Farm Fresh Diary - Product marketing and development

7/31/2019 Farm Fresh Diary - Product marketing and development

1/17

RAHUL AGARWAL

SAHIL GUPTA

ADITI SAXENA

FARM FRESH DIARY

SPARTANS 2


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CountrySaudi Arabia

Product- Dairy Product

Reason for Selecting Saudi Arabia

1. Demand for milk products in Saudi Arabia is high.2. Imports of milk products in Saudi Arabia are increasing for 4% annually.

Product description

The individual products under this sub-head are as below:

Butter Fresh Butter MilK Butter Oil Fresh Cheese Milk & Cream in Powder Milk for Babies Other Fat Skimmed milk powder Ghee


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The products I selected are Dairy products. The products I will sell to Saudi Arabian markets are

more in demand.

1) Consumers are more health conscience and dairy products are considered a healthier

digestive alternative.

2) Consumers in Austria have increasingly more money to spend.

3) Austrian restaurants have been offering more seafood on their menus resulting in Austrianswanting to cook fish/seafood at home.


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Cost of Milk production by world region shows the simplified global overview milk production costs:-

Africa have the lowest milk production cost. Western Europe, North America and the Middle East have the highest cost. Cost in Eastern Europe, S America, Asia and Oceania are on a similar level of 18 to 37 US $ per

100kg Milk.

So due to effective low cost of production, dairy product can be made available at a cheaper rate than

other country.

Trade Performance HS : Imports of dairy products, eggs, honey, edible animal

product (2009, in USD thousands)Rank Country Import

value

Imports as a

share of total

imports (%)

Imports as a

share of world

imports (%)

Growth of

imports in

value (% p.a.)

Net trade

0 World 56,246,472 100.0000 0.4300 6 714,570

Source International Dairy Federation 2010
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1 Germany 6,621,852 0.7100 11.7700 7 1,323,544

2 Italy 3,953,343 0.9600 7.0300 3 -1,711,537

3 United

Kingdom

3,431,466 0.7100 6.1000 3 -2,216,856

4 France 3,269,418 0.6000 5.8100 8 3,254,456

5 Belgium 3,052,768 0.8700 5.4300 4 6906 Netherlands 2,742,020 0.7200 4.8800 1 3,709,559

7 Spain 2,256,719 0.7800 4.0100 7 -1,131,617

8 United States

of America

1,701,908 0.1100 3.0300 0 246,879

9 Russian

Federation

1,259,357 0.7400 2.2400 6 -1,033,494

10 Japan 1,155,894 0.2100 2.0600 2 -1,110,325

11 Mexico 1,065,460 0.4500 1.8900 -2 -902,516

12 Hong Kong ,

SAR China

1,048,602 0.3000 1.8600 15 -959,415

13 China 1,046,337 0.1000 1.8600 23 -706,018

14 Greece 979,553 1.4600 1.7400 6 -607,034

15 Saudi Arabia 909,218 0.9500 1.6200 -3 -532,52116 Algeria 862,555 2.2000 1.5300 4 -860,270

17 Austria 789,227 0.5800 1.4000 8 411,282

18 Singapore 776,084 0.3200 1.3800 8 -512,475
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World total milk production in 2009

Introduction Shipping Bill / Bill of Export Customs Declaration Form Dispatch Note Commercial invoice Consular Invoice

Rank Country Exports in

value

Exports as a

share of total

exports (%)

Exports as a

share of world

exports (%)

Net trade Specialisation

(Balassa Index /

RCA Index )

1 Germany 7,945,396 0.7000 13.9500 1,323,544 1.6

2 France 6,523,874 1.4100 11.4500 3,254,456 3.1

3 Netherlands 6,451,579 1.4900 11.3300 3,709,559 3.3

4 New Zealand 5,101,356 20.4600 8.9600 5,019,769 45.55 Belgium 3,053,458 0.8300 5.3600 690 1.8

6 Denmark 2,282,168 2.4700 4.0100 1,720,990 5.5

7 Italy 2,241,806 0.5500 3.9400 -1,711,537 1.2

8 United States

of America

1,948,787 0.1800 3.4200 246,879 0.4

9 Australia 1,683,472 1.0900 2.9600 1,268,238 2.4

10 Ireland 1,533,780 1.3100 2.6900 1,054,457 2.9

11 Poland 1,452,934 1.0600 2.5500 1,010,381 2.4

12 United

Kingdom

1,214,610 0.3500 2.1300 -2,216,856 0.8

13 Austria 1,200,509 0.9100 2.1100 411,282 2.0

14 Spain 1,125,102 0.5000 1.9800 -1,131,617 1.1

15 Belarus 1,034,522 4.8600 1.8200 992,704 10.8

16 Argentina 809,451 1.4500 1.4200 791,398 3.2

17 Czech

Republic

657,001 0.5800 1.1500 114,102 1.3

18 Switzerland 651,636 0.3800 1.1400 105,145 0.8

19 Finland 477,214 0.7400 0.8400 137,299 1.6

20 Ukraine 476,433 1.2000 0.8400 335,999 2.7

21 Lithuania 468,932 2.8400 0.8200 363,709 6.322 Uruguay 384,019 7.1300 0.6700 374,649 15.8

23 Saudi Arabia 376,697 0.2000 0.6600 -532,521 0.4

24 Greece 372,519 1.8600 0.6500 -607,034 4.1

25 Sweden 350,753 0.2700 0.6200 -415,961 0.6

26 Luxembourg 343,258 2.6800 0.6000 -37,713 6.0

27 China 340,319 0.0300 0.6000 -706,018 0.1

28 Portugal 318,048 0.7300 0.5600 -281,236 1.6

29 Brazil 298,483 0.2000 0.5200 25,283 0.4
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Customs Invoice Legalised / Visaed Invoice Certified Invoice Packing List Certificate of Inspection Black List Certificate Manufacturer's Certificate Certificate of Chemical Analysis Certificate of Shipment Health/ Veterinary/ Sanitary Certification Certificate of Conditioning Antiquity Measurement Shipping Order Cart/ Lorry Ticket Shut Out Advice Short Shipment Form

Introduction

An exporter without any commercial contract is completely exposed of foreign exchange risks

that arises due to the probability of an adverse change in exchange rates. Therefore, it becomes

important for the exporter to gain some knowledge about the foreign exchange rates, quoting

of exchange rates and various factors determining the exchange rates. In this section, we have

discussed various topics related to foreign exchange rates in detail.

Export from India required special document depending upon the type of product and

destination to be exported. Export Documents not only gives detail about the product and itsdestination port but are also used for the purpose of taxation and quality control inspection

certification.

Shipping Bill / Bill of Export

Shipping Bill/ Bill of Export is the main document required by the Customs Authority for

allowing shipment. A shipping bill is issued by the shipping agent and represents some kind of

certificate for all parties, included ship's owner, seller, buyer and some other parties. For each

one represents a kind of certificate document.

Documents Required for Post Parcel Customs Clearance

In case of Post Parcel, no Shipping Bill is required. The relevant documents are mentioned

below:

Customs Declaration Form - It is prescribed by the Universal Postal Union (UPU) andinternational apex body coordinating activities of national postal administration. It is
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known by the code number CP2/ CP3 and to be prepared in quadruplicate, signed by the

sender.

Despatch Note- It is filled by the exporter to specify the action to be taken by the postaldepartment at the destination in case the address is non-traceable or the parcel is

refused to be accepted.

Commercial Invoice - Issued by the exporter for the full realisable amount of goods asper trade term.

Consular Invoice - Mainly needed for the countries like Kenya, Uganda, Tanzania,Mauritius, New Zealand, Burma, Iraq, Ausatralia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar

etc. It is prepared in the prescribed format and is signed/ certified by the counsel of the

importing country located in the country of export.

Customs Invoice - Mainly needed for the countries like USA, Canada, etc. It is preparedon a special form being presented by the Customs authorities of the importing country.

It facilitates entry of goods in the importing country at preferential tariff rate.

Legalised / Visaed Invoice - This shows the seller's genuineness before the appropriateconsulate or chamber or commerce/ embassy.

Certified Invoice - It is required when the exporter needs to certify on the invoice thatthe goods are of a particular origin or manufactured/ packed at a particular place and in

accordance with specific contract. Sight Draft and Usance Draft are available for this.

Sight Draft is required when the exporter expects immediate payment and Usance Draft

is required for credit delivery.

Packing List - It shows the details of goods contained in each parcel / shipment. Certificate of Inspection It is a type of document describing the condition of goods

and confirming that they have been inspected.

Black List Certificate - It is required for countries which have strained political relation. Itcertifies that the ship or the aircraft carrying the goods has not touched those

country(s). Manufacturer's Certificate - It is required in addition to the Certificate of Origin for few

countries to show that the goods shipped have actually been manufactured and is

available.

Certificate of Chemical Analysis - It is required to ensure the quality and grade ofcertain items such as metallic ores, pigments, etc.

Certificate of Shipment - It signifies that a certain lot of goods have been shipped. Health/ Veterinary/ Sanitary Certification - Required for export of foodstuffs, marine

products, hides, livestock etc.

Certificate of Conditioning - It is issued by the competent office to certify compliance ofhumidity factor, dry weight, etc.

Antiquity Measurement It is issued by Archaeological Survey of India in case ofantiques.

Shipping Order - Issued by the Shipping (Conference) Line which intimates the exporterabout the reservation of space of shipment of cargo through the specific vessel from a

specified port and on a specified date.

Cart/ Lorry Ticket - It is prepared for admittance of the cargo through the port gate andincludes the shipper's name, cart/ lorry No., marks on packages, quantity, etc.


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Shut Out Advice - It is a statement of packages which are shut out by a ship and isprepared by the concerned shed and is sent to the exporter.

Short Shipment Form - It is an application to the customs authorities at port whichadvises short shipment of goods and required for claiming the return.

Export Procedure

INTRODUCTION

1.1. The requirements for the approval of the establishments to process Milk products meant

for export have been notified vide GOI Order and Notification S.O. 2719 and S.O 2720 both

dated 28.11.2000, on the basis of which the establishments processing milk products meant for

export are being approved by the Competent Authority (Export Inspection Agencies established

under Section 7 of the Export (Quality Control and Inspection) Act, 1963).

1.2. The Primary responsibility for meeting the health requirements of importing countries and

also those specified in the GOI Notifications lies with the processing establishments themselves,

for which these establishments are required to plan and implement detailed HACCP based

process control (own check system) and to maintain necessary records. The role of Export

Inspection Council of India (EIC)/EIAs is to exercise official control by approving the units and

implementing an effective surveillance system to ensure compliance to requirements as per

clause 3 of the Notification No.S.O. 2720 dated 28 November 2000.

2.2 Processing applications for approval

2.2.1 Applications received shall be scrutinised by the EIA office where it has been received and

the discrepancies/ shortcomings observed should immediately be communicated to the

applicants for rectification. A copy of application along with relevant documents and commentsof the Officer Incharge of Sub-Office or Officer In-charge of Food Scheme (as applicable) shall be

forwarded to Incharge of the Agency within seven working days after receiving it complete in all

respect. Adequacy audit of the HACCP manual and SSOPs shall be carried out by an EIA officer,

having adequate knowledge of HACCP authorised by In-charge of the Agency. The adequacy

audit report as per Annexure IIA along with the Audit Observation sheet (Annexure IIB) and the

documents shall be forwarded to the In-charge of the Agency within five working days.

The application shall further be scrutinised by In-Charge of Food Scheme or a suitable officer

authorised by him and deficiencies, if any, shall be communicated to the applicant for

rectification.

2.2.2 When the application is complete in all respect, In-charge of the Agency shall depute a

suitable officer as required by Clause 2.3.2 as Convener of Inter Departmental Panel (IDP) for

assessment of the establishment.

2.2.3 Application pending for more than one year due to non-compliance by the establishment

shall be rejected. However, the unit may apply afresh with all required documents and fees.

2.3 Assessment of the establishment


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2.3.1. The Convener of IDP shall ensure that assessment of applicant establishment is carried

out within fifteen working days of receipt of their application complete in all respect.

In case of initial approval of the establishment, the IDP shall assess the unit in two stages. In the

first visit the IDP shall assess the infrastructure and equipment facilities of the establishment

and also their compliance of regulatory requirements specified in the GOI Notification/

Executive Instructions and if satisfied recommend for the conditional approval of theestablishment. In case the Competent Authority grants conditional approval, the

establishments will be allowed to start processing of milk/manufacturing of milk products

meant for export (however, export to the EU countries will be permitted only after the

acceptance by EC). The processor shall intimate the Agency as soon as production has

commenced. While the processing activities are in progress, an IDP shall visit the establishment

again for on-site verification of compliance with the regulatory requirements specified in the

GOI Notification/ Executive Instructions with respect to the GHP, GMP and HACCP based

procedures Based on the satisfactory assessment report of the IDP, the full approval shall be

granted to the establishment by the Competent Authority.

3. PROCEDURE FOR APPROVAL OF ADDITIONAL FACILITIES/ ACTIVITIES OF

APPROVED ESTABLISHMENT

3.1 The approved establishments seeking approval of additional facilities/activities shall submit

their application in the prescribed format placed at Annexure X in duplicate along with relevant

documents as mentioned in the application form to the controlling local office of the Export

Inspection Agency and also with the application fee as prescribed in clause 17.

3.1.1 Application(s) received shall be scrutinised and the discrepancies / shortcomings observed

shall be immediately communicated to the applicant for rectification. In case of the approval of

additional processing activity, the revised HACCP plan addressing the new activity shall be

submitted to the EIA concerned along with the process flow chart for verification. Adequacy

audit of the HACCP manual with respect to the additional activities shall be done by EIA

officer(s) authorized by the In-charge of the Agency.

4. PROCEDURE FOR RENEWAL OF APPROVAL OF ESTABLISHMENT

4.1 The approved establishment seeking renewal of approval shall submit application(s), induplicate, at least Sixty days in advance of the expiry of earlier approval to the controlling local

office of the EIA in the form prescribed at Annexure XI along with relevant documents and

application fee as rescribed in clause 17. EIA may remind the processor (As per Annexure XII)

Seventy five days before the expiry of the approval.


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4.1.1 Application(s) received shall be scrutinised and any discrepancies / shortcomings

observed shall be immediately communicated to the applicants for rectification.

4.1.2 Applications, complete in all respect shall be forwarded to the In-charge of the Agency for

arranging assessment of the establishment. The Convener-IDP shall ensure that assessment of

applicant establishment is carried out at theearliest.

5. PERMISSION TO PROCESS AND PACK MILK PRODUCTS FOR EXPORT BY MERCHANT

EXPORTER

5.1 Approved establishments shall be permitted to process and pack milk products for export

by one or more merchant exporter(s), depending upon their production capacity. However,

only a maximum of three merchant exports are permitted at a given time.

5.2 Approved milk product establishments and the merchant exporter(s) shall also be permitted

to export on account of Export Houses, Trading Houses, Star Trading Houses or Super Start

Trading Houses only. However, it may be ensured while issuing Certificates for Export (CFE) for

such onaccount export, the column no.1 of the certificate should contain the details of the

exporter as well as the on account exporter.

5.3 Establishments intending to process and pack milk products on behalf of merchant

exporter(s) should submit their application to the EIA concerned as per the format given at

Annexure XV, along with a fee as prescribed in clause 17 and also the documents specified

therein. Application complete in all respect shall be considered by EIA, based on the capacity

fixed for daily production visavis the requirements of the merchant exporter(s).

5.4 Approval to process/handle milk products meant for export by the merchant exporter(s) isgiven by the EIA concerned as per the format given at Annexure XVA.

5.5 Certificate for Export (CFE) issued by the approved establishment meant for export for the

merchant exporter/ Export House is to be got counter signed by the EIA concerned, for which a

fee as prescribed in clause 17 has to be paid for each certificate by the processor to the EIA

concerned.The EIA may collect the monitoring fee directly from the merchant exporter on

request from theapproved establishment.

5.6 When an approved processor requests EIA for cancellation of permission given to process

and pack milk products for any merchant exporter, the permission shall be withdrawn usingformat given at Annexure XVB.

6 Quality Control

Proper quality control measures/sampling plan shall be established by the processor,

documented and implemented to ensure the wholesomeness of the products processed.

a) Primary Production:


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The establishment shall exercise proper controls over the identified Milk Production holdings

from which raw milk is being procured. The establishment shall conduct periodic audit for

verification of requirements for GHP, Food safety, animal health, water, feed and feed

additives, etc. as specified at Annexure IC. The verification may also include testing of

samples drawn from the farms, wherever applicable.

Theprocessor shallinitiate procedures to ensure that raw milk meets following criteria:Plate count at 30 Deg C (per ML) < or equal to 100000(*)

(For raw cowmilk)< or equal to 1500000( for milk fromother species)

Somatic Cell Count (per ml)


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between m and M) (It is at the end of manufacturing process)

Ice-cream

Salmonella n = 5, c =0, m = Absent in 25 gm , M = Absent in 25 gm (where n = number

of units comprising the sample, c = number of sample units giving values between m and

M) (It applies when products are placed on the market during their shelf life)

Enterobacteriaceae- n = 5, c =2, m = 10 cfu/ gm , M = 100cfu/gm (where n = number ofunits comprising the sample, c = number of sample units giving values between m and

M)(It applies at the end of manufacturing process)

Cheese, Milk powder & whey powder

Staphylococcal enterotoxins- n=5, c=0, m= not detected in 25 gm, M= not detected in 25

gm, where n = number of units comprising the sample, c = number of sample units giving

values between m and M) (It applies when products are placed on the market during their

shelf life)

Dried Infant formula and dried dietary foods

Enterobacter sakazaki- n-30,c=0, m=Absent in 10 gm, M= Absent in 10 gm gm where n =

number of units comprising the sample, c = number of sample units giving values between

m and M) (It applies when products are placed on the market during their shelf life)

Enterobacteriaceae- n =10, c =0, m = Absent in 10 gm , M = Absent in 10 gm (where n =

number of units comprising the sample, c = number of sample units giving values between

m and M)(It applies at the end of the manufacturing process)

Pasteurised milk and other pasteurised liquid Dairy products

Enterobacteriaceae- n =5, c =2, m =


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*Failure of sanitary samples for TPC, Coliforms or S. aureus in three consecutive instances

may be considered as major deficiency

7.2 Actions to be taken in case of deficiencies observed

7.2.1 In case of minor deficiencies observed during the visit, the non-conformities shall be

communicated to the processor through the NCR and EIA officer shall verify the correctiveactions taken by the processor, during the subsequent visit. However, if the processor fails to

rectify the defects within the agreed time period, then the action specified at 10.2.2 shall be

followed.

8 EXPORT CERTIFICATION

8.1 Certificate for Export (CFE)

8.1.1 Procedure

Since all the consignments of milk Products meant for export should undergo quality control

and inspection prior to shipment and should be accompanied by a Certificate for Export (CFE) as

per the format given at Annexure XXI, the approved processing units shall issue a Certificate for

Export (validity for which shall be forty five days from the date of issue) for every export

consignment. Certificate blanks shall be obtained from the EIA concerned by payment of

charges as per clause 17.

Each set of certificate blank will consist of original (in white) intended for Indian Customs;

duplicate (in pink) to be forwarded to the local office of EIA and the last two copies (in green

and blue) for the use of the processing unit. EIAs shall maintain proper records of issuance of

blank CFEs and their utilisation by the establishments.

The responsibility for the maintenance and proper utilisation of the CFEs issued to them lies

with the approved establishment. They shall issue CFEs only for those milk products that are

processed in their approved establishment and have undergone all the quality checks/ testsspecified. The establishment is liable for penal action for the misuse of CFEs issued to them.

Only persons authorised by the establishment shall be allowed to sign the CFEs and the list of

persons authorised to sign CFEs shall be made available to the EIA.

If the validity of CFE is expired, then the same can be revalidated upto another thirty days and

the monitoring fee will not be charged again, if there is no upward revision in FOB value.

However no refund will be given in case of downward revision in FOB value.

In case of cancellation or damage of CFE, the establishment has to submit the original of the

cancelled CFE to EIA, with other three copies (full set) and original Health Certificate (HC) (if

already issued) pertaining to the CFE.

8.1 .2 Issuance of Certificate for Export

8.1.2.1 Books of CFE blanks shall be issued on request from the approved processing

establishment only after the approval of DD In-charge of the scheme/ officer in-charge and

after the previous CFEs issued have been accounted for and paid for. However exporters may

have up to 5 sets remaining so as not to cause any operational problems.


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8.1.2.2 Every approved processing unit must have a Pass Book account system operating with

the controlling office of EIA. The processor shall ensure that adequate balance is always

maintained in their deposit account with EIA for the payment of monitoring fee and other

certification fee. No CFE blanks shall be issued unless there is adequate balance in their

account.

8.1.2.3 In case of lost certificates, exporter shall submit an indemnity bond to that effect to the

EIA concerned as per the format given at Annexure-XXII. EIA, in turn, shall inform the Customs

to check that those numbers have not been presented to them. Further, Customs shall be

informed not to accept those specific certificates in future.

WORLD MILK PRODUCTION STATISTICS (including cow/buffalo/goat/sheep/camel milk)

Rank Country Production (106 kg/y)

World 696,554

1 India 110,040

2 United States 85,859

3 China 40,553

4 Pakistan 34,362

5 Russia 32,562

6 Germany 28,691

7 Brazil 27,716

8 France 24,218

9 New Zealand 15,217

10 United Kingdom 13,237

11 Italy 12,836

12 Turkey 12,542


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13 Poland 12,467

14 Ukraine 11,610

15 Netherlands 11,469

16 Mexico 10,931

17 Argentina 10,500

18 Australia 9,388

19 Canada 8,213

Logistics

Logistics is the management of the movement of goods and materials from origin to

destination. It can be a process which carries significant financial risk. This activity is a key

element which requires integration with all other activities involved in the supply chain. The

process and risks become greater when the transaction is international. This one day seminar

will assure that the student understands all of the major aspects of international logistics

including establishing the terms and conditions of the sales contract, determination of the total

cost of acquiring the goods, and the physical movement of the goods via the selected modes of

transportation. All of these topics are essential to successfully managing international logistics

activities.

Successful international trade transactions require the ability and knowledge to enable you to

route your shipments to your advantage. Effective management of your logistic activities will

result in significant control over your import and export transactions

HOW YOU WILL BENEFIT

Acquiring this knowledge will enable you to route your shipments more profitably.

Understanding the concept and mechanics of the logistics process will allow you tomake the most favorable decisions regarding the movement of your goods.

Effective management of your logistics activities will result in significant control overyour import and export transactions.

Learn differences between International and Domestic transport processes Control the International movement of goods to your advantage and profit Terms and Conditions of Sale Contract


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Determining the total cost of acquiring the goods Choice of the selected mode of transportation Customs Clearance and Customs Clearance India

Customs Documentation

Carting/Receiving Goods Examination of Shipments - Handling of stuffing & de-stuffing at ports, ICD's and

Customers warehouse