critical to ensure affordability for consumers, while maintaining the hygienic aspects and quality of products throughout the year. Think healthy drink healthy Thousands of bottles of cola drinks are gulped down every summer. But of late, with health issues top of mind, many consumers are picking up water, juices and non-carbonated drinks instead. With their fingers strongly on the consumer pulse, the cola majors are keeping pace and stepping up focus on non-carbonated drinks and juices to quench the thirst of their health-conscious clientele. While carbonated drinks like Pepsi and Coca-Cola still account for the second-biggest chunk of the nonalcoholic drinks market in India, their growth rate has decelerated by 15-20 per cent over the last three years. Non-carbonated drinks (which include fruit drinks, nectars, juices and energy drinks), on the other hand, are likely to grow at a healthy CAGR of 35 per cent and are expected to touch `54,000 crore by 2015 from Rs 22,000 crore in 2012. Many Consumers today realize the need for nutritional interventions in their daily lives. Water provides an apt opportunity for hydration with nutrition. Hence the market for non-aerated drinks and packaged water is growing at a fast pace. The 50:50 JV between Tata Global Beverages Ltd and PepsiCo India Holdings Pvt Ltd to form, NourishCo Beverages Ltd. Has recently launched India’s first nutrient water Tata Water Plus— which will be rolled out pan-India shortly. There is a huge opportunity in the packaged beverage market being fuelled by a rise in disposable incomes, changing lifestyles and a burgeoning younger middle class. India’s per capita consumption of beverages is very low compared to other markets.

This presents industry players with the opportunity to tap the huge untapped potential that this segment offers. Another giant player – the coca cola is out to leverage its “Made in India and Made for India” brand portfolio consisting of Maaza (the country’s largest mango drink), Minute Maid Pulpy Orange and Minute Maid Nimbu Fresh, Burn (energy drink) and Kinley drinking water. Rival PepsiCo’s non-carbonated beverages portfolio consists of Slice, Tropicana, Aquafina, Gatorade, Tata Water Plus and Tata Gluco in the hydration segment. With two Rs 1,000-crore plus brands, Slice and Aquafina, the non-carbonated offerings from PepsiCo are a significant part of their portfolio and are growing rapidly. They complement their carbonated soft-drink brands and have been witnessing robust growth. Market research firm Nielsen pegs the growth in juices between April 2012 and March 2013 at 22 per cent. According to Assocham, the juices market in 2012 was dominated by Dabur’s Real fruit juices with 50 per cent market share and PepsiCo’s Tropicana with a 45 per cent market share. Mango drinks have emerged as the fastest-growing category over the last five years... Besides this, ready-to-serve fruit beverage range is also seeing healthy growth. Traditional Indian beverages such as lassi, sharbat, thandai, nimbu pani, badam doodh and coconut water are also being replicated by savvy drink-makers. PepsiCo is delivering a wider choice to consumers and as part of their portfolio diversification, as they have introduced new innovations this season including Tropicana fruit powders, Tropicana 100 per cent Orange Medley, Pepsi Atom, and 7UP Nimbooz Masala Soda. Meanwhile, the action is also heating up in the packaged drinking water segment. As per estimates, the total water hydration market in India is pegged at Rs 4,200 crore, including the bottled, bulk and pouches business. Bottled water accounts for Rs 2,300 crore,

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pouches account for 1,200 crore and bulk water at 700 crore. Still, the market for water is underpenetrated and growing at about 20 per cent CAGR per annum. Almost every national beverage player has a water variant and organized brands like Himalaya, Bisleri, Kinley and Aquafina vie with thousands of local players for a slice of the market. Coke is equally upbeat and is taking relevant initiatives to be able to meet the growing consumer demand and category opportunity. Conclusion Obviously the non alcoholic beverages market is on the rise, because of the change in the consumers trends and demographic. Consumption of non-alcoholic beverages in India is to grow between 16.5 and 19 per cent over the next three years. In this category, the fastest-growing category is fruit-based beverages. The estimates were based on an assumed gross domestic product growth of 7%, which is higher than the 5% growth forecast by several economists. According to a report by market research firm Business Monitor International, the non-alcoholic beverage market in India comprising carbonated drinks, juices, packaged drinking water, milk, ready-to-drink tea, tea, coffee and sports drinks - is expected to touch the $5.8-billion mark by 2015. The market is sure booming as both Coca Cola and PepsiCo have these humungous plans to invest in India, while the juice market at the value of Rs. 1100 crore is an evolving market that’s endearing the consumers with health and value for money manner.

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Coffee News

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Coffee production may hit exports this year in India

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offee shipments from India, Asia’s third-largest grower, are poised to fall this year as a rally in global prices deters buyers from Italy to Russia and after unseasonal rains cut output for the first time in six years. Exports may decline as much as 10 per cent from 312,756 tonne in 2013, said Ramesh Rajah, president of the Coffee Exporters Association of India. The harvest probably dropped below 300,000 tonne in the 12 months started October 1 from a record 318,200 tonne a year earlier, he said. http://articles.economictimes.indiatimes. com/images/pixel.gif Reduced supplies from India, where robusta accounts for 70 per cent of output, may help a surge in prices of the beans used by Nestle in instant drinks. Futures of the arabica variety, brewed by specialty companies including Starbucks, advanced in New York to a two-year high in March and robusta in London jumped 22 per cent this year as drought threatened crops in Brazil, the largest producer and exporter. “It has been an exceptionally bad year for production in India because of adverse weather last year and the weather has been a bit dry this year, which is worrying for the next season,” Rajah said by phone from Bangalore. “Global prices have moved up and this has reduced demand. Export volumes will go down this year.” Robusta jumped as much as 2.8 per cent to $2,070 a tonne on NYSE Liffe on Fiday and was at $2,051 by 2:41 PM in Mumbai. Arabica rose 0.9 per cent to $1.761 a pound on ICE Futures US after reaching a two-year high of $2.0975 in March.

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

F & V News

Pomegranate export sees sudden peak

India will challenge EU ban on fruits & vegetables

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ndia is challenging the European Union’s move to ban exports of fresh mangoes and four other vegetables. The Government will take up the issue of the ban strongly at the India-EU SPS-TBT (Sanitary and Phytosanitary and Technical Barriers to Trade) working group meeting scheduled in Brussels on Tuesday. “We see the ban purely as a trade restricting measure. Since India has already assured the EU that its improved SPS certification system will be in place from April 1, there is no justification behind the ban,” a Government official told Business Line. Earlier this week, EU declared that it would ban Indian mango and four other vegetables including egg plants and gourds from May 1 on the grounds that they contained harmful organisms.

“When we had agreed to put up a system of phytosanitary inspection from April 1, they should have waited to see how the new system worked,” an official said terming the EU ban as “too pre-emptive and pre-mature”.

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he quantity of the red fruit exported to Gulf countries has doubled from 500 to 1,000 tonnes in the past fortnight There has been a sudden and sharp rise in the quantities of pomegranate being exported to the Gulf countries in the past fortnight. The quantity of the fruit exported has doubled from 500 to 1,000

tonnes, claim traders, much of which is being shipped out in containers. Exporters have attributed this trend to an abundance of local production of the fruit. Kaniaya Nishad, an exporter, said, “In India, pomegranate is commercially cultivated in Solapur, Sangli, Nashik, Ahmednagar, Pune, Dhule, Aurangabad, Satara, Osmanabad and Latur districts of Maharashtra; Bijapur, Belgaum and Bagalkot districts of Karnataka, and to a smaller extent in Gujarat, Andhra Pradesh and Tamil Nadu.” He added, “Presently, however, large quantities of the produce are

coming in from Maharashtra.” He continued, “The pomegranate is a 12-month fruit, but suddenly the quantities have shot up. Although the fruit is being sold for Rs 120 a kg in the wholesale market, the retail price is much higher. Only those fruits which are 200-500 gram in weight are being exported.” Traders also say that there has been a dip in the quantity of pomegranates from Pakistan, which usually compete with Indian produce in the Gulf countries. Since the fruit has a water-laden pulp, it is in great demand in the West Asian countries, where temperatures usually soar at this time of the year.

Nashik exports over 3K grape containers to UK and Europe this season

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espite inclement weather and hailstorms that flattened vineyards recently, grape growers in Nashik have managed to export about 3,200 containers of table grapes to UK and Europe. The exports to Russia and China have not been included in the count, Draksha Bagiatdar Sangh (grape association)

chairman Kailas Bhosale told The Asian Age on Sunday. Grape growers hope to export 500 more containers by April. Compared to last year’s exports of around 6,000 containers, there is a shortfall of about 2,500 this year. About 100 containers are shipped daily and each contains an average is 13 tonnes of grapes. The Asian Age had earlier reported that according to sources, grape production in Nashik was likely to decrease by 20 to 25 per cent

this season, affecting exports and local supply with premium prices, despite an increase in acreage. Though the production is difficult to survey due to scattered vineyards, agriculture sources say that it is around 600,000 tonnes. The Nashik district is the largest producer of grapes in India with nearly 1,75,000 acres of vineyards, while the total acreage in Maharashtra is 2,50,000.

Global Market for Food Processing & Packaging Equipment to Reach $31.3 Billion In 2018

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CC Research reveals in its new report, the global market for equipment used in food processing and packaging is expected to grow to $31.3 billion by 2018, with a fiveyear compound annual growth rate (CAGR) of 6.3%. The food packaging equipment, the largest and fastest sector in the market, is moving at a CAGR of 6.7%. The food processing and packaging industry is poised for excellent

growth in the coming years. Indeed, the food packaging market, the largest segment in this category, is expected to reach $19.3 billion by 2018. Food processing equipment, the second-largest market segment, is projected to grow to $12 billion by 2018 and register a CAGR of 5.8%. “Today’s manufacturers of food processing and packaging equipment face a rapidly changing and highly demanding global

competitive environment,” says BCC Research food and beverage analyst Shalini S. Dewan. “They are being driven to offer a broader selection of products, at lower costs, and supplement their selections with a higher level of value-added engineering, design, and other services.”

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QSAFE CONSULTANTS (INDIA) YOUR FIRST PARTNER IN FOOD SAFETY

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

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Ruchi Soya to enter RTE foods biz

Oil & Fat News

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Ruchi Soya adds premium sun flower oil ‘Sunrich’ in the kitty

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dible oil major Ruchi Soya Industries Ltd of Indore is gearing up to bite into the branded ready-to-cook food segment. This forms an important part of its new journey from an edible oil player towards becoming a branded FMCG firm. The Rs 30,000 crore company has edible oil brand Ruchi and soya food brand Nutrela in its portfolio. Having just launched Nutrela Instant, the company is now in the process of foraying into read-to-cook breakfast and select Indian snacks segment. “We will be launching these products in the next one to two years. Some of them will be under Nutrela brand, but we will also be coming out with new brands,” Satendra Aggarwal, Chief Operating Officer, said. He was in the city to launch the company’s re-branded premium refined sunflower oil,

Sunrich, with new packaging and valueaddition. Ruchi is working on products in the breakfast cereal segment, as well as select Indian snacks such as upma (popular in the South) and poha (popular in Maharashtra), Alok Mahajan, Head (Marketing), told Business Line. Industry estimates put the total ready-tocook and eat market (both organised and unorganised) at $ 13 billion last year. Another product in the pipeline is branded such as tomato-based ketch-up and sauces. It is setting up a tomato processing unit in Maharashtra in a joint venture with Japan’s Kagome and Mitsui. “The plant will be ready within a year. Initially, we will be offering processed tomato and later we will move into tomato-based food products,” Aggarwal said.

uchi Soya Industries Ltd, one of India’s largest fast moving consumer goods (FMCG) and edible oil manufacturers, launched a range of premium refined sunflower oil branded ‘Sunrich’. The company is expecting to grab a 10 per cent share of the sunflower oil segment by the end of next year. Speaking to reporters, Satendra Aggarwal, COO, Ruchi Soya Industries Ltd., said the company had been providing customers healthy edible oil for over three decades now and the introduction of the new product (Sunrich) is the first step in its journey to establish a dominant presence in the sunflower oil segment in the country. The current sunflower oil market in India is worth over `180 billion, of which, South India is the biggest contributor with around 70 per cent contribution through consumption. This is expected to grow with a compound annual growth rate of around 10 per cent between 2013-14 to 2016-17. The entire consumer edible oil market (all flavours) in Tamil Nadu is about 2.3 lakh tons per year, of which, sunflower oil contributes more than 60 per cent to the total edible oil consumed.

With the South being prime region for the sunflower market, ‘Sunrich’ is expected to do very well here, said company authorities. “Ruchi Soya has great strength in terms of infrastructure and distribution channels in southern India to make this new product a success,” said Ajay Malik, VP, South. “With the launch of the product, we want to satisfy the requirement of housewives by offering them both healthy and tasty oil at an affordable price,” he added. The new “Sunrich’ refined sunflower oil is available in 500ml, 1 litre and 2 litre pouches and 5 litre jars and even in a 15-litre bulk pack both in jars and tins. It is available across all grocers, neighborhood kiranas and general stores apart from modern retail chains, supermarkets and standalone self-service stores.

Procurement of palm by India depleted

Dairy News Dudhsagar Dairy of Mehsana touches Rs 4,254 cr turnover

Palm oil imports by India, the world’s largest buyer has gone down this month as the highest prices since 2012 spurred refiners and traders to buy more soybean and sunflower oils. Imports of the main crude and refined palm oils fell 24 percent to 526,000 metric tons from a year earlier, the median of estimates from six processors and brokers compiled by Bloomberg show. Total vegetable oil imports, including for industrial use, dropped 9.9 percent to 808,000 tons, it showed. Palm futures traded in Kuala Lumpur surged last month to the highest since September 2012 on concern that dry weather in Malaysia and Indonesia, the top producers, would cut output later this year. The advance reduced Indian demand for palm and encouraged refiners and traders to buy alternative oils.. The palm oil imports has depleted after international prices surged and reduced the

difference with soft oils, and quite an amount of the consumption has shifted to soybean and sunflower oils. Purchases of crude soybean oil probably jumped almost fourfold to 173,000 tons in March from a year earlier, and sunflower oil imports increased to 100,000 tons from 90,655 tons, the survey showed. Palm oil imports dropped 38 percent in January and fell 50 percent in February from a year earlier. India imports more than 50 percent of its cooking oil demand, shipping palm from Indonesia and Malaysia, and soybean oil from the United Palm oil demand should improve from May onward as people will start buying for Ramadan. Communal meals during Ramadan, which is set to start by June end this year, usually boost demand.

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orth Gujarat-based Mehsana District Co-operative Milk Producers Union Limited, popularly known as Dudhsagar Dairy, has achieved a turnover of Rs 4,254 crore during the financial year 2013-14, thus recording a 25 per cent growth over the previous year. In 2012-13, its turnover was Rs 3,406.20 crore. Dudhsagar Dairy, which is the largest cooperative dairy in the country in terms of installed capacity, operates five dairies. The co-operative milk union on Tuesday said its Mehsana Dairy, which has 25 lakh litres per day (LLPD) capacity has achieved a turnover of Rs 2,071.68crore in 201314 against Rs 1,544.13 crore which it had registered in 2012-13. The milk union’s Dudhmansagar Dairy at Manesar, which has 10 LLPD capacity has registered a turnover of Rs 1,319.18crore in 2013-14 against Rs 1,301.10crore in 2012-13. It’s Dudhmotisagar Dairy in Dharuhera,

which has 15 LLPD capacity and is expandable to 30 LLPD, has registered Rs 513.49 crore turnover in 2013-14 against 171.56 crore, which it had registered in 2012-13. The dairy union also runs two other units in Patan and Kadi, which have two LLPD capacities each. Even as its turnover from the sales of milk and other dairy products has increased, the turnover of dairy’s cattle feed factories in Jagudan and Ubkal, has declined. Against Rs 389.41 crore turnover registered in 2012-13, the turnover in 2013-14 has declined to Rs 349.94 crore. The two cattle feed factories have a total installed capacity of 1,450 metric tonnes per day of which Jagudan has the largest capacity of 1,000 metric tonnes per day. The dairy union has 5.2 lakh milk producers registered as members in 1,230 village-level milk societies in north Gujarat region.


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

Electronics Devices Worldwide Pvt. Ltd.

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

News

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DuPont Nutrition & Health Introduces the BAX® System Real-Time PCR Assay for Genus Listeria

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ext-generation test provides simplified preparation and faster results with same reliable accuracy and convenience WILMINGTON, Del., April 1, 2014 — Food processors and service labs who need a fast, accurate test for Listeria can now use the latest BAX® System assay from DuPont Nutrition & Health to enhance their food protection programs. This next-generation test combines shorter, simpler sample preparation and faster real-time processing, without sacrificing accuracy or reliability. Listeria species can be an indicator that harmful Listeria monocytogenes is present, which can cause serious illness, particularly for persons with heightened susceptibility,” said Rob McPheeters, Diagnostics leader, DuPont Nutrition & Health. “This new assay demonstrates our commitment to providing the best value in science-based solutions for evolving food protection needs to help producers and manufacturers significantly reduce this risk.” The DuPont™ BAX® System Real-Time PCR Assay for Genus Listeria can be used as a quick and reliable method for detecting

Listeria in a variety of products and has been validated on frankfurters, cooked shrimp, spinach, queso fresco cheese and environmental surfaces. Furthermore, the assay provides additional flexibility by

allowing customers to test for both Listeria and Salmonella in the same batch, with results for both organisms in a little over an hour. Food processing companies around the world rely on the BAX® System to detect pathogens or other organisms in raw ingredients, finished products and environmental samples. The automated system uses leadingedge technology, including PCR

assays with tableted reagents and optimized media, to detect Salmonella, Listeria species, Listeria monocytogenes, E. coli O157:H7 and STEC, Campylobacter, Staphylococcus

aureus, Vibrio, and yeast and mold. Many of these tests have been certified by AOAC and AFNOR and/or approved by government agencies in the Americas, Asia and Europe. For more information about the BAX® System, one of the most advanced pathogen detection systems available to food companies, please visit www. fooddiagnostics.dupont.com DuPont Nutrition & Health

Incentives needed to improve grain markets in India

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ven after the agricultural reforms of 2002-03, for wheat, rice, and pearl millet farmers in India, grain markets are still pretty sticky. Two University of Illinois economists analyzed infrastructure of interstate trade for food-grain crops in three Indian states and found that grain farmers are unable to cash in on India’s market reforms and take advantage of a price difference between two or more markets. “We wanted to see if there was more integration in the markets since the 2002 reforms,” said Kathy Baylis. “We were surprised at how little integration we saw. Apparently there are still a lot of regulations in place. A lot of the wholesale markets are not open other than right around harvest. There is a strong incentive to sell

at harvest because if you don’t you’d have to travel to Delhi or another major city. The ADM Institute for the Prevention of Postharvest Loss that provided the funding for this research is interested in storage, and what we found in India is that there was a huge disincentive to invest in on-farm storage because even if farmers could store their grain for six months or so, they wouldn’t be able to sell it then.” Baylis explained that, prior to the reforms of the early 2000s it was difficult in India to transport grain across state lines. The reforms made that easier and also expanded the number of people who could purchase and trade grain. Farmers used to have to go through a long, arduous process to become certified. The reforms

eliminated some of those issues, but other problems still plague the system. “Some people may think of this as only an engineering problem,” Baylis said, “where we just need to develop a really good place for them to store the grain. But if there isn’t an incentive to store grain to sell later and get a better price, the extra storage won’t help farm income.” According to Baylis and her colleague Mindy Mallory, although India still needs some serious policy reform, small innovations could be facilitated to encourage more independent traders to get into the market. “Anecdotally we heard that in places where there were more active traders, farmers were able to benefit from this market arbitrage potential,” Baylis said. “They weren’t stuck looking at their own local market. If they worked with a trader, they could keep an eye on what’s happening in the city and sell their grain two or three months after harvest.” Baylis said that fruit and vegetable crops, which are highly perishable,

addresses the world’s challenges in food by offering a wide range of sustainable, bio-based ingredients and advanced molecular diagnostic solutions to provide safer, healthier and more nutritious food. Through close collaboration with customers, DuPont combines knowledge and experience with a passion for innovation to deliver unparalleled customer value to the marketplace. More information is available at www.food.dupont. com DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs and thought leaders, we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit www.dupont.com tend to have less regulation than the grains and oilseeds. Because they don’t go through the government markets, traders are making investments to get the food from the farmer to the city. “You have these parallel systems going on,” Baylis said. “One is regulated, very structured and not very efficient. One is unregulated and in some cases works well; in other cases, it is also a mess. For vegetable crops, if farmers don’t have those linkages, they really can’t sell perishable products. There’s a massive lack of cold storage in India, for example.” As an economist, Baylis said that she studies how policy can create headaches for farmers and on the consumer end of the supply chain. “Global food security is often seen as a production issue, but often it’s not just lack of water or access to the right seeds,” she said. “There has been evidence that major famines, weren’t due to a lack of food production, they occurred because you had all of these other institutional crises or economic crises. “Some people on the outside look at the postharvest loss in India and say we need to develop a better mouse trap – to develop better storage. Our point is that although that’s a good thing, if you don’t have the right policy and economic incentives, the best mouse trap still won’t help.”

Varun Beverages to Invest $300m In Africa, Asia Expansion

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arun Beverages Limited, a subsidiary of PepsiCo has announced plans to invest about $300 million in expanding its existing business in Asia and Africa including India, Nepal, Sri Lanka, Morocco, Zambia and Mozambique over the next one year. In doing this, the company said it will secure an $85 million loan from the International Finance Corporation (IFC), the private sector investment arm of the World Bank and other investors while considering listing its shares on the Stock Exchange Market. The project document with IFC shows that while IMF will provide $85 million equity, other funds will be raised through internal accruals, additional equity and debts. The investment plan, which also involve acquisition of companies over the said period, will help Varun increase its employment strength from 4,200 to about 8,000 over the next few years across South Asia and Africa. IFC said its involvement in the investment would bring discipline and credibility to the company as it prepares for a public listing. IFC’s investment in Varun is one of the largest equity investment made into an Indian firm. Controlled by Ravi Jaipuria, the largest independent thirdparty bottler and distributor of Pepsi in India, Varun Bottling Company operates under bottling and distribution franchise rights from PepsiCo for a number of territories across Africa, India, Nepal, and Sri Lanka.

For updated news everyday, logon to

www.agronfoodprocessing.com


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

Interview

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Food Safety In Snack Foods and Namkeen Segment Sanjay Indani

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hat are the major food safety issues you see with the Indian Snacks & Namkeen segment? This industry has a long history. The players in this industry are operating in generations. Few of them have upgraded their systems & few still rely on traditional methodologies. Equipment wise the industry has gone lot of changes & modernization in last few years but many industries have not opted for that due to variety of reasons. As the industry rely on traditional methods the industry is labor oriented it faces the challenge of complying to personal hygiene issues. If we have to put it from the perspective of Indian legal requirements many industries would fail to comply in following aspects of food safety requirements:

1. Layout-flow & segregation of materials: As I said the industry has seen tremendous growth in last few years as a result of changes in food consumption pattern & acceptability of Indian snacks worldwide, units are operating with higher capacities in available limited space. Thus faces tremendous space constraints due to higher production capacities. The space management, variety of SKUs, etc result in the wastage & spoilage of raw material, finished product & packing material. The units does not comply to the requirement of unidirectional flow, proper segregation of materials, storage & layout requirements. 2.Facilities: I have seen units where there are no adequate facilities required. This may be due to space constraints. The facilities required shall include changing room, separate toilet facility, hand washing station & dining area. Units are struggling to fit all these in the facility. But many of them have started working on it to comply the requirements. 3.Personal hygiene: Food handlers (Workers, supervisors, technicians & even mangers & owners) need to follow personal hygiene requirements. This is not a rocket science but industry has this as one of the major challenge. The biggest problem is attitude of the food handlers. Unless the mindset is changed the compliance is

OATWELL ADVT_QUATER PAGE_13 CMS L X 19 CMS H

very difficult & it will happen through consistent efforts of the management to make this mandatory in the unit. Many think that during inspection we will comply to the requirements & then leave it. This gives liberty to the food handler not to follow the necessary requirements. I feel this aspect shall be taken on priority by all FBOs for implementation & strictly adhered to. Simple aspects shall be given importance in this compliance, eg. washing hands (using soap & water) after visiting toilets or before starting the work, keeping nails short, not using jewelry, not permitting tobacco or gutkha, providing them hair nets (head gear), apron & gloves where required, etc. This will prevent cross contamination of the finished product. This looks very simple but one of the tough tasks to implement in the food industry. Management should work along with food safety expert to make this happen in addition to making it mandatory to be followed every time in the unit. 4. Cleaning & housekeeping: Here I am referring to deep cleaning of the equipment being used in the process. The industry should follow rigorous cleaning methods to ensure that the food residues are removed from the machineries & equipment Additional efforts required in this area as industry uses lot of oil for manufacturing process. It is inevitable that the oil spillage, oil residues will create layer on the equipment leading to accumulation of dirt & dust. This shall be regularly cleaned effectively. Most of the places I have observed that this is done only superficially, to remove flour & other visible residues leading to accumulation of food particles on the equipment where there could be growth of infestation or mold & microorganisms. Cleaning shall be given priority by the FBO to keep the machines, equipments, floor & area clean & tidy. The cleaning of areas shall include cleaning of floors, mezzanines, doors, windows, stores, crates, pallets, drums, etc.

5. Pest control: This is one of the grey areas in most of the units. Pest of various types affects the process & product, which includes rats, rodents, lizards, flies & crawling insects like ants & cockroaches. Each pest needs different treatment & control. It not only contributes to food safety issues but also increases the process loss. Industry assigns external agency for this activity but forgets to monitor & verify the activities done by the pest control agency & claims that all efforts to control pest are non-effective & waste of money. Unless this activity is monitored & verified by the organization themselves the effectiveness of pest control cannot be seen. 6. Traceability: Traceability is to be maintained so that finished goods can be traced back till raw material & to supplier through the batch coding throughout the process. Once the material is received, it needs to be identified & traced through the record keeping or an ERP based program. This also ensures the FIFO (First In First Out). It is one of the important legal requirements to be complied with. Unless this stock identification & rotation is implemented for raw materials, packing materials & finished products, industry cannot adhere to three requirements like Traceability, FIFO & Product Recall. Industry need to work on this aspect religiously to bring it to 100% compliance. We are guiding industry to find practical solutions on this to implement & comply with the regulations. 7. Labeling compliance: Most of the industries are alert on this but need continuous guidance & verification of labeling compliance. We assist industry to comply to labeling requirements through verification of labeling once in a year & providing updates to the industry & making them alert well in time to initiate actions on their end. Waste management, rework handling, product testing, etc. are other food safety issues still pertaining with this industry. We have both modern and traditional styles of snacks being sold in the open market, branded and non-branded too. As a food safety expert what are your observations and suggestions to the processors? I would urge the management to initiate the process of compliance through GMP-GHP (Good Manufacturing Practices & Good Hygiene Practices) implementation as required by food safety regulation under Schedule-4 requirements. They shall plan a phased implementation program to avoid financial burden & to achieve continual improvement in the hygiene of the unit. We do a complete hand holding of the units where the management is committed & wants to improve the practices. As mentioned earlier it should be continuous,

consistent & non-stop efforts to see that we adhere to the food safety requirements. So my suggestion for all FBOs is to: 1. Assign budget for the regulatory compliance & infrastructure work 2. Have a gap assessment to understand the aspects need to be worked on 3. Plan step by step work as per the gap assessment in phased manner without hampering the production & to have financial balance 4. Train the supervisors, staff, operators on this 5. Keep at least quarterly review of the progress, achievements, effectiveness of this implementation process 6. Insist not to by-pass the laid down system 7. Have at least one qualified staff to handle production & comply to pre requisites i.e. GMP-GHP. FSSA has been implemented for snacks and namkeem segment as well, do you see some movement in terms of awareness and compliance of the rules among processors presently? Yes, the snacks & namkeen FBOs are proactive & few of them initiated the process of compliance to the regulations laid down by Food Safety & Standards Authority of India. But I would say it is not sufficient. Everyone should initiate this process. If FBO thinks let us wait & watch & later I will implement the system, it would be too late. Not only from the business sustainability but also from the consumer point of view, all FBOs shall take lead & start implementation. We have been continuously chasing the FBOs to initiate this but is postponed due to various reasons & changing priorities. Indian snacks including potato based and traditional nameeks have a great demand in the global market where the quality standards are set from years, do you see that processors are able to meet the required standards before the exports or they face issues related to food safety? We are good in exports too. The international norms are quiet stringent, but again it depends upon which country we are talking about. The issues are not only consistency of quality but also food safety aspects like presence of jewelry, foreign matter or may be microbial contamination. By implementing the GHP system FBOs can surely overcome all these problems & succeed in the exports too. One or more certifications like HACCP, ISO 22000:2005, FSSC 22000 & BRC-Global Food are now made mandatory by customer in the importing country. Industry shall work on this. These systems have various advantages of improving the performance, improving the processes, adequate documentation, etc.


B everages & Food Processing Times - April - I - 2014 To maintain a global standard company what needs to be done in a snack food factory on food safety front, can you elaborate stepwise and how helpful will be your company for this segment? As depicted in the earlier points, the implementation of food safety systems shall be taken on priority by the industry. Management shall commit themselves to support the implementation & provide adequate resources required for the implementation of this food safety. We do complete hand holding of the industry where we involve ourselves right from the gap assessment till certification process. We have qualified trained food professionals to

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help industry to set the system & comply to the regulations. We also help industry by running capacity development programs where we train the staff to make them understand food safety requirements. All this can be done once the industry starts feeling that the organization should work on this line. We are keen to associate with the FBOs willing to work to assure food safety throughout the process by implementing the GHP-GMP & food safety requirements. Sanjay B Indani is Head Food Safety, QSafe Consultants (India), Mob.: +91- 76665 78715

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