Beverages & Food Processing Times October 2013 by Advance Info Media

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Govt moves to attract investors in food processing sector

ntending to guide investors who may be interested in setting up food processing units in different parts of India, the Center launched a comprehensive web platform Investors’ Portal - comprising

details of various opportunities and available infrastructure in the food processing sector within the country. Apart from dissemination of information, the web portal which can be accessed through

the Home Page of the ministry of food processing industries website (www.mofpi.nic.in) - will also offers online support to investors with regard to their queries and provide hand holding services in the initial stage of setting up their units. “This Portal will provide information about the opportunities f o r investment available in various states. It will also provide detailed information about the infrastructure facilities, fiscal incentives, availability of raw-material etc. so that

Food cluster project gathers momentum-Pune

he proposed food cluster, which aims to upgrade small scale food industries and promote their products in national and international markets, is likely to start in a year. The city-based National Agriculture and Food Analysis and Research Institute -NAFARI and district industries center (DIC), have initiated steps to prepare a diagnostic study report (DSR) for the food cluster which will be submitted to the Union government for approval. The cluster is expected to have participation of more than 500 food processing and manufacturing units located in Pune region. A meeting of food processors and manufacturers around Pune was held to give a push to the project which is under consideration for the last two years. S S Survase, general manager at DIC Pune,

who attended the meeting, said, “There are more than 1100 micro, small and medium scale food processing units in Pune region. Of these about 400 have been registered so far with DIC. All these units need common facilities like a pilot plant, laboratory for quality testing, training for scientific ways for packaging of products as well as latest infrastructure. The units can avail of these facilities by formation of a cluster.” The NAFARI has applied to the ministry of micro, small and medium industries (MSME) for assistance under the scheme of cluster development wherein Rs 15 crore is to be provided by the government while about 10% contribution will come from members of the cluster. Survase said the DSR of the project, which is being validated at present, will be sent to the state and Union governments for further approval. It will take about 10 to 12 months to make the food cluster in Pune operational if things move as per schedule. Vinay Oswal, director of NAFARI, said, “The Pune region is well known for agri and food processing industries. The units, however, have to upgrade themselves in respect of hygiene and sanitation, production processes, packaging, testing and prototype development to cope up with domestic as well as export demands.”

prospective investors can plan their investments in a suitable manner”, said an official statement. The portal w a s launched by the U n i o n minister of state for agriculture and food processing industries Tariq Anwar. Anwar also released a handbook Opportunities in Agri Business - which is a compilation of detailed profiles of different states. The profiles contain information on production base, availability of

raw material, agri-marketing infrastructure, investment potential and states’ policies for development of food processing industries. All these information will also be available on the “Investors Portal”. It is expected that the pro-active measures, being taken by the ministry, will help in bringing investment in the food processing sector. Absence of adequate number of food processing units has, over the years, seen substantial losses of food grains and horticultural crops. “In recent years, record production of food grains and horticultural crops has been obtained, and yet due to non-availability of modern infrastructure at various levels, there are substantial losses in the supply chain. These losses are harmful for both producers and consumers of agricultural products”, said the ministry’s statement. It said, “The ministry of food processing industries is keen to promote investment in the agricultural sector so that the supply chain from farm to consumers can be modernized and wastage of perishable commodities can be minimized”.

Beverages & Food Processing Times - October - I - 2013

Bakery & Biscuit News

Doughnut makers go for eggless, savoury variants exclusively for our Indian consumers. This was done to cater to the continuous demand from the vegetarian consumers,” Peter King, Vice-President, Asia Pacific, Krispy Kreme Doughnut Corporation, said. The 76-year-old American doughnut chain entered India last year and has five operational stores. “Doughnut is a rather under-penetrated category and we are looking to establish our presence,” King said adding that the company is now looking at Delhi, Jaipur and Lucknow.

hink of doughnuts and what immediately comes to mind is a warm, sugary melt-in your mouth confectionery. Not always, say international doughnut chains that have made an entry into India. Big names in the doughnut business are creating everything from savoury to eggless variants for the Indian consumers as they seek to establish a foothold in India. “Localisation is a key part of our strategy as are local tastes and flavours. We have developed an eggless and savoury variant

IMPORT COSTS King said that as part of its expansion plan, the company was trying to localise to cut down on import costs. “Barring the mix, we are looking at localising the ingredients. This will bring our costs down drastically and also tune our products to local tastes,” he said. Similarly, Singapore-based doughnut chain Mad Over Donuts, too, had its moment of realisation when customers walked into its stores seeking the savoury and even doughnut which could be consumed by diabetic patients. “Savoury variants of our doughnuts are a huge hit and contribute nearly 10 per cent to our total revenue. We will be looking to add more

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variants to expand our product portfolio,” Tarak Bhattacharya, CEO, Mad Over Donuts, said. It has 46 company-owned stores in India and manufactures about 25,000 doughnuts a day. REFASHIONED MENUS “We will be adding another 50 stores in India, of which 10 will be café format. Our other stores will be in various formats including kiosks and cafes,” he said. Bhattacharya said that the company has doughnuts in both sweet and savoury category, as well as eggless ones priced at over Rs 55 a piece. Dunkin’ Donuts, which entered India through a partnership with Jubilant Foodworks Ltd, too has a “yeast-raised doughnuts” and “cake doughnuts”. Dev Amritesh, COO, Dunkin’ Donuts, notes that company largely sells the yeast-raised donut. “Out of the 24 varieties we have, 20 are yeastraised. This broadens the customer base,” he said while declining to comment on whether the company is looking to introduce a savoury variant like its competitors. Dunkin’ Donuts has 18 stores. Industry watchers point that the Dunkin’ had refashioned its menus to include flavours like mango. Some of the fillings were also “adjusted” to suit the local palate. They also pointed that Dunkin’ had undertaken a similar exercise in China by creating doughnuts with sea-weed and even pork filling while Krispy Kreme tweaked its menu in Thailand.

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Chocolate Meltdown The world will run out of cocoa by 2020

h e world w i l l run out of cocoa the basic ingredient of chocolate - within the next seven years due to pressures of rising global demand, experts have warned. Industry experts who met at the British Library in London last week have even predicted the exact date of the impending meltdown - October 2, 2020. “There will be a chocolate shortage and there isn’t a solution to the problem. Seven years is what we think we have left,” chocolate taster and expert Angus Kennedy said. Confectionery giants noted that there are just not enough cocoa plantations across the globe to cater to the soaring chocolate demand, the ‘Daily Star’ reported. They warned that world would need the equivalent of another planet Earth to fill the gap needed to keep the chocolate industry going.

“We need another Earth basically if we carry on at this rate. We are destroying the whole thing. The problem we’ve got is that much of the space that was used for cocoa plantations is no longer there,” Kennedy said. Chocolate prices may increase over the next few years as cocoa becomes harder to get hold of. With the result, many big chocolate brands will fill small sized bars with more nuts and fruit as they are cheaper to produce. “If you plant a cocoa plant you get cocoa beans in four years, which means the farmers are waiting four years for a profit so obviously they think ‘What is the point?’” said Kennedy. There is very little growth projected for cocoa consumption in Europe and America but in Asia it is set to go sky high, said Kennedy.

Baking Fresh Business Pan India T he cake segment occupies nearly 20% m a r k e t following the bread category, which is approximately

78% of the baked products market. Bakesmiths & Company one of the most sought after premium confectionery and bakery retail brands in Kolkata is poised to further its presence across the country. To make the brand a household name, an MOU with Franchise India has been signed.

Bakesmiths & Company has two (2) upscale outlets in Kolkata, coupled with strategic tie-ups with world renowned MNC’s to provide delectable bakes. Through franchising, 8-10 outlets are planned to be established within a year. Mr. Yasir Ahmed Hamraz, Founder-Director, Bakesmiths & Company said “Bakesmiths & Company is poised to regenerate the confectionery and bakery landscape of India. With the franchise model, we seek huge success in coming years.” Ms .Sonya Chowdhary, Director, Franchise India Brands stated “We are delighted to be associated with a brand that has reached a dominant position, in a short span, in the confectionery and bakery industry. Their pan India expansion strategy will certainly be immensely successful.” Bakery products are consumed by the masses due to their low price and high nutrient value. The bakery products have gained popularity with the masses on account of rapid economic growth and a change in eating habits.

Beverages & Food Processing Times - October - I - 2013

Bakery & Biscuit News

Mrs. Bector’s Food to sell its biscuit business M r s . Bector ’s F o o d , a leading North Indian company engaged in the biscuits, bakery and condiments business, is looking to sell a controlling stake in the biscuit business and in talks with PE investors. According to people in the know, Motilal Oswal Private Equity, which holds about 23 per cent stake, will sell the business along with the stake owned by other promoters in Mrs. Bector’s Food. The firm has appointed Avendus Capital for advising the stake sale. According to people in the know, the talks with PEs are at preliminary stages as the de-merger of business was completed recently. The

financial details of the deal are not known. Mrs. Bector’s Food, which sells products under brand of Cremica, is the supplier of buns, liquid condiments, batter and breading to M c D o n a l d ’s , H i n d u s t a n Unilever, Big Bazaar, Spencer’s, Taj Group, ITC, Jet Airways, Air India, Barista, Café Coffee Day, Pizza Hut, Domino’s and Papa John’s. The biscuit business contributes Rs 450-500 crore to the annual revenue of Rs 600 crore of the company. Cremica has products such as breads, sauces, bread spreads, ready-to-eat curries and syrups. Recently, the business was divided equally among Mrs. Bector’s

GSK’s Boost for South to launch biscuits

SK Consumer Healthcare is extending its chocolate malt-based health drink brand Boost to biscuits. In the past, it had launched similar brand extensions for Horlicks in categories such as biscuits and oats. To begin with, the company is launching the Boost NRG Biscuits in south India, which will be available across retail stores and modern trade outlets in Tamil Nadu, Kerala, Karnataka and Andhra Pradesh. “Boost has always enjoyed a strong market share in the south. That is why we decided to leverage on this brand equity and launch our first line brand extension Boost NRG biscuits in the region. These chocolate-flavoured biscuits are made of real Boost,” said Jayant Singh, Executive Vice-President - Marketing, GlaxoSmithKline Consumer Healthcare. South India is said to be the biggest region for health drink brands in the country. INNOVATIONS Singh said the brand extension was in line with the company’s philosophy to continuously look

at innovations that help it meet the consumer’s ever changing needs. He said that the chocolate biscuits segment in the south was pegged at Rs 240 crore and was growing at 58 per cent year-onyear, which, the company believes, is significant. It said it had positioned the biscuits in the premium segment, pricing a 75gram packet at Rs 18 and 150-gm packet at Rs 35. Incidentally, Boost was one of the first brand endorsements for Sachin Tendulkar, which he signed at the age of 17. He still endorses the brand. “Boost always has had a strong cricket connect. And we have had our association with Sachin for the past 24 years,” said Singh. The company in a statement last week had said Tendulkar embodied the brand’s attributes and continued to be an ideal brand representative.

Food’s founder Rajni Bector’s three sons – Ajay, Anoop and Akshay Bector. While 25 per cent stake of the condiments business was kept with Akshay, the biscuit business was divided among Anoop and Ajay Bector along with Motilal Oswal PE. In 2010, Motilal Oswal PE bought the stake in Mrs. Bector’s Food from Goldman Sachs for about Rs 70 crore. Goldman Sachs had invested in Cremica in 2006. When contacted, Akshay refused to talk about the sale process. Avendus Capital did not respond to Business Standard’s queries. With projects in power and infrastructure stuck and no investment opportunities seen across sectors, PE investors are keen to ride the consumption story in India, mostly in areas such as food and beverages, restaurants and retail. According to a recent report by Technopak and National Restaurant Association of India, the $48-billion food services market in India is projected to

grow to $78 billion by 2018. Saloni Nangia, president at retail consultancy Technopak, said: “There are many factors driving the growth of the market. Eating out and socialising is increasingly becoming a part of the Indian consumer’s lifestyle.” He also pointed to the rise in the number of women work force as well as their increasing earning and spending power.

The sector offers opportunities both at the front end – at the restaurant and at the back end – including food processing, commissaries and logistics, giving PE firms attractive investment options in multiple areas of the business, she added. Recently, Manpasand Beverages, the Vadodara-based juice manufacturing and marketing firm, was engaged in discussion with PE firms to raise Rs 100-150 crore.

Beverages & Food Processing Times - October - I - 2013

Food Processing News

A Fast Buck for These 2 Fast-Food Chains in India

ith the U.S. seemingly saturated, Europe conquered, and China fully breached, U.S. fast-food giants are targeting India as the new market for growth. A newly released study says the country could be a $1.1 billion opportunity over the next three years as revenues double. Translating sales into foreign markets, however, isn’t always a smooth transition. It’s been more than 25 years since the first Kentucky Fried Chicken restaurant in China plopped its first chicken wing into a vat of grease

just outside of Tiananmen Square, and today the chain has more than 4,200 fast food joints in the country. Yet as successful as KFC and McDonald’s (NYSE: MCD ) have been in China, relatively few competitors have followed them overseas. KFC’s parent, Yum! Brands (NYSE: YUM ) may have introduced the Pizza Hut chain to the Middle Kingdom, but no one else has really made a successful go of it. So to say there will be a quick surge in the number of fastfood restaurants in India may

be overstating the case. Since opening its first restaurant there in 1996, McDonald’s has only built 240, and none sell beef or pork due to the country’s religious beliefs. In contrast, McDonald’s plans to have some 2,000 stores open in China by the end of this year. Customization of a menu to meet local tastes and religious beliefs represents the biggest challenge for those looking to export their business model there. All of McDonald’s restaurants, for example, must be certified halal, meaning under Islamic law they’re permissible to eat at. Analysts at Crisil, however, say that the barriers that have kept quick-serve chains on the sidelines before may be changing, and they expect new fast-food stores to open at a brisk 16% to 18% rate annually in India for the next three years. Pizza in particular is seeing impressive growth. Domino’s Pizza (NYSE: DPZ ) already has a large and growing presence in India, with 552 stores at the end of last year. India represents its third largest international market

Australian Trade Commission partners with YES Bank on agri-business, food expertise

he Australian Trade Commission, the Australian Government’s trade, investment and education promotion agency, and YES BANK signed a Memorandum of Understanding (MoU) to apply Australian experience to raise the productivity and exports of India’s food and agricultural sector and in doing so address food security concerns. The MoU was signed by Nicola Watkinson, Minister Commercial and Senior Trade and Investment Commissioner - South Asia, Australian Trade Commission (Austrade), and Nitin Puri, President and Country Head, Food and Agribusiness Strategic Advisory and Research, YES BANK, in New Delhi. Austrade in association with YES BANK will work with India’s food processing and agricultural sectors in the following areas: .Share experiences from Australia which has similar climatic conditions and logistic challenges and has met these challenges to now export A$ 30.5 billion value

of food each year .Introduce Australian expertise and technologies to increase the productivity of key agricultural s e c t o r s like grains, vegetables and dairy. Explore collaborations and joint ventures in areas of food processing to add value to Indian agricultural produce. .Exchange information on new consumer trends around the world that can offer new export opportunities for Indian and Australian agricultural companies. Austrade and YES BANK will jointly organise workshops across India to create awareness about Australian capabilities in the food and agribusiness sectors and exchange information with Indian businesses looking at international expansion opportunities.

Austrade will also assist Australian companies in their expansion in India through identification of joint venture partners and investment opportunities in India. Australian agri-business companies have been actively working with the Indian agribusiness sector offering Australian technology and expertise. Examples of some successful Australian involvement in the Indian agribusiness sector includes: Technico Pty Limited : Australian agri-biotechnology company specializing in rapid seed potato production. Technico was acquired

behind the U.K. and Mexico, and its fastest growing market. Of the nearly 500 new restaurants the pizzeria opened around the world in 2012, 23% were in India. In addition to its population having what may be considered a difficult palate to please by U.S. standards, there are significant environmental and political infrastructure hurdles to be surmounted. The climate in India is unstable, and roadblocks have been thrown in front of retailers looking to expand. Although the country’s Department of Industrial Policy and Promotion directives mandating specific levels of investment in back-end operations are currently aimed at mass retailers like Wal-Mart, they do hint at problems other foreign operators may encounter as they grow in size and importance. Crisil says global brands own nearly two-thirds of the QSR market in India, which may raise the hackles of local government officials, and, as much of the growth in the industry is expected to occur in outlying cities away from the large industrial centers like Bangalore, Hyderabad, and Mumbai (40% to 45%, according to the researchers), the cultural shock may be profound. Yum!’s KFC chain is also facing difficulties with growth in China due to issues both external and internal. It’s served chickens given unapproved levels of antibiotics,

served ice cubes alleged to be dirtier than toilet water, and suffered from customer fears due to a flare-up of avian flu. It reported a 16% plunge in same-store sales at KFC in July as customers fled the chain in droves, with comps at some stores tumbling as much as 30%. It doesn’t take much to create a crisis in confidence, and in foreign markets that could mean a significant turn for the worse. India is a big opportunity, and there are plenty of multinational corporations lining up to take advantage. Burger King Worldwide plans to live up to its name by expanding into the subcontinent, though it hasn’t made it there yet; Dunkin’ Brands is trying to convince the populace that doughnuts are worth snacking on; and Starbucks has 18 coffee shops there now -- it opened its first one a year ago -- and plans to open 100 more over the next year. All in all, India represents a fat opportunity for McDonald’s and Domino’s Pizza, which have already established themselves there and are likely to keep growing as the market expands. Investing across the pond Profiting from our increasingly global economy can be as easy as investing in your own backyard. The Motley Fool’s free report “3 American Companies Set to Dominate the World” shows you how.

by the ITC Group to provide strategic sourcing support to ITC’s Salty Snacks business to secure long-term access to high quality chip grade potato seeds. Happy Seeder Technology : An Australian initiative led by Australian Centre for International Agricultural Research (ACIAR) in collaboration with the Punjab Agriculture University to develop a cost-effective, tyred, no-till planter for small-acreage farmers, that can sow through straw load including heavy rice stubble. The equipment is now manufactured in India. Heat and Control: Heat and Control is an Australian company involved in the manufacture food processing and packaging equipment systems. Heat and Control is the major supplier of snack / food processing systems to all processed foods companies in India. Silo Bags: Australian company Silo Bags provides grain management solutions for private companies and government agencies in India. Silo Bags’ equipment is used to convert a grain facility from manual bag handling to bulk management resulting in optimal preservation of grains. Speaking about the MoU, Watkinson said: “We are glad to enter into this collaborative engagement with YES BANK, to leverage on our respective organisational strengths and contribute to developing closer relationships between the agrifood value chains of Australia and India. Australia has world class standards in agriculture production and processing systems, supported

by a dynamic and robust research and development capability, which has enabled it to adapt to the challenges of climate change and maintain its production standards”. “We recognise India’s push to achieve food and nutrition security for its growing population, in the face of resource constraints and depletion. Australia is an idea partner to work with India as Australia faces similar challenges,” said Watkinson. “We find a natural partner in YES BANK, with which we share the line of thought - achieve ‘holistic development of the Food and Agribusiness sector’ in India”, she added. Rana Kapoor, Managing Director and CEO, YES BANK, said, “This is a significant development that will boost YES BANK’s operations in the India-Australia corridor for trade and investments that has undergone significant and qualitative shifts in recent years, propelled through strategic partnerships between the two countries.” He added: “This alliance with the Australian Trade Commission furthers our commitment towards this business corridor. Through our knowledge banking initiatives and advisory services, we look forward to exploring further opportunities for cross-border trade and investment. I am confident that this partnership will enable us to provide enhanced banking support and economic and business intelligence to Australian and Indian corporations seeking business opportunities in either of the countries”.

Beverages & Food Processing Times - October - I - 2013

McDonald’s to roll out McCafés in India

merican burger chain McDonald’s is bringing its cafe brand to India at a time when the Seattle-based java king Starbucks has been expanding fiercely in a booming Indian cafe market. The first few McCafe counters will be rolled out in Mumbai followed by other metros such as Bangalore, Pune and Chennai over the next couple of years, said a McDonald’s India official. Internationally, McCafes are housed within McDonald’s outlets but have a separate look and feel, the same format will be followed here in India, said Amit Jatia, vicechairman, Westlife Development, whose subsidiary Hardcastle Restaurants holds the development licence for McDonald’s Corp in south and west of the country. The organized Indian cafe market is pegged at around $300 million currently and is expected to double over the next five years, as estimated by retail consultancy firm Technopack. Globally, McCafes contribute approximately 15% of the burger chain’s revenues. However, these numbers could not be independently confirmed as the company does not give out category-wise sales numbers. McDonald’s has been pushing McCafes globally as beverages offer better margins without additional real estate costs. McCafes will occupy around 500 sq feet space within a typical 4,000 sq ft McDonald’s store here in India, Jatia said. Over the next three-five years as many as 100-150 McDonald’s stores will have the McCafe brand inside its premises, he said. The strategy of having McCafes within existing McDonald’s outlets gives a leg up to the burger chain over other rival coffee chains such as Starbucks and domestic players like Cafe Coffee Day. The starting price for a cup of coffee at McCafe would be Rs 90, Jatia said, adding that a whole host of other beverages, including juices, iced tea and even chai (tea), will be on offer going forward.

McDonald’s in the south and west now boasts of almost all of the burger chain’s global offerings including breakfast, delivery, dessert, takeaway and now McCafes. Recently, Arisaig Partners, which bets on consumer facing businesses across emerging markets, picked up a 3.5% stake in Westlife Development for Rs 180 crore, valuing the company at a tad over Rs 5,000 crore. McDonald’s existing partnership with Coca-Cola’s Georgia may cease to exist, Jatia said as the company aims to push its own cafe brand. Hardcastle operates as many as 174 McDonald’s outlets and is looking to double the count over the next three years. In 2011, Hardcastle acquired the 50% stake held by the American parent, giving it full financial control to speed up expansion. While Hardcastle has been growing 25% annually, McDonald’s partner in north and east, Connaught Plaza Restaurants led by Vikram Bakshi has been dragged to the Company Law Board. McDonald’s Corp has said that it decided not to extend Bakshi’s term as the managing director because he had not been devoting enough time to the business.

Food Ingredients News

Beverages & Food Processing Times - October - I - 2013

Food Processing News

Processed food helps curb inflation as less gets wasted

ndia’s average wholesale price inflation in “food articles” was 12.24% in the first half of FY14, far higher than the inflation rate of 4.65% for “food products”, a paradox because the latter additionally includes the margins of food processing units. The obvious reason for this is the subdued prices of edible oils and sugar, which have a combined weightage of 48% in the manufactured food products basket. But what’s kept processed food prices in check is also the increasing trend of processors directly sourcing raw food items from the farmer, which not only

helps to eliminate the middleman but also reduce wastages. Processed food items can lower inflation further if greater synergy is achieved between industry and farmers. Despite being one of the top two producers of fruits and vegetables, India’s processing of these items stands at 2.2% against 65% in the US and 23% in China, says a KPMG report. India accounts for only 2% of the global trade in processed food items. Reflecting the reduced pricing power at the retail level, the CPI food and beverage inflation in H1 rose slower than the WPI food inflation.

That processing keeps prices low is evident. For instance, while cereal prices have risen at an average of 15.74% in the first half, the price rise in biscuits and bakery products have remained around 2%. Also, even when the price of oilseed prices in the domestic market rose 18.20% in April, inflation in the edible oil segment was 2.01%, thanks to low prices overseas. Industry executives said one reason for the low increase in processed food prices is that companies tend to stock up significantly from time to time when prices in the open market are relatively low to beat a price rise later. “Inflation in (primary) food articles this year is pushed up by an exorbitant increase in the prices of vegetables and protein articles like eggs, meat and fish. But the inflation in manufactured food products is contained primarily due to edible oil prices, which are heavily influenced by imported palm oil prices. Palm oil prices globally are coming down and India is getting the benefit of that,” Ashok Gulati, chairman of

The organic food buzz is on

rganic food became the catch phrase at the panel discussion on Food Secure India organised by the Department of Food Chemistry and Food Processing of the Loyola College. While most of the panelists highlighted the need for production of organic food, the audience took the topic forward with a slew of questions on the costs, economic sustainability and the methods though which the organic food production could be taken forward. Speaking at the event, Amit Vaishnav, Director of Megafoods Madras Private Limited said that post-independence, India has been converted from one of the world’s largest organic farming countries to one which heavily subsidizes pesticides and imports genetically modified seeds. “This is not what the British did to us. This is something that we have brought

on ourselves,” he said, pointing out that in most cases these pesticides and genetically modified seeds are banned in the countries in which they are produced. Aasha Ramesh, Consultant at the Tamil Nadu Women’s Forum said that farmers in India realize the negative impact of pesticides. “Go to the farmers in the remotest villages of India and they will show you how they farm crops on a little patch of farmland for their own domestic consumption. They keep away from pesticides,” she said. She also pointed out that when it comes to food security, one also needs to ask whether the food is safe and whether food is capable providing the sufficient nutritional value. “The fruits and vegetables might look lush and lovely and you might be paying through your pocket to buy them, but what use is it if it cannot provide nutrition,” she

said. The panelists also pointed out examples where farmers have been able to successfully grow organic food without compromising on their profits. The Deccan Development Society based in Medak in Andhra Pradesh was sighted as a successful example of previously drought affected villages overcoming their poverty through organic farming practiced according to traditional methodology. Panelists also pointed out examples of farmer groups who have taken to the direct delivery of their organic food produce to their consumers thereby avoiding middlemen, reducing on the time delay in delivery from farm to household and also ensuring steady profit. “States like Sikkim which have been following organic farming till today have shown us that it is sustainable. The state has not only enough for itself but also provides it to neighbouring states,” said Amit Vaibhav. Answering questions about the increasing cost of organic vegetables in the market, he said that organic agriculture is a costly affair in the first couple of years, but within 6 years there are increased profits “If the people demand organic food now, the farmers will be encouraged to take to it,” he said.

the Commission For Agricultural Costs and Prices, told. “Sugar prices being down also impact food products inflation. And this, too, is influenced by global prices of sugar.” The country imports roughly 10 million tonnes of edible oil a year, while its consumption stands at 17.5 million tonnes. In fact, in a recent paper with Shweta Saini on food inflation, Gulati said: “Building efficient supply lines for agri-products... requires massive investments in logistics, agro-processing, and organised retailing, all of which can be leveraged through the private sector. Viewed from this perspective, a special mission on food processing and the FDI in organised retailing are steps in the right direction.” “They can be made much more inclusive if organised retailing has a window for franchise for kirana stores and even vendors, who can act as extension counters of organised retailers. This will create fusion between the organised players and unorganised sector, bringing synergy, and reining in food inflation,” Gulati said in the paper. DH Pai Panandikar, president of the RPG Foundation, said the government must promote food processing to cut down on wastages and make farming more remunerative for farmers — a step that will have a salutary effect on food inflation. Moreover, in the manufactured food segment, if there is an increased demand, the response to cater for it is more nuanced and requires less time than

in the raw food segment, thanks to the involvement of the industry, he said. “Contract farming is a right step in this direction, although the agreement between the seller and the buyer must be strictly adhered to for the sustenance of such contract farming,” he said. According to a survey by Global AgriSystem — a noted consultancy firm specialising in agricultural market systems — farmers in India get only 25-40% of the price paid by consumers for a commodity as the mark-up in the supply chain adds up to 60% and can even go up to 75%, while wastages in multiple handling by different intermediaries result in an erosion of value by 15-25%. More than one-third of fruits and vegetable go waste each year due to inadequate infrastructure, it said. This has significantly raised the stake for private sector participation, which means food processing sector needs to get a leg-up. Moreover, to improve supplies of milk, egg and meat, the government needs to focus mainly on the adoption of better technology as well as improved breed and control of diseases in them, said R Venkataramanan, the joint director at the staterun Indian Veterinary Research Institute. Venkataramanan, who is spearheading efforts to control animal diseases, said the foot and mouth disease alone drags down the animal’s milk output by 25% and hurts its breeding as well as work capacity.

Amethi to have first mega food park of UP

ongress vice president Rahul Gandhi’s constituency - Amethi - will have the first mega food park of Uttar Pradesh. The park, whose foundation stone was laid at Jagdishpur, will have 35 industrial units having capacity to give direct and indirect employment to about 30,000 persons. Besides creating a market for raw material, the park is expected to act as a model for the entire region, leading to fast growth of food processing in the state. It will have modern infrastructure and world-class facilities for food processing industries. After laying the foundation stone of the Mega Food Park, the Union minister of state for agriculture and food processing Charan Das Mahant said that the move will help small and medium sized entrepreneurs, self-help groups and farmergroups to set up food processing industries. “This will create a market for raw material and in turn provide better prices to farmers for their produce”, he said while reaffirming Centre’s support to the food processing sector in UP.

Mahant said, “Though the state produces a variety of foodgrains, fruits and vegetables, the lack of infrastructural facilities deterred entrepreneurs from establishing food processing industries. The Park will fill up this void and act as a model for the entire region”. Known as ‘Shaktiman Mega Food Park’, it will be set up under the ‘Scheme of Mega Food Parks’ which aims at facilitating the establishment of a strong food processing infrastructure backed by an efficient supply chain. This includes establishment of collection centers, primary processing centers, a central processing unit and cold chain infrastructure. The processing centers will have infrastructure required for processing, packaging, environmental protection systems, quality control labs and trade facilitation. These facilities will be shared by all industrial units in the food park. The park, spread over 72 acres, will offer essential services like dry warehousing, cold storage, a farmer friendly bank and fully equipped education and business centers.

Beverages & Food Processing Times - October - I - 2013

50% of states including BJP-ruled to launch food law by December Food Minister KV Thomas

Committee of Secretaries (CoS) will be set up to address the concerns of the states on issues such as framing criteria for identification of beneficiaries and sharing of financial burden among others, it said. The Centre said 50 % of the states, including those ruled by BJP, are ready to implement the food law by December as others prepare to roll it out, while some have aired certain concerns. A Committee of Secretaries (CoS) will be set up to address the concerns of the states on issues such as framing criteria for identification of beneficiaries and sharing of financial burden among others, it said. “50 % of states including BJPruled are ready to implement the food law by end of December,” Food Minister K V Thomas said, briefing reporters about the outcome of the meeting with state Food Ministers on the implementation of the central food security laws. Other states are also under preparation and eventually everyone will implement. “No states have said they will not implement the law,” he said.

Highlighting concerns of the states, Thomas said: “One of the main issues was protecting existing allocation. Of 35 states, 18 states would be getting lower than the current allocation. We have assured them that it will be protected.” On Tamil Nadu’s demand to protect the quantity of grains and price, he said: “Tamil Nadu is worst hit by the food law. We said we will protect their coverage.” On identification of beneficiaries by the states, the minister said that the socio-economic caste census would be available by the end of November for them. Thomas said states asked the Centre to share the cost of transportationhandling and margin of ration shops dealers. On this demand, he said that the Centre has agreed to share the burden even though some states like Karnataka and Tamil Nadu are fully bearing the cost. Out of 28 states and seven union territories, 22 food ministers were present in the meeting and the rest were represented by senior officials. Notably, food ministers from BJP ruled states Gujarat, Madhya Pradesh and Chattisgarh abstained

Food Safety News from the meeting. Food Minister of Delhi, which was first to announce the implementation of the law, was also not present. Parliament recently passed the food law -- considered as ‘gamechanger’ by the Congress-ruled UPA government. It aims at providing cheaper foodgrain to 82 crore population at Rs 1-3/kg. Asserting that states have crucial role in successful implementation of the law, Thomas asked state governments to plug loopholes by strengthening PDS and ensuring effective door-step delivery of grains. He said the CoS will also prepare a draft on revised PDS (control) order to align it with the provisions of the food law. It would also look into the functioning of vigilance committee to make it more effective. Another committee of ministers, as suggested by state governments in the conference, is likely to be set up after consultations with the Prime Minister, he added. Thomas urged the state governments to set up or designate credible grievance redressal authorities at the district and state levels before implementing the law. He also asked them to play a proactive role in constructing intermediary godowns by availing the existing schemes under the Public-Private- Partnership mode. In the meeting, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Bihar, Uttar Pradesh, Punjab and Haryana, among others, expressed concerns on various issues. Andhra Pradesh Food Minister Sridhar Basu said the state plans to roll out the scheme despite additional burden of Rs 3,000 crore per year. Uttar Pradesh Food Minister Rajendra Chaudhary sought funds in advance for implementing the law. Tamil Nadu Food Minister R Kamraj said the coverage of urban population at 50 per cent and oneyear time limit for identification of eligible households was “not sufficient”. He sought amendment to the law to include allocation of rice at Rs 8.30 per kg to state governments for at least three years, besides objecting to the provision of providing food security allowance in times of foodgrain shortages.

Food firms, activists at war over junk food

ven as the Food Safety & Standards Authority of India (FSSAI) attempts to put in place a final set of guidelines on healthy food in educational institutions, top packaged food & beverage companies and food safety activists are at loggerheads over the issue. Companies such as Hindustan Unilever Ltd (HUL), Nestle, PepsiCo, Coca-Cola and Dabur, part of the All India Food Processors’ Association (AIFPA), argue there is nothing such as junk food. “You either have something that is of low nutritional value or high nutritional value. There has to be a scientific basis to what constitutes junk food,” said M A Tejani, president, AIFPA. AIFPA and the National Restaurant Association of India (NRAI) have two members each on the 14-member expert committee that would give its recommendations to FSSAI before the latter formulates a set of guidelines on the issue by December. The four AIFPA and NRAI members boycotted the expert committee meeting held in New Delh. HUNGER GAMES • The Centre for Science & Environment (CSE) says AIFPA’s argument is intended to skirt the core issue of guidelines on healthy food for children • According to CSE, food safety and labelling standards in India are not adequate which hampers the circulation of healthy food The Centre for Science & Environment (CSE) says AIFPA’s argument is frivolous and intended to skirt the core

issue of guidelines or benchmarks on healthy food for children. “There are a number of countries around the world that prescribe guidelines pertaining to the wholesomeness and nutrition of food to children. There is certainly a need for a proper set of guidelines, as well as a national policy pertaining to food targeted at children here,” said CSE Director Sunita Narain, a member of the committee that would present its recommendations to FSSAI. CSE says the move by the food safety regulator to have a defined set of guidelines is important, as the food safety and labelling standards in India aren’t adequate. The draft guidelines prescribed by FSSAI last month categorise food items commonly sold and consumed in schools under segments such as junk food, street food, nutritional food and unhealthy food. The move, according to those in the know, is aimed at helping children inculcate good eating habits. Last year, after a two-month study, CSE had said fast food and snacks such as PepsiCo’s Lays and Haldiram’s Aloo Bhujiya contained dangerous levels of trans-fat and salt. Bejon Misra, a consumer policy expert and founder of Consumer Online Foundation, says food companies should indicate the proportion of salt, sugar and fat in food items. “More often than not, this is unclear on account of poor labelling standards that prevail here,” he says. Executives at Coca-Cola and PepsiCo, however, say they are already part of an eight-member club of companies in India that has pledged to promote healthy dietary habits among children. The group, formed three years ago, also includes HUL, Nestle, Kellogg’s, General Mills, Mars and Cadbury. These firms have decided not to advertise to children below 12 years and desist from commercial communication of their food & beverage products in primary schools, except for products that fulfill specific nutrition criteria or those requested by or agreed to by school administrators.

Beverages & Food Processing Times - October - I - 2013

Food Processing News

Codex Promises to Introduce Newer Food Safety Standards, Address Risks

he Codex Alimentarius Commission (CAC) promised to introduce new food safety standards and assess and address risks, as stated by CAC Chairman Sanjay Dave at its golden jubilee celebrations, which took place in Mumbai recently. The celebrations were a highlight of the fifth national research and development workshop for the food processing sector, which took the second day of the Federation

of Indian Chambers of Commerce and Industry’s Food World India. Dave, who also serves as advisor to the Food Safety and Standards Authority of India (FSSAI), said, “The work of standardization in the food sector started in 1903, and subsequently a number of countries started adhering to them. They planned to set up CAC in 1961, and finally in July 1963, Codex—a joint body of the United Nations’ Food and Agriculture Organization and the World Health Organization—was set up. “The primary job of the body was to develop international food standards, guidelines and other recommendations to protect the health of the consumers, and also to provide assurance of fair practices

in food trade. At the time of CAC’s inception, 16 countries observed our activities, and now the figure has reached 222. Its budget was increased by 150 percent during the conference in Rome. Consensus building has been the main purpose. We have formulated around 4,000 standards, which has been a phenomenal task. We are also encouraging all the countries to harmonize with Codex. Standards have been developed on the basis of science to make it truly global.” K Chandramouli, chairman of FSSAI, said, “I am very happy that CAC has just completed its 50th year. While speaking to me in the morning, Dave excitedly said that the celebrations, will continue till Codex’s 61st year. The work of the Codex committee is increasing by leaps and bounds. It is important to involve producers, manufacturers, distributors, industries and consumers for the security of food.”

JVL Group wants to set up food park in Bihar

espite the scarcity of land and power in Bihar, the Uttar Pradesh based JVL Group has shown interest in setting up a new mega food park in the state. The state government is now waiting for clearance from Ministry of Food Processing (MoFP) to proceed on this matter. “JVL Group has shown interest in setting up a mega food park in Rohtas region,” state’s Industries Secretary Naveen Verma told, “The group wants to set up an

Street vendors launch campaign to provide healthy food

n the occasion of World Food Day, street food vendors across the country launched a campaign to promote their potential to provide healthy and nutritious food. ‘We are the guarantors of food security and have the potential to provide healthy and nutritious food,’ read banners that have been put up by street vendors at several locations. The campaign will continue till Oct 26 and includes food safety and hygiene training on Oct 21 for the street vendors. Representatives of World Health Organisation (WHO), ministry of health and family welfare and the Food Safety and Standards Authority of India will participate in the training.

V S INTERNATIONAL

edible oil based mega food park. Apart from that they also want to set up a rice mill here. They want to take over the closed industrial cluster of Dalmianagar in Rohtas, which used to be one of the biggest production centres of hydrogenated vegetable oil or Vanspati in India.” The state government is now waiting for the nod from MoFP to clear the project. However, the road does not seem to be without problems.

Beverages & Food Processing Times - October - I - 2013

Meat & Poultry

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

www. timesinfomedia.com

Vol. 6, Issue 5, October (I) 2013, Rs. 20/-

nions are the talk of the whole India, my wife updates me with its prices along with a chatter of ultimatum that she going quit the kitchen management if this miserable situation. And I know nearly 99 per cent of household has a held up circumstance because of rising price of food items. India’s average wholesale price inflation in “food articles” was 12.24% in the first half of FY14, far higher than the inflation rate of 4.65% for “food products”, a paradox because the latter additionally includes the margins of food processing units. The obvious reason for this is the subdued prices of edible oils and sugar, which have a combined weightage of 48% in the manufactured food products basket. But what’s kept processed food prices in check is also the increasing trend of processors directly sourcing raw food items from the farmer, which not only helps to eliminate the middleman but also reduce wastages. Well Processed food helps curb inflation as less gets wasted, a technology that is answer to soaring prices of food. Processed food items can lower inflation further if greater synergy is achieved between industry and farmers. Despite being one of the top two producers of fruits and vegetables, India’s processing of these items stands at 2.2% against 65% in the US and 23% in China, says a KPMG report. India accounts for only 2% of the global trade in processed food items. That processing keeps prices low is evident. For instance, while cereal prices have risen at an average of 15.74% in the first half, the price rise in biscuits and bakery products have remained around 2%. Also, even when the price of oilseed prices in the domestic market rose 18.20% in April, inflation in the edible oil segment was 2.01%, thanks to low prices overseas. One reason for the low increase in processed food prices is that companies tend to stock up significantly from time to time when prices in the open market are relatively low to beat a price rise later. In recent years, record production of food grains and horticultural crops has been obtained, and yet due to non-availability of modern infrastructure at various levels, there are substantial losses in the supply chain. These losses are harmful for both producers and consumers of agricultural products. Food processing being the redeemer, the Center has launched a comprehensive web platform - Investors’ Portal - This Portal will provide information about the opportunities for investment available in various states. It will also provide detailed information about the infrastructure facilities, fiscal incentives, availability of raw-material etc. so that prospective investors can plan their investments in a suitable manner. The ministry of food processing industries is keen to promote investment in the agricultural sector so that the supply chain from farm to consumers can be modernized and wastage of perishable commodities can be minimized. India’s push to achieve food and nutrition security for its growing population, in the face of resource constraints, depletion and inflation has brought around the Australian Trade Commission, the Australian Government’s trade, investment and education promotion agency, and YES BANK to sign a Memorandum of Understanding (MoU) to apply Australian experience to raise the productivity and exports of India’s food and agricultural sector. Australian Trade Commission (Austrade) in association with YES BANK will work with India’s food processing and agricultural sectors so as to share experiences from Australia which has similar climatic conditions and logistic challenges and has met these challenges to now export A$ 30.5 billion value of food each year; and introduce Australian expertise and technologies to increase the productivity of key agricultural sectors like grains, vegetables and dairy. The MoU will also explore collaborations and joint ventures in areas of food processing to add value to Indian agricultural produce and exchange information on new consumer trends around the world that can offer new export opportunities for Indian and Australian agricultural companies. A newly released study India could be a $1.1 billion opportunity over the next three years as revenues double. Translating sales into foreign markets, however, isn’t always a smooth transition. Customization of a menu to meet local tastes and religious beliefs represents the biggest challenge for those looking to export their business model there. All of McDonald’s restaurants, for example, must be certified halal, meaning under Islamic law they’re permissible to eat at. However, the barriers that have kept quick-serve chains on the sidelines before may be changing, and they expect new fast-food stores to open at a brisk 16% to 18% rate annually in India for the next three years. India is a big opportunity, and there are plenty of multinational corporations lining up to take advantage. Burger King Worldwide plans to live up to its name by expanding into the subcontinent, though it hasn’t made it there yet; Dunkin’ Brands is trying to convince the populace that doughnuts are worth snacking on; and Starbucks has 18 coffee shops there now -- it opened its first one a year ago -- and plans to open 100 more over the next year. All in all, India represents a fat opportunity for KFC, McDonald’s, Pizza Hut and Domino’s Pizza, which have already established here and are likely to keep growing as the market expands. Finally a bit of news for you, Uttar Pradesh based JVL group is interest in setting a food park in Bihar. Despite the scarcity of land and power in Bihar, the JVL Group has shown interest in setting up a mega food park in Rohtas region. The group wants to set up an edible oil based mega food park. Apart from that they also want to set up a rice mill there. They want to take over the closed industrial cluster of Dalmianagar in Rohtas, which used to be one of the biggest production centers of hydrogenated vegetable oil or Vanspati in India. The state government is now waiting for the nod from MoFPI to clear the project. However, the road does not seem to be without problems. Good luck

Meat and e faster in Almost 37% of agricultural output rowth between 2005 and 2011 came fromanimal products. This is partly a reflection of changing food habits per capita consumption of food grains is falling whereas that of edible oil, milkand meat is rising, says Credit Suisse.

ilk, meat, and egg consumption in India is rising much faster than that of cereals. Not surprisingly, 37% of agricultural output growth between 2005 and 2011 came from animalproducts. Within this category, output of eggs and meat has risen faster, and poultry the fastest. Animal products have also contributed to 33% of the incremental food inflation over the past five years; as consumption baskets are revised, these could be even higher, says Credit Suisse in a research note. Of India’s agricultural output, 31% comes from animal products: milk, meat, egg, fish and others such as silk and honey. As these are growing faster, their contribution to incremental growth has been higher—37% of the agricultural output growth between 2005 and 2011 came from animal products. According to the report, this part of agricultural output is growing faster than all other agricultural categories except fruits and vegetables. This is partly a reflection of changing food habits—per capita consumption of food grains is falling whereas that of edible oil,milk and meat is rising, particularly in the recent past, says the report. Credit Suisse says output of eggs and meat in particular has risen faster than that of otheranimal products like milk and honey, however, the growth in animal products is likely under reported in the country. It said,

“Unlike cereals, the largest source of taxes for governments over centuries, livestock data collection seems patchy. For the most rigorous source—the livestock census, conducted every four-six years—the last updated data are from 2007(2012 survey data are not out yet). This is before what we call ‘the Silent Transformation’ started. Other sources of data are inconsistent, though all point to rising growth.” The report says while it is clear that demand for chicken meat has accelerated, the quantum of the change is uncertain; three different sources suggest different levels of demand growth. NSSO surveys suggest the demand for chicken meat saw 20% CAGR between 2005 and 2010. However, the Animal Husbandry department believes chickenmeat output only saw 8% CAGR, and FAO believes the chicken population rose 12%. Milk yields rising at 3% CAGR, but still low According to Credit Suisse, growth in milk production in India has been quite steady at about 4% a year over the past few decades. About half of that has come from an increase in the numbers of cattle and half from an increase in yields. Much of the yield increase also seems to be coming from an improvement in breeds, particularly cows. For buffaloes, which contribute to more than half of India’s milkproduction, the yield improvement has been quite low. The current fat content

Beverages & Food Processing Times - October - I - 2013

Meat & Poultry

eggs consumption growing n India than milk, cereals

of the milkfrom cows in India (about 4.5%) is quite low though some consider it healthier, which is possibly one of the reasons Indian milk is among the cheapest in the world. Buffalo milkfat

content is higher (about 7%), so it commands a better price. Despite having the largest heads of cattle globally, India’s milk output is only the second largest after the US, with yields per cow right at the bottom, though they have been rising rapidly of late, Credit Suisse says. Cost still pushing up prices: A sharp spike unlikely According to the report, milk has been a significant contributor to food inflation over the past five years, even though the recent tempering of milk price appreciation has meant that its

contribution to food inflation over the past year has been much lower. “Looking at annual changes in milk prices, we conclude that the five-year surge was likely due to a one-off sharp increase in fodder

and labour prices in FY10, the two key input costs for milkproduction. This correlation doesn’t apply strongly on an annual basis, but it should not either—after all, the capital investment in a cow/ buffalo is a sunk cost and whether to increase supply or not cannot be taken on an annual basis. This adjustment happens over several years (from insemination of the animal to the lactation period). Over a five-year period, though, there is a meaningful visual correlation,” Credit Suisse says. Meat exports: Structural uplift Meat production as per official

that some government surveys seem to suggest much faster growth in demand than what supply data suggest. Exports of animal products are rising at a rapid clip, and we estimate more than 7% of total output is now exported. This is

and less than 2 million were females beyond reproductive age, the report says. Poultry production = job creation The fastest growing form of meat production is poultry, which not surprisingly is where

primarily meat(beef—India was the largest beef exporter in the world in CY12, and the FAO expects India’s exports to rise another 20% in CY13), though marine and poultry and dairy exports too have risen, the report says. Almost all of the increase in meat production in India has come from buffalo meat (Figure

demand growth due to changing food habits is the strongest as well. As the poultry population saw a CAGR of 10%+ per annum in 2006-11, it also created about 0.75 million jobs per year during 2005-10. We expect it to continue to drive job growth at the pace of 0.8-1.0 million jobs per year going forward, Credit Suisse says.

statistics has been growing at the fastest pace among all agri subcategories, and particularly so among animalproducts. This is despite what seems to be gross under-reporting of growth, given

28), 90% of which is exported. The increase has come primarily from Uttar Pradesh (UP), Andhra Pradesh (AP) and Punjab. The numbers slaughtered in 2011 were 6.9 million, which should have risen to about 10.5 million animals by FY13. It is hard to see this number rising much higher, as a top-down analysis suggests that of the 105 million buffaloes in 2007, only 20 million were males,

Beverages & Food Processing Times - October - I - 2013

Event

Indian Ice Cream Congress & Expo 2013 the creamiest ice cream show D

rooling over ice cream is not a kid thing only; every adult melts their heart over it. Bur loving ice cream is not enough knowing it is even more important. The Indian Ice-Cream Congress & Expo (IICE) actually plays a vital role in fulfilling the gap between the allied industry and the ice cream processors; between taste and information and above all a platform for information and entertainment. IICMA a professional non-profit organization dedicated to the education and communication of responsible and ethical practice in the Ice Cream industry is the mastermind behind this important event. This organisation endeavours to augment the quality and image for safe ice cream manufacturing; and promotes consistent networking and guidance to ensure the future success of the Ice Cream industry. Since its inception a couple of years back IICMA has be very actively interacting with government. Membership of IICMA has been increasing and it has all the major brands in its fold. SME ice-cream companies have also been joining icecream association to register their presence in the market. Held in Ahmadabad On the 20TH of September, Indian Ice Cream Congress & Expo 2013 was attended by over 454 delegates. The IICE 2013 offered a unique platform for Indian ice cream and allied industry. This event was attended by both Indian and foreign participants and delegates’ touching highest foot fall till date. IICE was previously held in New Delhi & Hyderabad. IICE 2013 has also provided a great opportunity for the Gujarat’s ice-cream industry. Gujarat and Delhi together account for 30 per cent of the

Shri H. G. Koshia said that, “ice cream and Gujarat are synonym to each other; a Gujarati needs

country’s Rs 3,000-crore ice cream market that is expected to double to the value of Rs 6,000 crore by 2014-15. Almost 35 per cent of the ice creams sold in the country are consumed in the western region with Ahmadabad being the main market, followed by 30 per cent in the north, 20 per cent in the south and 15 per cent in the eastern and central India. The Congress also had a small expo to showcase the machinery and technologies. Major participants and Sponsors of the expo were Blue star, Rinac Delta Nutritives, WCB Ice Creams from USA, Tetra Pak, DP Chocolate, and Techno Ice from Italy, Morde, and Prova from France, Unique Equipments, VKC Nuts, SPX, Transfreez and many more. The seminar was inaugurated with the welcome speech given by Mr Rajesh Gandhi President Indian Ice Cream Manufactures Association (IICMA), organising body of this seminar. He spoke about the Indian ice cream industry and told that the Indian Ice Cream Industry is growing with a rate of 20 per cent YOY. Mr Gandhi also informed that IICMA has taken several delegations to New Delhi in various ministries for reduction of excise duty, weights and measures issues and most importantly coordination with FSSAI. The president of IICMA said that they had the next stage for the association was to enter the gulf food exhibition and create a niche for itself. At the congress seminar, the Chief Guest was Mr H. G. Koshia (Food Safety Commissioner for Gujarat & Commissioner, Food & Drug Control Administration (FDCA) Gujarat; while Mr Satish Jamdar, Managing Director, Blue Star India was the special invitee and guest of honour. a just a small excuse to indulge into this scrumptious creamy cold treat”. Gujarat and especially Ahmadabad is considered the capital of ice-creams and approximately 35 per cent of the ice creams sold in the country are consumed in the western region with Ahmadabad being the main market, informed the food safety commissioner. Mr Koshia also stressed that the food safety rules should be followed religiously as they are essential for the development and growth of ice cream industry in India.

Beverages & Food Processing Times - October - I - 2013

Mr Satish Jamdar, Managing Director, Blue Star India, special invitee and the Guest of honour, said “Blue star and ice cream share a special bond and that is why we are a part of this growing organisation”. He further stated that with improving cold storage system the Indian ice cream is attaining the international standard. So the time has come for the ice cream industry to cross the border and make a mark for itself.

The first session of the seminar was chaired by Kauslesh Varshaney, and the first presentation “Cold Storage Solutions for the Ice Cream Industry” was presented

Event

The last but one of most important presentation was by Mr Michal Vojta, Managing Director of Vojta Equipments, Chez Republic He explained the need of new and innovative technology in the ice cream industry and sold the idea of using Extrusion lines, which are extremely flexible, capable to produce wide range of standard or sophisticated products, and are very popular at the market worldwide.

Gunjan Jain, Managing Director, VKC Nuts elucidated about the nuts and dry fruits in ice creams and last but not the least was the presentation on ‘Implementing FSSR-2011 in the Ice-Cream Industry - A Challenge...??’ by Mr Sanjay Indani, Head-Food Safety QSAFE CONSULTANTS (INDIA).

by Srinivas Reddy M, General Manager Cold Storages Department, and Blue Star India. Mr Reddy considered cold storage as a boiling issue and important in sustaining the Indian ice cream Mr. G. Chandramoghan, MD Hutson Agro gave a brief but clear insight about IICMA. He accounted the fact that when IICMA started they had to look for members and ask them to join it but today both the ice cream and allied industry take privilege in being a member of this association. He further said that in a report by Rabo Bank it was cited that dairy products in India is worth USD 15 billion dollar and out of it 4 per cent (USD 4 billion) comes from ice cream industry. Ice cream industry is the cream of the dairy industry. The vote of thanks was offered

by Mr. Chetan Bhalla Member Managing Committee-IICMA and Managing Director-Gloria Ice-Cream, at the end of the inauguration ceremony, he expressed that IICE has opened new vistas for the ice cream and allied industry and the wheel of success has started to roll on.

industry. While Mr R. Frank Mitten, Sales Manager WCB Ice Cream, USA enlightened the audience about the Cream Freezer Technology and its benefits in the ice cream industry.

Divya Amruth, DirectorMarketing & Strategy, Transfreez India interestingly informed that lack if temperature maintenances and poor cold storage and transport directly affect the ice cream quality and decidedly stated that melting point is not an option for a highquality ice cream.

The second session started after a delectable lunch break, chaired by Dr J V Parikh, Director Parekh Consultancy. Lots of interesting matters were discussed in this session - Ejvin F. Lund, Director – Cluster Leader for Category Ice Cream, Tetra Pak India talked about the latest development in the ice cream technology as Tetra Pak is the world-leading singlesource manufacturer and supplier of complete solutions, equipment and consumables for processing and packaging ice cream.

Prakash Sanghvi, Director, Delta Nutritive India talked about the naturally crafting of ice cream while Mahesh Parikh, Director, Prova India gave an interesting insight of Natural Vs Artificial Flavours.

After the tea break the 3rd session was anchored by Chandrasekhar, Editor the Hindu Businessline. This was the Strategic Discussion part where the treatise was about mainstreaming the Small IceCream Companies.

Final Vote of Thanks was given by Mr Sudhir Shah, Secretary of IICMA and also Director of scoops Ice-Creams, Hyderabad. In his final word he stated that the IceCream industry has invested a lot of capital in creating new factories and up-gradation of technologies in the existing facilities. Mr Shah also said that, for allied industry IICE 2013 had created the opportunity to meet ice-cream manufacturers not only from Gujarat but also from the other parts of the country. Firoz H Naqvi, Director Aim Events, the event managers of the show and also the Group Editor of Advance Info media Pvt. Ltd accentuated that participation in India IICE has grown year by year and, this is not only providing opportunity to the members to interact with members from different regions of the country but also a unique platform for allied industry to demonstrate latest technologies and trends”. He also added that “We see a great growth in demand of automation, energy conservation and natural flavours and colors. This congress has acted the stage to bring the whole industry together and counterbalance each other”.

Aim Events and Indian Ice Cream Manufacturers Association have jointly been organizing this event from the last 3 years. New Delhi, Hyderabad and Ahmadabad have already been the venues in the last three years. We are looking forward to meet again with promise to have new topics of discussions and presentations at Mumbai September 2014, Naqvi added.

Beverages & Food Processing Times - October - I - 2013

Bakery & Biscuit News w

For biscuit makers, growth drops to a third in just a year as slowdown bites

lowdown is piling on the pressure on biscuits and they are crumbling. The largest category in the branded food segment, biscuits are believed to be

a market worth up to `17,000 crore. But growth rate has slowed to onethird in the past one year due to a variety of reasons. Amnish Aggarwal and Gaurav

Jogani of Prabhudas Lilladher wrote in a report that taking “the growth index for the biscuit category as a whole as 100 for the first quarter last year, it has slipped down to 35 in the first quarter of this financial year”. Volume growth had slowed to single digits since the second quarter of last fiscal; but, that is believed to have slipped to sub-5% in the past couple of quarters. That growth is down is undisputed. Pravin Kulkarni, general managermarketing, Parle, the market leader, says the industry has not been growing at a robust pace. “The

growth rate has drastically come down from, say, 12-15% to about 5% in the last one year.” Kulkarni adds that the segment of popular glucose biscuits has been the worst hit. “If its contribution was 60% about two years back, it has now slipped to only 30%.” So much so that even diversified conglomerate ITC, which makes the Sunfeast brand of glucose biscuits, had accepted after its first-quarter results that it had been witnessing slowdown in this segment. Abneesh Roy of Edelweiss Securities says biscuits are taking a huge hit not just because of the across-the-board slowdown but also because it is one of the wellpenetrated segments. Meaning, further growth in challenging times like these is tougher. “After soaps and detergents, biscuits are one of the most well-distributed and well-penetrated segments. Acquiring new customers during a slowdown becomes more difficult for categories that are wellentrenched and this slows down the growth rate,” said Roy. There are more reasons. To a

certain section of consumers, biscuits qualify as discretionary expenditure. This is further dragging down their sales growth, in tune with the general slowdown in all forms of discretionary expenditure, from chocolates, skincare, consumer durables to autos (read the auto sales slowdown story below). Sluggish growth has also slowed the rate of premiumisation in biscuits. Then, there are the new standard packaging norms introduced last November that have hit the volume growth, says an analyst with a foreign brokerage. “For instance, earlier, biscuit-makers were selling pack sizes of 60 gm or 65 gm, but as per the new rule, they can sell it only in pack sizes of 25, 50, 75, 100 gm and so on. So, the pack sizes had to be reduced significantly in several cases, and it was not feasible to pass on the price hikes,” she said. Going ahead, the premium biscuits segment is expected to do better, but recovery in the overall segment is expected to take time.

Beverages & Food Processing Times - October - I - 2013

Fruits & Veg. News

About 30-50 percent food Tarun Gogoi’s Onion produce wasted globally, Mission begins in Assam says report

bout 30-50 percent of food production is wasted globally with India’s losses in poor harvesting methods and inadequate storage and distribution contributing significantly, said a report.

“Not Global Food: Waste, Want Not” by the Institution of Mechanical Engineers also highlights that in developing countries, wastage mainly occurs between the farm and the marketplace. The report sheds light on the wastage of around 20 million tonnes of wheat in India each year due to inadequate storage and distribution systems. About 40 percent of the country’s fruit and vegetables production is lost between the farm and the consumer due to lack of cold storage, refrigerated transport and poor roads. “The amount of food wasted and lost around the world is

staggering. This is food that could be used to feed the world’s growing population - as well as the nearly one billion people in hunger today,” said Tim Fox, head of energy and environment at the institution. “The reasons for this situation range from poor engineering and agricultural practices, inadequate transport and storage infrastructure to supermarkets demanding cosmetically perfect foodstuffs and encouraging consumers to overbuy through sales promotion offers,” he said. Fox will be meeting senior government officials from the union ministry of food processing industries, the National Centre for Cold Chain Development and the National Horticulture Board to discuss the findings of the study. The institution called for action to be taken by business, governments and the general public to recognize the value of food, and work to cut needless food waste.

Government considers banning ethylene for ripening fruit

ecognising the health hazards caused by increasing use of chemicals, Himachal Pradesh government is now mulling to enact a legislation to ban sale and use of ethylene - a chemical used for artificial ripening of fruits. Increase in use of chemical to artificially ripen fruits has stoked concern for the fruit industry, particularly the apples - that comprises `3000 crore economy. “Excessive use of ethylene for artificial ripening is not only harmful for the health of apple trees but its bringing a bad name for Himachal apples, known worldwide for its quality and taste,”horticulture minister Vidya Stokes told . “Overdose of chemical on apples and mangoes can have harmful effects on human health,”said Stokes, who is daughter-in-law of Satya Nand Stokes - an American who pioneered apple growing in Kotgarh - now known as the fruit bowl of the state. Government is contemplating to bring a law to ban the sale and use of ethylene on apples,”she said, adding that

prior to this, the department would also study the legal implications. The horticulture department called a high-level meeting in Shimla to discuss legalities before finalising proposal to enact a law to ban ethylene. The meeting was attended by officials of horticulture department, besides horticulture experts. “If one uses ethylene within recommended dose than it’s not harmful. But certainly overdose of ethylene or any other chemical could prove detrimental for both human and plant’s health,”said Parkash Thakur, a progressive apple grower from Kotgarh, who

is also a member of Agricultural and Process Food Produce Exports Development Authority (APEDA). A section of participants accentuated the need to ban the ethylene, while majority opposed the ban saying that instead of banning the chemical government should run a campaign across the fruit growing areas to educate the fruit growers. Corrugated packaging will bring down cost of fruits, vegetables: WICMA A new managing committee headed by Bharat Parekh has taken charge of the western India corrugated

ith onion price touching Rs 90 to Rs 100 per kg, Chief Minister Tarun Gogoi’s Onion Mission has been introduced in Assam to bring an additional 2000 hectare under scientific onion cultivation. To be implemented by the state Directorate of Horticulture and Food Processing, efforts would be made to produce 1,00,000 MT onion in Assam in 21 districts of the state through scientific cultivation, official sources said. At present, the state produces only 25,000 MT

box manufacturers association (WICMA) recently displaying renewed vision and spirit to take the industry to a new height. The other office bearers are: VM Chowdhury (vice president), Deenu Shetty (honorary secretary), Sachin Keni (honorary treasurer) and Vincent Mathias (ex-officio). The new managing committee was elected at Nashik where the AGM and symposium were held recently. There are 22 invitees and 19 members besides two coopted on the committee for the year 201314. Established in 1967, WICMA has over 450 members spread over western India in places like Mumbai, Pune, Kolhapur, Nashik, Nagpur, Jalna, Daman, Goa, Aurangabad, Sangli, Ratnagiri, Raipur etc. WICMA is affiliated to the federation of corrugated box manufacturers of India, an apex body of corrugated manufacturers all over India. The annual turnover from this industry is around Rs 3,500 crores, WICMA said. The AGM lauded the efforts of the R&D committee of WICMA headed by Pankaj Shah in developing a revolutionary concept an Index called CoDex in association with CRISIL to keep an independent and impartial track of price of final corrugated box with relation to all inputs affecting its price. Today this Index is gaining ground among end consumers and very soon it will be the primary benchmark used to fix the final pricing of the corrugated pack, honorary secretary Deenu Shetty said.

onion, the sources said. Improved variety of onion seeds Agrifound Light Red has been procured from the National Horticultural Research and Development Foundation and distributed among select farmers groups which will cultivate a minimum of five ha land, the sources said. The Directorate will also take necessary action to establish onion storage houses to stock the onion. Steps have also been taken to educate the concerned farmers regarding scientific onion cultivation with the Assam Agricultural University closely associated with the Mission, they added. The districts where the mission is on are Barpeta, Goalpara, Kokrajhar, Bongaigaon, Dhubri, Nalbari, Kamrup( including Kamrup- Metropolitan), Darrang, Sonitpur, Nagaon, Morigaon, Golaghat, Jorhat, Sibsagar, Tinisukia, Lakhimpur, Dhemaji, Cachar, Karimganj, Baksa and Karbi Anglong.

The special focus of the symposium was on fresh fruit and vegetable packaging. Participants highlighted the need to promote the use of corrugated packaging to minimize the losses presently nearly 40% due to damage of fresh farm produce during harvesting, sorting, storage, transportation and retail. Speakers said that the promotion of corrugated packaging will help in reducing the wastage in fresh farm produce thereby reigning in price fluctuations to some extent. End users also benefit from this as they will get better quality produce at a more reasonable price which would otherwise have been lost due to transit and transport damage. In developing countries every farm produce either vegetables or fruits is 100% packed in corrugated boxes right from harvesting region to sorting area followed by transport and retail packaging. In our country, except for export oriented mangoes, grapes and in some areas apples, a majority of fruit and vegetable packaging is done in wooden crates or gunny bags, Shetty said The speakers stressed the need for the government and stakeholders to play a pro-active role in seeing a new system in place which would benefit both the farmers and the end consumers. The corrugated industry in our country is well geared up to offer optimum packaging for each of this produce at reasonable cost, Shetty said.

Beverages & Food Processing Times - October - I - 2013

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Meat & Poultry News

Meat production rose by more than 62% in 2012, says report

he overall official meat production in Gujarat in financial year 2012 totalled 35,286 metric tonne (MT), showing an increase of 62 per cent over the financial year 2011’s production of 21,723 MT, claims a report released by the Associated Chambers of Commerce and Industry in India (ASSOCHAM) in Ahmedabad. The report said it had excluded unregistered slaughterhouses from this calculation. The report, released on the sidelines of “5th International Conference on Food Processing, Agribusiness and Dairy” held by ASSOCHAM in Ahmedabad , says, “The total production of meat from buffaloes, goats, sheeps and pigs is calculated at 3895 MT, an increase of 7.39 per cent over previous year. The demand for poultry meat, compared to other forms of meat, like mutton, pork, beef and fish, is fast growing due to economical reasons. With consumer preference towards fast food and instant cooking in urban areas, a range of easy-to-cook and ready-to-eat products are fast becoming popular. The estimated broiler reared in the previous fiscal was 247.7 lakhs as compared to 153.5 lakhs in 2010-11, showing an increase of 61 per cent. Production from poultry meat is estimated to be 1254 MT from deshi birds, 3583 MT from improved layers and 26554 MT from broiler birds, an increase of 73 per cent over the previous fiscal year.” The report also said that there are approximately 380 slaughter houses in Gujarat of which 90 per cent are unregistered, the remaining 38 are registered and spread across Gujarat. “Meat and poultry industry is not developed in Gujarat primarily because the consumers prefer fresh meat rather than processed meat. There aren’t significant large-scale industries in this segment”, said the report, under the head “Meat Products”. The report noted, “that municipal slaughterhouses were owned and

operated by state governments. The infrastructure and facilities at most of these slaughterhouses are inadequate and outdated. The operating authorities are also responsible for providing licences for operations affecting the operating standards of these slaughterhouses.” Furthermore, the report observed that Gujarat’s food processing sector fulfills only 50 to 60 per cent of the potential yield for most crops. While the size of the food processing sector of Gujarat is pegged at Rs 2706 crores, it hardly contributes a fraction of a percent to the Gross State Domestic Product (GSDP) of Gujarat. “The state’s share in India’s agricultural exports is only 14.41 per cent relatively less as compared to other states,” the report said. “While dairy industry has utilised the opportunities in the processing sector well, both food and agro products are lagging behind. Farmers should be allowed to sell directly to the industry without the intervention of the Agricultural Produce Market Committee . If the farmers interact directly with the industry, they will get the knowledge of industry standards and upgrade their product quality accordingly. This will bring more farmers directly in link with the industry, help them get the right price for their produce and the industry will be able to garner the same kind of supply as well,” says Bhagyesh Soneji, chairperson, ASSOCHAM Gujarat Council.

Beverages & Food Processing Times - October - I - 2013

Beverages News

Manpasand Beverages ‘Mango Sip’ emerges as India’s fourth largest mango juice brand

anpasand Beverages has made its ‘Mango Sip’ brand the fourth largest selling packaged mango fruit juice and is now competing

directly against giant multinationals and other major Indian corporates in this space. The packaged fruit drink market in India is currently pegged at Rs 5,000 crore which is witnessing tremendous growth. M a n p a s a n d Beverages is in the business of beverages since a decade with its flagship brand Mango Sip established by first generation entrepreneur Shri Dhirendra Singh. It has carved a niche for itself in market with a basket of 25 product variants. Mango Sip brand has grown to become the fourth largest mango drink brand in India. Speaking about the success of its ‘Mango Sip’ brand, Mr. Dhirendra Singh, Chairman & MD of Manpasand Beverages

Pvt. Ltd. said, “We expect strong growth in future as there is huge opportunity in packaged beverage market being fuelled by a rise in disposable income, changing lifestyle and a burgeoning younger middle class. The per capita consumption in India is very low and this presents industry players with the opportunity to tap the huge untapped potential that this segment offers. Mango juice is amongst the favourite and most widely accepted by consumers across India. The beverages industry is expected to see 35% to 40% growth in foreseeable future. In next 5 years, we expect the size of fruit drink industry to more than double to around Rs 12,000 crore to Rs 15,000 crore.” The per capita consumption of fruit juice based beverages in Germany is 45 litres, 42.5 litres in Switzerland and 39 litres in USA, while in India it stands at just 20 ml per capita. “This shows the huge opportunity we have in terms of business if proper strategies are devised to make fruit juices available more widely and affordable. Increasing penetration in tier-II and tier III cities of India will contribute towards growth of

the sector. Manpasand Beverages has carved a niche for itself with a strong presence in the tier-2 and semirural and rural markets in India. Manpasand’s beverage brands are present in over 20 states through more than 200,000 retailers, over 2000 distributors and 200 plus super stockists. The company’s manufacturing facilities are located at Vadodara in Gujarat, Varanasi in Uttar Pradesh and at Dehradun in Uttaranchal. At Manpasand Beverages, high speed PET bottle lines and tetra pack lines are installed at multiple locations to ensure that you get the best juice round the clock. The fruit juices processing plant are managed by teams of technically qualified professional who are well versed with production management and are capable of delivering quality products. The company has a self-sustained R&D department at all the plants. Food safety is a top priority at all plants. Very high standards of hygiene and cleanliness are maintained throughout the plant to meet global standards. At Manpasand, the focus has been on delivering nothing but the very best in Quality. The company’s mission is to be counted as one of the leading beverages brand in the world and its vision is to bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs.

Sprite topples Thums Up from numero uno position after three decades

hums Up, which ruled India’s fizzy drinks market for three decades, has been toppled from its perch by Sprite — both of them beverages from Coca-Cola India’s portfolio — in an indication that consumers here are rejecting colas, in line with trends elsewhere. Ramesh Chauhan, the man who created Thums Up in 1977 and sold his beverage business to CocaCola in 1993, says it’s all down to the palate and clever ad campaigns. “Cola is an acquired taste... and to a large extent colas owe their success to very aggressive advertising and marketing through the years,” he said. “On the other

hand, lemon is a taste that’s natural and something almost every household consumes.” Sprite has been outselling Thums Up for three months now, according to industry officials who cited market share figures sourced from the country’s biggest research firm Nielsen. While Thums Up’s share for August was 15.3%, that of Sprite was 15.6%. For the previous two months as well, Thums Up has trailed behind Sprite, according to the latest Nielsen numbers. A Nielsen spokeswoman said: “We are unable to validate or verify any brand/company specific numbers, as per company policy with regards to client confidentiality clauses.” Chauhan, who also created iconic brands such as Limca and Bisleri, said other markets also reflect a similar shift in preferences. For example in China, which is Asia’s biggest market for Coca-Cola, Sprite leads brand Coke. In India, Sprite overtook Pepsi as India’s No. 2 aerated drink four years ago. Thums Up remained India’s biggest-selling soft drink even after Coca-Cola acquired Chauhan’s business. This was despite going without marketing support for a while, when the US acquirer sought to promote Coke

at the expense of the homegrown brand. Coca-Cola India’s spokesperson declined to comment on the market share numbers but said: “We appreciate the encouragement our consumers have been providing to Thums Up and Sprite over the years... Between them, the two have more than 30% share of the soft drinks market.” Coca-Cola India now puts a lot of marketing muscle behind Thums Up, spending the most on it among all its brands in India. It has brand endorsement by Salman Khan, the country’s most expensive Bollywood star. The brand was previously endorsed by Akshay Kumar. Sprite, on the other hand, has never used a well-known personality to

endorse it. Instead, it has relied on irreverence with its cheeky ads sometimes aimed at Mountain Dew’s macho posturing. Sprite’s current brand positioning is ‘Chalo apni chaal’, which roughly translates as ‘Do your own thing’. Nielsen data also show that the lime-lemon segment now has a 36% share of the Rs 14,000-crore aerated drinks category, compared with the 35% of colas. The limelemon segment has also been growing at the cost of orangeflavoured fizzy drinks. Dew also sells more than its cola. A PepsiCo spokesman said Mountain Dew is the country’s fastest growing soft drink, but declined to divulge market share. India is the seventh largest market for Coca-Cola.

Rasna to look for ‘Dussehri’ pulp suppliers in UP

ompany sourcing mango from South India for its newly launched juice brand Juice India’s leading concentrated drinks manufacturer Rasna Beverages is scouting or dussehri mango pulp suppliers in Uttar Pradesh to market bottled mango juice. Currently, the company is sourcing mango from South India for its newly launched juice brand Ju-C. “Unfortunately, we have yet not been able to find Dussehri mango pulp suppliers, although we had visited the state mango belts before launching our juice brand,” Rasna President and Chief Executive Officer Arshad Siddiqui told. The domestic fruit juice and beverage market is pegged at Rs 5,000 crore, of which mango juice alone accounts for almost 80 per cent, Siddiqui informed. UP market is estimated at Rs 550 crore. “The fruit juice and beverage segment is clocking growth of about 25 per cent,” he said. He said the annual consumption of fruit juices in India was about 1,200 million litres. Rasna has entered the ready-to-drink beverage segment with Ju-C, offering apple, orange, mixed, guava and pineapple flavours. “We are still on the lookout of a company which could supply pulp of Dussehri mango to us for processing into mango juice drink,” he said. Dussehri is grown extensively in UP, mainly in Lucknow and Saharanpur regions. It is known for its unique sweetness, texture and aroma. Situated on Lucknow-Hardoi highway, Malihabad town in Lucknow district is famous for its mango plantations, especially Dussehri, which was also granted geographical indication (GI) registration in 2009. The mango belts in UP include Lucknow (Lucknow, Malihabad, Bakshi-ka-Talaab), Saharanpur and Sambhal-AmrohaMuzaffarnagar districts. Lucknow mango belt spans over 25,000 hectares. In 2013, UP mango production was estimated at about 1.5 million tonnes, much lower than 3.8 million tonnes last year. Mango Grower Association of India has long been seeking central government support on mangobased food processing industries.

Beverages & Food Processing Times - October - I - 2013

Meat & Poultry News

Omani Team Visits Poultry Farms In Indian Broiler India For Export Certification Meat Production to

team representing officials from the Ministry of Regional Municipalities and Water Resources (MRMWR), the Ministry of Awqaf and Religious Affairs, Muscat Municipality and the Public Authority for Consumer Protection is in India to check methods of slaughter and processing of poultry to give farms the certificate to export their products to the sultanate. In a decision in May this year, the Ministry of Agriculture and Fisheries lifted the import ban on poultry and its products from India but with certain clauses which makes necessary for an Indian company to get its premises and husbandry procedures verified by Omani officials first. The new measures were taken to avoid on and off ban on poultry imports from India, which lasted about 12 months in a 15-month period before May, due to recurrent outbreak of bird flu in the country. With the new decision, all exporting units in India must follow World Organisation for Animal Health’s

(OIE) concept of ‘zoning and compartmentalisation’ for purposes of disease control and international trade. Also, the certificate to export to Oman is subject to field inspection by a technical team from the sultanate to ensure companies honour the conditions stipulated. The visiting team is being led by Mohammed bin Reda, assistant director-general for health and inspection, MRMWR.

The team’s week-long programme includes visits to four poultry farms producing eggs in Bengaluru, as well as meeting with the relevant government agencies with regard to export of eggs. The team will also visit slaughterhouses and poultry processing units to see that

procedures are in line with Islamic slaughter. Speaking to Muscat Daily from India, Dr P V Senthil, secretary of Livestock and Agri Farmers Trade Association, India, said that process laid down by Oman is proactive, and if it is adopted by other countries, it will be a win-win situation for all. “A team from Oman visited Namakkal in Tamil Nadu, which is the largest egg producing and exporting region in the country, in July and inspected many poultry farms here. “Since then, the export of eggs to Oman has touched 40-50 containers per month (472,320 eggs per container). The latest visit by Omani officials will open doors for many other production units,” he added. Senthil added that exports from Namakkal saw a big drop last year because of Oman ban, but with new procedures in place it is slowly getting better. “The domestic industry incurred huge losses and is still running under losses, but it is far better placed than last year with exports to Oman now open,” he said.

Double by 2015

roiler meat production in India is set to nearly double to around six million tonnes in the next three years according to the country’s Associated Chambers of Commerce and Industry. The sector is growing at a compounded annual growth rate (CAGR) of about 10% with demand growing at over 15% due to the rising population, expanding middle class and growing penetration of quick service restaurants. However, the industry is facing challenges due to the absence of

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proper financial and marketing support, the lack of storage and processing facilities and the ever-rising feed stock prices. The industry body said that South India accounts for about 45% of the broiler meat production across the country while Andhra Pradesh also known as ‘chicken bowl of India’ accounts for about 20% of the total broiler meat production in India. A spokesman for the industry body also states that there are abundant opportunities for private and foreign investors in broiler processing as in many parts of India broilers are still slaughtered manually and sold in small neighbourhood shops. There is also a huge opportunity in the retail sector as demand for processed and packed meat is considered safe, hygienic and fresh by young customers.

Beverages & Food Processing Times - October - I - 2013

Dairy News

Dairy Sector Gujarat Dairies go Hi-Tech setIndian to touch $ 140 bn by 2020 : Report

ith an aim to provide speedy services to their members, dairies in Gujarat are going hi-tech. If Baroda Dairy has launched an online service portal to get connected with its village-level milk societies, Anand-based Amul Dairy has set up a call centre to offer ‘108 type’ services to milk producers in Anand and Kheda districts so that veterinary services can be provided to the members for their cattle. “The call centre has been set up to ensure that veterinary services are made available to farmers speedily. To start with, we have started this services for milk producers in two talukas - Anand and Petlad - before we roll out the services to rest of the talukas in Anand and Kheda districts from where we collect milk through our 1,200-odd village societies,” Amul Dairy’s chairman Ramsinh Parmar told.

The call centre works in three shifts and attends calls from milk producers. “The veterinary doctor, who is in the nearest area, is asked to attend the emergency call at the village level,” said Parmar, adding that the system generates two smses, one each for the doctor and the farmer. “While the farmer will get to know the name of the doctor and the place from where he or she will be reaching the spot, the doctor too comes to know about the location and the farmer who is in need of help,” said Parmar, adding that the system is designed in such a way that the dairy officials get perfect information on whether the veterinary services has reached the end user on time. Baroda Dairy’s online service portal connects 1,400-odd villagelevel societies whereby secretaries of the societies can send SMSs, give missed calls to avail services like

veterinary services, procurement of cattle feed and ghee among others. “We already have a call centre back up from where demands made by our members are handled manually. But there was a shortcoming in that system. Now, we have made the entire system automatic using data which is fed in the portal. There is a data bank of phone numbers of secretaries of all the milk societies. Once a secretary gives a missed call on the number, two SMSs will be generated in Gujarati language. While one SMS goes to the doctor, the other is received by the secretary. Once the doctor attends the call, the secretary will SMS us whether the problem has been addressed and the system in turn informs us that the call has been attended to,” Baroda Dairy’s vicechairman G B Solanki told. To make the system workable, Baroda Dairy has divided all the village societies in 33 zones. “A veterinary doctor is allocated a particular zone in which he is supposed to remain present from 8 am to 4 pm in the first shift. Similarly, there are doctors in each zone in second and third shifts. If a village society has demanded a special visit, the veterinary doctor of that zone first attends the special visit before he starts providing regular veterinary services. This has been designed to make the system paperless and provide real time services to farmers,” he said.

he size of Indian dairy industry in both organised and unorganised sectors is expected to double to USD 140 billion by 2020, on the back of growing demand and rising disposable income. “The Indian dairy industry, currently pegged at USD 70 billion (organised and unorganised), is expected to double by 2020,” a report by Investor Relations Society (IRS) said. The society is a global network of investor relations professionals. “On the back of a rise in disposable income and strong demand for dairy products, the Indian dairy industry is all set to experience high growth rates in the next 5-6 years.” the report said. While the dairy industry is growing at a compounded annual growth rate (CAGR) of 15-17 percent, the value-added products alone are growing way beyond 24 percent, it said. Milk is the country’s biggest agricultural produce, contributing 22 percent to agricultural GDP. India overtook the US in 1998 to become the world’s leading milk producer, accounting for over 15 percent of the global output, it said. The industry, which had been a national heritage, is now re-

emerging and catching the eye of investors due to its growth potential, it added. Growth in financials of existing domestic players, diversification into dairy sector by other companies, surge in private equity deals, entry of foreign firms in the segment are some of the broad indications that India’s organised dairy industry will remain on growth path at least till 2020, the report said. “The operating margins in valueadded products are almost 2x liquid milk business, thanks to changing consumption pattern due to rapid urbanisation,” IRS Chief Executive Officer Kailash Nichani said. The milk production alone is expected to cross 200 million tonnes by 2016 from the current 125 million tonnes. The government, too, appears to have realised the potential in this industry and has come up with some proactive measures to guide investors interested in setting up food processing units in different parts of India, the report said. The dairy sector has been liberalised in a phased manner since 1991. Many private players entered the market to set up processing facilities in areas with surplus milk.

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Beverages & Food Processing Times - October - I - 2013

DS Group launches premium milk brand Ksheer to take on Mother Dairy, Amul

ising milk prices are prompting dairy companies to expand their product offerings. While there are a number of companies in the packaged milk segment, only a handful such as Nestle, Mother Dairy, Amul, and Parag Milk are present in the Rs 1,500-crore highquality Ultra-High Temperature

(UHT) premium segment. Now, Dharampal Satyapal Group, or DS Group, has joined the bandwagon. The diversified DS Group launched UHT milk and cow ghee under the ‘Ksheer’ brand. The company, which forayed into the dairy segment last year, has started selling UHT milk in the national capital region in three variants -

Back Devendra Shah, Chairman of Parag Milk Foods Pvt Ltd, agrees with Dewan. “The unavailability of fresh and pure milk which consumers can trust in India was the motivation for us to start the Pride of Cows brand,” he said. Parag Milk launched the Pride of Cows brand in July 2011. Unlike other milk, Pride of Cows is not sourced from farmers. The company has its own farm. Shah said this ensures complete control over the quality of milk. The company has invested Rs 15 crore in the machinery at its farm. It delivers milk under this brand in refrigerated conditions to clients’ doorstep directly from the farm after pasteurisation. Its clientele include cricketer Sachin Tendulkar, actors Hrithik Roshan, Farhan Akhtar, Amitabh Bachchan, as well as Nita Ambani, wife of industrialist Mukesh Ambani. Pride of Cows delivers more than 3,000 litres a day at Rs 75 per litre, Shah said. A n g s h u m a n Bhattacharya, Director for Strategy Services Group at consulting firm KPMG India, says UHT milk category will continue

Toned, Double Toned and Slim ‘n’ Fit. It has priced the three variants at Rs 58, Rs 57 and Rs 60 per litre, respectively. The company also plans to launch flavoured milk and dairy whitener, it said in a press release. UHT milk accounts for less than 1 per cent of the total milk market in India and 4 per cent of the organised milk segment, according to International Market Analysis Research & Consulting. The UHT category is likely to grow 20 per cent annually between 2011 and 2017, the market research firm says. Amul, the flagship dairy brand of the Gujarat Cooperative Milk Marketing Federation, recorded 53 per cent growth in demand for UHT milk during 2012/13. Anshu Dewan, Director at DS Milk Products Ltd, said demand for safe and healthy milk is rising in India because of concerns of adulteration. “The brand ‘Ksheer’ symbolises the ocean of milk, which represents purity,” he said.

to grow also because the cold supply chain in the country is not developed. There is no need for a cold supply chain in case of UHT milk as the product has long shelf life. “The eastern and northeastern markets, which have traditionally been milk-deficient, used to earlier consume dairy whiteners and condensed milk. These regions are becoming a big market for UHT milk as the product can be shipped from other parts of the country under ambient conditions, unlike polypack milk,” he adds.

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